Real Estate Revealed

#7 - Dave Hall, CPA & Real Estate Tax Expert

Eric Wilson
December 15, 2020


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Dave Hall, DaveSeymour, Intro Voice Over


Dave Seymour 00:35

Alright,welcome back. Yeah, another week gone. Dave CMR. I'm here for you real estaterevealed 104 point nine North Shore Boston radio I love this man I I getexcited to to jump on the airwaves. I know we record and then we play at alater date. So it's always, always kind of interesting to me to hear what youknow what happened in the week? A week ahead. I feel like I'm in an episode ofBack to the Future or future to the backhoe. I don't know I get too confusedtoo easily. But we are on the show real estate revealed. They've seen moreflippin Boston, like I said CEO and founder of freedom venture investments. AndI don't know, it's it's interesting, isn't it? I mean, with dramatic changes,it looks like we we may very well have a have a vaccine on the horizon. Now, ifyou if your watch the headlines, now they're all competing for the best vaccine,you know, by vaccines at 75%. My vaccines at 90%. Mine is at 95. But my vaccinehas to be has to be refrigerated on the moon before it can come back and comedown to planet earth. I'm a little punchy today, I've got a lot of sleep, we'vebeen working very, very hard at freedom venture investments, buying the verybest assets we can but that's enough about me, it's my favorite subject is me.It's the California in me No offense to my California friends. But I got avery, very cool guest. On the show this week. This man has taught me a lot.He's, he's inspired me and his own his own personal life. I don't know how muchof that we'll get into today, probably not too much. But this is a this is aguy who has immersed himself in his profession, and risen to the top to be thevery, very best at what he does. And it's kind of funny before we wererecorded, he was busting my chops a little bit because my, my computer wasgiving me some challenges. And I turned around to our producer Jay and I saidlook at that, would you because what I have is a CPA, a certified publicaccountant. And when you say CPA, you don't usually assimilate that with anykind of humor. You know what I mean? They're not famous for how I mean, I mean,that that overly dynamic personality, but I'm telling you, this guy'sdifferent. My very dear friend Dave Hall is on the call with us today, I hopeand we're going to talk taxes. But what we're going to do is we're going tomake taxes sexy, we're going to talk about the power of having a good solid,Professional Tax team, behind you in life and in business. And the benefits ofthat so hopefully, day Hall, are you there?


Dave Hall 03:31

I amhere.


Dave Seymour 03:33

How didI do, buddy? How did I do? Not bad?


Dave Hall 03:36

I don't know.I don't know how I'm gonna own up to this man with an introduction like that.I'm not quite sure how I'm gonna act today.


Dave Seymour 03:43

Right?Right. You've got to be the most engaging, entertaining stimulating accountantwalk in the face of the earth that if not, you're fired.


Dave Hall 03:52

Alright,okay, I'm done. I guess let's give it a shot. Let's see how we do.


Dave Seymour 03:57

It'sfunny date, David, I for those of you listening and engaging, Dave and I haveknown each other What is it? Dave? Maybe 810 years now? Somewhere around thatperiod, right?


Dave Hall 04:06

Yes,about eight years now.


Dave Seymour 04:08

Yeah,about eight years we actually met in Las Vegas. But I'll let you I'll let youshare some of that story as we get into it a little bit. But you know, it wasfunny. We've we've done a lot of educating in our careers. you educate folks onon taxes. I've educated folks on real estate. And I remember you say to me onetime, how do you get up there and teach and speak and do all of that stuff. Andthe funny thing is, is you know, we go full circle, and you're actually outthere speaking, teaching and doing it today yourself. So first of all, tell mea little bit about you. How on earth do you choose to to, you know, to be anaccountant, and then be one at the highest level possible. Tell me a little bitabout your background, Dave?


Dave Hall 04:49

Yes,thank you very much. Now I do have to admit, Dave, this is something I'vewanted to do my whole entire life. Not only not only am I crazy today, I'vebeen crazy since the time I was


Dave Seymour 05:01

chokingon my water over here. Go Hey, David, you


Dave Hall 05:06

don'tfind many people that know what they're gonna do from the time they're inelementary school to in through high school and onto college.


Dave Seymour 05:14

SeriousHow did you even know that at such a young age? You're just messing with me?


Dave Hall 05:19

No, I'mnot messing with you. And I'm not sure how I figured out it was extremely goodat math. We used to have these competitions in school, and I was pretty heavyas a kid. So people need to understand food was a big thing to me. Now I'maverage size. I'm six, four. So I'm all but food is a big thing. And we used tohave these games in school, where if they were done in the math class, and ifyou won, you got candy. Well, I would play and win so much, they finally kickedme out of the game. I couldn't play anymore. Yeah, to have this stash overthere. You know, Friday, Friday candy game, I'd have this huge stash. And theteacher would say, Look, you're done. You got to give somebody else a chancehere. But math was always my thing. So it's something I always want to do, Ibelieve that would pay me quite well. So I decided that's what I was going todo and spent my time in college and throughout my career focusing onaccounting.


Dave Seymour 06:05

So whatwhat what do you do at the collegiate level? I'll be it's it's accounting, it'sbusiness. I mean, what do you what do you study? How do you how do you get tobe that CPA certify?


Dave Hall 06:17

Yeah,college accounting is very interesting. And anyone that's gone through theprocess knows this, you go through your first two years, it's pretty easy.People think, Oh, this is great, I'm going to be an accountant. And then youhit Intermediate Accounting, and that's when you have the great division,that's when the Red Sea parts and you have some that go forward and othersbecome finance majors. Because that's when the homework kicks in. And it justbecomes very difficult if you're not committed to it to do the homework.


Dave Seymour 06:42

Becausewhat you do is is just so detail oriented, it's it's just so you know, researchintensive, etc, etc. I mean, you know, you and I have had so many conversationsover the years we've known each other and it's like, I look at my own taxreturns and I want to scratch my own eyes out right? You look at you look atyou look at my tax returns and your clients tax returns and and you kind oflike see a vision you can read between the lines of income and expenses ofratios, etc, etc. Is that DNA David? Is it just is it a personality type A Bpersonality? Would you say? Is that is that really how that's born?


