Epic Real Estate Investing - Texas Just Did THIS to Property Taxes (is YOUR sate next?) | 1510

Episode Date: August 22, 2025

In this podcast, Matt discusses Texas's recent move to cap property taxes and the upcoming vote that could eliminate $10 billion in property taxes, highlighting the potential impact on homeowners like seniors and those on fixed incomes. He contrasts Texas's approach with other states, some of which have considered or rejected similar measures, and warns of possible unintended consequences, such as funding shortfalls for schools. Matt also exposes a practice in several states where governments kept surplus funds from property tax foreclosures, a practice recently ruled unconstitutional by the Supreme Court. He introduces his friend Bob, an attorney who helps people recover these surplus funds, and suggests that listeners could turn this into a lucrative side business. The episode blends policy analysis, personal stories, and practical advice for those interested in property tax issues and financial opportunities. BUT BEFORE THAT, hear about why YOUR prices are about to EXPLODE! Useful links: https://live.americastaxsaleattorney.com/s/JRosbg?_ef_transaction_id=2a3b320b5eba45b1ab0b500c82bc218a&utm_source=Affiliate&utm_medium=webinar&utm_campaign=epicrealestate-Promo-Aug-2025&utm_content=webinar&utm_term=epicrealestate-List https://myescapebook.com/escape-2?video=0KDH7rzZZWk https://epicearnwhileyoulearn.com/yfd?video=0KDH7rzZZWk https://intensive2025.com/?video=0KDH7rzZZWk Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Remember when they promised no recession? soft landing, they said. 80% chance we avoid it completely, they promised. Well, the chief economist of Moody's, Mark Zandi, just quietly confessed. The economy is on the precipice of recession. The same guy who said we'd be fine is now admitting we're not. And while you are distracted by other headlines, the data shows we might already be in one.

This isn't a prediction anymore. It's a confession. And what they're not telling you is about to hit your wallet hard. 53% of industries are cutting jobs right now. More than half the economy is shrinking. That number, 53%? Historically, that's when recessions begin, not when they're coming. We're already there.

July jobs report. Only 73,000 jobs added when they expected over 100,000. And they had to revise May and June down by 258,000 jobs. A quarter million jobs that they said existed didn't. Credit card debt just hit $1.21 trillion dollars, an all-time high, and nearly 7% of people can't pay their bills. For people under 30, almost 10% are behind on payments. Meanwhile, Mark Zandi, who promised that soft landing,

now says consumer spending has flatlined, and employment is set to fall. So when did this recession start, while they were telling you everything was fine? When everyone's focused on the monthly jobs report, there's a signal that's been screaming warning for two years straight, the yield curve. Sounds boring.

It kind of is, but listen to this. It's predicted. every single recession since 1955 with only one false alarm. One, it's been inverted for the longest period in history. And when this signal flashes, a recession follows within 24 months. We're past that deadline. But there's more that they're not telling you. The freight industry, the trucks and ships that move everything you buy,

there are volumes dropped 4% this year. When stuff stops moving, the economy stops growing. Small business bankruptcies are up 20% just since March. Corporate bankruptcies hit levels we haven't seen, since 2010. And remember those tariffs that were supposed to help American factories? They're cutting deeply into profits, according to Zandi. Manufacturing lost 11,000 jobs in July alone. And here's what's really happening. One point two million foreign workers left the job market in six months. That's keeping unemployment artificially low, even though hiring has basically

stopped. The recession isn't coming. It's been quietly spreading through the economy while they kept telling you everything was fine. So why did every ever... expert missed this. Well, three reasons. First, the data lies. Not on purpose, but it's always behind. When they report strong job growth, those numbers, they get revised down months later. We just saw 258,000 jobs disappear in revisions. By the time they admit the recession, you've already been living in it for months. Second, nobody wants to be the one to call it. I mean, think about it. If you're an economist at a big bank and you predict recession, you tank the stock market. Your clients lose money. You get fired, so everyone waits for someone else to say it first. Third, and this one's

wild. When the July jobs report came out showing how bad things really were, the White House didn't try to fix the economy. They fired the guy who reported the numbers. President Trump fired the Bureau of Labor Statistics Commissioner, claiming the data was rigged to make me look bad, being Trump. Instead of addressing the recession, they're shooting the messenger. Look, we're not jumping to conspiracy theories here, but when politicians start firing statisticians, you know the numbers aren't telling the story they want. Ben Bernacki did the same thing in 2008. The Federal Reserve is not currently forecasting recession, he said in January. The Great Recession hit full force six months later. The pattern is always the same. Deny, delay, then finally admit when it's too obvious to ignore.

