Ep 104 – Setting Up Your Asset Protection the Right Way & Real Estate Tax Advantages | with Tommy Thornburgh - Rent To Retirement

You’ve heard time and again that real estate is the most tax favored asset class. You’ve heard it because it’s true. But how do you take advantage of those benefits and how do you make sure your CPA is doing their job correctly?

Adam Schroeder talks with Prime Corporate Services’ Tommy Thornburgh about how you can set up your entity structure properly to protect your hard earned assets, and how you can utilize the tax benefits to keep your hard earned money.

Learn more about Prime Corporate Services by clicking HERE

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Transcript:

Adam

It’s Adam Schroeder here with another episode and we are going to talk today about something that is one of the most frequent questions I get from clients that I’m talking to him. And that is asset protection. We are joined today by Tommy Thornburgh. He is with Prime Corporate Services. And we are going to dive into a little bit well, we’re not going to dive into we’re going to rise up to the 30,000 foot and then we’re going to jump off that 30,000 foot and end up in a swimming pool. I think… Tom, welcome to the show.

Tommy
Awesome. Thank you so much. Thank you for having me.

Adam
Absolutely. So let’s start with the from the 30,000, like we talked about, when it comes to asset protection. There’s a whole lot of different ways you can structure it. There’s a whole lot of thoughts out there about it. So how protected can you make your assets? I mean, you can’t make everything completely bulletproof because your tenant lives in the house, they can find out who owns it, but how protected can your assets become?

Tommy
Yep, for sure. I mean, just so everyone knows, we were talking about this right before we started started recording. And the hardest thing about asset protection and tax savings, is if you ask 100 attorneys and 100 CPAs, you’re gonna get 100 different variations of an answer. And a lot of times it becomes so opinionated, that it’s hard to make the decision, it creates a lot of analysis paralysis, if you will. So I’m happy we’re going 30,000. And, like you said, diving into this swimming pool here. But when it really comes down to it, we have to weigh your risk tolerance. Right, everyone’s different, everyone’s risk tolerance is different. And if we understand that, we’re really trying to accomplish three things. It simplifies this process quite a bit. The three things that you want to worry about and that you’re trying to accomplish is privacy and protection, your animating piece, tax benefits, profit and loss, and showing yourself as a legal and a legitimate business. So where there are a lot of options, you can avoid getting sued. But you can absolutely make it more difficult. And you can absolutely give yourself more privacy and protection in the case where they can’t find your name, or they can’t find your address. And I think ultimately, that’s what people really want.

Adam
Yeah, so one of the things when we’re talking about is, you know, different states have different privacy rules, obviously, some of the big ones like you were talking about Wyoming, Delaware, Nevada, those are the kind of big ones, but how is it a problem if you get sued, and let’s say you have a Wyoming LLC, and they get in there? And they say, Well, why does Adam who lives in Texas have a Wyoming LLC? Does that matter at all? Does that kind of hurt your case? And doesn’t make it look like you’re getting trying to get around something? Or how is that perceived? In a situation like that?

Tommy
Yeah, this is a great question. I mean, you usually are gonna if you get questioned by anyone, it’s usually going to be a bank, when you’re opening up the bank account. But even then, it’s not illegal to have a business structure in another state. It’s really a tax thing, right? A lot of people think that you’re setting up Delaware and Nevada and Wyoming entities because there’s no state income tax. And a lot of people think that you’re doing that to avoid the state income tax, that’s not the case at all. You need to you need to file taxes where you’re located, or simply utilizing that strategy, because the additional benefits that those states have to offer around an amenity. So even using myself as the example, I have a holding company that I set up out of Wyoming, I don’t do any business with it. I have a bank account with it, but I don’t do any business with it. My holding company owns all my subsidiary entities. So that if one of my subsidiary entities was to get sued, they would see that it’s owned by a holding company. And if they tried to look at the owner of that holding company, it’s private information due to the laws out of Wyoming. So it’s not illegal by any means as long as the taxes are being filed and prepared properly.

