Inflation, Taxes & Interest Rates: The New Reality for Business Owners

 Most entrepreneurs are on a collision course with massive failure, and the reason is directly
 hitting your cash flow, not your business plan.
 Tune in for an uncensored no BS reality check, as the hardcore closer Ryan Stuman exposes
 the crippling facts that force you to be average and keep you stuck in the middle.
 Stop chasing comfort and start fighting for your financial freedom.
 This is the brutal truth you need to hear to survive the current economic climate.
 The truth hurts, but God designed the truth to hurt us because we're only motivated
 by two things, pain and pleasure.
 And the truth hurts, motivated you because of being to go do what you need to do, and
 we just hide the sit-ups and the humans we're hiding from the truth and we're trying
 to gain pleasure out of everything, but pain is a bigger motivator than pleasure.
 This is right about now with Ryan Alford, a Radcast Network production.
 We are the number one business show on the planet with over 1 million downloads a month.
 Taking the BS out of business for over six years and over 400 episodes.
 You ready to start snapping necks and cash and checks?
 Well, it starts right about now.
 All the best practices in the world are set up to get average, and so when you're actually
 chasing the top of the mountain or you're aspiring things, the world is conditioning us.
 If you want to have a bigger life, a better life to have impact to do things, you have to
 take risks, break free from average.
 It never felt like it had an agenda because it felt like it was freak.
 You were freed up.
 It was because if you want to chase past whatever one else has, you got to be willing to
 do what no one else is willing to do.
 That's a lot of the ways you've built your business.
 It looks like it.
 You know, the name of my company is very pretty Academy for that reason.
 I didn't even know it.
 I love it.
 What does that stand for to you?
 It's human beings.
 We're fighting this force of average.
 We are fighting mental limitations.
 We're fighting financial limitations.
 Freedom means you have the time, the means to do whatever you want, whenever you want.
 Most people, they get into business because they want to be their own boss and then have
 climb freedom.
 But then what happens for most people is they have neither of those.
 They have to answer to investors or board of directors and will eat little management.
 They have no time left over to do the things that they want to do with the money that they
 have made.
 Just trying to help people break free from all of that stuff.
 What do you make of the business climate right now in America?
 The administration and the government has not in the way of my success.
 When I was a drug dealer and I was trying to be successful with the drug dealer, the government
 got in the way of my success.
 As I became a convicted spellon in Dodd's prank list passed in 2010, they wouldn't
 allow me to do financial stuff anymore because I was a spellon, so they've intervened
 twice.
 But it hasn't stopped my success.
 Right now, think about this.
 Just two years ago, you can make money off of your own list list, land redeeming, private
 jet gardeners, crypto NFPs, mastermind, anything we touch, real estate, houses and cars
 would sell in for tens and hundreds of thousands of dollars over list prize interest rates
 were dirty, grass green was dirty, everything you touched you made money from and our government
 got to know which of these people take it all the way from.
 There's no time in my life.
 I was a load off spirit in 2007, 8, 9, and 10, even though the oldest market was crashing,
 there was still people that were making money and it was only the real estate and mortgage
 market that was crashing.
 I never seen the government take everything away, they have the last couple of years.
 What happens is we're chasing policy from when Congress passed an act or a law or a president
 puts an executive order, it takes a few years to catch up, it doesn't happen immediately.
 This is a test of IQ of America right here, where we're at.
 Common sense isn't so common anymore because we have parents that for two or three generations
 now have a look at their kids, we raise my video games, iPads, computers, I was in school
 it gets straight A, he's got in trouble and now they'll saw these grading curves, participation
 trophies for education and stuff like that, we're seeing the consequences of that.
 We're told that as both would burn your hand and you put your hand on it anyway, they
 laugh at you.
 They're like they're an idiot, I told you to still decide now it's like oh my god,
 we've got to get rid of stove, it's just been completely different climate, we're seeing
 accountability is the word and it's gone out the window because we have conditioned everything
 to be convenient and comfortable, it's great, we want our kids to be comfortable, it's
 not that we don't want them to have a great life, but you don't learn or have a great
 life without lessons and consequences and accountability, you've nailed it, we're seeing
 the participation trophy people are now running companies and government and other things
 but what's crime in California?
 You've merged somebody you're out of jail in 10 years.
 They don't even report it in some of these cities in LA and New York and any report
 it anymore left, the IP report out today saying crimes now by 4% but that's because New
 York, Los Angeles, Houston, Texas, Chicago doesn't want crime to left, we're not getting
 real statistics, we're not getting real education, we're not getting real accountability and
 we wonder why we have fake ass people, we're in an autonomy that are empowered, it's
 crazy.