Dave Hall 07:20

There'sdefinitely some personality in there. But I think it also comes back to justwho you are. For me, it's art, I really do look at it like a masterpiece thatthere's a bunch of numbers on the paper that you're going to see and you'regoing to say that's ridiculous, it means nothing to me. I'm going to see thatand say they have to line up appropriately and they need to be in the rightformat. And if they're done that way, it's a beautiful piece of art. We'regoing to be able to get good results for the client and we're not gonna have abunch of problems with the IRS


Dave Seymour 07:46

nicenobody wants problems with the IRS


Dave Hall 07:50

at allthey want to come visiting


Dave Seymour 07:54

that'snot the phone call or the email that you want to receive did did anybody elsein your family Dave go down this road was was yet we have parents involved inthis stuff and he siblings involved in this so we you'd like the shining starin the in the hall clan, if you will.


Dave Hall 08:11

Yeah. Soif you go back to my family, I never had any family members that ever attendedcollege. I was the first guy why my dad worked for the Union Pacific Railroad.He was a labor we had six kids. And we were poor. We had absolutely nothing.And I saw this as my ticket to freedom to be able to make money and have a goodlife. So I committed myself to college, had to raise my own money, my ownscholarships, get my own funding, and I just went for it. And five years laterI was done with my master's degree and onto a great career.


Dave Seymour 08:40

I lovethat man. I love the fact that it's it's you know we talk about self mademillionaires and then I and then I kind of Kai Bosch that because I always sayto myself, you know, I haven't met anybody who was like their own self mademillionaire but the truth of the matter is, is at the core, there's got to bedrive right and you just described it I found the capital myself, I committedto it. I always wanted to do it. The one thing that I did like out of what youjust shared with me, which I didn't know before, is I'm very excited to pay mytax accounts and bills from now on with candy. I guess I just just I who everknew that it could be m&ms and Mars bars and Snickers instead of instead ofinstead of money I mean, I'm just I'm excited to get a bill this year from youand pay I'm Chuck


Dave Hall 09:31

it's aneasy man it's that easy I welcome all candy still to this day you're welcome tosend it to


Dave Seymour 09:39

me justgo a little silly for a while I told you I was punchy eyes they're like variousvalue of candy cuz for me a peanut butter cup is probably worth you know about50 bucks in comparison to maybe a you know like a Peppermint Patty. Is there avariation? Or is it just all candies got equal value for you know, it's


Dave Hall 09:57

got tohave chocolate in it. So my thanks All right now, part of that coming from mybackground, I don't have many other vices. So I've got to have one and that'sgoing to be chocolate. So that's where the big dollar value is, if you're gonnasend me just some of that, you know, suck on sweet candy, not gonna get youvery far on your tax return.


Dave Seymour 10:15

Whoeverthought we did talking about chocolate and candy instead of real estate andtaxes, hmm, whoever would have thought it? Look, we we got to get down to brasstacks because there's there's a few things that that I think would beincredibly interesting for the folks that listen to this. Because you're not anaccountant who sits here on the North Shore of Boston. You've been veryflexible geographically. Now we met in Vegas, you had offices in Vegas, youalso had offices in Utah? Why? Why those specific areas they with regard towhat you're like the services you supply for taxes, why were you in thoseparticular areas?


Dave Hall 10:53

Yeah,great question. So I was raised originally in southern Utah, small town of 2000people my ancestors settled 100 years ago, I was related to everyone in town.But I had to go out of town to find a wife because I wasn't going to find onein town through one of my I had an uncle who used to be the city manager of LasVegas during the 80s. And he was very well off, he had done very well forhimself. So that's where the link to Vegas game is. He is the only person Iknew in my family that ever really gone very far. And so I said, Look, I guessVegas has to be the place to make it in life. And I set my goal on that when Igraduate from college in southern Utah, University of Utah. I then made mytransition into Las Vegas and had been there for 25 years off and on doing variouswork there.


Dave Seymour 11:39

Yeah,yeah. Now I know you can't disclose the names. But you know, being in thatenvironment, you had some you had some pretty, pretty recognizable clients overthe years. Yeah,


Dave Hall 11:53

absolutely.That's one thing I'll say about Vegas is it gave me exposure to all kinds ofpeople all kinds of life, maybe very well rounded, and also very nonjudgmental. I represented porn stars, I represented some of the top athletes inthe country. I represented some of the top companies in the country, billiondollar companies. But they all came through Vegas, because that was the placewhere many people were doing business, they saw it as a place to get away fromthe business for a while and get some write offs.


Dave Seymour 12:21

Whatwhat a diverse client base, right there, I mean, to work with. Look, there'sthat commercial out right now. I think it's a VW commercial, where theaccountant is chasing his client, through Las Vegas. I know you're not a realTV guy. But what those were some of those clients that challenge when it cameto the accounting Did you give them? You know, did you give them advice thatthey just ignored? or How did that work?


Dave Hall 12:45

Yeah,extremely hard for me. And I will tell you one story, I think I can tellwithout disclosing who it was, it was a professional athlete. They just had anevent where they've made a ton of money, and then struggled to save their moneyover the years. And I've been talking to them saying, look, we've got to savemoney, we've got to put it aside, you're not going to be able to do thisforever, ends up going through this event makes a truckload of money. The nextmorning comes to my office and we had access to all of his bank records andeverything because we're doing full accounting for him. And I looked on thebank statement right before he showed up, and he had gone out that night andspent $100,000 on jewelry. Like Wait, dude, we had this conversation we'regonna start saving He's like, I work so hard. I've got to reward myself I'msorry man. I promise next time I'm gonna do this


Dave Seymour 13:30

crazycrate and obviously it wasn't it wasn't a ride off. It was just a little blingon his on his on his wrist right?


