Creating Cash Flow, with John Gumas

June 23, 2021

Episode 16:

Creating cash flow by investing your agency profits into real estate or other vehicles can help you grow your wealth. Hear insights about:

  • How Gumas Advertising found its niche in “Challenger Brand Marketing” focused on helping businesses compete with huge, well-funded competitors
  • How John got involved in real estate investing with the goal of creating cash flow that could support him even after he sold his agency
  • How the first real estate purchase John made was the building his agency’s office was located in, so that he could be his own landlord
  • Why John strongly recommends you consider buying your office, even if your team is working remotely for the foreseeable future
  • How buying one building allowed John to continue buying other buildings and further growing his monthly cash flow
  • Why John believes it is important to use the money your agency generates to further grow your assets and investments
  • How John has invested in new construction projects, and why it is important to make connections with people you can trust when investing your money
  • How using your non-taxable accounts to fund your investments can save you big money in taxes
  • Why it is important to build the right team with the right real estate, legal and financial advisors who understand your goals and how to get you there
  • Why John considers it less risky and more profitable to spend a little more money buying properties in better areas

Creating Cash Flow for Agency Owners

As I’ve discussed before, investing some of your money to generate reliable monthly income independent of your agency’s work can be a powerful way to build wealth. Creating cash flow through your investments gives your money the power to grow itself. My guest for this week’s episode of the Progressive Agency podcast is John Gumas, a branding and marketing expert and the founder of Gumas Advertising. During our conversation, John shares powerful tips for creating cash flow and making your money work harder for you by investing in real estate, and he explains the benefits of smart real estate investing.

Why Real Estate?

John wanted to create passive investment income that would pay him as much each month as what he was making through his agency’s work, so that if he decided to sell his agency he wouldn’t be caught flat-footed. His first real estate investment was buying the office building his agency was working in, so that he could become his own landlord.

He then set up a second business to oversee his real estate investments. Essentially, John’s agency was paying John’s real estate business rent each month, allowing John to keep his money by transferring it legally between businesses. This had an unexpected upside when the global pandemic caused John’s agency team to begin working from home, because John was able to repurpose the agency’s former office and bring in even greater wealth.

The Power of Creating Cash Flow

John’s first building purchase was a smart one, and it allowed him to then reinvest his money into a second building purchase nearby. This snowball effect has resulted in John owning multiple buildings and even being able to invest in new construction. All the while, he’s still drawing in money from his agency in addition to his rental income from his properties, dramatically increasing the value of John’s investment portfolio. John truly is putting his money to work to build his wealth by creating cash flow through real estate investing, giving him financial freedom in a way that his agency work alone wouldn’t have been able to achieve.

If you would like to learn more about John Gumas, Gumas Advertising or challenger brand marketing, visit their website at https://gumas.com/.

And of course, please visit https://craigcodyandcompany.com/agency-podcast/ for more informative, money-saving podcast episodes like this one.

Creating Cash Flow

Additional Resources:

How to Connect with John Gumas:

About John Gumas:

A veteran of the advertising and interactive marketing industry, John Gumas founded Gumas Advertising in 1984. Today, the award-winning firm is consistently named as one of the top branding and interactive marketing firms by the California Business Times.

John is recognized as one of the country’s foremost authorities on challenger brand marketing. He is the author of the popular books “Marketing Smart” and “Challenger Brand Marketing” which describe how challenger brands can effectively develop marketing strategies to take on their larger competitors. In addition, John has been an adjunct professor of branding, advertising and interactive marketing, a sought after speaker and a regular columnist for several publications and blogs.

John currently sits on many boards, including the San Francisco Giants CF, The San Francisco Chamber of Commerce, San Francisco State University Foundation, The Greater San Francisco Advertising Club, The Bay Area Sports Hall of Fame and The Elios Society.

John was recently inducted into the San Francisco State University Hall of Fame, and was Alumnus of the Year. John has also been recognized for his extensive community service and leadership by the U.S. Senate and the San Francisco Giants.

Posted in Blog