Adam
Yeah. Now, you also mentioned one of the things is risk tolerance, which is another question that I get asked and I think I give the right answer to but I’ll check with the with you, and essentially, the risk tolerance is how much equity you have in each LLC, is that correct? Because if they get into that LLC, they can acquire equity. So maybe if you have, you know, a bunch of lower priced properties, you can put more in there because your equity position isn’t as high. But if you’ve got, you know, four different $300,000 homes that are halfway paid off, then that might be a ton of equity to have in that LLC. Is that an accurate assessment of what your what you mean, when you’re talking about risk tolerance? Or is it something else?

Tommy
That’s 100% the way that I like to think about it as well, I think that $10,000 is a different amount of money to everybody. 50,000 100,000 500,000, those numbers vary for everyone’s mental state, everyone’s financial situation. Right. So I have some clients that want to put every single rental property in a different LLC, I have other clients that will put 10 houses in one LLC, and they could care less, they just want to keep moving and grooving. So obviously, the 10 and one LLC is a much higher risk tolerance If one was to get sued. But it also depends on the state that you’re living in. Right? If you’re in California, for instance, I don’t want you to have an entity for every property, you’re paying $800 per right. At what point does it not make sense financially, either? So what is the risk tolerance based off of equity? What state are you earn? And are your properties located in and understanding the pros and cons to make the best decision for yourself? I think that’s that’s very, very important to understand. When you’re deciding how many properties per door what the equity is, and what the long term goal with that property is, are you wholesaling? Are you flipping, or if you are long term holding, we want to make sure that you have that protection. And tax wise, we want to make sure that that’s not being considered active income, it’s more passive income to learn about overall tax rate as well.

Adam
So when you’re talking about the holding company, the Wyoming Delaware, Nevada, those kinds of things, what is, you know, then you talk about having California LLC is potentially because of your properties? Do you need the you know, an LLC in every state that you’re in? And if so, doesn’t that kind of eliminate the anonymity that you’re getting? Or is it just because in your situation, what you’re talking about is, because the top one is anonymous, that kind of solves the issue of if state be, you know, the state where the property is, doesn’t have that same protection?

Tommy
Yeah, this is a great question. So every state is different. I’m going to start with that disclaimer, I’m the 30,000 foot view. How is it for me to bake every answer as complicated as possible, right. But every state really is that different. So my Wyoming holding company owns all my other companies, whether it was California, Montana, Utah. So it’s not Tom and Thornburg that owns those entities. It’s my holding company out of Wyoming, which is what gives me the additional privacy and the protection. Right. But with that being said, you don’t have to have a different LLC, if you’re doing business in 40 states, you don’t have to have 40, LLC, you could if you really wanted to. But you can also do what’s called a foreign entity form, which still gives you the taxes. Because what we don’t want to do is we don’t want to raise a red flag with the IRS. A lot of people try and do this that live in California. And try and avoid all the additional taxes if you live in California, pay the taxes where you’re located and avoid any any headache, right? I use California as my poster child, if you can’t tell because that New York, Massachusetts tax that UCITS there, you’re you know, you’re paying for the weather. So if we have the protection, I think that’s ultimately the most important. And if we have tax strategy, then you’re gonna allow yourself the ability to lower those points from a tax standpoint, but don’t put yourself in a worse position trying to save a couple bucks.

Adam
Fair enough. So let’s go into you. You talk right there about kind of Is there are there any other 30,000 foot views you think we need to take before we start, you know, lowering ourselves into the regular regular height?

Tommy
Yeah, I think so. For sure. So just I mean, Prime Corporate, a little bit about us as a company as well. We help with estate planning, trust wills, living wills, power of attorneys. I know Land Trust, revocable trust, irrevocable trust, business trust. Those are all areas where there’s a lot of different opinions. And there’s also a lot of different benefits as well. Right. So let’s keep that in mind. From a 30,000 foot view, those are all things that we can assess and make sure that you have the peace of mind of knowing your situation. holding companies, subsidiaries, depending on the business that you have, depending on your equities, depending on your properties, just know that those vary. And if you have a team that can help you understand the pros and cons of what those decisions are, because there’s always pros and cons, there’s always a better protection plan. There’s always a better tax plan, what’s best for you and what mitigates your risk as much as possible, so that you have the peace of mind, but you’re not overpaying in taxes. I think that kind of sums everything up from a 30,000 foot view.

