Property Management Growth with DoorGrow DGS 317: Battlefield to Boardroom: How to Build Tax-Free Wealth
As a property management business owner, you likely work with seasoned investors who are always looking for new ways to build and preserve their wealth and assets.
In this episode of the #DoorGrowShow, property management growth expert Jason Hull sits down with Alan Porter to discuss how to reveal the powerful financial strategies the wealthy and large financial institutions use and how you can apply them.
You'll Learn
[01:09] Alan's Inspiration for Uncovering Financial Secrets
[08:38] Learning Financial Planning Strategies 90% of People Don't Know
[12:25] How to Get Started on the Path to Tax-Free Retirement
[15:43] Strategies For Property Managers and Their Clients
Quotables"The one thing you can always trust is for everybody to look out for their own self-interest."
"If your own self-interest is in alignment with their interests, then that's a win-win. Otherwise, someone's gonna lose."
"If you don't have a plan, make one. But you've got to have a plan and improve on it all the time."
Resources TranscriptAlan Porter (00:00)
I teach people to think outside the box, conventional financial planning, and show them the strategies that the wealthy and banking institutions have been using for years. Now, I show people how to become their own bank.
Jason Hull (00:10)
All right, welcome everybody. I am Jason Hull, the founder and CEO of DoorGrow, the world's leading and most comprehensive coaching and consulting firm for long-term residential property management entrepreneurs. For over a decade and a half, we have brought innovative strategies and optimization to the property management industry. We have spoken to thousands of property management business owners, coached, consulted, cleaned up hundreds of businesses.
Alan Porter (00:26)
Thank
Jason Hull (00:35)
helping them add doors, improve pricing, increase profit, simplify operations. And we run the leading property management mastermind in the industry. At DoorGrow, we believe good property managers can change the world and that property management is the ultimate high trust gateway to real estate deals, relationships, and residual income. We are on a mission to transform property management business owners and their businesses. We want to transform the industry.
eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. Now, let's get into the show.
So my guest today is Alan Porter of Strategic Wealth Strategies. Welcome, Alan.
Alan Porter (01:16)
Well, thank you for having me on.
Jason Hull (01:18)
Yeah, glad to have you. And we're going to be talking about, he's going to be sharing how to reveal the powerful financial strategies, the wealthy use, how you can apply them to. Alan will be uncovering the IRS approved playbook for retiring completely tax free, explain the millionaire tax strategies business owners use to keep more of what they earn and break down Wall Street myths to show how to build lasting wealth without market volatility. So Alan.
Again, welcome to the show and why don't we kick things off by give us a little bit of background on you. How did you get into entrepreneurism, into business and give us a little bit of backstory so we understand how this all came to be.
Alan Porter (02:00)
Well, I never thought I'd be doing this. I retired from the military back in 1993. I was a Blackhawk instructor pilot and I told everybody I had a safe landing for every takeoff and I dodged all the bullets and I had a great career. And I got enrolled in the real estate mortgage business after that up till about 2008. I've had some tragic things happen to my family. In 2009, live in Little, mean Fayetteville, North Carolina. My son lived in Little Rock, Arkansas with his wife, Lynn. She was 39 and they had two little girls that were seven and four.
Jason Hull (02:19)
in 2009.
Alan Porter (02:28)
Well, we went down there for Christmas in 2009, but my son had been 100 % disabled for three years and still not getting the disability. And January 5th changed my entire life. His wife, Lynn, called me up. said, Alan, I've been diagnosed with stage four pancreatic cancer and they've given me six months to live. Of course we were all devastated, but there's a huge financial problem that's developed in my son's family because there's no money coming in.
Jason Hull (02:28)
Well, we went down there for business in 2009, but my son had been 100 % disabled for three years and still not in a disability. Wow. And January 5th changed my entire life. His wife Lynn called me up, she said, Alan, I've been diagnosed with stage 4 pancreatic cancer and they've given me six months to live. Of course, we were all devastated. Yeah, I bet. there's huge financial problem that's developed in my son's family because of the money coming in.
