Investment Due Diligence: What Loral Looks For

So, Diane, you where do you live in Georgia?

I'm in Acworth.

Okay, and you've been working with Laura.

Your question is, what makes you decide not to invest in an

opportunity when the numbers don't work? And what do I look

for in investment? The numbers working. Those are simple

answers. So, in the wealth cycle investing, which is where you

need to be reading, right? Of all the books, this one, there's

a whole chapter on money rules and due diligence. So, you know,

as you think about investing, there's so many asset classes

you can invest in. You can invest in real estate if you're

accredited, gas and oil, which I don't know if you are. I'd have

to look at whether you have.

Yes, I am

accredited. So you could buy gas and oil. You

could do a water, RV, parks, so storage. I mean, just in real

estate alone, there's multiple categories. So just in

principle, I am more of what's called an alternative investor,

and most of my work, if you've read it or been listening is

alternative meaning I'm going to buy like you know Landman the

Permian Basin I'm going to buy one of those wells because the

tax benefits are so much better than say the Chevron stock I own

because I still have Chevron stock from when I worked there

100,000 years ago a different lifetime I can't even believe I

was employee so I like real estate not a REIT right a REIT's

the stock market so there's some people who just the ease in not

managing, if they put their money in the stock market. The

problem that I have with that is that's where you get capital

gains. So it just creates another income problem, another

tax problem. I'd rather buy assets, and it's actually one of

my top principles. I want assets that have a big depreciation

schedule, right, where I can actually use it to reduce my tax

burden on the businesses. So on my business income, I end up

with having to pay some tax, and then I use investing, right? And

clearly, I'm using all the deductions. So I use my

investing strategy. Like my my daughter's a pilot, so in 2028

probably we'll get a plane. That's a that is 100% deductible

for five years, and that will wipe my taxes for a long time.

Just the real estate I own, and the new big beautiful bill, I've

got losses carried forward for years that I don't pay taxes. So

how people pay taxes is a lot about how they invest, and and

very few people ever talk about it or put that together. So it's

how you make your money and how you invest that's going to

reduce your taxes. So as you can tell, that's a huge part of my

money rule equation. I use a tax strategist implicitly every

month, every week to make sure you know we we come in at those

rates. Other other things, Diane, that that I look at is

just I mean the viability, the cash flow. I mean, do I want

appreciation? Do I need it for cash flow? Because my businesses

do well, I'm usually more of an appreciation depreciation kind

of investor. And it's not say I don't do the market, but I only

do the market through a very specific AI driven software that

takes me in and out, and you know I don't lose when I'm in

the market. Where a lot of times, if you put all your money

with a financial planner, they're never going to get you

out fast enough, and they make their money when they put you

in. They don't make their money trying to manage it later. I

mean, they make a little, but not that that game. And then

probably the other thing I say is I've not to invest if I

completely, completely like don't trust the management team

to do what they say they're going to do. I wouldn't

probably, I would, I wouldn't do due diligence because if they

can't manage, say, a gas and oil, well, they're not a good

operator. They can't manage the the real estate, like because I

don't want to have to do the work. I mean, they're the ones

running the project. So if I don't like the management team,

or don't agree with their principles or values, then I

wouldn't put my money there. What are you looking for? What's

the decision about regarding the big table? What's your

questions? You're going to learn like you. You will part of what

you will be learning is your own money rules, and some people

like to be really active. Like I love to be an active younger.

I'm making choices now. My son's 26. He's a one of our like he's

a tax strategist CPA, and he's like, Mom, like used to be way

more active. And I said, I don't want to run around and get you

know, collect rents. Somebody else can do that. I'll still

invest, but I'm not going to be one on the front.

That makes sense.

So your your money rules will change with

like what's going on in your life, what's going on in your

legacy, as your kids, if you have kids, if they emerge and

like they're the beneficiaries, you'll start making decisions

around what they're going to actually keep. Because the worst

thing you could do, and so many people do this, they don't

demand their kids are educated, and they just hand them a trust

fund. My kids will never have that. So, and I buy fun. I've

bought pizzerias, hair salons, you know, the black hole. I've

I've bought all sorts of interesting things.

Yeah, I'm trying, still trying to get my husband to

agree to. Move our assets into a trust, but I think that's one of

our weaknesses.

Well, it shouldn't go straight to trust.

It should go to an entity where you could tax benefits, and then

from the the the companies are held in trust, not the asset. If

you take the asset directly to the trust, you don't get in. You

don't get the tax benefits. So it's a whole structure problem,

and I would tell him if he's not going to do that, he's going to

land in probate, and 30 to 50% of what you own was going to be

to go to the state of Georgia. So yes, we saw

that already with my brother's death.

Yep, yep. I'm very

familiar about with that.

Yeah. When are you and Laura talking again?

In the morning.

Okay. Well, Diane, I have. Thank you. She

has my cell phone. If you have any other questions, I will

leave an audio file and get it back out to you.

Thank you.

Thank you. Take care. Bye.

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