Adam
Well, I have a one more 30,000 foot view question you mentioned, you know, LLC is holding companies, all of that, when you’re going to set up these entities, you have to start from the bottom and work your way up. So you have to create like, atoms, LLC, so that atoms holding company can own it. So that atoms something else can do something? Or does it matter? Like, it seems like you couldn’t start with the holding company? Because? Or maybe you could because then it you know if you are if you couldn’t start with one because obviously, you couldn’t say Oh, well, this one owns it because it doesn’t exist yet does it matter? Kind of the order that these things are created in?

Tommy
This is one of the most commonly asked questions that we get asked. And the reason for that is when you set up an LLC, or you set up a corporation, it works like a birth certificate, I could go in and I can change my birth certificate, I could change my name, I could never change my birth certificate. It’s the same thing with an entity when I submit that information. If I set up my operating LLC, out of Utah, and based in Utah, if I set it up at a Utah, Tommy Thornburg would be the owner, I can change it eventually. But the records will only show that initially Tommy Thornburg owned it. So oftentimes, we do recommend, even if you’re just getting started to set up the holding company, out of Wyoming, for instance, like I’ve done, and have the Wyoming holding company, own my subsidiary out of Utah, because that birth certificate is going to show the privacy or the anonymity from the very beginning. But everything’s solvable, everything’s fixable, if I didn’t do it that way, I can go in and file those amendments. But think about it like a birth certificate when it’s there, we can change it. But the records will always live there at some point.

Adam
All right. And I think we’re gonna dive a little bit more into this in a second. But obviously, when you’re talking about entity setups, you’ve got, you know, kind of whenever you’re creating a business for yourself, for example, there’s, you know, you can do it as a sole proprietor, you can set up an S corp, you can set up an LLC, you can set up a C Corp, is there a time and a place for all of those in, in your real estate asset protection plan? Or is LLC the only way you should be going for the most part are kind of talk a little bit about when you would use each of those things, whether it’s for you know, maybe it’s only for real estate, but you know, the other ones for personal use as well.

Tommy
Yeah, this is great. All season, S corporations are fundamentally very similar. They’re both flow through entities on your tax returns, they provide you with the protection they provide you with the tax benefits. LLC is taxed as s corpse, or S corporations do have benefits for active or ordinary income, because it allows you the ability to pay yourself a salary or a distribution. It also allows you to avoid half of your self employment tax, which is Medicare and Social Security saves you a little bit over 7% on that overall income. So LLC needs an S corpse are oftentimes the route that we recommend, because it keeps things simple. It keeps things easy and good or bad profit or loss. It puts you in a better position. Partnerships, C Corp or a C corporations, for instance, have excellent asset protection, but they can complicate your tax situation. You have to make sure that is there a place for a C corp of course. But you got to make sure that money is flowing the right way so that you don’t end up with a business tax and a personal tax when you’re operating with a C Corp for additional protections.

Adam
And just real quick when it comes to the S corp, the LLC you talk about distributions you talking about paying yourself. Is there a difference? Like let’s say I’m I’m running an S corp. I get you know $20,000 was one month, I know, and I just send all that 20,000 to my personal account, can I then later go back and say no, my salary for the month was only, you know, 5000 for IRS purposes, then I got a distribution of 15. Or because I sent it all out at once is it just hey, you paid yourself $20,000.