Dave Hall 13:38

Yeah,exactly. No, that's exactly what it was and and at the time he was at aposition where he was not making the money does now to where it was big money.I mean, when you look back on it's like hey, I'm not sure you're gonna make itthrough to your next events and the things that you're doing


Dave Seymour 13:53

allright all right all right, we're gonna take a quick break we're going to kindof have a quick word from some of that fast sponsors here I'm real estaterevealed Don't go away day fall. I got more questions for you. I want to I wantto hear about the prosperity guy I want to hear about, you know, the clientbase, how you advise clients, high net worth clients, you know, the middleAmerica. Let's talk a little bit about why the middle class is shrinking and,and what we can do to offset some of those challenges going forward. So you'relistening to real estate reveal with Dave Seymour here on 104 point nine.


Intro Voice Over  14:24

RealEstate revealed We'll be right back.



Today,the real estate market is booming mortgage rates just at historic 30 year lowsand the New York Times recently reported that investors are snapping up realestate at rock bottom prices. And now savvy investors are buying real estateusing their IRAs that allows them to access their retirement funds to buyproperties without paying any penalties or early withdrawal fees. If you havefunds in your retirement account and you are interested to learn more callhorizon for us today at 866-712-2007. That's 866 Seven one to 2007 unlock thepower of your retirement account and take advantage of one of the most profoundopportunities in real estate since the housing crisis 15 years ago, callhorizon trust retirement specialist at 866-712-2007. And for a limited time,get our free Ultimate Guide to buying real estate with your IRA that's866-712-2007 or visit horizon slash day. Horizon Trust Company is anindependent passive custodian and it's not associated or affiliated with anddoes not recommend to promote or advise any specific investment investmentopportunity investment sponsor investment company or investment remote or anyagents employees, representatives or other such firms or entity horizon trustis not providing investment advice, advocating or endorsing real estate. Theseoptions may or may not be a fit for individual investor investments are notFDIC insured, offer no bank guarantee and may lose value. Horizon trust doesn'treceive any commissions or fees if I invest with any other sponsor.


Dave Seymour 15:53

You everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? Well tune in for all the answers on my showreal estate revealed this is they see my might recognize me from the hit TVshow flipping Boston's I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now by tuning in every Saturday. Forall investment details, visit us at info at freedom slash 104point nine call my team at 781-922-4418.


Intro Voice Over  16:25

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Dave Seymour 17:05

All rightWelcome back. So yeah, look, pay attention to those guys. If you're in thatmarketplace for some self directed retirement accounts. Give my guys a callover there horizon trust, you're buying selling that single family house thatmultifamily or even a piece of commercial real estate on the North Shore youreach out to my my very, very best realtor on the no show. Here's the policy617-763-1001. And if you need a mortgage, they're in a better place to go andtalk to my friend there. George kudos, George 978-777-4663 but we're talking tomy accountant. Now don't turn off the radio because I said I'm talking to myaccounts. And this one's different. This is a Last Vegas accountants use ouraccountants mobile accountant, and I never know it. But he actually does getpaid in chocolate which is which is a rarity. rarity. Dave, are you still withme, buddy? Are you eating chocolate? What are you doing?


Dave Hall 18:02

I'mstill with you. I just wish I had some chocolate.


Dave Seymour 18:05

Yeah, right.I'll take care of you, man. I got you. So Dave, let's talk about you're in LasVegas. And I know that you then move down to Puerto Rico. And this this reallykind of ties into real estate it ties into, you know what, what options are outthere for businesses share a little bit about Puerto Rico, why you were downthere, how long you were down there, and enlighten the listeners on the PuertoRico accent angle.


Dave Hall 18:32

Yeah,Puerto Rico is such a unique place. It was something I had not been exposed to.In fact, you and some other clients were the first ones to expose me to whatwas going on down there. And the opportunity that you could get great taxbenefits and maintain your US citizenship. So I've gone down with a anotherclient who was looking at Puerto Rico and fell in love with the place so eventhough they didn't move their business down it said at the end of 2015 that I'dmoved my family we went down to the island open a CPA firm there on the islandand started promoting the benefits of Puerto Rico to other people throughoutthe mainland us


Dave Seymour 19:06

so sogive give the folks a little bit of a breakdown because Look, man, let's let'sgo zero degrees for a second day. Right? The average American out there isdisgusted when people have wealth, you know, learn the tax game and utilize itright some people just don't like it. Okay, we can have fun. But every now andagain, we get a little zero degrees and and a little political on it. And I'vealways said this, I said look, I've looked at what the government has done withthe tax dollars of this country. And it keeps me up at night. I think it'segregious. I think it's disgusting. I think the system is broken. So if as a asa as an earner, right, I can keep more capital employ more people. I believe wecan do a better job with capital than the government can. So that's my littlesoapbox moment. But what I would like to have your shared Dave is what was thebreakdown of act 20 and act 22 because the With those are the two structures,if you will, that we both used during that period of time. So just break thatdown a little bit for me.


Dave Hall 20:09

So theone thing you need to understand about Puerto Rico is although it's aterritory, the United States has its own tax system. So they're able to createtheir own laws, their own governance, they realized that they wanted to bringwealthier people the island, not only because they knew we would buy cars, wewould put our kids in private school would buy homes, but they also knew thatwe brought with us a lot of intellectual knowledge that the island needed. Soback in 2012, they put two programs together, act 20, and 22, which are nowwhile part of X 62, inset export businesses, businesses are exporting from theisland and individual investors to come to the island. They gave them asubstantial tax break, and then allowed them to put the money back in PuertoRico and their intellectual property back into Puerto Rico trying to make it abetter place.


Dave Seymour 20:54

And whatwhat what were the what were the numbers on that day, because the the federaland the state tax brackets, you know, they changed quite dramatically, if Iremember rightly,


Dave Hall 21:04

right,so if you're looking at it as an export service business out of Puerto Rico,you're looking at a 4% tax rate. And anything that you're doing there on theisland was exempt from US tax because of the agreements the United States hadwith the territory. And if you were an individual investor having capital gainincome, you were to 0% tax. So it was a huge change. And still is to this dayfor 1000s of people are taking advantage of the benefits there.


