In today’s episode, Jim and Tyson chat with Josh Zieglowsky! They dive into the journey of Employee Retention Credit or ERC. If you’re interested in learning more about what it is, how it started, and how it can help you, check out this week’s episode.
Josh has been an entrepreneur for almost 20 years. His primary focus is investing in residential and commercial real estate. Josh’s key expertise includes asset and portfolio management, broker relations, investor and client relations, banking relations, economic and demographic trends, market analysis, due diligence oversight, financing oversight, acquisition and disposition strategies, transaction oversight, and business development.
When Josh first learned about the ERC, he spoke to some CPAs and payroll firms but was unsuccessful in finding a solution for his company’s filings, so he took it upon himself to help other businesses receive this credit from the government. He took the approach of the book “Who not How” to hire top experts who specialize in this niche program. With his dream team in place, Josh now leads business development and marketing at ERC Specialists.
When Josh isn’t working, he’s spending time with his wife of 21 years, Taryn, and his four children. Josh grew up in Morgan, UT where he was a multi-sport athlete, but his love was basketball. Now, years later, he gives back by coaching local students to succeed both in sports and in life.
4:29 my background is real estate
8:51 supply chain
12:58 ERC
16:27 we’re doing 300 a day
20:43 we started getting the right people in place
Jim’s Hack: Spend more time making your analytics better.
Josh’s Tip: Read Who Not How: The Formula to Achieve Bigger Goals Through Accelerating Teamwork.
Tyson’s Tip: Streamline your mornings when it comes to your wardrobe by wearing a lot of the same things to make your life easier.
Watch the podcast here.
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Transcript: The Employee Retention Credit with Josh Zieglowsky
Josh Zieglowsky
Hey Justin Gase here with ERC specialists I’m on the maximum lawyer podcast really excited about this.
Jim Hacking
So we just had on Josh the goldsky, there was something else having him on. I mean, he said at the end of the episode that it’s not often that we have people on who can help our listeners make money. I would say also that it’s not often that we have people on the show where I’m like, Holy shit, like, did we miss something like, I mean, it does sound too good to be true, but it also sounds legit. So I think that this is something that every one of us is going to have to inquire and I was sort of giggling to myself when you said, I don’t know that we really have had supply chain breakage in the personal injury space. And I was like, all you guys bitched about for a year and a half, was it your courts were closed? You you clearly had the as true disruption.
Tyson Mutrux
Well, it’s funny, it’s I think a lot of us did really well during the pandemic. And it’s like z don’t really it really the but the courts, but you’re so true. You’re absolutely right. And I remember I it was two days before the end of the year. So it was December like 29, right. And I got a call from this guy who had been trying to sell me something. I we were both in this magazine together. And he tried to sell me like an ad space and the ad sheet in Colombia. I guess I kind of give what kind of who he is. But he was, he left me a voicemail. I thought he was trying to sell me something. It was about ERC. And I thought he wasn’t trying to sell me and he would just try to tell me about it. Because he was like he was he was legitimately reaching out being a nice person, believe me, hey, but he told me the deadline was the 31st. So I didn’t have I didn’t have enough time to get everything done before the 31st. So I just didn’t do it. And I was, so he was wrong to like, there seems like there’s so much misinformation about this. It’s good that there’s a company and frankly, given 15% to get a bunch of extra money. Spider Man.
Jim Hacking
Well, I mean, first of all, that’s how you that’s how you I mean, you get twice that, if not more, right. So true. Yeah. So if anybody should understand the model, it’s you. It’s also you know, it’s so great. Dan Kennedy, Dean Jackson stuff of, you know, risk reversal. There’s no I mean, what’s the downside other than the time you spend filling out the paperwork, I’m just trying to wrack my brain. I mean, I guess with COVID, with closures and immigration, going from taking six months to handle a case to handle Yeah. So I could, I could definitely make arguments that I’ve had to carry cases a lot longer and pay more payroll because USCIS and the State Department are so behind, and they they say it all the time because of COVID. So I can attach press releases and all kinds of stuff. So I’m going to talk to our team about doing this today.
Tyson Mutrux
Yep. As am I because you’re talking about significant amount of money back into the firm. So really good stuff. Hopefully enjoy it. Love to hear feedback from people that have gone through this. So listen up,
Speaker 4
run your law firm, the right way. This is the maximum layer podcast, podcast, your hosts, Jim hacking and Tyson metrics. Let’s partner up and maximize your firm. Welcome to the show.