Alan Porter (02:55)
I'm helping them out, but I don't know for how long
Jason Hull (02:55)
I'm helping him out, but I don't help him.
Alan Porter (02:56)
until I'm gonna have to sell my house or do something. But I was like 99 % of the people out there, Jason, that thought life insurance was a death product that you had to die to benefit from it. Well, little did I know she had a terminal illness right or her life insurance policy that she could access within one year of diagnosis of this deadly disease and was completely tax free, which I knew nothing about. It was hundreds of thousands of dollars.
Jason Hull (02:58)
Yeah. Really?
Alan Porter (03:21)
And if it had not been for that, my son would be bankrupt and it took a huge financial strain off of me.
Jason Hull (03:25)
Yeah. Well, long story short, died a year later, so I moved my son back here to Fayetteville, North Carolina. But about a year after that, my daughter's an oncology nurse, and her husband's a doctor at Woodbrook and Raleigh, North Carolina, and just gave birth to my third grandson. And she was diagnosed with breast cancer, and it was very bad. We didn't think she was going to live. Well, now in 2023, she's been 12 years cancer free, but she also was diagnosed with Graves' disease, thyroid eye condition.
Alan Porter (03:26)
Well, to a long story short, she died a year later. So I moved my son back here to Fayetteville, North Carolina. But about a year after that, my daughter, who's an oncology nurse and her husband's a doctor, they live up in Raleigh, North Carolina, had just given birth to my third grandson. And she was diagnosed with breast cancer and it was very bad. We didn't think she was going to live. Well, now in 2023, she'd been 12 years cancer free, but she also was diagnosed with Graves disease and thyroid eye condition.
There's only one treatment for it. It's not a cure-all for anything, but
Jason Hull (03:51)
And there's only one treatment for it. It's not a cure-all.
Alan Porter (03:55)
it's a treatment. It's an infusion, eight infusions of this drug is called Tepezza I believe. The first one was like $32,000. The last one was almost a quarter of a million dollars. That was in May of 2023. On January of 2024, the thyroid eye condition came back. In February, she went to the doctor. The doctor said, Nicole, I'm sorry, there's nothing we can do until you go blind and then we can operate. I'm thinking, man, what a prognosis.
Jason Hull (03:55)
my Yeah. ⁓
Alan Porter (04:21)
So we tried to get her a study at Duke. She didn't qualify for that because she had
already taken the Tepezza But April did get her into the Mayo Clinic in Rochester, Minnesota. But basically there's nothing they can do for her. She was up there for about four days for testing and consultation. But basically, like I said, there's nothing they can do for her. They got a drug that may be 50 % effective. It's not improved by insurance. And believe it or not, it's even more expensive than the Tepezza is. And it's just, I mean, so.
Jason Hull (04:39)
Yeah. Yeah.
Alan Porter (04:51)
So both of my kids are living day to day in misery. And when I got started in this, knew, like I said, these things, because I was to have a very successful real estate mortgage business. And I said, these financial strategies that the insurance companies have, why don't people know about this? These are the greatest financial vehicles out there. People tell me, well, listen to Suzy Orman and Dave Ramsey, insurance is not a good investment. Well, first off, it's not an investment.
Jason Hull (04:54)
When I got started in this, knew, like I said, these things, because I was very successful in estate in my early years. I said, these financial strategies that the insurance companies have, why don't people know about this? These are the greatest financial vehicles out there. People tell me, listen, as soon as you arm it today, Ramsey, insurance is not a good investment. Well, first off, it's not an investment.
Alan Porter (05:18)
It's an asset class all of its own. There's no other financial product that can
Jason Hull (05:19)
It's an asset class all of itself. There's no other financial product that...
Alan Porter (05:23)
provide the protection, performance, and benefits of cash value life insurance when properly structured and fixed and fixed indexed annually. And I'll give you one big point. They eliminate or mitigate the risk in retirement that a stock portfolio only compounds. That's absolutely... Let me ask you this. Have you ever heard of sequence of returns risk?
