• Home
  • |
  • 1304 » Surviving a 520K Tax Bill & Investing in Land with Bad Credit!

It doesn't matter how bad your credit is, you can still do deals. I did a lot of deals, even with bad credit. Three years ago, I had a huge tax lien, a federal tax lien of $520,000 on my house, on everything we owned. The IRS was threatening to send me to jail if I didn't pay this thing off. Basically, what happened was I started doing a lot of deals, I started making a lot of money, and I wasn't setting aside any money for taxes. I kept on paying off my old taxes without paying my new taxes. I kept on digging myself in a bigger, bigger hole.

There’s this book called Profit First, and I read it cover to cover. Then I hired a full-time bookkeeper and operations manager for my business. We implemented the Profit First method and after some time, we turned the ship around. The point of the story is to not make the same mistakes I did. Hire a bookkeeper if you need the help and read the book Profit First. If you’ve made mistakes, don’t hide your head in the sand. Face your problems head on and ask for help.

Watch and Learn:

Listen and learn:

What’s inside:

  • How I got out of massive tax debt
  • Why I chose to implement the Profit First strategy
  • Why you should hire a bookkeeper to manage your accounting

Mentioned in this episode:

Download episode transcript in PDF format here…

Joe:   Hey, Eric. How you doing, man? Two things for you that I'm thinking about right now. I'm just going through, and I'm answering some questions that my coaching students bring to me. I coach a few people one on one or in small groups. And one of the things I like to use is this app called Voxer. Voxer allows you to send voice messages back and forth. So once a day in the mornings, I go through and I answer questions from my coaching clients. I love helping people do their first deal. One of the things I'm always telling my clients and my friends to do when they want to get started in real estate is stop asking what if questions and start asking what next questions, right? Big, big difference between the two. Because you could get stuck in what if, what if, what if you know what if the seller gets mad at my offer? What if I offer too much and the, the seller accepts my offer, and then I get it under contract, and I'm trying to sell it, and I can't sell it because I've offered too much. What if I can't get the money to buy the house or the vacant lot? I mean, you could go in down a hundred different directions and get real discouraged really quickly. So what I like to say is stop asking what if? And start asking what next? Because again, what if could be like, what if a meteorite falls from the sky and crashes on this building that we're in right now, so you can get stuck in this? What if forever and there will always be what ifs. If you wait until all of your eyes are dotted and all your teams are crossed before you take any action, guess what? You're never going to get anywhere. You're always going to be stuck there. And I can relate because I was like, that man. I was a civil engineer, went to school. I was good at math, as good as science, and I always liked math. I was good at calculus, and I liked it because there was always one answer to a problem, right? And there was always one solution to that answer. And there's always a formula that you had to take. And there was these steps, and you could get the thing solved using these same steps. And everybody had to use the same steps. There was always a simple, clean answer for everything. And then when I got into engineering, we were building large power plants, right? And we were getting these drawings that were like 2 or 3, four inches thick of all the underground utilities, the foundations, the structures, the electrical, mechanical, the plumbing, all of the finishes, the interior, and then all the equipment in there. So like you could see from beginning to end how everything is supposed to be built and how everything is supposed to be designed and constructed. And so you start at the beginning, you go to the end.

Joe:   Well, now when you start getting into real estate and in any business really, you can take all those plans and throw them out the window. Why? Because you're in the people business. You're in real estate. Every deal is different. Every seller is different. You're not answering to a boss anymore. You're not hiring an architect or an engineer to draw out and plan everything for you in advance. There's different ways to make money. There's different ways to do real estate deals. There's different ways to start and run a business. And so there's a lot of variables out there, and you have to become comfortable or used to the unknown. You have to be confident enough to say, you know what, I don't have all the answers. I don't know all of the what ifs. The something bad may happen. I don't know exactly how this is going to turn out, but I'm okay with that. I'm going to just take one step at a time, and it's okay if I don't have all the answers. So when I'm coaching people, a lot of my job is just like, you know what, don't worry about that yet. That's a good question. Right? And I never come down hard on somebody for asking dumb questions because there are no dumb questions. Well, I mean, sometimes there are, but it's a coach's job to say, don't worry about that right now. Let's worry about that when you need to worry about it, okay? All you need to be focused on right now is this. And then after you do that, then let's do this. And after you do that, then let's do this because I get it. You know, in this game there's a lot of moving parts, there's a lot of uncertainty. There's a lot of like these things that you think you've got to get done right now. And some people are more engineering minded and some people are more artsy fartsy minded. Everybody's different. And so some people that are more engineering minded, they have to have everything laid out, and they have to have a solid business plan, and they have to have all of the options figured out and all the what ifs. And so if you're like that, you're going to really have a hard time in this business. And that's the way I was when I first got started, until I stopped questioning everything and I started trusting the system. I said, all right, so I'm going to do what my coach says to do. He said to buy a list. I bought the list. And then I said, well, what next? What do I do next? The next thing is you send postcards to that list. I said, all right, so I sent the postcard. I didn't question the postcard. I didn't stop asking. Well, should it be yellow or white? Should I use blue ink or black ink? Let me do some research and then dive down this rabbit hole of like, well, what happens if I use red ink versus black ink? What happens if I use yellow handwritten yellow letters or black boring postcard letters? Right. What's going to where's the difference in that. So you could go into like what if I use this color? What if I use that color? What if I use letters and postcards and start analyzing it? So I find that I'm just going to stop asking the what if and just start doing it, just make a decision. Right? So for me, that was a big deal. And I said, I'm just going to do this. And then I did it. And then I said, okay, what next? He said, do this. And I said, okay, what next? After you send the postcards, you know, they start calling and then. Then what? Well, should I have a Google voice or should I use my cell phone? Should I have a mailing address at my house? Should I have a UPS store or a P.O. box? I said, I'm just going to do what the guy says to do.