Jim Hacking
Welcome back to the maximum lawyer Podcast. I’m Jim hacking
Tyson Mutrux
and pricing matrix. What’s up Jimmy?
Jim Hacking
Oh, Tyson. You know how it is. It’s been hotter than Hades around here lately and lots of activity. Lots of running around. I’m sure you’re doing a lot with your kids as well.
Tyson Mutrux
Yeah. And it’s going to be in the hundreds this week, which is great. Although it’s gonna be it’s feels nice today. It’s it’s gonna get we’re gonna get a little rain. But yeah, it’s been
Jim Hacking
been kind of nutty. Well, you want to go ahead and introduce our guest.
Tyson Mutrux
Absolutely. So today, we have Josh Ziegler, Loski. He’s been an entrepreneur for almost 20 years. His primary focus is investing in residential and commercial real estate. Josh’s key expertise includes asset and portfolio management, broker relations, investor and client relations, banking relations, economic and demographic trends, market analysis, due diligence, oversight, financing, oversight, acquisition, and disposition strategies, transaction oversight and business development. Josh, that was a tongue twister. Welcome.
Josh Zieglowsky
Just to name a few,
Tyson Mutrux
just to name a few. There’s more to the bio, but I wasn’t going through the whole thing. It was like an obstacle course. But welcome, Josh.
Josh Zieglowsky
Hey, thanks for having me. I appreciate it.
Jim Hacking
Great, Josh. So why don’t you tell us a little bit about how you got started and then maybe work towards what ERC specialists is. Yeah. So
Josh Zieglowsky
I mean, like you mentioned, my background is real estate, commercial and residential real estate commercial, mostly last six, seven years. But about three years ago, four years ago, I started being entrepreneur ish. Like what I mean by that is starting to do other businesses outside of real estate. And come to find out a couple years ago, I started a company in oil. And I don’t know if you guys remember what the price per barrel of oil in 2021 day was negative $30 a barrel. And so with that, our oil business out of Wyoming I’m out of Utah was suffering and so I was trying to build an extra stimulus money for my business too. help combat the pandemic and I did PvP number one number two state of Wyoming grant that was forgiven and come to find out I found this another stimulus called ERC stands for employee retention credit where you can get up to $26,000 per w two employee. And being that it’s from the Treasury Department, aka the IRS. I reached out to my CPA and he told me, Hey, you know what, this is a payroll type of situation and 95% of CPAs, don’t do payroll. So talk to a payroll company, talk to a couple of payroll companies, and they don’t amend 940 ones. And so there was like this weird gray area almost too good to be true. And I did the who not how old mentality of that book? Who not? How got the right who’s and we went from six partners now a little under 190 employees now in about 14 months. Wow. So
Jim Hacking
explain to us what ERC is because we both have employees, and most of the people listening to this podcast have lots of employees. So what is the program? And how can it help us?
Josh Zieglowsky
Yeah, and let me explain the program and kind of a two parts. What I mean by that is how it started and what it is now, because it’s two different ways, because President Biden in the administration has amended this by different times where it started is, you know, did you ever shut down your business? Are you under 500? Employees? Did you have a 20%? revenue loss? Well, people that had losses, you know, we’re able to help them. And that’s the way we started, what I called when the barn door went wide open with this is about November of 2021. Where because a lot of people say man, I made so much money in 21, that I definitely don’t qualify. And we’d always tell them, at least put your 940 ones and let’s see. And sometimes we’d find maybe a quarter or two, because it’s over a six quarter period that they did qualify. But when President Biden amended it and said, did you have 500 employees or less? And then if the answer is yes, these are W two. This isn’t a sole proprietor. But the next question is, did you have a 20% revenue loss? Or have you had a partial or full shutdown? Or have you had a supply chain disruption to your business and the supply chain is when even Forbes did an article that seven 80% of businesses qualify for this now, yet, seven out of 10 business owners don’t even know about it. And so this is an absolute rebate, what I call rebate, even though they call the credit, and the reason why they call it a credit is it’s a glorified grant. In a grant, you have to specify what using the money for just like PPP. It was a loan that was forgiven later, and you had to disclose what using the money for this year, it’s forgiven the day you get it, and you can use it for whatever you want in your business.
Tyson Mutrux
This is incredible. I have heard about this. I, however, thought that we were still stuck in the first part of it. Yeah, I did not know, I was not aware there was the second part that was available to us. So I do I do personal injury, I’m gonna ask a very specific question to this. So I do personal injury. And we’re like, Where would the supply chain? Where can I look for the supply chain disruption? And that is it could it be? Because I did have a lot of clients that they were not unable to go get treatment during certain times because of this, would that be considered a supply chain disruption?