Dave Seymour 21:29

Yeah,now look for again, listeners prior to COVID. This was a way to stimulate thethe Puerto Rican economy and stop me when I'm off base, Dave, but it was reallydesigned to, to employ the citizens of the island because the exodus of theworkforce and the population of Puerto Rico was huge. Everybody was leavingPuerto Rico because of its its, you know, its economic status. I mean, itthere's a lot of poor places on the island of Puerto Rico as there is, youknow, a lot of the Caribbean markets, if you will, and it was designed to help.hoteliers have more access to capital to grow their businesses, employ people,and really stimulate the economy. I guess my question, David, in yourexperience down there was did that work?


Dave Hall 22:23

Yes, itdid work. And it's continuing to work. In fact, we've got a client now, that'strying to create this amazing art district down there, we've got one of thelargest billionaires in the country when the richest guys down there trying tobring build homes and bring economic stimulus back to the island, you saw johnPaulson, who was against the mortgage debacle, he took over the top hotelsthere, redid them all but millions of dollars into the properties, thereforebringing long term income back to the island.


Dave Seymour 22:52

Yeah,yeah. It's, it's one of those, it's one of those things where, you know, youdon't know what you don't know, until you research or you're, you're rub elbowswith a different clientele altogether, you know, what I mean? Like some of mybusiness relationships that had, you know, explored Puerto Rico, and then youknow, we share it with you and up in the accountant and the mathematicianslooking, looking at it for yourself, because you picked up your whole family. Imean, your kids went to school down there and everything correct?


Dave Hall 23:24

Yeah,I've got six children. One of them was in Korea at the time, but the other fivewent with us to the island, three of them teenage daughters. So if you wonderwhat type of salesman I am, I think I did a pretty good job. I think you did.


Dave Seymour 23:37

I thinkyou did it. You definitely, you definitely sold the process to him goingforward. So you know, the reason I bring that up is is just for education. It'slike, you know, real estate and and the influences it has right on peoplearound us the jobs that they can create. And then the ability to align yourselfwith, you know, self directed retirement accounts at the guys from horizon onrecently, Dave, and, you know, we talked about, you know, self directed Rothaccounts and solo 401, K's and things of that nature, you know, real estate,would you agree, listen to me stated, but I believe I got you on as a guest.Would you agree that real estate is like, like the fundamental engine, if youwill, of the economy? Would you agree that learning how to work the tax code, legally,honestly, is is a big lesson that everybody should learn what absolutely,


Dave Hall 24:34

absolutely,because I think all of us at some point are gonna own real estate, even if itwere our own home to begin with real estate's always something that's going tobe there, it's not going anywhere. So that may have some ups and downs. Theremay be different economics based on where you live, but sooner or later, it'sgoing to come around and you're going to have something that's always going tobe there, no matter how long you have it.


Dave Seymour 24:56

Yeah.Let me ask you this question. Who gets the biggest benefit from, you know, thethe tax code, if you will, and, and having a professional like you on theirteam who knows how to really interpret everything that's in there. Becausethere's there's 1000s and 1000s of pages in the tax code. If I rememberrightly, it's like, you probably have read every page and understand it, butthe average shoe frumpy David does. Right? So who benefits the most from fromreal estate aligned with the tax code? Is it? Is it the average American whoowns their own home? Is it businesses? I mean, where does the tax code reallyget the biggest bang for the buck for one of a better term?


Dave Hall 25:39

Yeah,there's two main areas and one is just the $500,000 marital exemption on yourhome, if you end up with $500,000 gain, that's been huge for the averageperson. But for the investor, it's really the guy that's putting money intoreal estate property and getting capital gains rates out of it. I mean, thoserates are half of what ordinary tax rates are. That's a huge savings.


Dave Seymour 26:01

Whatabout the the mortgage write off? Is that still in play? I know that theCalifornians, you know, we're going a little crazy trying to refinance and andget mortgage ride off, is that still in play? What are those numbers look liketoday?


Dave Hall 26:15

Yeah,it's still in play. It's not affecting the middle American person quite asmuch, because you've got such a large standard deduction. Now, if you'relooking at on your own personal loan, and but it is still in play, you stillget $10,000 of state and local taxes. Now, that may be property taxes, or otherincome taxes, or you're paying, so they're definitely still a benefit there.But the real benefit definitely comes on the investor side.


Dave Seymour 26:40

Soinvestors, business owners, entrepreneurs, the tax code is written toaccelerate their, I'm going to say their profitability. Because at the end ofthe day, it's jobs that keep the economy up and running. And if I if I'm not ina position to employ people, if I can't put contractors in, if I can't employwith respect, David, my accountant, my attorneys, my property managers, etc,etc, right? If we can't, if we can't do all of those things in the first place,then the economy in essence is going to dry up. So you know, it's not good guy,bad guy. It's just different guy. I might I might fair in stating that. I mean,do you agree with those kind of statements, my friend, cuz you've seen a lotmore entrepreneurs than I have?


Dave Hall 27:27

Yeah, Idefinitely agree with it. And it really is designed to help him unfortunately,now with a W two, if you're a W two earner. And with a current standarddeduction, you're probably gonna file a short form, even if you own a home,because if your home's worth two or $300,000, that, especially with interestrates at 3%, or below, your deductions, not going to be large enough to exceedthat standard deduction, but for a business owner, and you've got your car,you've got party, your house, maybe you've got your cell phone, I mean, there'sjust so many things, and all these come into play as if a business you're abusiness owner, or if you're a real estate investor,


Dave Seymour 28:00

right?Here's what we're gonna do, we're gonna take another quick break, because youjust tease something that I absolutely love. You mentioned something and yousaid, a part of your home can actually be a write off. So we're going into a decadeor two I feel where home businesses, individually, investors, theentrepreneurial spirit, if you will, I believe it's going to be on steroids.And as that begins to manifest and grow, there are some amazing opportunitieswith intelligent tax strategies, that can have a magnificent impact on thebottom line, because if the J ob is the only source of income and there areother ways to get cash flow into a household, it has the potential to face amassive challenges. So we're going to take another quick break Dave, and thenwe're going to open up the door to some of the things we just tease thembecause I also don't let me forget to ask you about the fact that you canemploy your own children. That's one of my favorites, and we'll talk about thatin a minute as well. You're listening to Dave Sema Dave Hall, my accountantright here on real estate revealed 104 point nine, we're going to be rightback.


