Christian Keynote Speaker at Bill Linn’s Memorial Service 

God and his timetables are not our own. His way are beyond our understanding, his methods are perfect, and His plan for our life is incredible.

For I know the plans I have for you,” declares the LORD, “plans to prosper you and not to harm you, plans to give you hope and a future. Jeremiah 29:11  

My dear friend went to be with the Lord this week. His wit, enthusiasm for life, his service in World War II in the Pacific, his heart, and his passion. I have heard it said many times that as we age, we become ever more like what we truly are. If this is true ten Bill Linn was indeed a great man. Though I have only was blessed to have known him since June 6, 2005, I have been able to walk alongside him during good times and in bad, in joy and in tribulation and yet Bill remained steadfast in his faith, undeterred in his journey and insightful beyond words. 

Bill frequently recounted to me the time when he met his wife of 50 plus years and consistently recalled with great clarity those beautiful legs. He had a sense of humor that was unsurpassed and appealed to all ages. Bill also would share of me what he would do when he would do when he got to Heaven. He planned to lay down by the still waters of the River of Life, under the shade of a tree, with a fishing pole in his hand, but no hook on the end. Bill enjoyed life, treasured it and enjoyed many deep friendships along the way.

Bill served our country when honor and valor ruled our land and integrity and a handshake were indeed a man’s bond. He is unequivocally a key part of the Greatest Generation. He is my friend and I will miss him. 

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 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Getting “Fire Insurance” for Your Money 

Award Winning CPA Serving Grayson, Lawrenceville, Snellville & Beyond 

I am constantly encouraging homeowners to get “Fire Insurance” for their money. It’s free and all it takes is a little initiative, a little time, a home and a bank. Banks and savings and loans have long helped homeowners finance life’s little surprises by offering a home equity line on their home. This amount is a function of both the equity in your home as well as your credit score. Even though the market for loans is tight and home values are depressed setting up a line with the bank is usually free and will help ensure you have money “when you need it.”

Homeowners routinely spend hundreds of dollars, as well they should, and yet most of us, fortunately, will never have a fire at our home. However, all of us in our lifetime will have several financial challenges in our lifetime for which having a “lifeline” or an equity line will do much to help ensure we can overcome financial setbacks will mitigated damages. Always living within your means and being debt adverse are your best defense to financial challenges but having a drop back position in an equity line will help ensure financial difficulties are not as devastating. 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

WWJD…What Would Jesus Do if He Was a CPA 

Award Winning CPA Serving Grayson, Lawrenceville, Snellville & Beyond 

We strive to live our lives by a higher standard; not just to live by the world’s but to live by God’s standards. Though I am challenged to be the very best CPA I can be by helping clients keep their tax bills as low as legally possible. However I believe as a CPA and a Believer I am called to a much higher standard in helping clients develop tools and resources to plan for much more than their taxes. A CPA is the best one to begin this process and after a CPA has met with a client and determined much of their financial picture and tax issues, it is time to take the relationship to the next level and to help clients determine a multitude of issues including: 

-Buying Life Insurance. Being sure to have enough life insurance to take care of your family, debts and needed living expenses is essential to ensuring that your entire family and your legacy will not be changed by your passing. 

-Buying Disability Insurance. Though life insurance is for your survivors, disability insurance is for you, in the event of a life threatening illness or injury that leaves you unable to both take care of yourself and to fend for our family. 

-Setting up a Will. If you pass away without a will, then the state will decide what happens to your children and to your assets. A well drafted will enables others to ensure that your last wishes are followed out and adhered to.

 -Setting up a Trust. Frequently taxpayers can use trusts to ensure that their assets and desires are carried out both during and after their lives. Trusts can be set up for a myriad of issues ranging from helping to save estate taxes to leaving your assets to your church or favorite charity. 

-Consideration of Guardianship. I want to know who my children will live with if I pass and even more so if my wife and pass at the same time. My children are gifts from God and I want to ensure that they are loved, protected and encouraged even if I am not around. 

-Estate Planning. For taxpayers who exceed the federal mandated thresh-hold for the payment of estate taxes, proper planning can do much to both limit the tax bill that will otherwise ultimately become due. Also proper planning can be used to ensure that assets such as a business can be passed to heirs without having to sell it to pay the required estate taxes.