 Well, I've voted both sides of the line, I think my practicality and principles and morals
 probably lean right, but I'm not afraid to cross the aisle, I consider myself independent.
 What's the biggest thing that's impacted you from a business with today's client?
 Number one, interest rates for it's 3 and 4%, you could go buy a rental property and
 you could cash flow it.
 Now we have to buy that thing for cash, we'll put it significantly larger down payment
 now to get it to cash flow it's 6 and a half to 7 and a half percent.
 In our government, in a lot of blue states, they have got the amount of raise that you
 can put on the rents.
 If you raise the rent every year, they've said, oh, you can only do 5%, you can do 10%,
 but they didn't have the amount of tax increase because the property values would up.
 They didn't have the amount of interest, my property's in Florida, I've sold all the
 income board and I'll sell it is because I can't raise rent, but the insurance company
 raised my policy 300%.
 The government has put the landlord, but we're going to have the insurance companies and
 the municipalities and a lot of business owners pull real estate, whether it's the
 office they have or whether it's the portfolio of real estate and when that's going to
 drop cash flow and then it track those out or moves its damage or destroys the house
 and the way out.
 They're out every dollar that they've raised for an entire year on that.
 The second problem is, let's say in 2022, you made a million bucks, $22.3, you've
 got to pay taxes on that million bucks.
 Taxes are paid in a rear in 2023 in April, April, April, July, when all it is, you decide
 to pay taxes that has a business owner to pay on when you extend it.
 You're having a year that is 20, 30, 40% less as good as cash flow as it was in 2022.
 Now every dollar they've been gone out for window in 2023 and you can't treat the loss
 in 2023 till this year and this year for business is down again and we're trailing from
 better years in business, getting down and getting tax in the rear.
 It's like, man, I'm already out of money and now that it's taxing me from a year ago,
 we have all things are going to continue to be good so maybe bought more inventory and
 they've got a bigger warehouse, maybe went higher, more people, now I'm not making as much
 money and I still owe those taxes and I got to let these people go in order to do that.
 I hear these stories all day every day and it's a combination of things.
 Our cost of goods are up, these are traditionally less expensive than gas, but a few years
 ago they started making us put death fuel on top of diesel and now these are more expensive
 than gas and I'm watching break companies and trucking companies go out of business
 left and right because they've got a Georgia higher price in order to pay for the
 expensive diesel and you're burning three, four gallons to the mile because you've got
 a big ass load in the trailer that you're traveling with.
 You can't take a loss in that, you've got to make some money so you either lower your
 margin or you go out of business and watch a lot of that happen too so this is the
 lives of the physics we've seen from the government.
 The cost of goods may only be up four or five percent but lack of drilling, new wells,
 we haven't drilled a new well in America since 2017, we haven't opened a new refinery
 and forever and everything's operating at max capacity.
 Diesel is super expensive which means the transportation of goods to get to the floor, to get to our
 Georgia is through the roof and for now we're having to pay more for that even if you're
 making more money right now you're actually making less money because everything else
 that you have to do is more expensive.
 For a family of six in my house health insurance and we're all healed, none of us have
 anything wrong with this three grain of milk, that's $36,000 a year.
 If I wasn't a good entrepreneur I'd either not even take a job where they pay for my
 health insurance and cost the company $36,000 a year, I make $100,000, I'm really only
 making $64,000 to live on just after health insurance.
 That's not mortgage, that's not my gas, that's not food, that's not any of that shit.
 That was just a master class.
 What is happening in the economy right now that's impacting business?
 The impact of interest rates being high is having a huge impact, things that aren't even
 related to real estate, the cash that it's keeping out of the everyday market because
 those rates are so high, because people aren't doing what you're saying, flipping houses,
 doing things.
 When you stall real estate in this country, you have stalled the entire economy.
 There's not as much free cash flow and just business transactions happening.
 47% of real estate agents have not pulled a home in the last 12 months, the media home
 sales for real estate agent in the country right now is two in 12 months.
 It was three, just a couple of years, so that's been cut by a third.
 Traditionally hardening rates, 89% and now they're 12 by 15, and the SVA is just 7%, right
 now the SVA is at 12 to 16%, you can't go apply your business, you can't apply our houses
 and profit from them, even if you buy a familiar residence, my home, I paid a million bucks
 for it years ago, it's worth $2 million right now, prices have gone up in my area.
 If I were to sell that out and keep a million dollars, first of all, I'm going to be taxed
 on $300,000 of that, because it's only a $700,000 non-capital game primary in president
 flow would be taxed on $300,000 of that, then if I go buy another house that only costs
 me a million dollars, maybe I'm going further out in the city, so I'm paying more for
 cash to the transportation, things of that world nature, and that house at a million dollars
 costs more than my house right now within the interest rate.
