Heartland Investment Partners - November 2020

Heartland Investment Partners - November 2020

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HEARTLAND INVESTMEN T COMPANIES STARS

NOVEMBER 2020

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DARINGARM 319-350-5378

HAPPY VETERANS DAY TO ALL WHO’VE SERVED! A THANK-YOU TO OUR TROOPS

When our kids were little, Gina and I used to bundle them up every November and take them to the Veterans Day parade in Cedar Rapids. I can still remember the excitement on their small faces as they watched the floats pass by, followed by groups of men and women in uniform. While they loved the music, the candy tossed out to the crowd, and the fun, I knew one day the meaning of it all would sink in. I had the revelation when I was about their age, around 7 or 8 years old. I remember learning about World War I and World War II in elementary school and slowly figuring out that as a kid in the USA, I had it really good compared to boys and girls in other parts of the world. In a clumsy, childish way, I realized that not everyone had the same freedoms I did, though I didn’t have the words to express that thought. As my class discussed World Wars I and II and the Vietnam War, which was just wrapping up, I saw the correlation between those freedoms and the sacrifices our veterans had made and were still making every day. The older I get, the more I come to admire and respect our troops. These men and women have done so much for us, even if we don’t see it firsthand from our safe suburban homes. Over the years, Veterans Day has become a really important holiday to me, and I always take time to sit with the thought of our military and their sacrifices. That’s because sacrifice really is the crux of the matter, isn’t it? Many of our service members lost their lives defending our country. Maybe some of those who died went into battle thinking, “I’m ready. I’ve accepted the fact that I might die, and I’m okay with it.” Maybe they weren’t scared at the end. But I’m willing to bet that many more people who died on the battlefield were afraid and didn’t want to be risking their lives in those circumstances. What’s so incredible is that those men and women still showed up. They decided that even though the prospect of death was terrifying, their country was so important to them that it was worth their lives anyway.

Since the Iraq War began in March of 2003, 98 Iowans have died serving our country in that fight. They’re part of a long history of military service here in our state you can read a bit more about on Page 3. This Veterans Day, I’ll be thinking of those folks, and the men and women who are still serving in our military today, protecting our rights and freedoms. Even if I never see battle with my own eyes, I know those soldiers and veterans play a huge role in my everyday life as an American. If you’re a veteran reading this, thank you so much for your service. I’m proud to know you and eternally grateful for everything you’ve done for our country. Happy Veterans Day!

–Darin Garman

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concern. Still, the market always ebbs and flows, and most presidents leave office with normal markets. HOW DOES THE ELECTION AFFECT MY PORTFOLIO? However, what impacts your portfolio more may be congressional elections, which decide who our lawmakers are. Law creation, divided government, and responses to those laws influence portfolio performance more than most presidential elections. Remember, the market responds to reaction, and whom we elect to Congress and how they legislate more directly impacts our lives than the president. The pandemic that has rocked 2020 has given us plenty of lessons on market volatility. As COVID-19 swept across the U.S., many residents had to shelter in place while industries shut down for an unprecedented hiatus. Financial planners and analysts encouraged patience to allow this storm to pass while they tried to identify long-term change. As we’re still recovering from this pandemic, so is the market, which could have an influence on the correlation between the election and the stock market. That said, if the past 100 years are any indication, you have little to worry about. Whoever occupies the Oval Office in 2021 will have very little influence on your portfolio. Your best financial strategy is to do the same thing you’ve been doing throughout the pandemic: Remain patient.

As Americans head to the polls to exercise their right to vote in the presidential election, they bring many issues and beliefs with them. For some voters, these include questions about their portfolio and how the winner of the election could impact their savings, retirement, and ultimately, their future.

The answer, many financial analysts say, is not much.

Analysts have found that the market has remained stagnant in the year leading up to an election for the past 100 years. Although there hasn’t been any significant change to warrant concern, voter concern over uncertainty tends to be reflected in the market. After the ballots are counted and a president-elect is chosen, the market may see a downward trend if a new president (not incumbent) takes office. Again, this is likely due to uncertainty and

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Over the last few months, I’ve chatted with many of my investors about new properties that popped up on my radar. You might be one of the people I emailed with details, including what the cash flows and expected returns would be. During those exchanges, many of you raised concerns that the profits and returns would be smaller than what I projected because I’d need to pay Uncle Sam a nice chunk of that profit in capital gains tax once the property sold. I always appreciate investor advice, but here’s the good news about paying capital gains tax: You don’t have to! Real estate is one of the only investments that allows you to sell an asset and defer the taxes that you would ordinarily have to pay on the sale. That means that while selling property isn’t tax-free, you can defer the capital gains taxes for as long as you want!

The trick to making this work is that you have to reinvest the proceeds from the sale of the property into another real estate investment property. It doesn’t have to be the same kind of property, though. For example, we could sell a 30- unit apartment complex, then take the $300,000 profit and purchase an office building, shopping center, or self-storage facility. Heck, we could even purchase farmland if we wanted — all without paying a dime in taxes! That doesn’t work with ANY other investment. You can do this as many times as you want, and all of the capital gains will be deferred and rolled into the next investment property. Just imagine how quickly your wealth will grow if you defer these taxes time and time again! This is a huge advantage that many of you have been missing out on with your past investments.

calling me at 319-350-5378 or sending me an email at Darin@HeartlandInvestmentPartners. com. Use the code words “Tax Deferral” and I’ll share the information on two of our upcoming investment properties you can get in on without paying those pesky taxes until you want to. This is just more proof that investing in real estate will build your wealth, even in this economy! –Darin Garman

Read that again: YOU CAN DEFER THE TAXES FOR AS LONG AS YOU WANT!