 -Setting up a Business Credit Line. Frequently a business credit line will be the difference between a business that succeeds and fails and one that is marginally vs. very profitable. A line of credit can do much to help you get through tough business cycles as well as to take advantage of opportunities in the marketplace and growth opportunities. 

-Procuring an Personal Equity Line on Your Home. An equity line on your home is essentially financial insurance. As your build equity in your home and your credit score, many/most banks will put in an equity line on your home allowing you instant access to emergency funds if ever needed. 

-Investing. Our natural tendency is to buy high and sell low. A well informed and trained adviser can help educate you in the many skills that are available to help ensure that you make prudent investment decisions as well as to plan for retirement.

 -Planning for College/Education Expenses. Planning for college is perhaps one of the most important financial decision you will ever make in your life and the life of your child. Being prepared for college and their expenses will help ensure your financial future and give your children the best chance for initial career success.

-Setting up a Retirement Account for Your Business/Personally. Getting ready for the  “Golden Years” should be a priority for us all. Americans have a tendency to live to the hilt and to ignore the future and nothing could be worse for yourself or those you love.

Though my short term goal for my clients is to save tax dollars, my larger goal is that they have a better life by wise investing and prudent choices. In order for me to accomplish this I have to always remember WWJD…If He Was A CPA. 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette

Ways to Save Money on Health Care in Troubled Times

Whether you buy your healthcare coverage through your employer or independently, you need to look at your coverage the same way cost-cutting entrepreneurs do.  Buying coverage in the future won’t stop at finding the best price – what you pay increasingly will involve how well you personally manage your health. According to a report last year by benefits consultant Watson Wyatt, nearly half (47 percent) of the 453 large U.S. employers currently offer a consumer-directed health plan (CDHP), a high-deductible plan offered with a personal account that can be used to pay a portion of medical expenses not covered under the plan. It’s the same concept as the pairing of a high deductible health plan (HDHP) with a health savings account (HSA). Also, don’t be surprised if your employer or insurer is going to get tougher about you losing weight or quitting smoking.

Here are some ideas to help you take the first step in monitoring these costs:

Change your negative healthcare behavior: Losing weight will not only have immediate health benefits, it will also make your health insurance options and potential out-of-pocket costs more affordable over time. A Stanford University and Rand Corporation study reported that lifetime medical costs related to diabetes, heart disease, high cholesterol, hypertension and stroke among the obese are $10,000 higher than among the non-obese. It added that lifetime medical costs could be reduced by $2,200 to $5,300 following a 10 percent reduction in body weight.   

Know what you’re buying: Whether you buy health insurance through an agent or your employer, insist that they explain exactly what you’re getting for your premium, and where deductibles apply. That way, you’ll have a baseline when you buy your own coverage. If you’re purchasing your own insurance policy, compare the premium savings from a higher deductible plan with your usage pattern of health services. What you save can often cover your high deductible.

Discuss the potential cost of a diagnosis: If your physician diagnoses a condition that requires tests, prescription drugs, a hospital stay or ongoing therapy, ask detailed questions about what you’ll be charged, from the doctor’s bills to ongoing ancillary costs associated with treatment. Ask the doctor or his office manager if discounts can be negotiated through cash payments or other means. You also need to be careful that you’re not being charged a rate for uninsured patients when you are simply going to paying for all or part of the bill to get to your deductible.

Make sure your exact spending is reducing your deductible: Keep a binder or a filing system to monitor how this year’s out-of-pocket spending is reducing your deductible. Also, make sure you understand which procedures are offered through your plan that will be paid even though you haven’t paid up your deductible.

health officials to see if they have online databases on costs for various medical procedures. Also, if there is a support group for your condition, talk to members about what they paid locally for care.

Be smart about emergency and non-emergency health visits: Emergency-room visits tend to cost $300 to $1,000 compared with $150 at an urgent-care center and $35 to $45 at a convenience-care clinic in a drug store or some other location. Make sure the alternatives to emergency room care are acceptable for your illness. Write yourself a note at some point to check out these options in your area so you know what they offer, what their hours are, and under what conditions you’d choose them. In particular, make sure the facility and the provider are in your health plan’s network so whatever you pay out-of-pocket counts toward your deductible.

Talk to a financial advisor about planning for long-term care: If you or a loved one are diagnosed with a chronic illness, that’s a financial issue that requires a plan. As tough as it may be to focus on money issues at a stressful time, make an appointment with a tax or financial professional to discuss options that will safeguard your assets, including Medical Spending Accounts that can backstop out-of-pocket costs on high-deductible policies.