Tommy
So when you have an S corp election or an LLC taxes, an S S corp, you really can pay yourself two ways. If you’re paying yourself a salary, that’s W Tood. And you’re issuing yourself some sort of a payment every week, bi weekly, monthly quarterly, that is what you need to pay yourself and claim. But you can also do distributions. So maybe one month, you pay yourself out 20,000. The next month, you don’t pay yourself anything, you can break that 20,000 up as if you lived off 10,000 a month. But once you pay yourself out, you should try it, you don’t have to claim that in full, but you should track it, you should have some sort of method to the madness, as to why you paid that 20,000 in the form of a distribution, so that at the end of the year, your reasonable salary aligns with what you paid yourself out. But LLC is s corpse. You can spend every dollar you can save every dollar and anything in between. But from a tax standpoint, I’ve got a team of 40 accountants and 40 CPAs. And if I didn’t say this, they’d slapped me upside the head. If I didn’t make a mention of this right now, you should organize those so that it is giving yourself a distribution that makes sense at the end of the year.

Adam
All right, well, let’s hop back over into the real estate world real quick. The only reason I asked that is we have a lot of, you know, business owners coming to us and just want to make sure that they’re, they’re on the right foot there. So let’s go into some of the benefits of we’ll stick with LLCs for the most part, because we’re talking about that. So can you talk a little bit about what actual tax benefits because obviously, we say real estate is the most tax favorite asset class, because, well, it is. But kind of what actual benefits do you have? And what are some things that maybe some people haven’t thought of? I mean, their CPAs probably have and but maybe their CPAs haven’t explained it to them as to what tax benefits are actually out there for them.

Tommy
Yeah, that’s great. Here’s a here’s a trigger statement for everybody right now. $80 billion, right? The the IRS just got funded with $80 billion. I’m sure you’ve heard about it, or ever everyone’s heard about it. What does that mean? Right? What does $80 billion to the IRS mean? I can tell you, I don’t love it. I can tell you a lot of entrepreneurs aren’t gonna love it. Because, guess who’s paying for that $80 billion?

Adam
Guess who’s gonna get audited with that? $80 billion?

Tommy
ight? People, business owners like crazy statistic. The Washington Post released this a little bit ago. But did you know 51% of audits are genuinely people or businesses that make less than $75,000. They don’t have the money to represent themselves. To us. It’s low hanging fruit, right? Let’s go up 200,000. If you make between 75,200 1000, there’s a 26% 26% of audits are getting are from that price range. So under 200,000 makes up over 70% of audits. Now in this bill, they’re saying we’re gonna go after over 400,000. Come on, give me a break. But think what this means from a tax standpoint, right? Anyone that self employed knows that it is difficult to find high caliber people right now. Anyone that has wants a job as a job for the most part, but that’s going to be 87,000 IRS agents. What I try and talk about when I talk about taxes, is the IRS is really just the largest tax collection agency in the world. And a lot of very successful people. A lot of politicians are in real estate. So what does that mean when tax code changes are made? It is meant to impact behavior, right. So when COVID hits they realize restaurants are impacted. So they go from business meals being 50% deductible for 2021 and 2022 to 100% tax deductible. Right? There recently there has been an increase in real estate depreciation. There has been an increase in your vehicle expense allotment. Section one 79 If your vehicle’s over 6000 pounds, even if it’s under 6000 pounds, they just increased the mileage deduction of what you can take per mile. because gas prices are so high, right? So everything’s behavioral. As far as what the tax code changes usually are, they want us to act a certain way. But what I love about real estate, what I love about self employment, there’s over 250, different deductible expenses. Right? A lot of you are aware of the phone, the internet, the power, portions of your rent, or your mortgage for the home office expenses, that cost segregation studies are an excellent way to accelerate depreciate your property from a tax saving standpoint. And it doesn’t have to be on large commercial buildings, a lot of people for whatever reason, then Cost Segregation studies or on multi families or large commercial buildings. But it can be on single family homes as well, where we’re accelerating that depreciation, and taking additional deduction. So the bottom line here the statement that I’m making, I truly believe everyone should be self employed to some extent, side hustles side business, full time self employment, because the tax code is set up to impact entrepreneurs and people that take risks.

Adam
Now you’re talking about, you’re talking about, you know, your cell phone, your internet, all of those things. And then you mentioned the costs that can you run a cost on your primary residence, if you’re a business owner? Is that what you’re saying?

