You're not a rookie real estate investor anymore. In fact, you're probably doing a small handful of deals each month, but you're killing yourself to make it happen and to top it off, if you take time off from your business, you don't make any money. That's because you don't have a real business, yet. We're about to fix all that. If you're a can do action taker, the whole scaling podcast will teach you the tips, tricks, and systems you need to generate massive revenue, build your team and give you the financial freedom you've dreamed of in any market in the US. This is WholeScaling.
(00:43): You have a business, or are you running a hobby? It's a serious question. It's a serious question because a lot of people treat their real estate business, like a hobby. A lot of folks out there, guys and girls are treating their business. Some of them making good money and still treating their business like a hobby. And Joe, what do you mean by that? How does that make any sense? Right guys and girls, a lot of folks out there making tens of thousands of dollars a month. Don't have an LLC, don't have a business checking account they're operating out of their personal checkbook. Folks. If you want to have a legit operation, you got to make sure you get your stuff together. Gotta make sure that your business is in line. And I recommend you gotta make sure you get your stuff together long before sometimes you ever making any money.
(01:33): Right? I try to make sure that you guys are doing what you want to do. And you're setting up yourself as an LLC belong before you're making any money. Look, it doesn't take a lot of money to set up an LLC. And I'll give you guys a quick disclaimer, I'm not your CPA and not your attorney. Make sure whatever state you're in, wherever you're listening from. You're checking with your local laws and all that. But guys, around here, it's a couple hundred bucks. You can set up an LLC. I own a bunch of LLC, besides the ones that are operating. I got a bunch of LLCs that aren't operating. Sometimes we start all C's for businesses that we don't use. And then we just shut them down a year later. I mean, it doesn't take a whole lot to start an LLC. If you're getting ready to start a business, your first business started as a serious business.
(02:12): Start that LLC, most of the time, again, consult with your CPA. If you don't do business in that, LLC, you don't even have to file a tax return. If it's a single member, LLC, and you don't put money in the account, you don't do a transaction. You don't start a checking account that year. You're not going to file a tax return anyway. So the only cost is the cost to start and file the LLC. So start the LLC. When you do your first transaction, start a checking account, put the money away. And as that starts to happen, pay yourself a salary out of that checking account. Now guys that are licensed and are real estate commissioned any type of commission. I don't care if it's real estate wholesale. If you're in some sort of sales business, you should be operating through an LLC, not is there a million tax benefits, but it's the mental wherewithal of treating yourself like a business.
(03:05): If you're self-employed and you're making money off of what you do, you should be running that money through a business. And then into your personal checking account, if you guys are running your life and your business together in one checking account, it's a recipe for disaster. It's a recipe for a lot more stress than you need to deal with. It's a recipe for your wife or significant other to be staring at your checkbook all day long and giving you more stress than you need. Right? You know, because then you're worried about closing that sale, worried about whether or not the is going to pay for your mortgage that month and so on and so forth. Guys, you need to be paying yourself an incremental paycheck every single week or two weeks regardless. Right? And then let the business operate on its own. Now I know that's easier said than done at the beginning.
(03:54): I get that because I've been there. I'm not naive to the fact that when you start in the business, it's really, really hard, right? I'm not naive to the fact that when you're starting out in wholesale, you do a deal and then you don't do a deal for two months. But what I'm saying to you is it's really, really difficult, but you have to force yourself to do it. You do that first wholesale and you make 10 grand put that 10 grand in an LLC checking account. Fact don't even tell your significant other, you closed it. I know it's difficult because what you want to do with that 10 grand is turn around and spend it on something and go buy yourself something nice because you deserve it. And guess what you do deserve it, but you can deserve it on the third or fourth deal, right?
(04:36): Where you can deserve it over a period of time. You know what, if you make 10 grand and put the 10 grand away in an LLC and put yourself on a salary of a thousand bucks a month, right? At least, you know, you can get four or five months down the road and hopefully do a couple more deals that you can put away in a checking account as well. And maybe you can give yourself a raise along that four or five months, right? Instead of just blowing it on something and spending four or five grand on one lump sum item, right guys, I know it's difficult at the beginning. I know it's a struggle, but the quicker you put yourself in a professional mindset and the quicker you're able to turn around and set yourself up like a business and operate like a business. The quicker you're going to be able to see yourself, get more balanced, more stable and less stressed.