Take advantage of your company’s flexible spending account: A flexible spending account is a separate, tax-advantaged account where you deposit funds to pay for medical expenses not paid by your insurance. You need to check what your particular company’s FSA allows you to stockpile funds for, and you will need to estimate carefully because you’ll have to spend out these funds by a particular annual date or lose the remainder.  It’s also good to discuss how you’re allocating those expenses with a financial adviser.

This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by Tim Madison, CFP, ChFC, CASL, who can be reached at 770-777-8979.

Preserving the Family Vacation. Top Tips to Keep Spending in Check

As the economy continues its climb out of recession, many families might be thinking twice about what they spend on the annual summer vacation. But there are ways to preserve the tradition by being smart about spending. Some ideas:

Get on the mailing list: For any possible destination you can think of, go to their Web sites early and get on their mailing list. You might get plenty of endless chatter from the hotels, amusement parks and other destinations you.re interested in, but you might also find coupons to those locations and other linked businesses that could save you money. Also go to travel magazines to see whether signing up might deliver similar money-saving offers. Most important, go to the tourism Web sites of the states you.re planning to visit to take advantage of coupons and specials. You might also find events and activities to attend that aren’t publicized anywhere else.

Weigh the value of driving vs. flying: Even though energy prices might not approach the stratospheric levels of 2008 this summer, you might find that driving vacations aren’t necessarily the cheapest alternative. If you haven’t measured the gas mileage lately on your car, do so after your next fill-up and see what it would really cost you to drive to your desired destination and don’t forget wear and tear on the car (roughly 10 to 20 cents a mile), meals or hotels on the road. If you plan significantly ahead of time, traveling by air might not only get you there faster, but cheaper. At the same time, if you fly and need a rental car, don’t forget to figure in that cost. Go to the Web sites of the airlines you fly the most and sign up to get advance notice of cheap fares.

Make your reservations online: Tourism businesses save money when you reserve online, that’s one less human they have to pay to handle your call. So chances are good you might get a slight discount for using that option. If you.re not a regular user of the Internet, you should know that airlines and hotels particularly have migrated more of their deals for rooms and meals to their websites because visitors can complete the whole reservation process themselves. That saves airlines, hotels and rental car companies considerable labor cost.

Go for the package deal: Online travel sites make it easy to combine hotel, airfare and rental car at a cheaper rate. And remember the days and times that are typically cheaper to fly, Tuesdays, Wednesdays and Saturdays if you.re willing to fly early in the morning or late in the evening.

Know when to use travel agents: A good travel agent can be a great money saver, particularly for lengthy or complex trips. It’s OK to compare prices yourself, but consult a travel agent if you are going to remote destinations, they’ll know the territory, and if you have to make changes, they might be able to help you do so without paying a lot of extra money. Don’t be afraid to consult the company travel agent since their status may make them a destination for deals that non-affiliated travelers wouldn’t get.

If you’re going abroad: Do a review of currency rates before you go to see how much money you’ll really have to spend on the trip. Also, see if there are specific ways you can save money for dining, lodging and shopping in that country. Also, check in with your credit card company before you go, some might charge high currency conversion fees, and you can either negotiate them downward or apply for a card with a lower conversion rate that you’ll use only for this kind of travel.

Make sure phoning home is affordable: Make sure you can use your cell phone affordably wherever you go. Check with your wireless provider to make sure your destination has adequate network strength for your phone, and  particularly check what it will cost to call home or other destinations abroad if you.re overseas. There’s nothing like the shock of a wireless bill with unchecked charges. You might also check with your arriving airport to see if local stores rent or sell disposable cell phones at a significant savings.

Check on car insurance: We.ve all heard how buying rental car insurance is a bad deal, but not so fast. For domestic trips, double check whether your own car insurance policy is likely to pick up the bill if you crash your rental car. For overseas trips, check with your rental agencies, as well as your credit card company to see what insurance options you have. Don’t think only in terms of accidents. Think about blown transmissions in small towns with only one mechanic who doesn’t speak English. Also, if you’re driving to Canada or Latin America in your own car, be very sure you have adequate coverage required in every country. You might have to buy supplemental coverage.