Jason Hull (05:23)
could provide the protection, performance, and benefits of cash, money, or life insurance. Yeah. if you have one big point, they eliminate or mitigate the risk in retirement that a stock portfolio only compacts. That's absolutely, let me ask you this, have you ever heard of sequence of returns
risk? Sequencing returns? Sequence of returns risk. No.
Alan Porter (05:46)
Sequence of returns risk.
Well, don't feel lonely because 99 % of the people I talk to, to include multi-millionaires that have fee-based advisors. And let's say that you're 65 years of age and you go to retire and you got a million dollars in your stock portfolio. They used to say a 4 % distribution rate was a safe distribution rate to last for 30 years, index for inflation at 3%. Well, my plans go to age 120. They don't cut off in 30 years.
Jason Hull (05:50)
Well, don't feel lonely because 99 % of the people I talk to include multi-millionaires that have fee-based advisors. let's say that you're 65 years of age and you go to retire. You have a million dollars in your stock portfolio. They used to say a 4 % distribution rate was a safe distribution rate to last for 30 years, index for inflation at 3%. Well, my plans go at age 120. They don't cut off in 30
years. But the problem with that 4 % distribution rate
Alan Porter (06:15)
But the problem is that 4 % distribution rate, that's
Jason Hull (06:19)
That's $40,000 a year. And that stock portfolio, that's not guaranteed. What if you have a 10 % loss the first year? now your million dollars goes down to $900,000 minus the $40,000 you took out minus the fees you paid on financial advisor whether you make money or not. And then the next two to three years, 2008 happens again, where you lost 38 to 52%. You never got the money in the fifth year. And when I tell people about this, they're financial advisors,
Alan Porter (06:19)
$40,000 a year. And that stock portfolio, that's not guaranteed. What if you have a 10 % loss the first year? So now your million dollars goes down to 900,000 minus the $40,000 you took out minus the fees you pay that financial advisor, whether you make money or not. And then the next two to three years, 2008 happens again, where you lost 38 to 52%. You're going to be out of money in the fifth year. And when I tell people about this and their financial advisors,
Don't tell them, I mean, they're said, I said, why do you think that is?
Jason Hull (06:45)
don't tell them. I made letters, I said, why do you think that is?
Alan Porter (06:48)
It's because they make a fee whether you make money or not. The number one fear in retirement is running out of money before you run out of money. I can eliminate that.
Jason Hull (06:49)
Because they make a fee, well, if you make money or not. The number one fair return is 20,000 dollars. Yeah, compensation
structures are incentive models. And so if their incentive is not to tell you, it's because they're getting paid to not tell you. Well, they're supposed to be fiduciary looking out for their best interest clients. I'm a certified financial financial advisor. Yeah, but regardless, the one thing you can always trust is for everybody to look out for their own self-interest. Oh, you're right there.
Alan Porter (06:59)
Yeah, exactly right.
Well, they're supposed to be fiduciaries looking out for their best interest clients. I'm a certified financial fiduciary.
you're right there.
Jason Hull (07:18)
So if your own self-interest is in alignment with their interests, then that's a win-win. Otherwise, someone's gonna lose. Yeah. It's always the clients. Yeah. Yeah. Okay, well, that's quite the story. how is everybody doing now?
Alan Porter (07:26)
Yep. And it's always the client.
My son looks like he's 85 years old and my daughter's living day to day in pain.
Jason Hull (07:43)
Yeah, yeah. So you have this burden of trying to figure out how do I take care of them? How do I make sure that, you know, taking care of your kids and, you know, nothing's more stressful emotionally or more motivating for us as a parent than our own kids having it going through a tough time. Yeah. I remember my oldest daughter,
she was born with a birth defect that there was a rotation in her gut and she was just always sick, throwing up, stuff like this. Well, she almost died. We didn't know this. got, went and got a scan. Everything was inflamed. They're like, we have to do emergency surgery immediately. And yeah, it was pretty scary as a parent. And they had to like pull her guts out, do surgery, put them back in. And she was a little kid, you know? Now she's my oldest. I mean, she's still my oldest, but now she works for me.
and in DoorGrow which is great. But yeah, I remember those times. That's really scary. And I can imagine that's just really a big load on your shoulders. So did this kind of spark you creating the strategic wealth strategies then?