Josh Zieglowsky
Yeah, I mean, I’ve had actually an attorney firm tell me this was several months ago that, hey, you know, what courthouses were shut down. That’s my supply. And I wasn’t able to even go to courthouses and conduct business. And, you know, even if they had a profit a business, they weren’t able to conduct another part of their business, which was more that it has to be more than a 10% difference in their business. But we’re on our website, URC, specialists.com, we have a survey, it takes five or 10 minutes, we don’t charge anything upfront for this, you know, like, it’s about personal injury, you’ll understand this, because this was, quote unquote, too good to be true. We decided, hey, let’s not charge upfront, we’ll charge 50% of what they get when they get the money. And so we actually wait until they get the money in because it does take six to eight months for the IRS to send out the money and that’s their backlog. You know, if the IRS, you know, wants money from you, they’ll come get it tomorrow, right? So but there is a backlog with this on the IRS of 68 months. And so, you know, coming back to your original question on supply chain is on our website, that takes about five or 10 minutes per ein to go through it. And we asked specifically, did you have a supply chain Who’s your supplier? Tell us more about that? And then we actually dissect it to make sure it’s a substantiation to use for a claim for the program. And something to add what you’re saying to you mentioned, like, Hey, I thought this was back when it was the 20% revenue loss. I meet so many people that Oh, no, I already looked at this, I didn’t qualify, you probably didn’t qualify back then. But now you have a chance to qualify.
Jim Hacking
So yeah, so Josh, what’s the standard for proof? Of course the lawyers want to know what’s the standard of proof what do we have to demonstrate to show the disruption
Josh Zieglowsky
so on our website we asked specifically did you have a you know alary reduction did you have this there’s several different things it really was you know go step by step with you on the supplier because when I first heard about this I thought of a widget sitting at the port right that’s what I call you know thought of supply chain but you know, when the definition when my supplier was shut down and so I had to go to another supplier even though I made more money, I had to go change my my situation of my business and get a whole new supplier because of it because as a business owner, like if someone says, oh, you can’t get lumber today, you don’t just like okay, well Can’t get lumber until they’re ready. Now you call another lumber company to help you know your business survive, right? And so that’s where the supply chain comes into place. And our website really goes over those specific questions. Because everyone’s different. We then take it in, we take all their documents and the documents are only there 940 ones, the quarterly reports, there are PvP info, and a payment report and we tell them step by step on how to get that once we get that it takes us two or three weeks to come back and say, Okay, you’re approved for $322,000.42 Do you want us to file so they still have an opportunity to go somewhere else? 95% of people, you know, move forward. At that point, though.
Tyson Mutrux
I just wonder why was this talked about so much less than like eidl and PPP.
Josh Zieglowsky
DDP was a frenzy and it was brokered through the banks. So after three or four days, SBA was backlogged. So then the administration at the time Trump ministration said, hey, when you get this money out to the masses, let’s call the banks and the FinTech companies, and we’ll pay them up to 5% Commission for getting that PBP money out. I don’t know if you guys remember, but all of a sudden, all these bankers started calling us like, hey, I can get your PPD money I can eat well, because they’re getting commission from and it was so easy, you had money in five or six days. This isn’t easy. And just recently, we are endorsed by the Texas Dental Association, the Utah CPA Association, I mean, CPAs. Again, we have a lot of people, it’s like, oh, my CPA looked at this, I didn’t qualify, well, it’s kind of like in your situation, personal injury, if I’m going through a divorce, or trying to get a someone that specializes in divorce, right? We specialize in this. And we’re that easy liaison, we’re not trying to do taxes, we don’t want to do income taxes and take it away from CPAs. We want to work with them. We want to work with payroll companies and stuff like that. So that’s where we kind of, you know, we just surpassed $2.3 billion in credit with this. And we’re seeing about two to 300 companies a day and it’s getting exciting.
Jim Hacking
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Tyson Mutrux
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Jim Hacking
You’re listening to the maximum lawyer podcast. Our guest today is Josh Zagorski. He’s talking to us about a very exciting program. And I guess one question I have is so this year, it looks like we’re having to declare our PPP money as income on our tax returns. I think I think that now that that ship has come in, is that going to be true with this EIC as well?