Consider travel insurance: There is insurance coverage available for travelers who face sudden cancellations as well as medical needs. Trip cancellation can reimburse you for non-refundable costs in the event of things like an illness for you or a family member that causes you to cancel your trip. Look into what your current health insurance covers at your destination, so that you can understand your risk exposure and weigh it against the cost of supplemental insurance. It’s important to realize that health insurance issues crop up on domestic trips as well as those overseas. For instance, your health insurer may not cover claims in other parts of the country. Always check. Also, if you’re on a business trip, make sure your company health plan will cover you in an emergency, and if your work takes you to a dangerous country, ask if your employer carries kidnapping and ransom insurance. Don’t laugh. According to the Insurance Information Institute, kidnapping is on the rise internationally.

Prevent theft at home and abroad: Photocopy your driver’s license and passports and keep the originals with your valuables in the hotel safe. Also, don’t forget to hold your mail and pay all your bills before leaving town so identity thieves aren’t attracted. 

This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by Tim Madison, CFP, ChFC, CASL, who can be reached at 770-777-8979

Straight Dealings with the IRS is Your Best Opportunity to Audit Success

Working with the IRS in an honest open and straightforward basis is your best bet to ensure that your audit experience, to the extent that it can be, is an success. Frequently I see clients who are audited because they have a business and attempt to prepare their returns on their own. Tax law should never be attempted to be understood or appropriately applied by anyone other than a CPA who is well experienced and seasoned in such matters. Just as Believers we have an Intercessor to talk to God on our behalf so should clients retain a CPA to work to ensure that they pay only their lowest legal possible tax.

Department of the Treasury

Internal Revenue Service

PO Box 47-421

Doraville GA 30341

Enclosures: Power of Attorney, IRS Letter/Notice of Audit and Requested Information

Dear Sir/Madam,

I am writing you in a good faith attempt to come to terms over the above taxpayers’ present predicament and to address their tax issues.  I am willing/eager to supply you with any information that you might need in order to process the audit. I have enclosed the information that the client has forwarded for you to process the audit.

Since I have assumed the role as their financial adviser, I have consulted with them, and in good faith have pulled together all of the information that you have requested.

I appreciate your attention to this matter and look forward to working with you to close their file.

Sincerely,

John C. Dillard, CPA, PC

Partner in Charge

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

Unveiling the Mystery Behind Net Lease Commercial Real Estate Investing 

As I speak with potential investors about the possibilities of investing in commercial real estate, one of the biggest misunderstandings is the net lease.  Net leases are commercial real estate investments in which the tenant takes more responsibility for the building, while giving the landlord less management responsibilities.  In this article, we will cover the three main types of net lease properties – modified net, triple net (NNN), and double net (NN) – and how each one can be beneficial to different types of investors and their investment criteria. 

Modified Net 

In a standard modified net lease, the tenant pays all utilities, maintenance on the building, repairs, and insurance.  However, the landlord is still responsible for property taxes and everything else. 

The benefit of this type of lease is that the tenant has a vested interest in the property and is more likely to take care of the property.  With the tenant paying their own maintenance, repairs, and insurance, they are sure to take care of the property for future usage.  In contrast to a property without a modified net lease, the tenant may only be responsible for basic liability insurance and utilities.  Therefore, a modified lease gives the landlord a tenant who cares more about the building and less management responsibilities. 

The down side of this type of lease is that there is still management responsibilities associated with this lease structure.  For example, the landlord still must ensure that property taxes are paid and is generally responsible for the roof and structure.  Therefore, if there is a leak in the roof, guess who the tenant is calling?   

The modified lease is better than a traditional commercial lease but is on the lower end of the spectrum when it comes to net leases.  Investors who may be interested in this type of lease are not as concerned with management responsibilities, but like the idea of having a tenant who pays for maintenance, repairs, and insurance.   

Triple Net (NNN) 

Triple net lease or NNN lease tends to be the industry norm and most sought out. In a standard triple net lease there are usually limitations on capital expenses.  However, the tenant is responsible for property expenses that include property taxes, property insurance, and maintenance. 

The benefit to this type of lease is that the landlord has virtually no responsibility as it relates to managing and taking care of the property.  Many times, triple net or NNN lease properties are guaranteed by corporate credit tenants such as Walgreen, CVS, Burger King, McDonalds, Borders Bookstore, etc., who guarantee the rent, including taxes, maintenance, and insurance, for the entire period of the lease. 