Intro Voice Over  29:13

RealEstate revealed We'll be right back.



SteveAlesis of Solaris realty has intimate knowledge of the North Shore market. Withover a decade of experience and record of 300 real estate transactions. Whenit's time to buy or sell property. Give Steve a call directly at 617-763-1001that's 617-763-1001


Dave Seymour 29:46

you everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? You know what analternative investment strategy is what tune in for all the answers on my showreal estate revealed? This is they see my You might recognize me from the hitTV show flippin Boston. I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now by tuning in every Saturday forall investment details, visit us at info at freedom slash 104point nine call my team at 781922441 night



todaythe real estate market is booming mortgage rates just at historic 30 year lowsand the New York Times recently reported that investors are snapping up realestate at rock bottom prices. And now savvy investors are buying real estateusing their IRA that allows them to access their retirement funds to buyproperties without paying any penalties or early withdrawal fees. If you havefunds in your retirement account, and you are interested to learn more callhorizon trust today at 866-712-2007. That's 866-712-2007 unlock the power ofyour retirement account and take advantage of one of the most profoundopportunities in real estate since the housing crisis 15 years ago, callhorizon trust retirement specialist at 866-712-2007. And for a limited time getour free Ultimate Guide to buying real estate with your IRA that's 866-712-2007or visit horizon trust comm slash date. Horizon Trust Company is an independentpassive custodian and is not associated or affiliated with and does notrecommend to promote or advise any specific investment investment opportunityinvestment sponsor, investment company or investment promoter or any agentsemployees, representatives or other such firms or entities horizon trust is notproviding investment advice, advocating or endorsing real estate. These optionsmay or may not be a fit for individual investors investments are not FDICinsured, offer no bank guarantee and may lose value horizon trust doesn'treceive any commissions or fees if I invest with any other sponsor.


Intro Voice Over  31:42

You'relistening to real estate revealed with Dave Seymour from Amy's living Boston.All right, welcome


Dave Seymour 31:47

back.We're still here. I'm still excited, taxes are still sexy. And I've got the theman the mystery, the ledger, my accountant Dave Hall here sharing some of hisearly words of wisdom. So Dave, let's talk about what we tease kind of goinginto the breakout you had mentioned off the cuff, that part of your home can bea ride off, can be a ride off against gains. Explain to me what you mean bythat, because I'm not sure that everybody knows what you're talking about.


Dave Hall 32:18

Yes,there's a lot of misconception out there regarding the home office. And whatyou mentioned before, when we talk about the number of people that are takingadvantage of it, it's huge. Many people used to see it as a red flag to theIRS, they weren't going to take their home office because they thought they'dget audited. Those days are long gone. It's the standard way of operating now.And if you've got a home office, you've got to understand not only do you getthe benefit of that home office, any expenses related to the office, if you gotfurniture that you put in there, if you had to do build outs for that office,you also get an additional deduction for your automobile. That's one thing thatpeople don't really understand is about having a home office, it's structuredcorrectly. Now you can use your automobile no matter where you go. If it'sbusiness related, and deduct those costs, where previously, you may havecommuting costs that you were not able to take if you're going from your hometo your office.


Dave Seymour 33:11

Let melet me throw something by you. And I don't want it to sound like a setup. Andif it does, I apologize. But I just had one of my my epiphany moments. I'm a,you know, average american, I've got the ability to work capital, right, maybethrough a retirement account or something of that nature. Let's say that I likewhat freedom venture investment does. And I want to I want to make aninvestment into their funding and get, you know, targeted double digit returns,can I as that individual, open up a business purely for the investing strategy.And if I open up that business, and I run it out of my office, I run it out ofmy home, can I take advantage of the things you just talked about? Even thoughI'm physically not necessarily doing everything every single day, but I stillhave a a register business out of my out of my home? Can I do that and stillbenefit? And the answer might be no, but I'm hoping it's Yes.


Dave Hall 34:13

Yeah. Sofor many people, they're not going to be able to the way the laws werecurrently changed back in 2017, when they changed the way the deductions werehandled. But if someone's truly doing it as a business now, to do it as abusiness, you're going to have to spend 500 hours a year minimum to qualify,which some people may not be able to do that if they've just got one investmentthey're handling. But if you can create a true investment, maybe in consulting,research business, I mean, there's other aspects to what you're doing there.There can be opportunities for you to take these deductions.


Dave Seymour 34:46

Love it.Love it. Let me ask you this question. Can I deduct travel expenses outside ofjust a car, I know we're all kind of locked down right now and nobody's allowedto go anywhere. But those days are gonna end. I mean, you know, they, like Isaid at the beginning of the show, there's some, you know, there's someopportunities where we think some vaccines might be rolling out soon. And maybethere's some light at the end of the tunnel around, you know, everything that'sCOVID related, but when we are a mobile, global, you know, group again, whatdoes it look like on the travel front now? Because I get some mixed informationthere as well about what you can and what you can't write off a travelexpenses. Is that still on the, you know, on the on the block? Or is it asstandard right now? What are they doing


Dave Hall 35:32

is stillthere it is interesting, because like you say, we're not seeing a lot of it onfinancial statements, when we're doing your end planning and calculations, it'sinteresting to see that there's nothing on a travel line where for manycompanies, there used to be 10s, if not hundreds, 1000s of dollars on thatline. Yeah, but as you look at the future, it is deductible. And, and I thinkwe've talked about this a little bit before, we've talked about sandwich days.