Josh Zieglowsky
ERC employers? Yeah, so yes, so we charged 15%. So let’s say someone gets $100,000, don’t get any five will get 15 They’ll have to tell their tax professional, whether they use an EA, which is an expert advisor or a CPA or some sort of h&r block, whatever they use, that they did receive $85,000. Now, how much are they taxed on that? It’s not like 30%, it’s because they have payroll tax, because in other words, best way to describe this is let’s say you paid a W two wage to an employer of $10,000, one quarter, you can get up to $7,000 back, because you paid them back in 21. So it’s a rebate. So in other words, you’ve already paid those payroll taxes, right. So the taxes can be very small, but there’s also ways to combat that when they receive that money. So but they will have to tell their tax professional, you know, let’s say they got the money in 22. Delta tell them you know, you know, the by April 15 23, or whatever it is.
Tyson Mutrux
Alright, so Josh, let’s say that I hire you and hear more about the process. Let’s say I hire you, and you’re, you’re my guy, you’re gonna you’re my EA, right? What do you like? What walk me through that process? What’s that like?
Josh Zieglowsky
Well, we’re not your EA. So usually you’ll have a bookkeeper or someone that does your payroll, you know, like, literally we have people that use ADP that they kind of assumed that why doesn’t ADP do this type of thing? It’s because again, they don’t amend 940 ones. We can amend this for three years, because technically this program expired. Quarter Three of 21. But we can amend it and that’s why you know, ADP there or any payroll company, that’s a software right there to give them your quarterly stuff. So to come back to your question is you’ll get with that person or yourself where does the payroll for the business and basically they’ll go on our website ERC specialists.com to hit begin qualifying it takes them five or 10 minutes. Then once they finish that, they’ll hit the Upload page. They’ll then upload documents. Once they upload documents and they hit submit. That’s when a human comes into place. Outside of that, we’re just trying to follow up with them based on email texts, stuff like that. Then they’re assigned to what we call our account specialists to make sure all the documents are correct then We’ll send an email to say documents are correct or Hey, there’s this one document that’s blurry or your upload wasn’t good. Can you redo this one? Once we say, hey, it’s good to go. It takes us three weeks up to three weeks. Sometimes it’s a few days, but we always say three weeks, we come back and you say you’re approved for this amount of money. You then will DocuSign buta then we’d say okay, you you’re good to go. We’re going to file this when 72 hours. And then now we’re on the waiting game from the IRS waiting for the money and the checks. I say checks because again, this is over a six quarter period. And I wish they would send an ACH, but it is six heart looking checks from the Treasury Department. And it comes to the post office. And so we wait for those six checks. And once we get those, we we settle up, and then we’re good to go. Wow.
Jim Hacking
So I know that we got some suspicious as lawyers saying, This is too good to be true. This guy is selling, selling snake oil. How can the three of us encourage people to give this a shot?
Josh Zieglowsky
Well, that’s why, you know, when he first started the first 3060 days, we had a fee schedule, and we weren’t having any luck, because it’s like, okay, well, you know, send us $10,000. And in eight months, cheques will start coming like, I don’t know, dude. But if you’re willing to, you know, wait till I get paid. I’m good. Right? So, I mean, there’s plenty of attorneys, we don’t have a lot of them, I’d say, you know, like I said, we’re doing 300 a day, but let’s say out of 100 files, I might have, like a tax attorney, you know, kind of get involved probably one 2% of the time. But I mean, obviously what they could do, I mean, and it’s not official yet, but I’m in Utah, and I met with the Utah Attorney General to basically because we’re one of the fastest growing companies in the state of getting an endorsement. And that will help. And with that it’s going to turn into I can’t name any names after this. But we have other people that we were talking to on the advisory board side that are on a national level that have been in the government side of on the attorney side, specifically. But you know, to answer your question, I think the best thing is, is we don’t get paid until they get paid. And we’re willing to wait for that. Now we do have an option if people do want to pay up front and say, hey, I want a discount from the 15%. It is 10%. But that is their option. We do about 10% of companies that opt for that. But you know, we don’t we don’t encourage it. We just kind of say, hey, it’s there, if you want it.
Tyson Mutrux
I was just curious. You see, you mentioned the tax attorney getting involved, like what are some of the reasons why a tax attorney might get involved? Because to me, it seems like it’s pretty simple process, you know, filling out the paperwork and waiting for the check. So why why my tax attorney get involved.