Alan Porter (08:30)
No.
Absolutely, that's my passion for this. I'm very passionate about what I do. It's all about education because people don't know.
Jason Hull (08:49)
Explain the
passion, like what gets you excited about this?
Alan Porter (08:53)
Well, educating people. That's what I did in the Army. I was an educator. I taught people how to fly. it's just like this, educating people. I teach people to think outside the box, conventional financial planning, and show them the strategies that the wealthy and banking institutions have been using for years. Now, I show people how to become their own bank. I've been doing this for a decade and a half. And why don't everybody doesn't do this? I don't know why. mean, you borrow money from yourself, you pay yourself back compound interest.
Jason Hull (09:16)
you
Alan Porter (09:20)
and not the financial institutions and you eliminate the effective interest cost that you pay on the money that you borrow. And people, are you aware of what effective interest cost is? Banks love it. I had a gentleman who wanted to do my debt free for life plan. And I said, well, how much debt do you have? He says, well, we bought a new house a couple of months ago, a couple of car payments, a loan and a credit card. I said, what's the interest rate on your mortgage? He said 2.75.
Jason Hull (09:20)
Yeah.
And people, are you aware?
No, what is that?
Alan Porter (09:46)
I said, what's your effective interest cost on that? He says, well, I don't know what you're talking about, Alan. I said, don't fill it, only most people don't. Fill out my form, we'll do a Zoom conference the following week. I said, you got $461,000 in debt. That's not your problem. The problem is the 49.76 effective interest cost, you're paying on that 2.75 % mortgage. His eyes got real big and he said, Alan, how is that possible? I said, it's not going to get down to the 2.75 until the last couple of months of the mortgage.
Jason Hull (10:10)
Yeah. ⁓
Alan Porter (10:14)
You've got a credit card here that's over 90 % effective interest cost. And even though you've got great credits, your average effective interest cost is over 46%. So my next question to him was, what financial vehicle are you investing in, your 401k or anything else, that gives you a 46 % return on your money? Because 46 cents of every dollar that you pay out goes to compound interest for some financial institution, and that money's gone for you forever.
Jason Hull (10:17)
and ⁓
Alan Porter (10:38)
He said, well, nothing. In fact, I lost 10 % of my 401k.
Jason Hull (10:40)
Yeah, that'd be hard to find that
much. And then my last question was how long does it you to your debts off? I said with my cap three buck of money and a whole lot of insurance policy, 14.17 years past, saving $73,000. And in the 10th year it would be 52 years of bids, and there's over $149,000 in cap
Alan Porter (10:43)
And then my last question was, how long can it take you to pay your debts off the way you're doing it? I 20 some years. I said, with my tax-free bucket of money and a whole life insurance policy and our software, we're paying all your debts off 14.17 years faster, saving you $73,000 in interest. And in the 10th year, you'll be 52 years of age and there's over $139,000 in a tax-free bucket
of money that you can use ⁓ to buy a new car, whatever, college education for your kids.
Jason Hull (11:06)
you can use uh buy a new car whatever college education for
your kids at that point your debt benefits will be $400,000 in tax-free money from the federal bank but think about this you don't have to any more money in this by the time you're 65 there'll be over $400,000 in tax-free money that you can use to supplement your income that does not affect the taxation of social security or the tax and community care part which will be in the thousands per year
Alan Porter (11:13)
At that point, your debt benefits over $400,000 of tax-free money to protect your family. Think about this. You don't have to put any more money in this. By the time you're 65, there'll be over a quarter of a million dollars in a tax-free bucket of money that you can use to supplement your income that does not affect the taxation of Social Security or the means testing for Medicare Part B, which will be in the thousands per year. You're
protected from lawsuits, liens, and judgments, and it eliminates or mitigates all the risk in retirement. This is absolutely great for real estate investors.
