SUCCESS STORY: Diane Kennedy–DKA, TaxLoopholes

Good read, thanks for posting. Sounds like you made all the right moves at the right time!

Hey, MJ, we need a new smiley, junping up and down on a trampoline, and saying "I am rich!"



-Russ H.

Diane - Very glad you joined this board; I like your work. Question regarding net worth - when you have investment properties do you subtract the amount owed on them when calculating net worth? (example; a $1m in investment properties, with $400K in equity; $600K debt). Some people continually re-finance to acquire more (as I'm sure you know!)
I know this is a topic that gets debated a lot; and I'm curious to hear what your view is.
Thanks in advance.
Kevin S.
Orchard Park, NY
(Go Bills!)

The accountant's definition of net worth is what you own (asset) less what you owe (debt). So equity = net worth. If you refinance to pull cash out (which we do frequently), you reduce the equity in the property but you convert it to cash. So, at least in theory, there is no change in net worth.

Thanks - that's kind of what I thought.
Look forward to this board overall.
great work as well MJ.
Kevin S.
Orchard Park, NY

AWESOME STORY!!!!!!!! Thanks for sharing

Diane-

It is so exciting to have you here- I have goose bumps! The energy from this site is amazing, and to be in one place (even though it's virtual) with all the doers here is such a rush and so inspiring. ...I hope we can be a benefit for you, as we've all already learned so much from you! Welcome!

Diane, giving that tax law is constantly changing, what do you do to keep up to date? Is this your real 'job'? keeping up to date must take a lot of time, given the complexity of our taxation system.

I subscribe to three services that condense the changes into bullet forms and have a researcher who works with me to review and pull out anything that looks especially significant. As an example, there might be a major change to the way Alaskan fisherman write off their boats (no kidding, there always seems to be something about that) and it just isn't that significant to the TaxLoopholes community.

If she finds something that looks interesting one of three things happens: (1) Create a blog entry (we'll be doing more of that in the near future) (2) Create a "what's hot" article (we do three of those per week) and/or (3) comes to me with the change because it impacts one of our strategies or it looks like we have an opportunity for a new strategy. I still do 99% of the new strategy planning.

Just to chime in Thank you for your input & all the great information. Now we have to create a widget to sell to the masses

great post Diane your post is a inspiration to live up to.

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That was a good read, thanks very inspiring.

WOW! Some major wisdom here.

I'll have to print/post:

• Sell to the masses, live with the classes. Sell to the classes, live with the masses.

Thank you so much for the story. Very Inspiring! And I am def. going to have to check out Point Loma Seafood! LOL

:-) Thanks!

What an amazing story. I now have alot to think about and reflect on. You are truly a wonderful inspiration, and thank you for sharing and your experiences as a beacon to us "up and comers".

Speed++

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GREAT story Diane, I really enjoyed reading that. Thank you for posting and taking the time to advise many of us on here, it is appreciated!

I also believe in companies going in and out of different life cycles/phases. Though my take on it is (just my take on it):

1) Testing a new business idea (market survey more or less).
2) Sell the idea (product/service) the first time and repeatedly there after to the same customer crowd. At the same time find new customers through marketing.
3) Make enough money so that you at step 3 can hire a COO or semothing that can take over from you on daily basis. This gives you more time to "work at the business" as they say in the books.
4) Find the right experts to have on either your own Board of Directors or on your Board of Advisors. They will help you get valuable connections (hopefully I might add).
5) At this stage you can sell shares in your company easier than if you sold them at stage 1 (example). Private placement.
6) At this stage your company is bankable and you can go to the bank and ask for loan.
7) At this stage your company can pay continual dividents if the owners wanted it too.
8) At this stage the business is licensable (exclusive licenses, franchising etc).

Just came to think about it when I read your post.

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"Make as much as you can for as long as you can. Whoever has the most when he dies is the winner." - Lawrence Garfield in the movie Other People's Money

You seem very smart, Dianne.

I admire you.

Btw, I live in Reno and based on your success story you do too? Or atleast did?

I used to live in Reno and would again if I could convince my family. My husband Richard and son David like the big city of Phoenix better.

I miss Pyramid Lake, Lake Tahoe, the aspen in the fall, hiking the backside of Peavine, I could go on and on....

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