Wake Up to Wealth: Mastering Property Tax Savings with Wes Nichols

Episode Release Date: January 31, 2025

In this enlightening episode of the Wake Up to Wealth podcast, host Brandon Brittingham sits down with Wes Nichols, a distinguished expert in property tax savings. The conversation delves deep into the intricacies of property tax assessments, strategic appeals, and the substantial financial benefits that property owners can reap by challenging their tax valuations. This episode is a treasure trove for real estate investors, entrepreneurs, and anyone interested in optimizing their financial standing through savvy property tax management.

Introduction to Wes Nichols and His Expertise

Brandon kicks off the episode by introducing Wes Nichols, highlighting his pivotal role in the Boardroom Mastermind and his unique expertise in property tax reduction. Wes provides a succinct overview of his company’s operations:

Wes Nichols [01:03]: “We’re half brain attorneys and half brain appraisers. But the great thing is, I’m not an attorney and I’m not an appraiser. We’re just really good at arguing value for property tax reduction and in consulting taxpayers, property owners on how to navigate the property tax system, how to reduce potential future impacts as well as reduce current impacts of property taxes.”

With a dedicated team of over 30 professionals, Wes’s company represents over $40 billion in assessed values across multiple states, including California, Seattle, Colorado, Texas, and New Mexico. Their expansive reach underscores their capability and success in the industry.

Understanding Property Tax Appeals

Wes elaborates on the core services his company provides, focusing on assisting property owners in challenging their tax assessments to achieve significant savings. Brandon seeks clarity on the practical application of Wes’s services:

Brandon Brittingham [00:44]: “I essentially try to get my assessment argued. Is that kind of what you do?”

Wes Nichols [02:04]: “Correct. So right now we’re doing a lot in say San Francisco, downtown or LA, San Diego. Our two asset types that we’re seeing the most reductions on are definitely office apartments because cap rates have changed...”

Wes explains that their approach is heavily data-driven, leveraging market changes such as evolving cap rates and post-COVID economic shifts to argue for lowered property valuations. This method has proven particularly effective in sectors like office buildings and hotels, where substantial reductions are achievable.

Success Stories and Financial Impact

One of the most compelling segments is Wes’s recounting of significant client successes. He shares tangible examples of how property owners have saved millions through their services:

Wes Nichols [04:18]: “Our biggest client that we’ve ever got a large refund was over $3 million and that was a hospital. They were being assessed for $113 million and we got them down to $44 million.”

Another notable case involves an office park in the Bay Area where a $280 million assessment was reduced to $180 million, yielding a refund of over $1.2 million. These examples illustrate the profound financial impact that effective property tax appeals can have on large-scale properties.

For smaller property owners, Wes emphasizes that even modest reductions can significantly enhance their financial health:

Wes Nichols [04:18]: “We might be able to get them 15, 20%, we might get them back 15, 20 grand. That 15, 20 thousand dollars to any investor. That’s still significant.”

The Appeal Process Explained

Brandon seeks to demystify the property tax appeal process for listeners unfamiliar with it. Wes provides a clear, step-by-step explanation:

Wes Nichols [06:07]: “You file an appeal, certain states, certain jurisdictions, you have to turn in your valuation. So like here’s a copy of the evaluation that we do here...”

He outlines how the company prepares a condensed appraisal, focusing directly on the property’s financials and market data to support the appeal. The process involves presenting this evidence to the assessor’s office, engaging in detailed discussions, and, if necessary, taking the case to court to challenge the valuation rigorously.

State-Specific Strategies and Challenges

Wes highlights how property tax strategies vary significantly across states, tailoring their approach to each jurisdiction’s unique tax laws and regulations. Texas, for instance, presents both challenges and opportunities due to its high tax rates and annual reappraisals:

Wes Nichols [07:48]: “The state of Texas...they use a computer model. And so the state of Texas, you just have to beat it. The other thing that’s great about Texas is they are an equalization state.”