Tommy
It’s tough. Usually, we usually we don’t recommend the primary residence. But investment properties rental properties, oftentimes, that’s a very, very simple solution. From a tax saving standpoint. There are a lot of changes that are going on within the tax code. So our accountants and our CPAs, they aren’t currently recommending the primary. Once again, we don’t want to raise red flags for no reason there’s 72,000 pages of a tax code, there’s plenty of area of opportunity without having to tiptoe that that line, but there’s plenty of gray area to make up a lot of areas that you can actually save money in taxes.

Adam
So you mentioned that 250, I’m not going to ask you to name all of them. I couldn’t if you did. What are some of the, you know, you mentioned the kind of low hanging fruit there, what are some of the medium hanging fruits that a lot of people might have the ability to do but maybe don’t know as much about?

Tommy
Anytime I run into someone that I just mean, I tell him what I do for a living it is just this give me a tax tip, say help me say $5,000 I see what you’re doing to me here. Two pieces, two pieces of advice that I’ll give everybody. Number one, track your expenses. I don’t care what it is put it all on one credit card, Excel spreadsheet, hire a bookkeeper, whatever that looks like for you track your business related expenses. Number two, hire a professional. Number one is more important, because the middle hanging fruits are generally going to come into play if you’re making enough money for it to make sense to get those multiples right. Is it a magnesium? Is it a retirement, health savings accounts, if you’re self employed full time, your insurance is an excellent deduction in the health savings accounts. But business meals oftentimes add up to more than any of those mid levels throughout the course of a year. But people do a terrible job tracking their expenses. So we try and make sure that people have those resources, whether it’s different software’s whether it’s trackers, there’s a company that we don’t even, I’ll give you the link, I’ve got a I’ve got a link with it. This isn’t even my company, I have nothing to do with this company. But I have downloaded just about every single tax software known demand. And here’s a here’s one that I really like it’s called keeper tax. You tie it together with all of your bank accounts, all of your credit cards, and it tracks those expenses for you. If we go to lunch, and I ended up picking up the ticket, it’ll text me and say, Tommy, I noticed you want to launch was that $50 business related? I just text back yes or no and it tracks it for me $170 A year that’s a no brainer, right? So you don’t always have to hire a bookkeeper if you’re just getting started. track your expenses and it’ll add up to anything more than I can give you from kind of a mid level recommendation.

Adam
So talking about you know, the was just touch briefly you mentioned the the business meal. If you’re you know Self Employed like you were saying, you know, you got a side hustle, which obviously, most people, their side hustlers themselves, you know, they don’t have employees for their small business there. Can you just go out to a meal and talk with your spouse or with a friend about, hey, this is what I’m doing and boom, it becomes a business meal or, you know, how would how would you do that if you’re a very small time person doing it solo?

Tommy
Yeah, I’m happy to say small time as well. Because if it’s just you, I mean, a lot of these deductions are also based off of how much revenue you’re generating, right? If you make a million dollars, it’s a lot easier to have $100,000 of business meals, that makes a lot more sense. If you make 100,000, and you spend 70,000 of it on meals, you’re probably up in the night and dreaming, right? So what’s more to create that risk as much as possible, that the more that you work, and the more that you’re self employed, I’m out of town, for different conferences, 12 weekends in a row, it’s ridiculous. But from the second, I leave my house for these business conferences, to the second I get home, everything is business related. I find my hotel, my clothing for the events, my meals that I go to, everything’s tax deductible, because I’m there strictly for business. But if I today, go to lunch with someone, and we’re talking about business, oftentimes, I will still pick that up as a business related meal. So the question to ask yourself, and this is within the IRS tax code. So if I’ve got anyone taking notes, or if there’s a major takeaway, and you’re wondering, how do I know if it’s business related? Ask yourself this question. Is it ordinary or necessary, ordinary business? That is a direct question that the IRS asks? And if you can answer that question, then the answer is yes. Right? If you’re just if I’m going to dinner with my wife, and we talk about business, it’s not ordinary or necessary, I’m probably not going to take that risk. But if it’s with my wife, and someone, we’re talking about business with that, yeah, I’m probably gonna write that off if we’re really talking about business and what the future holds or anything that’s ordinary or necessary for the growth of me or my business. All right, fantastic. How’s that for a complicated simple answer?