The downside to this type of lease is minimal, but can have a great impact on the purchase price of the asset (property) in question.  Essentially, if the tenant that is guaranteeing the lease is not a credit tenant, then they have a higher risk of defaulting on the lease. A credit tenant is usually a public or private entity that has a strong credit rating by the S&P.  In situations where there is no credit tenant, it is prudent for the investor to purchase the property with a higher cap rate, based upon market standards at that time.  Thereby, offsetting risk associated with buying a NNN property guaranteed by a non-credit tenant.  For example, if a franchisee is leasing the property, generally the corporation does not guarantee the lease.  If that franchisee has financial problems and must close, the likelihood of the investor being able to obtain the rents that are due for the remainder of the lease, drastically diminish.

The NNN lease or triple net lease investment is ideal for an out of state investor, or investor who does not want the hassles of property management.  Other than paying debt service, the investor can look forward to receiving a fixed rent check each month according to the lease that was signed. 

Net Net or Double Net (NN) 

Another net lease is the Net Net or Double Net lease (NN).  These leases are very similar to NNN leases; however, the landlord is generally responsible for structural damage such as the roof and/or bearing walls. 

The benefit to this type of lease is the same with a NNN lease.  Again, the management duties are drastically diminished in this type of lease situation.   

Except for the roof and structural damage issues, this type of lease shares the same downside as the NNN lease.  In addition, many double net leases are actually completed by franchisees of major brands that are able to pay for much of what a NNN tenant pays for, however, does not want the liability of roof and structural damage. 

A double net lease is also an ideal investment for an out of state investor, or investor who does not want the hassles of property management.  The investor will receive a fixed rent check each month according to the lease that was signed and pay all debt service associated with the lease.

Not All NNN Leases Are Created Equal 

I must mention that investors need to be fully aware of the type of investment they are looking into.  For example, many commercial brokers will market a property as a triple net or NNN lease property; however, the property may actually be a NN or double net lease.  Please be sure and read the fine print of the lease and have your attorney look it over. 

Finally, net lease investments are the safest and most risk-averse commercial real estate investment in the market place, due to their fixed rents, tenant responsibility, and mostly corporate guarantees.  However, be sure you contact a professional commercial real estate investment advisor, who can walk you through the entire process of acquisition and financing of your net lease investment.  In addition, remember that commercial brokers are professional sales people; therefore, it would be wise for potential net lease investors to retain the services of a professional commercial real estate investment advisor to work on their behalf.  Usually, there is no cost to the buyer to retain the services of a commercial real estate investment advisor who can act on their behalf with a fiduciary responsibility to their client, just like an attorney who would represent them in court.  Thereby, ensuring the investor gets the best deal possible utilizing the investment advisors strong negotiating skills, and decreasing the hassles associated with buying net lease commercial investment property.   

Mark Santiago is an Investment Advisor with RE/MAX Suburban Atlanta. He specializes in providing turnkey real estate investment portfolios for Doctors, Lawyers, Dentists, and other professionals who have accumulated wealth in their IRA or 401k, or other cash bearing accounts and would like to retire within the next 10-20 years. You can also read his blog at: http://AeonInvesting.wordpress.com Mr. Santiago can be reached at his office: 770-325-1847

Marketing Your Business on Our Blog…Providing Business News to Metro Atlanta

In June, 2009 there were 21,240 visitors to the web site of www.HisCPA.com

I am looking for business owners who have good insightful business news and financial information that entrepreneurs throughout Metro Atlanta & Beyond can use. His CPA market exclusively to the needs of  business owners by taking his faith/Christianity along with him to work by asking the question. WWJD/What Would Jesus Do if He was a CPA. Striving to always look beyond the return and assist business clients with all of their financial and money management issues. If you think you have news we can use please call me.

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

Tax Tips to Have a Successful IRS Audit Experience

These basis tax tips will do much to ensure that you keep adequate books and records to support your business deductions as well as to ensure that you will have much of the documentation that an IRS agent will want to see during the performance of an audit. Being prepared is your best bet and it starts each and every day by keeping good books and records so that if the tax man cometh that you are prepared and ready to support the business expenses you have claimed. Having served as a CPA to Tucker and Lilburn area for decades I have learned that starting with the basics and fundamentals of sound recordkeeping is always a prudent and wise choice.