If you're a working professional right now, this hits you three ways. First, hiring freezes are already happening. Companies aren't posting it on LinkedIn, but new grad unemployment is the highest it's been since the Great Recession. I mean, if you're looking for a new job or thinking about switching, that window is closing fast. Second, your credit is about to get expensive. Interest rates are staying high, which means your credit cards, car loans, mortgage rates, all of it costs more, and banks are getting pickier about who they lend to. Your minimum payments are about to get ugly. Actually, if your credit This score is decent, 680 or better. There is a loophole in the banking system that could virtually eliminate the interest that

you're paying over the next year. Most people have no idea this exists, but you can use it to restructure your debt before things get worse. You need to move fast because once word gets out about something like this, it usually disappears. Third, update your resume and your LinkedIn. Even if you love your job, even if you think you're safe, the companies cutting jobs aren't announcing it until they have to.

So be ready. And here's the bigger problem, though. Even if you do all of this perfectly, you're still playing defense. You're still hoping your job survives, hoping your savings keep up with inflation, hoping the traditional retirement plan somehow works out. The people who built real wealth didn't do it by saving harder or working longer hours at jobs that could disappear tomorrow. They found ways to put their money to work, especially during times like this when everyone else is

panicking. And there's one strategy that's been working through every recession. Every market crash, every economic crisis for the last 100 years. Look, I'm not here to scare you. I just want you prepared before everyone else figures this out. First, build a cash buffer if you don't have one. You need three to six months of expenses. That would probably put you in the reasonably safe zone.

Not in stocks, not in crypto, cash. Boring. But when companies start laying people off, you need a runway. Second, it's all about income producing assets. Real estate, businesses. This is what gets people through the tough times. Even if it's tough to manage during the, the tough times. The people that pull through on the other side have these two things in common,

real estate and businesses. And coincidentally, real estate kills these two birds with one stone. And I'm not talking about flipping houses or becoming a landlord. I'm talking about a way to control income properties without dealing with tenants, without fixing toilets, without quitting your job. While everyone else is worried about their 401k losing value and their job disappearing, there's a group of professionals who are using their steady income to buy assets that pay them every month. Assets that go up in value when everything else is falling apart. Hope is not a financial strategy. Let's get back to work. Florida wants to cut $55 billion in property taxes. Texas, $51 billion. Sounds amazing until you

realize you're the one who's going to pay for it, whether you own a home, rent, or just buy groceries. I mean, since when does the government say, keep your money? This isn't tax relief. It's a trap. And when you see the math, you'll know exactly who's getting played. I'm going to show you exactly what they're not telling you, because there's a 47-year-old experiment that spills the beans on why they are so eager to give up your property tax money.

In 1978, there was one state that tried this. And let's check their scorecard today. They have the highest price gas tax in the country. And despite those taxes, they're almost dead. dead last in road quality at 47th. They have the worst affordability in the country second only to Hawaii and they're dead last for their business climate. But they did rank number one in two categories. Homelessness and population exodus. Almost one and a half million people have fled this state in the last four years, all directly related to voting in a property tax reform bill.

And of course, I'm talking about California and Proposition 13. And that wasn't an elimination of property tax. That was just a cap on how high property tax could go. California's overwhelmingly voted for this because politicians promised relief, a higher level of ownership, an economic boom. Sound familiar? I mean, it makes you wonder why your state is considering the same play, doesn't it? Texas, $18 billion property tax cut, the largest in state history, signed by Governor Abbott in August of 23, on the ballot in November this year to eliminate it entirely. Same for Florida. Governor DeSantis studying complete elimination of $55 billion in property taxes via Senate Bill 852. Ohio, activists there are pushing to abolish all $23 billion in property taxes with no replacement