Adam
That’s, that’s good to know. I mean, that’s not helpful. So wonder, you know, as you’re looking at these things, what’s the what’s the way you guys prefer to get it? Do you prefer just like, the end of the year, you know, I’m keeping track of my business expenses, a Google Spreadsheets enough for joining QuickBooks or, you know, trying to send you my keeper tax login, like what’s the what’s the easiest way if you’re dealing with the CPA, to get them there so that they’re not having to, you know, I’m not getting charged a ton because I’m giving them 500 receipts and saying, This is what I spent this year.

Tommy
The shoebox full of receipts, our biggest nightmare. So we have we were able to file taxes in all 50 states. So anyone listening to this, if you feel like you need a more entrepreneurial, accountant or CPR, we’re happy to help in some of these areas. But QuickBooks is what we prefer. We do offer bookkeeping services, and QuickBooks is generally what we’re gonna use with our bookkeepers. But whether it’s keeper tax, whether it’s an Excel spreadsheet, whether it’s QuickBooks, we have a secured portal that you can upload all your information into, so that your accountant or your CPA, and you are the only ones that can access this portal. What I love about that is it allows the account and the CPA to go through the expenses, then set up a call to go through what you’re missing. What you’re potentially getting a little bit overzealous on. And you also have all that information within one portal. So if you want to go purchase a house a car, you don’t have to scramble to get everything you need, all your profit and losses, all your expenses, all your income is in one portal. So if you can have a long term vision with tracking your expenses, that’s what we prefer. If you’re working with our accountants and CPAs.

Adam
we’re gonna shift back over to Real Estate we kind of ventured down the a little bit of a rabbit hole there but what are some of the things when it comes to when people set up their real estate LLC is their holding companies, what are some of the biggest no-no’s you see people doing?

Tommy
So one of the things that we offer is building business credit and corporate funding. And as far as no no’s are concerned, banks and lenders are not created encoding are aligned equally. Right? major banks have generally a lot more money. smaller banks are, you know, some people want to learn to real estate investors. Some businesses want to run to strip malls. Some businesses want to learn to be nickels, right. So understanding what banks and lenders we’re going to work with, but oftentimes people will put real estate in their business names. And we oftentimes see that getting more pushback from a business funding standpoint, because a lot of times people don’t like lending or real estate, because the banks want to make that money. The mortgage companies want to make that money. But that aside, from a lending standpoint, make sure your business name, I guess the point I’m trying to drive home there, make sure your business name is bank friendly. There’s different codes that shown your type of business, there’s different structures that show your type of business. And banks and lenders are really going to look at those things. The biggest mistake I see the number one mistake that I see is individuals that just go and set up their own entities or use some sort of a site online, they’ll get a period of State and the filing fees, and they’ll get their ein numbers, which is great, it’s better than nothing. But they don’t do anything with their operating agreements, or their articles of incorporation. That’s the that’s the substance that’s the heart of your entity. Right? If you’re a single member, it’s not the end of the world. But your operating agreement should tell banks and lenders, what type of business you’re operating to not only appear more professional, but what if in the future, you want to sell that business, you want to sell those properties within the entity, you want to bring on a partner and investor. That operating agreement is oftentimes what’s going to protect you if something were to go south. Some of the worst horror stories that I’ve seen in the last 10 years I’ve been doing this, our family, family members getting into business together, that sign a napkin at a barbecue and say we’re gonna get into real estate together. Money Money does weird things to people. And I think making sure that however much you trust someone, however solid, your relationship may be having a proper operating agreement that says whose roles are what what the percentage of ownership is, and what the long term vision is, is most likely going to avoid headaches, at some point down the road, whether that’s six months, six years, or 16 years. Structuring not entity the right way for what type of business you’re operating is the biggest mistake that I see.