In Texas, Wes’s team leverages the state’s equalization laws to ensure that property valuations are consistent with neighboring properties, often resulting in substantial reductions. He also touches on other states like Illinois, New Jersey, and Florida, noting the high demand for their services in areas with aggressive tax assessment practices.

Motivation and Personal Insights

Wes shares his personal motivation and passion for his work, revealing a deeper commitment beyond mere financial gains:

Wes Nichols [10:43]: “I am one of the luckiest men in the world. I have an amazing wife, amazing kids. One thing that makes me lucky is I’m very passionate and love what I do...”

He emphasizes the satisfaction derived from helping small business owners and homeowners secure financial refunds that can prevent foreclosures or bolster mortgage payments. This heartfelt narrative underscores the human impact of his services.

Journey and Growth of the Business

Delving into his entrepreneurial journey, Wes recounts how he transitioned from a loan originator to a leading figure in property tax reduction:

Wes Nichols [12:54]: “It was 2008. I was a loan originator... I knew it was going to be bad... I can sell and pick up clients and whatnot...”

Starting during the financial upheaval of 2008, Wes capitalized on the increased need for tax reduction services, gradually scaling his business from a few employees to a robust organization handling $40 billion in assessments. His story is a testament to resilience, vision, and strategic growth.

Key Lessons and Entrepreneurial Advice

When asked about the most significant lessons from scaling his business, Wes underscores the importance of a solid team, effective processes, and unwavering vision:

Wes Nichols [15:39]: “Having a team and a process... having a vision and just sticking to that vision.”

He advocates for goal setting and maintaining grit, emphasizing that perseverance and strategic planning are crucial for entrepreneurial success.

Practical Advice for Listeners

Wes offers actionable advice to listeners looking to optimize their property tax situations:

Wes Nichols [16:31]: “Anyone should if you hire us or hire someone else. The key fact is, majority of people don’t file an appeal...”

He encourages property owners to engage experts to review their tax assessments, highlighting that many miss out on potential savings due to fear of government retribution, time constraints, or misconceptions about the complexity of the appeal process.

Defining "Wake Up to Wealth"

Towards the episode’s conclusion, Brandon invites Wes to share his personal definition of wealth. Wes offers an inspiring perspective centered on personal freedom and choice:

Wes Nichols [19:19]: “Wealth to me is having personal freedom and choice... you get to choose whether you want to do what you want to do.”

This philosophical take encapsulates the broader mission of the Wake Up to Wealth podcast: empowering individuals to achieve financial independence and live fulfilling lives through informed financial strategies.

Conclusion and Final Thoughts

Brandon wraps up the episode by reiterating Wes’s credibility and the value of his services, encouraging listeners to reach out for assistance with their property taxes. The episode serves as a comprehensive guide to understanding and leveraging property tax appeals, showcasing how strategic financial management can lead to substantial wealth accumulation.

Key Takeaways:

• Property Tax Appeals: A data-driven approach can lead to significant tax reductions for property owners, especially in states with aggressive tax assessment practices like Texas and California.

• Financial Impact: Successful appeals can save clients millions, while smaller reductions also provide meaningful financial relief for individual investors and small business owners.

• Process Understanding: Filing an appeal involves presenting a condensed appraisal focused on financials and market data, engaging with assessors, and sometimes pursuing legal action to achieve favorable outcomes.

• State-Specific Strategies: Tailoring strategies to each state’s tax laws is crucial for maximizing tax savings.

• Entrepreneurial Growth: Building a successful business in this niche requires vision, a strong team, effective processes, and relentless pursuit of goals.

• Personal Freedom: Wealth is defined not just by financial gains but by the ability to make personal choices and attain financial independence.

For listeners interested in mastering property tax savings and enhancing their financial portfolio, this episode with Wes Nichols offers invaluable insights and actionable strategies. Don’t miss the opportunity to transform your financial future by leveraging the expertise shared in this compelling discussion.