Jason Hull (11:35)
Yeah. Yeah ⁓
Alan Porter (11:42)
Because once they build that money up in the cash value of their policy, they can take it, go buy a property, and pay themselves back. I do this all the time. I just bought two new cars in last two years. I pay myself back. I'm going to have tens of thousands of dollars more because I compounded interest for me instead of some financial institution.
Jason Hull (12:03)
So you said multiple times, like why aren't people doing this? Well maybe you could answer your own question, why aren't people doing this?
Alan Porter (12:10)
It's lack of education. It ought to be taught in high school, but it's not. I've got college professors with PhD degrees
in accounting and finance. They have no idea what I'm talking about. They ask me to teach their classes.
Jason Hull (12:20)
Yeah, got it. So it was just a lack of education on this.
Alan Porter (12:24)
That's exactly what it is.
Jason Hull (12:25)
So, yeah, well, I mean, it sounds like something that everybody should be doing. So how does somebody get started with this or how do they become aware of this or what would you say are the first steps?
Alan Porter (12:38)
Well, give me a call. I don't charge for my consultation services. That's free. It's an education. I think everybody needs to know these things because it will change their financial future, not only for them, but for their family also and possibly generations to come. at 9-8-5.
Jason Hull (12:52)
So Alan, it
sounds like you've kind of found a passion in this. You really enjoy helping people to be able to figure this out and do this.
Alan Porter (13:00)
Absolutely.
Jason Hull (13:01)
So yeah, I think that's noble. I think this is pretty awesome. So for those that are listening to this point, I'm going to read a quick word from our sponsor and then Alan, I'm going have you share your phone number so they can get in touch with you and we can keep talking about it. So this episode is sponsored by KRS Smart Books. So if you're a property manager, are you tired of getting tangled up in numbers? KRS Smart Books has your back. They specialize in property bookkeeping.
for small to mid-sized managers who'd rather focus on, well, managing. With over 15 years of experience in real estate accounting, their pros in AppFolio, Yardi, and all the top property management software, trust them to make your monthly reports hassle-free so you can get back to what really matters running your business. Head over to krsbooks.com to book your free discovery call. All right, so Alan, what's the number that they should get?
to get in touch with you or to reach you to find out about this.
Alan Porter (13:59)
You can call me at 910-551-1046, email
me at strategicwealth, the number zero at gmail.com. And you can always go to my website, which is www.strategicwealthstrategies.com and you can book appointment there. And I've got a plethora of information on that website.
Jason Hull (14:18)
What?
Great, thanks for sharing. So for those that are listening, some people might listen to this and go, well, that's nice, but Alan probably can only work with people that maybe have a million dollars or that are ultra wealthy or have lots of savings. People will listen to this and say, that's probably not for me. What would you say to that?
Alan Porter (14:39)
Well, quite frankly, bull I work with everybody. know, I'm for the military. Military people don't make a lot of money. Okay. And I work with them, but I work with regular, regular working people that I mean, I'll give you a perfect example. I asked people, said, why do you contribute to a 401k? They said, well, it's a tax deduction. I said, no, it's a tax compounder. And I thought you don't think tax is going to be higher when you retire. I got another thing coming for you.
Jason Hull (14:43)
Okay.
Right.
Alan Porter (15:07)
But see, thing is people don't understand. 1 % of people out there don't even think there's a fee in a 401k. A 1 % fee over a 30-year period will reduce your income by one-third. The average fee in a 401k is 2.99%. Now that's by Forbes Magazine and the Laptimes. People have less than two-thirds of their money and then they get hit with taxes anywhere from 20 to over 55%. And they're not prepared for it. They're not prepared for long-term care, which costs right now between $50,000 to $200,000 a year.
I can get money for that's tax free for pennies on the dollar. It's just a matter of education.