Tax Tips to Ensure Adequate Business Receipt Documentation:

• For meals and entertainment please be sure to keep receipts from restaurants (credit card receipt not sufficient) and document in detail and the nature of the business discussion.
• For all travel overnight, please be sure to keep all contacts and supporting information so that you can prove nature of trips, who you met with and have documentation and supporting papers verifying the nature of all of your business trips.
•  For all cell phones, deduct only the  portion that is business use.
• I suggest not claiming home office deduction in the future.  If however you opt to, I suggest you take pictures and keep proof including layout/plans of house detailing how much of the home is used exclusively for business use.  Any portion of home also used for personal use cannot be claimed/deducted for the home office deduction.
• Pay all expenses by check as items are incurred (and not at year-end) being sure to have an adequate and detailed receipt clearly indicating the business nature of any and all expenditures. Also keeping all of the canceled checks and bank statements are critical to having substantive corroborating information.
• Get reimbursed/made whole/promissory note for all cash paid expenses paid that the IRS is not allowing.
• Evaluating incorporating your business if you plan to continue to grow it, for both legal personal protection and potential tax savings when business becomes profitable.
• Being sure to keep a by day log to support  and detail all business miles.

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11’s: Job’s Journey visit http://www.john-dillard.com/ or all John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder and Woodstock

Family Businesses: Insights from Dr. Joe Astrachan

By Jean Creech Avent, Vice President of Marketing & Communication, Georgian Bank

Regularly, Georgian Bank holds special events exclusively for our clients and prospective clients.  The intention of these events is to give our network access to and information from thought leaders on topics that will help entrepreneurial businesses grow more effectively, become more efficient, and operate at optimum levels to achieve success.

Dr. Joe Astrachan, a globally recognized authority and scholar on family businesses, honored us recently by giving a stirring talk to a select group of about 40 Georgian Bank clients and prospective clients. This article is derived from content Dr. Astrachan relayed to the group. If you are interested in being invited to these events, please contact me at javent@georgianbank.com.

Definition of Family Business

What distinguishes and defines the term family business?  How is a family business distinct from other types of entrepreneurial businesses? Answers to the two questions are fundamentally important because the differences between a family business and a non-family business are mighty – to the point that if the differences are ignored, the family business can fail. Dr. Astrachan offers a two-part definition of the term “family business.” 

The first part of the definition explains that a family business is any business where the family can effectively control the strategic direction of the business. “Ford Motor Company is a family business,” said Dr. Astrachan.  “Even though it doesn’t have equity control, the Ford family clearly has enough control to impact the direction of the company.”  Another example is the Walton family, who still can exercise a significant amount of control over the strategic direction of Wal-Mart.  

The second part of the definition for family business is that the family benefits from the business, or derives a significant portion of its wealth, income or identity from the business.  “The family relies on the business and the business relies on the family,” stated Dr. Astrachan. Oftentimes, family businesses are advised that they should apply models, communication techniques, and strategies that have been proven through nearly 100 years of study, research, and practice in non-family businesses.   

That advice stems from the fact that throughout history much research and many studies have been done on non-family businesses, resulting in more understanding and knowledge of the cause and affects of management styles. 

“Non-family businesses tend to be publicly-traded companies and by their very nature have to be more transparent with their data and information,” explained Dr. Astrachan.  “So more is known and can be studied and written about public non-family companies.”    

The issue is that family businesses don’t organize, communicate, and operate like other entities.  According to Dr. Astrachan, research shows that if the CEO of a family business runs it like a non-family business, the family business often suffers.  Research on family businesses began in earnest in the early 1980s.  The research that has been done on family businesses convincingly shows that, in fact, family businesses out perform non-family businesses in stock market returns, in accounting profitability, and cash flows, so family businesses are the ones that should be studied in addition to non-family businesses, said Dr. Astrachan.

Family businesses manage and operate differently than other types of businesses because the underlying goals, motivation, dynamics of a family business are different than a non-family business. Family businesses, for example, are motivated by family legacy and pride or love of working with family members.  As Dr. Astrachan stated, “Why else would you find owners who have a business time horizon of not five or ten years, but 50 to 100 years before they feel an investment needs to pay-off?”