If you want to stop paying capital gains taxes before you’re ready, you can start right now by

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MEET IOWA’S MILITARY HEROES

3 MEN WHO DID THEIR STATE PROUD

If you asked any Iowan walking down the street who our state’s most famous military hero is, odds are they’d say Nile Kinnick Jr. without a second thought. That’s probably because if there’s one thing our state is proud of besides our veterans, it’s our University of Iowa Hawkeyes. Kinnick was both. Football is a big deal here in the Hawkeye State, and Kinnick was one of the best college players we ever had. On the field, he was known as “The Cornbelt Comet.” In 1939, he won the Heisman Trophy, becoming the first Iowa player ever to do so after leading his team to a 6-1-1 record. He also won the Big Ten MVP award, the Walter Camp Player of the Year Award, and the Maxwell Award. Then, he enlisted in the Air Force and went off to fight in World War II. In June of 1943, the fighter plane he was piloting crash-landed in the Caribbean Sea and he died in the collision. Of course, Kinnick is far from the only Iowan who has laid down his life for our flag. The Des Moines Register claims Merle Hay is the state’s best- known war hero. Hay has a monument, a road, and a shopping mall named in his honor because he was one of the first three U.S. soldiers killed in World War I, and perhaps the very first. On Nov. 3, 1917, a group of 500 German soldiers caught Hay and his buddies by surprise in the trenches, ending their lives. According to the Register, “Hay had been a mischievous lad who liked to be out with his horse and buggy. He enjoyed smoking a pipe, roller-skating, and attending movies. He loved his mother’s sweet rolls.” Another Iowan who made history in the military was Grenville Dodge , a brigadier general wounded during the Civil War. PBS calls Dodge “a mover and shaker.” Before joining the military, he worked as a railroad builder, militia organizer, and banker, and after surviving the war, he became a U.S. congressman. He’s perhaps most famous for his bravery in the 1862 Battle of Pea Ridge. While fighting for the Union, three horses were shot out from under him and cannon fire crippled a fourth. Dodge himself came through the fighting riddled with grapeshot along with dislocated fingers and broken ribs. His survival earned him a well-deserved promotion and a lasting place in history.

SALES AND SUCCES S

APARTMENT

16 UNITS – FOR SALE! UNITS RENTED TO ROCKWELL!

24 UNITS IOWA CITY — UNDER CONTRACT!

NORTH LIBERTY APARTMENT UNITS … S O L D!

CONTACT DARIN TODAY AT 319-350-5378 FOR MORE INFORMATION ON THESE LISTINGS!

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HEARTLAND INVESTMENT COMPANIES

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

Darin Garman: Heartland’s Most Trusted Multi-Family Investment Advisor 2505 Silver Oak Trail Marion, IA 52302 DarinGarman.com 319-350-5378

INSIDE Page 1

WITH BRENÉ BROWN’S BESTSELLING BOOK ‘DARE TO LEAD’ Meet Iowa’s Military Heroes Apartment Sales and Success Page 4 Researcher Brené Brown Helps Leaders Find Their Vulnerability — and Succeed A Thank-You to Our Troops Page 2 The Surprising Non-Link Between an Election and Your Portfolio Iowa Investment Real Estate’s ‘No Taxes Due’ Loophole Page 3

How many leaders do you know who will admit to their mistakes openly and honestly to their team? How many leaders have you heard ask their team for direction? How many leaders are willing to step aside so someone else can shine? Chances are if you know that leader — or if you are that leader — then you understand the future of leadership, according to author, researcher, and teacher Brené Brown, Ph.D., author of “Dare to Lead: Brave Work. Tough Conversations. Whole Hearts.” In this book, Brown details her seven years researching and gaining a better understanding of leadership. She interviewed business leaders at both small and large companies, asking questions that revealed what great leadership looks like. Together with her research team, she learned why certain workspaces thrive and grow while others, with seemingly just as powerful of ideas, wither and die. And it all boiled down to one thing, Brown says: courage. In “Dare to Lead,” Brown examines the four pillars of courageous leadership and how business leaders today can practice and perfect it. Brown teaches the four pillars through her consulting work and has seen radical changes in organizations that practice courageous leadership. Brown offers examples — from well-known CEOs and within her own business — to walk readers through real-life applications of courage and how to create stronger teams through vulnerability.

Brown exposes how business cultures that don’t practice vulnerability are ineffective as a result. She theorizes that often, these workspaces are filled with fear, uncertainty, and scarcity. To remove these negative traits, Brown offers leaders a road map to build their courage while practicing vulnerability and creating happier work environments. Brown has spent the past two decades researching and breaking down emotional concepts into tangible goals

for her readers and followers. She is the owner of The Daring Way, a consulting firm that helps businesses develop vulnerability in leadership and the workplace. She is also the host of the podcast “Unlocking Us” and has one of the most-watched videos of all time, “The Power of Vulnerability.” You can learn more about Brown’s work and find “Dare to Lead” at BreneBrown.com.

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