Good Morning Team,
As we wrap up 2024, it's clear that this year has been one for the books, and I couldn't be more proud of our team for navigating the ever-shifting landscape of the real estate market. This year tested our resilience, adaptability, and unwavering commitment to our clients.
Let's be honest, this wasn't an easy year for anyone. We faced one of the lowest transaction volume years in over a decade, with volatile interest rates and economic uncertainty looming over every deal. The NAR lawsuit, elections and brokerage acquisition added other layers of complexity, forcing us to adapt our best practices and prepare for potential disruptions.
But here's the thing: we didn't just survive, we thrived. We increased our market share while many others struggled. A testament to your dedication, hard work, and willingness to embrace change.
You guided your clients with expertise and care, helping them navigate the complexities of a turbulent market. You embraced new technologies and strategies, proving that we're not afraid to evolve and adapt. And when faced with uncertainty, you met the challenge head-on, emerging stronger and more prepared than ever.
So, to each and every one of you, thank you. Thank you for your unwavering commitment to excellence, your relentless pursuit of client satisfaction, and your ability to find opportunity amidst challenges. You are the heart and soul of this team, and your contributions are what make us the best in the business.
Looking ahead to 2025, we're setting our sights even higher. We anticipate another year where mortgage rates will play a significant role in shaping demand, especially in the first half. But we're not shying away from ambitious goals. We're aiming to close 2000 homes, with 650 of those coming from listings. This will require continued focus, innovation, and collaboration, but I'm confident that together, we can achieve anything we set our minds to.
Here's to celebrating a year of remarkable achievements, and to an even brighter and more successful 2025!
Some key takeaways from this year:
We are a team of Davids: We don't rely on size or scale to win; we rely on our grit, our creativity, and our willingness to go above and beyond.
We are adaptable: We embrace change and find opportunities within challenges. We don't just react, we innovate.
We are client-focused: We put our clients first, guiding them with care and expertise through every step of the process.
We are committed to excellence: We never settle for "good enough". We constantly strive to improve our skills, our knowledge, and our service.
The Last 30 Days:
As we approach the end of the year, it's crucial to review your tax strategies and ensure you're maximizing deductions to optimize your financial well-being. I recently had my quarterly tax strategy session with my CPA, and during this crucial December meeting, we “inspected what we expected”, confirming that everything we planned has been executed for the year-end. I also had a great conversation with the ATL group and discovered that many of us utilize similar tax-saving strategies.
Disclaimer: I'm not a tax professional, so the information below is for informational purposes only. Consult with your CPA for personalized advice tailored to your specific situation. It's important to note that most of these strategies require a PLLC setup, so if you haven't established one yet, it's something to consider.
Here are five key tax-saving strategies that I consistently use and you can too:
Augusta Rule: IRS Section 280A(g) (the Augusta Rule) allows you to rent your home to your business for up to 14 days per year without recognizing the rental income personally. The rental rate is based on fair market value, making this a potentially lucrative deduction.
Dependents on Payroll: Hiring your children for age-appropriate tasks is a smart way to reduce your business's taxable income while investing in their future. You can pay them a reasonable wage and contribute their earnings to Roth IRAs (up to $7,000 annually in 2024, if they have earned income), creating a tax-advantaged savings vehicle for them.
Public and Charter School Donation: The Arizona Tax Credit program allows you to reduce your state tax liability by contributing to public or charter schools. To learn more about this program, visit: https://aztaxcreditfunds.com/
Maximize Deductions: Be strategic with your travel planning to maximize deductions related to business trips and conferences.
Accelerated Depreciation: If you own investment properties or plan to purchase them, accelerated depreciation can significantly impact the feasibility of your investments. This strategy allows you to deduct a larger portion of the property's value in the early years of ownership, reducing your tax burden and potentially increasing your cash flow.
Remember, taking advantage of these strategies can make a significant difference in your financial well-being. By proactively planning and implementing these tactics, you can reduce your tax liability and free up more resources for building long-term wealth.
If you don’t have your PLLC established, MHG hosts a class monthly to assist. Here is the registration for the next MHG class: bit.ly/2025pllc
Also, ADRE has some great resources: https://azre.gov/faq/how-do-i-form-pcpllc
As a team we’ll be working on a recording training that walks you through the process.
The Next 30 Days
Over the next month, a key focus will be delving deeper into the intricacies of Fathom and the potential impact of their recent acquisition by MHG on our team's model. While both Fathom and MHG assure us that no immediate changes are planned, I would prefer greater clarity and certainty for the future. The conversations will center around identifying potential synergies for growth and answering critical questions: How can this acquisition enhance the success of our agents? Does Fathom’s leadership prioritize the consumer experience? These insights will guide our decisions and ensure that we’re strategically positioned for continued success.
Social Post:
Here is a Year in Review Canva template put together by the one and only Jimmy Mackin
For Fun:
Give @thebrokeagent a follow. They add some humor to this crazy business!
Speaking of new beginnings, I'm excited to share that I'm shaking up my routine in 2025! Since 2012, my mornings have started with planning and think-time from 5:30-6:30 am. While this has been productive, I'm switching things up by moving my workouts to the morning and reserving evenings for strategic planning. It's amazing how a simple change can disrupt the flow and bring fresh energy and perspective. And a bonus is I get to enjoy the Pink Skies in the morning rather than sitting in my home office. Consistency is key, and I encourage you to find what works best for you and stick with it.
GL
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