Dave Seymour 35:54

Now, theYanks wavenet. Again, I love that listen to this, this is beautiful, no matterwhat you're doing right now stop doing it. Because you're about to learn aboutwhat's called a sandwich day, for a business owner from my accountant, they'veall hit him.


Dave Hall 36:09

Yeah,you're gonna think all I want to talk about food candy. This is just the waythe code works, this is what they're called. So if you're going on a trip,you've got work on Friday, and then you have work on Monday, you can countthose weekend sandwich days as part of your business trip. So you can go outand have meals, you can pay for your hotel rooms do these other things, youcould deduct your entertainment, that got taken away at the end of 2017. Butyou can take those other expenses and count them as sandwich days. If you dofour hours and one minute of work on Friday and four hours in one min to workon Monday, you can get anything in between there those costs associated withthat.


Dave Seymour 36:46

Wow. AndI got to clarify, that's just for business owners. I mean, you know, the thethe W two employee can't can't take advantage of any of these tax strategies.Correct?


Dave Hall 36:58

Correct.And that's why being a business owner is so important, because you've got allthese expenses that you and I are gonna pay anyway. And those listening aregonna pay on a daily basis, such as in your home, your cell phone, you go outto eat, you've got a car, you're going to travel Well, if you can tie those inas business expenses. Now all those expenses became deductible, and it'scompletely changed the look of your tax return.


Dave Seymour 37:21

Youknow, I'll never forget Dave that day. You know, I've shared with the thelisteners I was I was really good at trading time for money. Right. And I don'tknow about anybody else. But, you know, tax season when I worked at W two was Icouldn't wait to file my tax return. So I could get my refund check. Right?Yeah, and I get my refund check out and maybe $3,000 or $5,000, whatever it wasback then. And I'd be so excited to get that refund check. And what did I dowith it? I went, right, I went out. And I did like your, you know, like yourathlete did only it wasn't $100,000 piece of jewelry, I just go out and buy,you know, something silly cars, boats, leather couches, the joke I always use,you know, got to get a big screen TV to to keep up with the Joneses. And youknow, I never I never forgot the day that I had to write a check to the IRS.And it was it was a lot of money. It was it was a lot of money. It was it wasprobably, you know, a couple of times my salary that I had earned the yearsearly. And I owe that to the IRS. But here's the thing, Dave, after I had spenttime with you, following your guidance, you know, doing your top 10 list, whichI know is going to come at the end of this year just like it does every yearthe top 10 things that I have to do before the year ends. I was I was okay. Iwas almost I was almost excited about the fact that I was writing that check tothe IRS. Because what had happened through entrepreneurship is if you've got abig bill to the IRS, it means you had a really good year, that year on theincome side. Does that make sense? And I don't think I don't think many peopleunderstand that. Right? I've, Look, you've done it too. So let's transitionover here for a second because I think it's important on your website and onyour email tag it refers to the prosperity guy, which is which is kind of likea moniker and a title you've given yourself. Talk about that? Because I knowyou're passionate about showing people what you showed me many, many years ago.Yeah, so


Dave Hall 39:32

theprosperity guy was brought about as a tagline to really help identify my goaland helping people. I'm an educator, I'm someone that really wants to makepeople's lives better. I want them to get the most out of their business out ofthe return. I treat it like it's my own. And so that got brought about to allowme to get more into the educational round to allow people to connect betterwith me, so I can educate them on various topics that would make their lifebetter in the financial world.


Dave Seymour 39:59

Mm hmm.Yeah, I love. We've got a common theme here because I talk about it often. Ihad a call today just to share a little story with you, you'll appreciate this.I had a call today with an ex, ex MLB. pitcher, right. So this guy had, youknow, pitched for about 10 years in the majors, and had a career ending injury.And, you know, had reached out to us with regard to what we're doing with thefund and raising capital, like he's he's done a little bit of real estatehimself, but not a not at a very high level. But the theme is education, I wastalking with this guy on a zoom call, and I'm saying to the guy, you know, I'mexcited about educating you on what we do, because he's like, I know so manypeople, right, professional athletes, in both MLB as well as the NFL. And hesaid, there's so many men and women, professional athletes who have been higherearners, and yet have not had any financial education. And I just, I just lovethe fact that that theme seems to be, you know, a current to what not only youdo, but how sweetly it aligns with what we do as real estate investors as well.You know what I'm saying, right, Dave?


Dave Hall 41:17

I thinkit's really where we've gotten along so well, because we're very similar in theway we approach things that it's not about us. Yes, we've got to live, we'vegot to provide our for our families. But the reality of it is, is we know thatif we do the right thing for other people, if we help them get the best result,if we make sure they stay compliant on my end within the laws, that in the end,our site's going to be taken care of, we're going to be blessed for what we do.And I think that's really what's been great on our sites, because we both spenda lot of time helping try to improve the lives of other people.


Dave Seymour 41:47

Yeah, Itell you, David, that the educated investor is is a lifelong relationship,rather than, you know, money's money, my friend, money comes money goes right.It's not even, it's not even valuable anymore. I mean, it's a depreciating,it's a depreciating asset, but the relationships when I know you get them aswell, the email that says thank you for teaching me showing me, you know,you've changed my life in this aspect of that, that aspect, you know, this willchange your life is something that's bandied around, you know, with really nomeat attached to it. And yet, you know, that that gadget or Gizmo that you buyon TV so that your back doesn't hurt, they say this will change your life. I'mnot necessarily agreeing with that, right? But I am agreeing that educationaround taxes and real estate and investing a business and growth, you know,those things, those things absolutely change your life, I want I want to touchon something with kind of like dialing down into into our last segmenttogether, share the secret about the fact of what we could do with minorchildren when we're business owners and how like child labor laws really don'tapply anymore. We can we can we can. That's an awful thing to say, tell meabout the Tell me about employing minors and what what a benefit that can be?