plan, and that's going to show up on the ballot November also. And then Nebraska, the Epic Option 2.0, where they're positioning to eliminate property, income, and inheritance taxes on the ballot for 2006. And then Pennsylvania, House Bill 900, and North Dakota, looking to gradually eliminate, eliminate over the next 10 years. And then there's Wyoming, South Dakota, Montana, Michigan, Kansas, Illinois, Idaho, Tennessee, Colorado, Georgia, New Mexico, and Arizona with major property tax reform on the ballot. More than just a few states. This is a coordinated movement spreading faster than wildfire, and everywhere they go, politicians are making the same promise. You'll finally own your home,

free and clear. Sounds amazing, right? What could be wrong with that? No more property taxes. No more threat of losing your house if you can't pay. True ownership. At last. We're talking hundreds of billions of dollars they're giving up. Why is so generous? Is it generosity? Or are we being played? This is a game of three card money and you're the mark. Card one, they eliminate property tax and then you cheer. Card two, they quietly raise consumption taxes to replace the revenue. You pay more. Card three, the wealthy pocket massive savings while you get stuck with the bill. So let's do the math. Let's look at it. For example, Florida currently raises $55 billion from property taxes. Now, to replace that with sales tax, according to the Florida Policy Institute,

they need to double estate sales tax from 6% to 12%, making it the highest sales tax in America. So that $5.60 coffee becomes $5.60. That $100 grocery trip becomes $112. That $30,000 car becomes $33,600. Every single purchase, every single day for the rest of your life. But here's where the game gets really dirty. Meet Robert. He owns a $5 million beachfront mansion in Naples. Under the old system, he pays roughly $50,000 a year in property tax. Under the new system, zero property tax. But maybe $20,000 more in sales tax because he can shop out of state, buy through his business,

or just simply spend less as a percentage of his massive wealth. Net savings for Robert, $30,000 per year, forever. Now, meet Rochelle. She owns a $200,000 home in Gainesville, pays $3,000 in property. tax. Under the new system, zero property tax, but $4,500 more in sales tax because she can't avoid buying groceries, gas, clothes, medicine, and necessities for her family. Net cost for Rochelle $1,500 more per year, forever. This isn't tax relief. It's wealth transfer from the middle class to the rich, disguised as generosity. And the irony here, you'll thank them for it. You may even applaud because we've seen

this movie before. Let me show you exactly how this playbook worked in California, because it's the same script they're using today. Prop 13 promised relief for homeowners getting taxed out of their houses. Property values were skyrocketing. Elderly people were losing homes they had lived in for decades. The exact same story you're hearing today. And here's what they don't want you to know about California's education collapse. Before Prop 13, California was 7th in per student spending nationally, 18th overall in education rankings. Property taxes funded 60% of school budgets locally. After Proposition 13, today, 47th in per student spending. 37th in education rankings.

Student teacher ratios, 47% above national average. They've lost over $150 billion in education funding over 40 years. But here's what they didn't tell voters. When you eliminate billions in local revenue, it has to come from somewhere else. During the same time frame, California replaced property tax with the highest state income tax in the country, 13.3%. the highest state gas tax, 50 cents per gallon above national average per gallon, higher sales tax among the highest nationally and hundreds of new fees and assessments. And then, parcel taxes and mellowrues, just property taxes by a different name,

positioned outside the boundaries of the proposition. But the real genius of the scam was something called fiscalization of land use. You see, some cities couldn't get much property tax from new housing, so they started chasing sales tax revenue instead, favoring commercial development. I mean, you ever wonder why California has so many strip malls? You see, cities get more sales tax from retail than property tax from housing. Auto malls and shopping centers became preferred development.

They fast tracked them through the bureaucracy, and housing took a backseat to commercial projects, and ultimately created the housing shortage that drives current prices today, and the very affordability crisis that's driven 1.46 million people out of the state in just the last four years. What was once a simple property tax system became a very, maze of special districts, fees, and assessments. The California experiment created four specific disasters. The first one, the education collapsed. Two, infrastructure decay. Three, affordability crisis.

And four, the generational wealth transfer. And remember, this was just from capping property tax at 1% of assessed value, not eliminating it entirely like Texas, Florida, Nebraska, Ohio, and Pennsylvania are planning to do. If just a property tax cap created California's disaster, what will complete elimination do? So, if you don't want to get played, you want to read the fine print before you cast your vote and get answers to these seven questions.