 I have a ranch house that I've bought for $440,000, the mortgage is more money per month
 on that, then it is for the million dollar house that I bought six years ago in refinance
 2.875 for spent.
 I'm paying $1,000 and that's a month for two million dollar house that I've gone for six
 years, then a $400,000 home that I just a year ago.
 I got a life Ryan, busted his ass, run of businesses, creating jobs, doing these things
 investments, but these are the impacts for him.
 Imagine what the impacts about cost of goods, like everyday people, they're paying $7 for
 a load for bread, and all this, but that's back to the fuel, the cost of getting it there.
 You make $120,000 a year, which historically is excellent money, but you got three kids,
 you're paying $2,200 a month or 30 grand a year for health insurance, you're paying $35,000
 per cent, 38 per cent in taxes, so you're really living on about $35,000 to $40,000 a year
 after this tax is in health insurance on a W2 job with a couple of kids in $120,000 a year
 dollar.
 It's crazy, and right now I'm somewhat of a mainstream economy, because I've been in
 the financial markets for 20 years, and anytime the Fed cuts rates, they're changing problems,
 and unemployment is at an all certain high right now, you're not going to get that from
 the government's statistic, but it is, what it is, inflation is actually going down
 a little bit, so the Fed cut rates because of unemployment, companies go out and buy
 cheap for money to get an entire more people, but anytime the Fed has cut the rate, there
 is always been the next three to 12 months, a 20 to 55 per cent decline in the value of
 the stock market overall.
 We haven't seen the market crash yet, and the ramifications of what are to come from
 that, because of this rate cut, because they don't just cut the rate, because they're
 like, we want to be nice to people and give them more money, that's not how it works.
 The whole point in that is, yeah, we want the rates to come down, but they didn't need
 to get that high to begin with, because these policies created, they brought the cause
 of the disease and the prescription.
 It's dangerous.
 There'll be a problem, however, if I don't go create a bunch of problems.
 That's what these policies do, they go create a bunch of problems, and then promise us
 that they'll solve it as soon as you get this.
 This solution was not to raise rates, six consecutive times in a row, three per cent
 or three is ridiculously low, that was great, but anybody with a half a brain knows the sweet
 spot in America for mortgage interest rates is five and a half percent.
 That's enough to keep people buying, it's not too expensive, that's the sweet spot.
 They should have raised from three to five and a half and just ain't there, hope that
 they live for seven and a half.
 And they flat-lined everything else and you don't feel it immediately.
 That's why we're starting to feel it now.
 Everybody just gets okay to be fat and you're beautiful and all this stuff when you're
 totally not.
 Those people are lying to you and doing wrong versus the person who calls you fat and
 hurts feelings and tells you to get in the gym and smart eating correctly and hold you
 accountable.
 Now you're more likely to hate person who calls you fat because you get in the gym
 and eat right, but that person actually cares more about you.
 It's the person than the people who care about your feelings and how you perceive them
 as nice people.
 The truth hurts, but God designed the truth to hurt us because we're only motivated by
 two things, pain and pleasure.
 And the truth hurts, motivated you because of being to go do what you need to do and we
 just hide and sit at sins as humans, we're hiding from the truth and we're trying to
 gain pleasure out of everything, but pain is a bigger motivator than pleasure.
 It's a cycle of comfort because the person that doesn't tell you the truth isn't not
 telling you the truth to make you feel good.
 It's so they feel good because they don't have to see you respond negatively and be hurt.
 They want to be liked too.
 Everybody wants comfort.
 Everybody wants to be liked, but it takes real strength, real courage and real belief
 to tell you the truth because then that's what's truly good for the other person and not
 good for them.
 Working here might keep up with you.
 Instagram, at Hardcore Closer, Facebook, Ryan Stumman, both of those have blue checks
 or verified accounts.
 They'll never get you up to crypto or sliding your DMs from a backup page.
 If you enjoyed the show, you got something out of what I said just sliding my DMs, say
 hello, say you enjoyed the show, let me know.
 It's me really managing that, know the team, so I'll talk to you on there.
 I love it.
 He's real and he's right.
 You know what I found us?
 Ryan is right.
 We'll have links to all Ryan Stumman stuff, Hardcore Closer, go follow him and you can find
 us over on YouTube.
 What's his full episode?
 We're blowing up over there.
 We're taking it over.
 We're taking the BS side of business.
 We'll see you next time.
 I'll write about now.
 This has been right about now with Ryan Alford, a Radcast Network production.
 Visit RyanisRite.com for full audio and video versions of the show or to inquire about
 sponsorship opportunities.
 Thanks for listening.