Dave Hall 43:06

Yeah,this is one of the areas that many people don't realize is an opportunity taxwise for them, as well as helping kids learn responsibility as a father of sixchildren. I can't tell you how challenging it is in this world, to try to teachkids the importance of responsibility. If you have kids, you've probablyexperienced this. But by employing them in your business, now they do have todo work. It's not just putting them in there and saying they do work. And theysaid on the Xbox playing the various games. But if you can find jobs for themto do, you can pay them out of that business and pay absolutely zero tax on theearnings they make. And you get a tax deduction for what you paid them ifeverything's set up correctly.


Dave Seymour 43:43

And it'squite substantial now, isn't it?


Dave Hall 43:45

It is?Yeah, it is. I mean, we're talking $12,000 per child, at least, that you couldtake as a deduction and pay absolutely no tax now, you're in a 37% bracket andmaybe a 6% state. So you're talking 43%? I mean, that's huge dollars. I mean,that's five $6,000 right there, that you've just eliminated and in the processtaught your kids some responsibility.


Dave Seymour 44:08

Love it,dude, sharing the secrets, my friend share the secrets. Dave, how can somebodyget a hold of you? Can you do like an intake conversation with them? Is theresome way that they can, you know, just get more of the information that youhave?


Dave Hall 44:23

Yeah,the easiest thing is for them to go to my website, eat trends., you can click on any link. We've got multiple links on the site whereyou can schedule a 30 minute consult with me. There'll be no charge for that.It's also going to give you ideas on our pricing. The way we work, you'll findall the information there. You'd also just send me an email Dave at the trendsgroup calm, happy to respond to any questions or inquiries that any of youhave.


Dave Seymour 44:49

Appreciateyour man. Appreciate you man. He trends tr e n d s You listen to myaccountant Dave Hall David. Thanks for Man appreciate you you've been a bigimpact in our lives Mary Beth the kids and I look forward to seeing you soonman cuz I know you're going to come out like you do every year. sit down and talkbusiness. So thank you, man. Thank you. You're


Dave Hall 45:12

welcome.You're welcome. Appreciate


Dave Seymour 45:13

you.Alright, we're gonna take a quick break. That was my accountant Dave Hall. Itold you taxes were sexy. Don't go away. We've got more good stuff right hereon real estate.


Intro Voice Over  45:24

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Intro Voice Over  45:29

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Dave Seymour 46:02

you everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? What tune in for all the answers on my showreal estate revealed this is they see my might recognize me from the hit TVshow flippin Boston. I'm also the CEO and co founder of freedom ventureinvestments. To smarten up your real estate know how by tuning in everySaturday for all investment details, visit us at info at freedom venture.comslash 104 point nine call my team at 78192 to 4418. Steve Alesis



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Intro Voice Over  47:03

you'relistening to real estate revealed with Dave see more from Amy's living Boston.