Jason Hull (15:43)
So for the property management business owners listening, a lot of them will have sometimes hundreds of clients that are investors and they're wanting to maximize their investments, how would this maybe benefit the property management business owners to be better educated on this and have a strategic partner like you?
Alan Porter (16:03)
Well, the thing is, you've to have a plan.
If you don't have a plan, make one. But you've got to have a plan and improve on it all the time. But it's just like, you know, building up your cash value and borrowing from yourself to buy a property and paying yourself back. That's an absolutely great thing for a real estate investor. And these property managers, I've got health and wellness programs. If you've got employees over 10 employees, understand this. The employer
will save anywhere from $500 to $700 a year in FICA taxes. The employee and the employer have 1,100 drugs, prescription drugs, at zero copay. That's 20 to 30 % of healthcare costs.
Jason Hull (16:37)
Yeah
Alan Porter (16:50)
I mean, and they also have an accidental indemnity program and that's not for the employer, but they have a revolution health app. They've got the number one telehealth app according to JD Power and associates. It's a plethora of benefits. We have legal club, we have identity shield.
It's just all at no net cost to employer and no net cost to the employee. It's the section 125 of the tax program.
Jason Hull (17:06)
This is all at no net cost reported at no net cost reported. Got it. Got
it, interesting. Okay, well cool. Well what else would people generally ask about this or should we make sure that the listeners are aware of related to this? Well, are you...
Alan Porter (17:26)
Well, are you
risk averse? Are you conservative? You know, it's just like when you go to retire and you've got that million dollars in stock portfolio, a 4 % distribution rate, $40,000. If you had a property constructed fixed indexed annuity at, say, age 65, you'd only need approximately $650,000 of that stock portfolio to give you the same $40,000 a year. That's guaranteed for the rest of your life. we're guaranteed.
Jason Hull (17:53)
New York Heat. ⁓
Alan Porter (17:53)
Never to have a loss through
the market because we're not tied to the market for our gain. We use indexing strategies and every time that indexing strategy goes up we have increasing income and the older you get the higher the distribution rate is. You can't do that with a stock portfolio. It's not even comparable.
Jason Hull (17:59)
And every time that index of strategy goes up, we have increasing income. And the older you get, the
Yeah, yeah. Well, Alan, I appreciate you coming on to the DoorGrow show and bringing this to light for those listening that are not aware you're doing your purpose of educating. So appreciate that. And to wrap up what final words do you have? And then again, why don't you go and share how people can get in touch with you one more time.
Alan Porter (18:31)
Okay, well I've got a best-selling book out right now on Amazon. It's called Tax-Free Retirement Solution. Again, Tax-Free, Tax-Free Retirement Solution.
Jason Hull (18:38)
It's called tax, tax free.
Retirement solution, okay. Got it.
Alan Porter (18:45)
And again, you can call me at 910-551-1046.
My email is strategicwealth, the number zero at gmail.com. And you can go to my website, which has a plethora. I've got videos, I've got blogs, I've got everything there. And you can book an appointment there at www.strategicwealthstrategies.com.
Jason Hull (18:51)
email is strategicwealth0 at gmail.com and you can go to my website which has a cluster. I've got videos, I've got blogs.
book an appointment there at www.strategicwellscladagy.com.
Awesome. Alan, appreciate you being on the show and thanks for your service. You mentioned your former military. Yeah, I appreciate it. So for those watching, if you've ever felt stuck or stagnant in your property management business, you want to take it to the next level, reach out to us at doorgrow.com. Also be sure to join our free Facebook community, Just for Property Management Business Owners at doorgrowclub.com.
Alan Porter (19:13)
Well, I appreciate it.
Jason Hull (19:31)
And if you would like to get the best ideas in property management, join our free newsletter at doorgrow.com slash subscribe. And if you found this even a little bit helpful, don't forget to subscribe and leave us a review. We'd really appreciate it. And until next time, remember the slowest path to growth is to do it alone. So let's grow together. Bye everyone.