(05:21): It took me a long time to do this, to set myself up like a business, took me a long time to pay myself a paycheck. I was making probably over a million dollars a year before I started paying myself a paycheck. And I was stressed out to the max, even when I was making that kind of money because I was operating out of my business checking account, even when I had that kind of money, which sounds like a lot of money you're still dealing with what's my checking account balance this week. It's always going to happen that way. So when you start taking that paycheck, you don't pay attention as much because you're paying attention to your wife, nagging you about, you know, do have enough money to pay the bills. You're going to find that 80% of your stress happens at home, right? And when the bills at home are covered, you can pay more attention to your business, right?
(06:07): Your business is less effective because your stress at home is handled. So again, early on, start that LLC start that checking account, put some money in there. I promise when it gets to the point where you're making consistent money. You'll thank yourself later on because you set those wheels in motion and you had that thing working. And one more thing I'll say to the realtors out there, because I would say 98 and a half percent of realtors do not operate this way. Like one of the rules in New Jersey is you can't pay an LLC. A broker cannot pay an LLC. I'll give you one workaround for that. Get your check made out in the hard copy. Okay? A lot of people want to direct deposit into your personal checking account. Get your check made out into a hard copy. Get it written out to your personal name, endorse the back of it, and then go deposit that into your LLC.
(06:58): So in my instance, you know, my secretary will run to the bank. Cause it's only across the street from my office. A couple of times a week, our commission checks coming in my name. She just puts FDO on the back for deposit only. She walks across the street and she puts him in our business checking account problem solved. Right? Okay. So it, brokerage is not legally allowed to pay my business account. I get that. But there's a workaround. My business account is allowed to take a deposit in my personal name, right? So they know that a commission check comes into my personal name. It goes into the business account. So just think outside the box a little bit, try to get work around that objective of, Oh, well I have to get paid in my personal name because I promise you that commission check comes in and goes into your personal account and incoming out.
(07:44): You can promise yourself 10 ways from Tuesday that you're going to take that commission, check out and do something with it. I'm going to move it around. I'm going to take half and put it back in the business. You're not going to do it. Something else is going to come up. You're going to need furniture for the house. You're gonna need clothing for the kids. You're going to want to go on vacation and that money's not going to make it back to the business. But if you put it directly in the business and you get used to paying yourself a paycheck, that's the way to operate like a true business. And then when you see yourself making money on a quarter, you talk to your CFO, you talk to your CPA and then you take a quarterly bonus. That's the way to operate like a big dog.
(08:20): That's the way to operate like a business. That's the way big businesses operate. When you turn around and you make a quarterly bonus, then you go on vacation. Then you stuff, money away in a savings account. Then you go buy that Rolex. Then you go put the money down on that, Bentley, whatever you want to buy. Right? But that's when the time comes, when you can celebrate, that's when the time comes, when you can get excited about the money you made. Right. But you know, that's the thing, guys start treating it like a business. If you're not operating like a business, you got to start operating a business day one. I don't care if you've made money or not. You got to start thinking that way. I'm going to try and get up on the whiteboard and do a little bit of a detail about what I'm talking about a little later, when I get in the office, I'll see what I can do for you guys probably later this afternoon. So make sure you check in, make sure you share this with your friends, anyone who's in the business. Who's in real estate who can get some value out of this. Make sure you share with them too. Guys. Keep hustling.
(09:09): If you are ready to put the immense power of whole scaling to work for you, then head over to Joe evangelists.com/downloads and get your free business in a box download. Or if you're a true action taker, ready to blow the lid off your results. You can apply now to work with our team, to build the business of your dreams faster than you ever thought possible. This call costs $500 to weed out the tire kickers, a mental , a feed. The real ballers will make back many times over on the first deal. Even if you don't get selected to work with us, you'll get a full year of access to our private coaching group, a $1,200 value and a 30 minute coaching call with Joe. So you win either way, go to www Dow real estate money, mindset.com to apply and change it.
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