Dave Seymour 47:08

Welcomeback. Welcome back. Real Estate revealed. Let me let me let me know how you'vebeen feeling. Because I know the guys at the station have been planning aChristmas jangles you know what I'm saying? Santa Claus is coming to town,Rudolph the Red Nosed Reindeer. I mean, it's got to be nice here in that insteadof all the doom and gloom that's been going on in the world. I just I don'tknow, man I like, I'd like to get a little feedback on your thoughts on that aswell. Somebody reached out a few weeks back, they had actually called the phonenumber. It's 781-922-4418. And they were asking a lot of questions about whatwe're doing with the fund here at freedom venture investments. I got a coupleof calls the other day with regard to buy my house, please, Dave, I need help.starting to see a little bit of pre foreclosure challenges in the marketplace.We're here to help you if you have any questions, if you want any, any moreinformation on real estate at a at a higher level, you know, on the investmentside and what that could look like for you. You can find us at info dot slash 1049. That way I know that, you know, I know that you'reyou're listening to the show, and you're engaged with the information thatwe're giving you. I don't have an ego I'm not that guy. Ego stands for ease gotout eg Oh, so I like feedback. I mean, I'm really enjoying doing this show. Ienjoy the team here at the station. I'm also enjoying the interactions I'mgetting from you folks listening to this, we can always be better, right? Wecan always dial in a message. guy said to me one time if you're the smartestperson in a room, David, you're in the wrong room. And I never forgot that thatpiece of information. And Dave Hall has been a huge influence in my personallife. Not only obviously for the for the financial side. But being a friend. Ifound out a long time ago that people will do business with people that theylike, and, you know, the MLB pitcher and a couple of his connections that thatI just referenced. These are guys that don't have an ego. These are guys thatunderstand other people's expertise. You know, I wouldn't I wouldn't. I said tothis guy I said, I'll teach you I'll teach you real estate at the very highestlevel. I'll teach you how to analyze apartment complexes. I'll teach you how todetermine whether their capitalization rate is a good number. I'll show you outa lot of work cash flow to make these assets more valuable. I said I'll teachyour man I said you're hungry for knowledge. And all those that seek shall fivemen he said to me said yeah, don't worry, man. I'll teach you how to throw abaseball I thought to myself, Oh my Lord 54 years old imagine me trying tothrow 100 mile an hour baseball right now I'd end up in the hospital in aheartbeat. But those are the kind of people I like to do business with. And ifyou like to be around people that are grounded, there's no there's no, there'sno pretentiousness in what in what we do at real venture investments. And, youknow, Dave Hall is as like I said, he's been, he's been on this journey with menow for for over a decade. And I'm very grateful for him. I'm grateful for hisadvice. I'm grateful for his team. I share with you a quick story just just forjust for laughs right. I was audited by the IRS. They audited, my my selfdirected retirement account. And the reason they audited that was because theydon't like them because they don't get any taxes on a self directed account,because I grow the account in a tax deferred structure. And I remember callingone of Dave's associates at the company and I'm my knees are knocking. I mean,the IRS is on my door, Dr. Tom, and I call Ben was his name. I said, Ben, I gota letter from the IRS. They want to audit my self directed retirement account.And this is what he said to me ready? He said, That's awesome. I went What? Hesaid, That's awesome. And I said, What do you been, that's awesome. He says, Ilove it. He says, I get to go into all the data and I pull up all the bankstatements, and I every transaction, he said, and after I'm done dealing withthe IRS, they usually apologize and you get a better refund and mobile backaccount. So I'm like, this guy's a freak of nature. He's obviously a freak ofnature to be excited about challenging the IRS. But that is their expertise,right? That is the world that they live in. You know, if you're a bridgeengineer, I'm not going to teach you how to build bridges. If you're a baseballplayer, I'm not going to teach you how to throw a baseball. If you're a taxaccountant, I'm not interested in knowing everything about taxes, it wouldabsolutely bore the heck out of me. And I wouldn't I wouldn't be proficient.And yet having the very, very best around your business is is is an amazing anamazing place to be. So freedom venture investments align with the best in thebusiness. What do we do we work with accredited investors, folks who have lazymoney, either sitting in equity in a property in a retirement account that'snot performing bank accounts cash, oh, my Lord, please don't tell me you've gota certificate of deposit. All of that is lazy money. And by that we meancapital that's not working with any velocity. Right? Why shouldn't an investorhave an expected or targeted return of 10 to 14%? why shouldn't they? Mostpeople, when you mentioned those numbers, they go, that's not possible. Becausethey've been trained to here that's not possible. You're certified financialplanners, your your, your your wall street brokers don't talk about alternativeinvestments, which are real estate, commercial real estate, multifamily investingis an alternative investment. They don't talk about those because they're notin their wheelhouse. It's not part of the product suite that they get to sharewith their clients. And it's exciting because I'm at a stage now in my businesswhere I'm beginning to talk to retirement advisors, right, like retirementboards, we're talking with one of the large Midwest cities, metropolis, I can'tmention the name, but their retirement fund is looking to put capital to workat a high rate of return. So we deal with investment groups like that we dealwith the the average investor who just is tired of the volatility in themarketplace that tide of weak and mega returns. And they're looking for a placewhere they can park capital for five, six years, with an expectation and atargeted double digit return. And what we do is, is we buy apartment complexesand we buy underperforming apartment complexes, just like Warren Buffett eyes abusiness right? He says this business is managed poorly. I'm going to go and buyit, restructure it, get out the bad management get into good management makethe business more profitable. But we do exactly the same thing when we buy 40to 140 150 unit apartment complexes with investor capital in the Gulf Coastregion of Florida. Why Florida because it's warmer than Boston right now.That's why so what is your new year gonna look like? Right? Is your financiallandscape next year going to be better than it was this year and look this yearhas been it's been a horrendous challenge for millions of millions ofAmericans. But I chose in in March of this year, to focus on solutions ratherthan problems. I found a long time ago that if I focus on solutions, they comethey manifest themselves. It's not easy. I mean, we do the work, we've got overprobably 4550 years of experience combined on our team in buying repositioning,selling real estate, whether you're watching me on the TV show flipping Boston,we were doing those little single family houses on the North Shore here, youknow, from wenham, to Lin to revere, and up in up and down the, you know, thethe New England area, or whether, you know, whether it's been in the largecommercial space, you know, we've consistently focused on working capital forinvestors at a high rate of return. And I'll be very direct, it's not foreverybody, you know, this is a, this is an investment strategy that needspeople to understand it. And we're very, very cognizant of simplifying what isor appears to be complicated, I think that's part of a good entrepreneur, is toalign yourself with the very best, as I've shared with you, then to take whatappears to be complicated and simplify it so that everybody understands. And indoing so, we've created a lot of traction, a lot of good things going on.institutions, like I said, a call in some, a lot of registered advisors are nowreaching out to us, because their clients are looking for the ability to offsetsome of the roller coaster ride of the stock market, you know, the bond marketand the you know, the low yield investments are so low yield now that they'reactually negative yields. You know, the bond market is projected to have a 37billion with a B billion dollar negative yield, because the rate of inflationis offsetting it, right. And inflation is caused by a devaluation in the in thedollar, how do you devalue the dollar, you put more dollars in the marketplace,then the market demands, you know, the transfer of goods and services has beenchallenged. So, you know, there are a lot of challenges out there, newadministration coming in, you know, changes to the tax code. Some of the thingsthat have been done will be undone, some of the things won't, you know, what doyou have control over and what you don't have control over. I always love theSerenity Prayer, grant me the serenity, to accept the things I cannot changeand the courage to change the things that I can, and the wisdom to know thedifference. And that's been a great philosophy for me and for my clients. It'sbeen a great philosophy in business. And it like will attract like, and itbegins to get some some momentum emotion. underneath it, you know, the wordemotion e motion at the E stands for energy, energy, emotion. And as you cantell, by listening to me, I'm, I'm kind of an energetic guy. Even later in thelater in the day, and at the end of a week, I'm still I'm excited because itdoesn't feel like work anymore. So if you want a different financial landscape,give us a shout. You can call us direct at 781924418 you can reach out to usinfo dot freedom slash 104 point nine. And as I say every weekbefore we wrap up, take good care of each other. My grandfather always used tosay to me Do unto others, David, as you would have them do unto you. Be right,stand up, strike, be proud. 2021 will be different, I promise. And we're hereto help you. If you want the help. Real Estate revealed next week. I may beable to get that MLB pitcher on the call with us. If not just tune in I'vealways got surprises. Take care and I'll see you next week. And you securities


Intro Voice Over  59:01

beingoffered are under an exemption provided by sec regulation D rule 506 c onlyaccredited investors who meet the SEC regulation d 501. accredited investoraccreditation standard foreign provides suitable verification of accreditedstatus may invest into these offerings. Any historical performance datarepresents past performance past performance does not guarantee future results.Tune in again next Saturday at noon for real estate revealed hosted by DaveSeymour, the star of a living Boston and CEO of freedom venture investments inDenver.


Dave Seymour 59:41

That's awrap.