All Forum Posts by: Jeff Nash

Sri, where are you located?  

There are various online services that you are probably aware of, and I won't call out any by name, that facilitate what you are requesting. In my opinion, they might be more limited in their service and offering than finding and developing a relationship with someone directly that you can work with over the course of your career as things change. I don't doubt that it might be more costly, but the value and benefit created should exceed that in the long run. Plus if I'm wearing my tax hat it will be a deduction as legal and professional fees for what it's worth. I know many online providers often have various disclaimers on their deliverables and they might not be monitored and properly updated for changes in circumstances (estate planning). One thing I can say too is this - I like many CPAs and tax professionals can handle the very basics - state filing to creat entities and obtaining the EIN as applicable. This can generally allow you to set up a business bank account and go off and running. What we technically can't do is charge for such things as operating/partnership agreements and ensure it contains all that is needed or required for your purposes. It would be unauthorized practice of law. You should ensure you have all areas covered and the legal entity set up is iron clad for your purposes. You don't want to pay for something and then later come to find out it did not do what was intended (ie protect you in the case of an LLC). Feel free to message me and I'll brainstorm on if I have any recommendations to help.

@Todd Goedeke Dave Ramsey’s name was mentioned and I didn’t need to say anything, but I wanted to. In my opinion (which I am entitled to express and understand there will be differences among us), he does not offer anything other than rudimentary commentary.  I am pretty sure my viewpoint is shared by just as many as those that are ardent supporters of Dave Ramsey like yourself apparently.  I believe Dave Ramsey is a very talented spokesperson and influencer and it’s undeniable that there are a lot of people that will proclaim that he has helped, which is great.  I just personally don’t like his style and think he is more of a promoter than anything else, which can be said for many people we hear and see regularly.  He is not a licensed financial professional, which is convenient because he does not have to adhere to strict regulatory standards such as disclosing conflicts of interest and how he gets compensated as noted.  

As I said before I do not disagree with advice like paying down “bad” debt; however, he seems to not like debt in and of itself which in my opinion runs counter to what many on BP and other forums would view as a useful and often necessary tool and method for accumulating wealth in real estate.  So in my opinion, that might not be the best advice; it depends on the context and someone’s situation as I frequently will state on nearly all of my posts.  Dave Ramsey might feel the way he does about debt because he got burned and declared bankruptcy (a publicized fact), and you are influenced by your past and learn from it and others might benefit from sharing.

My biography is what is it and is fully disclosed on several public websites by 3rd party regulators (TSBPA, FINRA, NFA, TDI, etc) and reiterated on several of my own.  I’ve been doing what I’ve been doing in public accounting and financial services in combination to various degrees for over 23 years and helped many people, not millions mind you.  There are no public testimonials because I have limitations and restrictions on that sort of thing. If you actually have to work one on one with people and dig deep into their situations, touching millions is not feasible nor is it some personal goal of mine.  I would not be any good at grabbing a mic and gabbing for hours each day. 

Anyway, I did not mention or call you out personally on my original post here for a reason, and now I’m done and no additional response is warranted or will be made on my part (mic dropped).

@Stanley J Black can help.

There are a number of considerations and more information is necessary.  Skim over Publication 925 and you'll see what I mean, and I would address with a tax professional.  You might also consider a 1031 exchange if you intend to reinvest some or all of the net proceeds in other real property, including DSTs.   Feel free to reach out.

Passive losses offset passive income. It sounds like you would be effectively able to manage the real estate income as you described.  Overall though I am wondering about other planning opportunities.  

I’ll jump back in here and digress for a bit and make a few comments that I’ve seen here and in other more recent posts. 

As I previously noted, based on the fact pattern described whole life really is not appropriate or a good option; however, in the right situation and for the right person permanent life insurance (aka cash value), which might consist of whole life, IUL, VUL, etc, can be very useful.  I am a CPA and CFP (financial/investor advisor, whatever label) and my family uses a combination of both term and whole life as part of our financial plan.  We believe it it very valuable for protection, legacy planning, education planning, long-term care perhaps, and as a supplement to our investment portfolio.  It is multi-faceted and might be called upon for any number of these purposes (the cash value can be reused).  We don’t put all of disposable income into it as it represents one piece of the ongoing puzzle. From an advisory standpoint, it can be used in some less conventional situations such as for executive compensation and buy-sell agreements for example.  

I know there are plenty of insurance agents that want you to allocate a considerable amount to insurance regardless, as they are not fiduciaries and that’s how they make a living. They sell product only in many cases, and if you are working with someone you must apply some critical thinking and skepticism to their advice and see if it is in your best interests.

I frankly get annoyed when I see and hear comments about high compensation of insurance agents as an argument against using it, as that is really not relevant if the ultimate solution is good and valuable.  For life insurance agents they get paid by directly by the insurance companies they represent. Real estate agents and loan officers can be highly compensated just the same (they have strong lobbies) and their industries set it up so they are paid commissions (which I don’t think is a dirty word), but the difference is that the public just views those products or services more as an inevitable necessity compared to insurance.  Not choosing to do something because you don’t want someone to be paid makes no sense (cutting off ones’s nose to spite one’s face).  If you are about to sell a house and see that the realtor commissions are 6% on the CD are you going to call it off?  That’s the conventional standard that has been set, but I’m just putting that out there as an example. Same thing can be said for a loan officer, title insurance, attorneys, etc.  I still view their services as valuable and necessary and their compensation by itself is not a deterrent or distraction.  I know too that with all these professions (realtors, LOs, insurance agents) that considerable time is also spent with prospects or clients where they do not get paid at all.  That is hard to gauge but it certainly is true.

I saw the mention of Dave Ramsey who is not a financial advisor (or fiduciary), but rather a financial entertainer.  In most cases he tells you the obvious (stay out of bad high interest credit card debt) and he appeals to the masses in which permanent life insurance may not be a good solution (ie so term would be better for protection only). He has a number of conflicts of interest and is not required to disclose them. I could take it in another direction if you wanted to pan annuities and say Ken Fisher (who actually is a financial advisor and fiduciary) is right as they have “nose bleed fees”.   For his firm, he has chosen to be compensated by managing traditional investment portfolios, so anyone using annuities would take away from his potential AUM so he tries to attract and convert them. He probably does not like real estate or alts either for the same reason, but annuities are just easier to jab at and are more liquid. Annuities are a form of insurance (opposite of life) and get similar negative attention and criticism, and my take is they can serve a purpose for the right person in the right situation.  Allen Iverson or Bobby Bonilla should be thankful for their advisors (look it up)! 

Anyway, I just felt like elaborating and to emphasize that you have to evaluate someone’s situation thoroughly, and of the financial products and services available I would not label anything in particular outright bad, it just may not be appropriate or as useful depending on the context of the situation. 

Take a look at Independent Financial.  They are headquartered where I am at in McKinney and I have gotten good feedback from the clients. I was just down in Austin last week and know they have a good presence.

@Denver McClure and/or @Harrison Sharp might be able to help. 

Yes, it’s under Finance and should show up as Tax, SDIRAs & Cost Segregation.  Just keep looking at the subcategories and groups.  What is your specific question or concern? 

I’ll check and see if I can make a recommendation.  I have a Zoom call tomorrow with an attorney out of Baltimore.