Welcome back to The Think Bigger Real Estate Show. I'm your host, Justin Stoddart. I'm very excited about today, you as real estate agents work very hard for your money, right? Most of you, some of you don't. Those that are high producers, those that love this show are very hard working. And wouldn't it be nice if you could keep more of the money you earn number one? And number two, wouldn't it be nice if you had a strategy to be able to differentiate yourself from the typical agent, differentiate yourself from technology disruptors, and give people a reason beyond just liking you as a human being, give them a real value proposition that makes them want to come to you because your commission becomes irrelevant, because you're that valuable. Today's topic is going to be all about that I have with me a true expert, national expert. His name is Toby Mathis. And let me get in his bio here in just a sec. But let me give everybody a reminder that we do a lot of content here on the think bigger real estate show, as you know, and I would encourage you if you've not yet signed up to get our weekly updates that go through and give you show notes and then also give you highlights and action steps. Go sign up for that at thinkbigger.realestate. Alright back to our guest today, Toby. Again, thank you for being on the show today. I'm super excited to introduce you. So let me to start by saying thank you for being here.
Hey, thanks for having me.
Yeah, this is good stuff, man. So for those that don't know, Toby, he is a teacher. First and foremost, he said, that's the thing that I want people to know, first and foremost about me as a he's a teacher. He's a writer. He's written over 1000 articles, a number of books. He's a tax lawyer out of Nevada. He and his firm serve on an ongoing basis, over 18,000 clients. And at any given time, they're servicing upwards of 50,000 clients, because of their tax strategies. They understand tax law. They understand the importance of real estate when it comes to tax law. And these guys have some stuff that are going to absolutely blow your mind today, Toby. Again, thank you for being on the show. I'm excited to share your knowledge at least not sure all of it because that would take forever but at least introduce you to the audience and let people know how they can get in contact with you. So appreciate being here.
Hey, it's again, it's fun to finally get to join him. Usually people don't bring a lawyer into the mix voluntarily. Usually it's got to be a beaten over the head. But if you learn how to use them appropriately, they can be quite an asset.
I love it. So you're in let's let's kind of get something out of the way here really quickly. This TB stands for think bigger. My goal is to help people think bigger and when they do their life gets better. What is Toby, you're obviously a big thinker, I mean to have the kind of impact that you're having, and servicing lot of people that you're servicing and something I didn't mention, you've got over 150 properties nationwide. So right you're in this real estate game, not just from the outside, but from the inside. What what what is the reason why you do all of that? I mean, what's behind you? is there is there family some sort of like big motivation that's like, you know, I have a driving force to make a big difference in the world because I want to what does that look like for you? Yeah, for me,
It's it all comes down to creating a legacy for my family. So when you first get involved in something, I always look and say what kind of what kind of impact in the world can I have? So I'm very much into the charities. From a tax lawyer standpoint, I can tell you there's nothing better than tax free, where you give, you can literally just give you one example, you could literally give a rental property that you've depreciated fully to a charity and write it off all over again. So for some of the high net worth people out there, they're going, what Yep, I can I can take 100% fair market value deduction tomorrow if I want to. So once you start realizing that there's laws built around that it gets, it gets to be a lot of fun. And so for me, my driving force is a you shouldn't be teaching something that you don't do. I believe that there's nuances to doing things. So if you're in real estate, for example, you better be talking to advisors that actually are in real estate, that you can't learn it out of a book he learned by doing. So I'm a big believer that I better be doing what my clients are doing, because there's what you can do, and there's what you should do. And I could I could get your taxes down to zero. I know that because I'm a tax lawyer, like there's so many different loopholes or incentives out there. But if I did, did I just hose your business? Like, how are you going to get alone? How are you going to grow? And so there's always this stuff where people will go to the accountant to the go to the lawyer, and they're teaching it from a philosophical idea or out of a book, but they're not thinking about real world impact. And as a result, I just say there's so much bad information out there that I really enjoy correcting it and I enjoy watching people just get huge results with very little effort. That's kind of that's rewarding. Awesome. So that's what that's what's driving these think bigger actions that you have. And this is the legacy and creating something great for your family as well as you seeing it. Kind of a big difference. It makes the lives of people I love that man. Let's let's look
Let's kind of go here. What's some of the biggest? And you've kind of already hinted at some of these. But what are some of the ways that a real estate agent not even including their own, like investment portfolio, right, that's a whole separate topic that maybe we'll go on in a different show. Maybe we'll have time today. We'll see. But let's say that I'm a real estate agent and I'm earning income. What are some of the biggest mistakes real estate agents make, then would make an immediate difference in the amount of taxes that they pay on their income?
Let's just increase your your take home pay by 10% on an average agent, so let's just say that the average agent is somewhere between 50 and $70,000 a year. The what we see is if you implement one small strategy, which is the tax designation for the at that actual business, you'll increase your take home pay by about 10%. So if you just want to increase your take home pay by a few thousand bucks, the easiest thing to do is make sure you're not operating on your schedule. See on a 1040 70% of the agents out there operate a silver that's what it's called. Because the accountants say, Oh, it's easy. It's one of the worst things you can do if I could, I'm going to approach this from a couple different angles, Justin. Number one.From an audit standpoint, if you are a sole proprietor making, let's say it's $100,000, but I'll just use that throughout hundred grand, you are 1200 percent more likely to be audited than your corporate counterpart. You are also going to lose that audit. And this is from the night 2018 IRS data book that they just published out a couple months ago. Like they'll tell you who they who they audit and how often they when they went about 94% of the time, the IRS, so you're 1200 percent more likely to be audited, you're going to lose 94% of the time. So why would an accountant put you in that situation plus, you're paying about $10,000 a year more in taxes as a sole proprietor and that's because 100% of your product are subject to something called Old Age death and survivors and Medicare commonly known as social security, you're getting hit on 100%. Whereas if you just designated yourself an escort, you would be able to eliminate about 70% of the money from that, that you make from that designation. You could literally buy a simple piece of ...