First, what's the exact replacement revenue plan? And don't accept we'll figure it out later. Two, is the funding from temporary surplus or permanent revenue? Texas used one-time money for permanent cuts. Three, are there automatic triggers or emergency clauses like Texas tried to sneak past you with their disaster clause?

And four, which fees and taxes will increase to compensate. The money has to come from somewhere. And five, who benefits most? Homeowners or wealthy property investors? Follow the money. Then six, what happens to schools and services when the economy slows? Consumption taxes crash during recessions. And then seven, are there carve-outs for essential purchases like food and medicine? Or does everything get more expensive? If they can't answer these questions clearly and specifically, you're being played likely. The bottom line, there's no such thing as a free lunch in tax policy. When government says keep your money, guard your other pockets, because they're already reaching for them, just like they already do to people who lose their home to tax foreclosure.

For example, before I wrap this up, you see, when counties foreclose on homes for unpaid property taxes, they often keep way more money than they're actually owed. You see, the current scam, it plays out like this. If you owe $5,000 in back taxes, and they sell your house for $100,000, that $95,000 overage legally belongs to you. the homeowner. But 72% of these excess funds go unclaimed because people don't know it's rightfully theirs. And if they do, they don't know how to claim it. And if they do know how to claim it, the government makes it really difficult so that people give up. And if you don't pull it off within three years, it's gone forever. They just flat out keep it. My buddy Bob helps people in this

situation for a living and earns 10 to 40% referral fees helping people like this. Like $15,000, $25,000, $50,000 a pop for helping people get back the funds that they didn't know was theirs. That was right. there's. Pretty good living for Bob. And if you want to see how he does it and he'll show you how you can do it too, I put a link to a short training below. Or you can just scan the QR code that you see right here. You see the property tax elimination movement, it's spreading fast. The question isn't whether you'll pay taxes. It's how much and in what form. Don't let them play you like they played California. I have too much money. Me neither.

Let's get you some more. Back to the show. Texas just passed the final vote to cap property taxes at 2.5% forcing cities and counties to ask voters before raising your taxes. They need your permission from this point moving forward. But here's what they're not telling you. In just 48 days on November 4th, you get to vote on whether to eliminate $10 billion in property taxes forever.

And while Texas is cutting taxes, other states are standing firm on high property taxes, and some have been keeping more than their fair share. What I found is absolutely going to shock you. I'll tell you in a second. But first, back to Texas. Senate Bill 9 passed just six days ago in an 18-3 vote. Cities and counties over 75,000 people can no longer raise property taxes without voter approval. Here's what this could mean for you, and I'll use Edna as an example.

She's 67 living on $1,200 a month Social Security, paying $6,000 a year in property taxes. That's half her annual income going to taxes. Edna's effective tax rate is 5% of her homes value each year, higher than what many billion-dollar companies pay on income. And on November 4th, Edna and 5.7 million other Texas homeowners will vote on Proposition 13. If it passes, her homestead exemption jumps to $140,000. For seniors like Edna, it could go to $200,000, meaning she'd pay zero school property tax for life. The average homeowner saves $484 a year.

But Edna, she could save over $900 annually. That's groceries, that's medicine. That could be the difference between staying in her home or losing it. According to the Texas Senate's own analysis, this isn't magic money. Texas is spending a one-time budget surplus, $51 billion over two years to cover these cuts. And critics, though, warn that piggy bank could run dry. So here's the timeline. In June, lawmakers signed the $10 billion package, but it only takes effect if voters approve

these constitutional amendments in November. We're talking about the largest property tax cut in Texas history. The political drama has been insane. House Democrats literally fled the state. They fled Texas to Boston to block. a GOP redistricting plan. Their walkout it delayed this property tax vote,

giving Governor Abbott a talking point that Democrats were blocking tax cuts for working families. But the numbers don't lie. 5.7 million Texas homeowners are affected.