Economic Impact of Family Businesses

The economic impact of family businesses is staggering. In fact, Dr. Astrachan explained that family businesses account for 60 percent of the GDP and nearly 85 percent of the non-governmental GDP.  The size and scope of family businesses in the U.S. isn’t often realized.  Today in the U.S., using the most inclusive definition, there are 25 million family businesses (publicly and privately held), compared to 8,000 public companies.  Of the 25 million family businesses, approximately 500,000  employ 100 or more people.  In fact, the largest family business in the U.S. is Koch Industries, a conglomerate headquartered in Wichita, Kansas.  It has nearly $100 billion in annual revenues, employs approximately 70,000 people and operates in 60 countries.[1]  Also, it is believed that family businesses will be a driving force behind an economic recovery.

Succession Planning

Perhaps one of the most pressing issues with which a family business grapples is passing the company to the next generation.  According to Dr. Astrachan, when a family business passes from first to second generation, 30 percent of those businesses survive.  When a family business passes from second to third generation, 10 percent of those businesses survive.  A family business has less than a one in 100 chance of surviving in the family into the fifth generation. A Google search on succession planning information reveals more than 1.5 million pieces of data about the topic, confirming that while there is a lot of information out there it can be overwhelming to discern the most important information.

While there is a great deal of data on how to create a succession plan, research shows that succession  planning has no correlation to successful succession, noted Dr. Astrachan. 

That counterintuitive finding begs the question: If planning has no impact on succession success, what does? Dr. Astrachan explained that three tactics have proven to be critical not only to succession success, but also to more profitable companies, faster growing companies and happier families.

The three tactics that family businesses should execute are: 

a)                           Have an outside Board of Directors that meets three t0 six times a year; for publicly held family businesses the ratio of outside directors to family members is 2:1.

b)                           Hold family meetings three to six times a year.  At the meetings, the business of the family, not necessarily the family business should be the topic of discussion.

c)                           Plan strategically, meaning the family should engage in an ongoing conversation focused on the direction of the company, and how that direction impacts every internal stakeholder and all family members.

Today’s Economy

It is, no doubt, understatement to say that the current economic climate is one of the most challenging in which many managers and business leaders have had to navigate.  The direct impact of and managements’ techniques to lead through these troubling times for public companies is obvious because of the activity in the stock market and constant news reports.   What is not as obvious, though, is the impact the current economy is having on family businesses.

Dr. Astrachan explained that based on his “reading of the tea leaves” this time – the current economy – is an unprecedented buying opportunity for family businesses.  “We may not see this kind of opportunity for the next 50 to 100 years,” explained Dr. Astrachan.

He went on to say that asset values are as low they will ever be and even though in nominal dollar terms the values may seem high, the values are extremely low for the inflationary environment that we’re about to hit.  “If you are a family business with borrowing capacity, you might investigate opportunities to expand by buying under valued assets,” said Dr. Astrachan. “You might want to take out loans because inflation will likely take care of how much those loans mean to you.” Family businesses can take advantage of this economy at the macro level by looking for buying opportunities of which the impact could be long-term growth. As mentioned earlier in this article, family businesses and non-family businesses tend to operate differently, and in economies like this one, the differences become clear.  Consider the micro-level.

Non-family businesses tend to execute broad-reaching layoffs during difficult times, because a reduction in human resources is one of the quickest ways to see immediate results on the bottom line.   However, businesses, regardless whether they are family or non-family businesses are also communities.  “When a community is disrupted by layoffs,” Dr. Astrachan said “resentment inside the company tends to bubble up, which leads to reduced commitment by the remaining employees, and reduced motivation, which ultimately negatively impacts productivity, which in turn makes business cycles much harder to get through.”

Family businesses tend to take a no-layoff attitude in difficult times, and instead look for creative ways to cut costs, and keep going.  For example, some privately-held family businesses move to a four-day work week, or ask family members to take a pay cut, and then perhaps ask employees to take a pay cut. Family businesses have more flexibility than non-family businesses and that is in their favor in troubling times.

Conclusion

The purpose of this article is to provide the reader with an overview of the importance of family businesses and to discuss some of the issues that are particular to family businesses.  For so many people, the family business is their American dream, and in many cases some of our largest companies today started as family businesses, like Disney and Hewlett Packard.  The concept of the family business is woven into the fabric of this country and has been and will be a contributing factor to our global presence and influence. It is the good works being done by folks like Dr. Astrachan that help these family businesses thrive. 

If you have questions or comments, please contact Dr. Joe Astrachan at jastrach@kennesaw.edu, or me at javent@georgianbank.com.