Speaking to Real Estate Agents for Tax Resolution Lead Generation

Yesterday, I discussed why real estate agents are a great place to focus your 1040 tax resolution marketing efforts, due to their common failure to make estimated tax payments.

Today, let’s delve into one of the best ways to get to know real estate agents so that they become your clients and referral partners.

There are obviously many ways to network with people in any given profession, but certain professions lend themselves better to specific marketing strategies over others. When it comes to real estate agents, and getting them to know, like, and trust you (KLT), there’s one marketing strategy that stands out above all others, and has for decades: Public speaking.

Why does public speaking work so well for lead generation with real estate agents?

Because, just like tax professionals, it’s common and normal for real estate agents to naturally assemble themselves together in a room.

Seriously. That’s entirely what it boils down to.

Here are just some of the ways in which real estate agents gather:

  • Weekly sales meetings at their brokerage offices.
  • Roving home tours of new listings.
  • Local Board of Realtors meetings.
  • Continuing education classes.
  • Technology demonstrations.
  • Conventions and conferences.

…and more. Again, it’s very parallel to how WE behave.

After reading that, your first thought might be, “Yeah, but there’s no way they’ll get together to hear somebody talk about taxes.”

Wrong, my friend! Two quick examples…

First example: One of our veteran Tax Resolution Academy® members in Sacramento, CA, Mike Ornelas, EA, has been using this tactic successfully to get new tax resolution clients from Realtors in his area for a couple years, by delivering “Tax Talks” directly to the real estate agents.

Second example: Ever heard of a little newsletter called the Tax Reduction Letter from the Bradford Tax Institute? This company generates millions of dollars a year in revenue by having traveling salespeople deliver 2-hour presentations on tax savings for the self-employed at Board of Realtor offices all over the country. It’s one of the primary sales channels for their business.

Bottom line: It works.

I realize that your next thought is going to be something about COVID-19. Well, guess what? Just like tax pros, those real estate agents still need to complete their CE. They’re selling homes at a record pace, during the pandemic. They’re still holding sales meetings. They’re still having speakers, just via Zoom instead of face-to-face. And when this … Continue reading

Guess who doesn’t pay estimated taxes?

There are probably about a dozen things related to tax resolution that I’m constantly beating the drum about.

Droning on incessantly.

Repeating myself to infinity (and beyond!).

One of those things that I haven’t shut up about since I started teaching tax resolution marketing strategies to tax professionals back in the dark ages (2012) is that your marketing should:

a). Be heavily niched.
b). Choose a niche with a high percentage of people with tax problems.

In other words, if you’re going to focus on tax problem resolution, then it just makes sense to focus your marketing efforts on those industries, professions, and populations with a greater propensity to owe money to the IRS (and state).

Fortunately, it’s a pretty short list of professions and industries that make up the bulk of tax debtors.

Near the top of the pyramid, for 1040 tax debtors? Real estate agents.

Why? The facts:

  • 89% of real estate agents are independent contractors with their brokerages.
  • The average agent only does 11 transactions per year (according to NAR), and they’re heavily clustered in the spring and summer.
  • Due to lumpy income, these agents live commission check to commission check, and many of them fail to set aside monies for their Uncle Sam.
  • Thus, they don’t pay estimateds, thus they accrue liabilities in disproportionate numbers compared to the general population — even compared to other self-employed people.

That’s why working with real estate agents is one of the best places to start in your tax resolution marketing journey.

How do you market to real estate agents?

Easy, peasy.

  • Speak at brokerage sales meetings.
  • Present to property management groups.
  • Join your local Board of Realtors for networking and promotional opportunities.
  • Send direct mail to real estate agents.
  • Cold email works, too, once you get the list from the local Board.

…and a few other things.

How do you do these things?

I’m glad you asked.

Your new best friend when it comes to connecting with real estate agents is one of my best friends: Mr. Daniel Henn, CPA. He’s been kind enough to package up a large collection of marketing resources that will get you going in no time, into a big toolkit we call the Real Estate Tax Pro Toolkit. We’re clearly much more aligned with helping you create amazing results than we are in creatively naming products, but I digress.

As his holiday gift to you, … Continue reading

Six Financial Best Practices for Year-End 2020

By any measure, 2020 has been an interesting year. Tens of millions of Americans have faced unemployment, and millions of small businesses have had to scale back operations, or even worse, close permanently. And right when things start to feel like they’ll return to normal, something else happens.

Thankfully, with multiple COVID-19 vaccines in the works, there’s hope the load will lighten in the new year, which is fast approaching. While we prepare for a fresh start, here are six financial best practices for year-end 2020 and beyond, none of which require any heavy lifting.

  1. Give as you’re able, get a little back. What the 2017 Tax Cuts and Jobs Act (TCJA) took from charitable giving, this year’s CARES Act partially gave back – at least for 2020.
  • A $300 “Gift”: Under the TCJA, it became much harder to realize itemized tax deductions beyond what the increased standard deductions already allow. But this year, the CARES Act lets you donate up to $300 to a qualified charity, and deduct it “above the line.” In other words, even if you’re taking a standard deduction, you can give a little extra, and receive an extra tax break back, without having to itemize your deductions.
  • Giving Large: If you are itemizing deductions, the CARES Act also temporarily suspends the usual “60% of your AGI” limit on qualified cash contributions. The exception does NOT apply to Donor Advised Fund contributions, and has a few other restrictions. But if you’ve already been thinking about making a large donation to a favorite charity, 2020 might be an especially good year to do so – for all concerned.
  1. Revisit life’s risks. As the pandemic reminded us, life is full of surprises. That’s why it’s imperative to build wealth, and protect it against the inevitable unexpected. Is your current coverage still well-aligned with your potentially altered lifestyle? Perhaps you’re driving less, with lower coverage requirements. Or new health or career risks now warrant stronger disability insurance. Might it be time to consider long-term care or umbrella coverage? Bottom line, there’s no time like the present to prepare for your future greatest risks. 
  1. Leverage lower tax rates. While it’s never a sure bet, Federal income tax rates seem more likely to rise than fall over the next little while. Even before this year’s massive relief spending, the TCJA’s reduced individual income tax rates were set to expire after 2025, reverting to their prior, higher
… Continue reading