Adam
So I’m amazed to hear that because it seems like a bank wouldn’t even let you open an account if you didn’t have your, you know, our initial founding documents. So it’s surprised to hear that that would be there. So what would you do you go there to open up your LLC or your holding company, you set up your account you’ve given them? Well, I’m assuming you have to give me your Articles of Incorporation and your organizational documents, then, do I just stashed in a folder in my office? Or do I need to submit something to a governmental organization? Or, you know, what do I do with them at that point.

Tommy
I don’t want to collect a dust on your bookshelf behind you. They’re just shocked. So when we set so we’re also able to set up entities and help in these areas in all 50 states. And what we do is when we set up an entity for someone, if you go hire an attorney, it can be 1000 to $1,500. Oftentimes, we’re able to keep it around or under $500. Every state is a little bit different. But when we structure an entity, we take care of everything, A to Z. So to go through that it’s it’s drafted and documented with the state. It’s legally prepared with your articles of incorporation, your operating agreement, we take care of the state fees, the filing fees, we make sure to obtain your EIN number. And then what we do is we put all those documents in one email, send it out to you via via email, and you walk into the bank and you show them that or you forward them that one email. It has everything you need to open up your account. It is anything that you will need to run your business. All of that within that one email. Some people like to get a corporate binder and print out the documents and put it out To the bookshelf. But you don’t have to do that. I think as long as I don’t want a corporate binder personally, I want my entity in an email. And I want to drag and drop it into a folder, I want to get it to my bookkeeper in my accountant. And I want them to do that tracking for me. But I want it in a folder so that when I need it, when I need to reference my EIN, when I’m purchasing a property or doing business, I have easy access to all the documents in one email. That’s what we do.

Adam
All right, perfect. So when you’re setting up your LLC, you just make sure if I’m looking to do business credit, I’m not going to set it up as Schroeder Real Estate Investments. It’s kind of what one of the big things I heard about the n-no’s.

Tommy
Schroeder. Yeah, Schroeder lending as well. Once again, banks want to lend, if you’re Schroeder lending your competition to a REIT, they don’t love that. So a lot of it is what feels like a no brainer stuff when you take a step back. But when you’re at the bank, it’s like, What do you mean, you’re not gonna love me? If you take a step back, you’re like, oh, yeah, no competition. If it was Schroeder investments, or Schroeder holdings, they’re like here, please take our money.

Adam
All right. Well, Tommy, thank you so much for joining us today. I’m going to stop it there, because we could probably go on forever. But we’ll be back for for another episode for everybody else that keep our tax Slinkys sent. If you’re interested in it, we’ll put it in the show notes. We’ll put it in the video description. And, again, thank you so much for joining us. What’s the best place for people to go to learn more.

Tommy
So Prime Corporate Services, what I’ll do is I’ll I’ll get you over a link that you can put in the show notes, and go ahead and just click on that link. And what we’ll do is we’ll offer a free consultation for everybody that’s listening for everyone that wants to take advantage of this offer 45 minutes to an hour. I’ve got a team of 40 advisors, and allow you to book a full free hour to you to review what you already have asked questions around asset protection and tax savings. But we can help with entity structure, business credit development, tax filing, estate planning, maybe on the next episode, we can really dive deep on how to build and develop business credit and corporate funding off of your business, instead of having to use personal funds or personal credit. But I’ll get you a link. Go ahead and click on the link schedule yourself a free consultation and we’ll go about it that way if that works for you.

Adam
Yeah, absolutely. Well, thank you so much again, for everybody else, you know, go to the link in the description. And also don’t forget to check out renttoretirement.com. That’s renttoretirement.com. You can see our properties there, you can schedule a call with us. We’re happy to help you as you go through your real estate journey. Again, that’s rent to retirement.com If you have any questions, email them to podcast@renttoretirement.com and we will answer them on this show. Greatly appreciate your supporting this podcast and this YouTube channel. If you don’t mind going and leaving a review we’d greatly appreciate it let other people know it’s a podcast they should listen to to help them. And I’ll talk to you on the next episode.