Seniors and disabled residents could get a $200,000 exemption. Most would pay zero school property tax for life. Now, Florida, they're watching like a hawk. A House committee there even discussed

eliminating property taxes entirely. But here's the catch. Florida would, need a 12% sales tax to pull it off. Florida currently has a 6% state sales tax. They'd have to double it to replace the $43 billion they raised from property taxes. That would be the highest sales tax in the nation, hitting poor families hardest. And this isn't isolated. North Dakota voters just rejected abolishing property taxes entirely after experts warned it would force massive tax hikes elsewhere. Nebraska activists are pushing to eliminate property income and

corporate taxes, replacing them with a 21% consumption tax. Michigan had an acts-the-taxed petition. The Overton window on tax policy is shifting rapidly. What seemed impossible five years ago is now on ballots across America. But here's what they're not telling you about the potential fallout, because we've seen this before. After California's Proposition 13 in 1978, property tax revenue plunged, and California's schools, which used to rank in the top 20, fell to 48 in funding nationwide. Class sizes ballooned, libraries closed. It was dramatic.

California went from seventh in school spending to 47th after Prop 13's caps took effect. Texas promises this won't happen because they're using state funds to backfill school districts. But remember, they're using one-time surplus money. What happens when that runs out? Here's the scary part. Texas, their economic growth is already slowing. The Federal Reserve Bank of Dallas warns that the next time the legislature meets, Instead of arguing how to spend extra revenue, they'll be asking, what do we cut?

When governments can't raise property taxes easily, they get creative with revenue. Higher sales tax, impact fees, vacancy taxes on empty homes, steeper fines, you name it. Washington, D.C. already charges a 5% property tax rate on vacant properties compared to 0.85% for occupied ones. That's effectively 500% higher. So you've got this divide forming. States like Texas and Florida are trying to eliminate property taxes and scramble to make up revenue elsewhere. But other states, they're standing firm on high property taxes, and some have been taking way more than they're legally entitled to. You see, while Texas is cutting taxes, let me show you what's been happening in other states that love their property tax revenue.

Here's the scam. Here's how it works. When someone can't pay their property taxes for, say, three to four years, the government sells that property at auction. Let's say someone owes $5,000 and back taxes and their house sells for $100,000. By law, the government should take their $5,000 and give the remaining $95,000 back to the homeowner. But here's the shocking part. In 15 states, governments were just keeping it all, literally stealing home equity on top of the taxes they were already collecting. This year, in Tyler v. Hennepin County, the U.S. Supreme Court unanimously, 9 to 0, ruled this practice unconstitutional, under the Fifth Amendment. The case involved a 94-year-old Geraldine Tyler, a widow in Minnesota who lost

her condo over $2,300 in unpaid taxes. The county sold it for $40,000 and kept the extra $35,000 for themselves. She got nothing. A 94-year-old grandmother from Minnesota who owed $15,000, and when the county sold her condo for $40,000, they kept the change. The government should never be allowed to take more than what it's owed. Yes, it can tack on the interest penalties and collection costs, but when it goes beyond that, that is unconstitutional. And experts estimate that hundreds of millions in these surplus funds are sitting in government accounts unclaimed. The statistic, it's staggering. Sevent-two percent of the time, this money goes unclaimed because people have no idea it even exists. So while Texas is trying to give money back to

taxpayers, these other states were literally pocketing homeowners' equity until the Supreme Court forced them to stop. And most of these people, they're still never going to get it because they don't know how the system works. They don't know where to look. They feel defeated after losing their home. But what if someone could help them? That's exactly what my friend Bob figured out over 20 years ago. Bob, he's a licensed attorney since 1995 and is now the country's foremost legal expert in what's called tax overages, that surplus money that we just talked about. And Bob showed me cases where people have recovered 15 to 30 to $50,000 to $50,000 of money that was rightfully theirs. And here's the beautiful part. You can build a business helping people recover these funds for a finder's fee, up to 40%.

This is what Bob does now. Because even though the Supreme Court stopped the worst abuses, the foreclosure process still continues in every state. Property still sell for more than the taxes owed, and people still don't know they can claim the surplus. I had never heard of this before, Bob showed me. But when I saw the numbers, when I understood how many people are getting checks for money, they never knew they were owed, I had to ask. I had to ask Bob to share it with my community. So you're in luck if you want in on it. Check it out and watch Bob's quick training. It's really fast. It's really simple. You'll totally get it. I mean, if you're looking for a six-figure side hustle, it might be a great fit. I'll see you next time. Take care. And that wraps up

the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home boy, we got the cash low. Okay, only 10 more presents to wrap. You're almost at the finish line. But first, there, the last one.

Enjoy a Coca-Cola for a pause that refreshes. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.