Joe:   So I started taking massive, imperfect action, and I started seeing success. I started seeing success when I was okay with making mistakes, and I knew I would figure it out as I went along. I knew I'm going to I'm going to take massive. This is a or massive imperfect action. I became okay with making mistakes. I became okay with not knowing what if all my things were laid out ahead of me. Because again, every deal is different. Every seller is different. No two deals are ever the same, and you get a deal under contract and something's going to come up and title. Something's going to come up where, you know, the seller gets nervous or your buyers get scared about something, and then you think you have a good deal and it turns out to not be that good of a deal. It turns out to be some title issues or whatever, right? So one of the things that I love about doing this business and I'm coaching clients is like, stop worrying about the what ifs and just focus on what next. So the example could be then don't worry yet about where the money is going to come from. Don't worry about yet about how the contracts work. Do you need an LLC or not? Do you need a website or not? Do you need business cards and logos that'll take care of itself? Let's worry about the first thing. Let's keep the first things first. First thing is, let's pick a good market. That's all we need to worry about. Okay, we got some markets. Then you can get into stuck into this. Well, I got 20 counties to choose from. I have 20 zip codes to choose from. I can go into this market or this market or this market. And then you start analyzing it to death. Well, let's just pick one. Let's pick one. Okay. Let's pick two. That if you really want to pick more than one, let's go to two. Then what next. As quickly as we can get to the one next right after we pick our markets. Good. Let's go download a list. Should I download a list from this service or this service or this service or this one? Right. Forget about it. Just pick one. Let's go right now. Pick one, pick one. We pick one, we then we download the list. You see what I'm going here with this. And then we download that list. Well should we send a postcard or a letter. What if this postcard doesn't work? What should I send him to a website? Should I send him to a phone number? I just pick one and go for it. So we're going to send a postcard to this list, and we're going to send him to a voicemail. And then we're going to listen to the voicemails. We're going to send them a call. So this is what I'm talking about. I'm just talking about like one thing at a time. And then let's not worry about those other things. Let's get this done and then move on to the next thing. It starts with picking your market. It starts. Then next step is downloading a list. The next step is sending marketing to them. Then the next step is to process the incoming leads and then send offers. And then that's another huge thing that could be a whole other topic on its own. Like all of these what ifs. You know what if the property doesn't have access, for vacant land? What if it doesn't have? What if it's a swamp land? Whatever. We're just making offers.

Joe:   The goal is to make two offers a day. Three offers a day. So all we need to focus on is making offers. And then when we get it under contract, if they accept our offer, that can be when we do our due diligence, right? Once we do our due diligence, we decide we want to buy it. Then, you know, we put it out there on the market. We see if anybody's going to be interested in it or not. And then when we find people that are interested in the deal, we sell it and all of that, okay, here's there's all these things that are happening in a deal. And if you're stuck at step one worrying about steps seven and eight, you'll never get step one done. So where are you? Are you're most of you all are in step one or step two right now. Do not worry about steps seven and eight. They will take care of themselves. The students that I see that have the most success are okay with making mistakes. They're okay with massive, imperfect action, but they're always moving forward slowly, one step at a time. They're just saying, okay, Joe, I got the list. What next? What I need to do now? Joe, I sent the postcards. Now what do I do? All right, Joe, good. I got the postcards. I'm starting to get leads coming in. What do I do now? I tell them how to look at the deal. How to make simple, fast offers in five minutes or less. Okay, Joe, I sent 20 offers today. What now? What do I do next? And you may not have a coach or a mentor. You maybe have a course. Okay, I encourage you to not go through the entire course before you take any action, I encourage you. Module one first video finished. Go do what they just taught you to do. Don't worry about steps 2 or 3. Watch the next video, then go do it. Watch the next video. I can tell you this. The students that I see again, they have the most success in my course. They've not even watched all the videos yet. They've only watched the first couple three videos and they're out there doing it, and then they figure out what to do next as the process happens. So this is a real, really important key to success. Okay. Stop worrying about steps seven and eight before you start doing steps one and two. Don't watch all of the videos and the modules in the course, okay? Sometimes you know my courses. I release them every week and then somebody buys my course and then six weeks later they're finally watch the sixth module six weeks later, and then they're like, okay, now I'm ready to get started. Oh, that's such a waste of money. It's such a waste of time. And in fact, you probably won't have much success in this business if that's what you’re doing, where you are. And I'm saying this because that's the way I was. And if you want to have success in this. You've got to take massive action and decide today you're okay with the unknown. Decide today that you just need to see the next step in front of you, and you're going to take massive action. And that's when you will have success. All right. That's all I got for you. Thanks.

What are you thinking?

First off, we really love feedback, so please click here to give us a quick review in iTunes! Got any thoughts on this episode? We'd love to hear 'em too. Talk to us in the comments below.

Enjoy this podcast? Share the love!

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}