Josh Zieglowsky
Sometimes they’ll advise their client to get an opinion letter, they’ll have to pay for that that doesn’t come you know, we don’t pay for that at all. We have about three or four tax attorneys that we actually consult, because we always want to stay ahead of any type of legalities stuff with this. And so when they’re not a partner, they’re not, you know, they’re just as a straight consultant will refer them off. If they need a tax attorney to write an opinion letter. Usually that’s anywhere between three to $5,000. And then we’ll put that in their file. If they want something like that. Sometimes we’ll have someone that if they have over like two $3 million of credit in their business, they’ll opt for that. Or they’ll kind of look into it or get that type of advisement, because like the other thing I should mention is, you know, nonprofits actually are qualified for this 501 A is 501 C’s, we’ve done Baptist churches just recently, you know, private schools in Hawaii, that were part of the Hawaiian Private School Association, so or were were endorsed by them, I should say. So that said, That’s why kind of a tax attorney will get involved sometimes.
Tyson Mutrux
So Josh, let me ask you this before we start to wrap things up, how can people get in touch with you if they want to reach out to you I know you already mentioned the website. But I guess you can mention that again. But what other ways can make you can they reach out to you? Yeah, so
Josh Zieglowsky
our website ERC specialists.com. We also have our email is support at ERC. specialists.com. If it’s something you need, you know, or want to talk to me, like I said, we have a huge team in all different departments and stages throughout this. If it’s something you want to talk to me just put that in the request support site. And then yeah, we can hop on the phone or someone from my team can hop on the phone and go through this. And but I would encourage the website actually has quite a bit we have videos, we even have video testimonials of people actually receiving checks if you had testimonial tab. We wanted to do that from the get go. But we had to wait eight months for those videos because the IRS took that long. Once we had that we were really aggressive and saying okay, let’s get 10 videos of business owners talking about receiving their checks going through the hard times the pandemic, that type of thing. And so there’s a lot there’s frequent ask questions that you can go through to you can google ERC credit and you go to the IRS website, and there’s over 200 pages worth of documents. So if you’re tired one night and you need extra sleep, you know, maybe go through that website.
Tyson Mutrux
This is really really cool. Yeah, Jimmy
Jim Hacking
Jason’s gonna wrap up in just a minute. But I would like to ask you something a little bit different than what we’ve talked about, which is talk to us about being in such a fast growing company because, you know, that’s a hard thing to manage. It’s almost like one of those horses that needs to be broken so that you can write I mean, what’s it what’s have been like on this ride after you’ve found this niche.
Josh Zieglowsky
It’s funny because there’s, there’s like a dozen stories I can tell you about that. Right? I would say there was times that, you know, we couldn’t get back to people for seven or eight days on a simple question. Like we were so backlogged because we weren’t ready to hire people at this point. This was about November, December, when the tides were turning on the supply chain piece. Were all of a sudden, the all these applications and now we gotta hurry. You know, within three weeks, we hired some, like 50 or 60 people, and now we’re doing you know, training calls, and we’re trying to tell them what we’ve been doing, you know, working out of a basement just like any other Amazon business or anything that started up, right. And so then we started getting the right people in place kind of that who not hell mentality. And we also knew, because we talked to a lot of we use a lot of a lot of banks send us a lot of business, you know, because they did a lot of PPP loans, FinTech companies will send us business. And they told us do it daily changes on a dime. So and they told us that advice, probably six, eight months ago, so we always tell our employees kinda Who Moved My Cheese, Hey, today, I could be telling you, you’ll be doing this. But tomorrow, you’ll be in a whole different department, it could happen. So I need you to make sure you understand what I’m getting your cheese moved all the time. And so we kind of incorporated that because it’s all about expectations, you get an expectation, then it’s not it’s not a like, it’s not a bad change. It’s like okay, well, sounds good, because you guys told me that. And I think that’s kind of the biggest thing we’ve kind of incorporated. But we’ve also nonstop always been consulted from business people that have expanded their business a ton to, you know, on the legal side, always making sure we’re ahead of the game on this.
Tyson Mutrux
This is really just intriguing. I can’t wait to look into it. So Jim, I don’t know if you’ve done this yet. But I’m gonna totally look into this. I feel like I’m missing the boat. So much, check this thing out. Alright, let’s wrap things up for I do want to remind everyone to join us in the big Facebook group, just search maximum lawyer and choose the group maximum lawyer. If you want a more high level conversation, join us in the guild go to max law guild.com Max law guild.com. Great, great information being shared there on a daily basis also gives you access to maximum lawyer and minimum time, the course that Jimmy and I put together. All right, Jimmy, what’s your hack of the week.
Jim Hacking
So my hack of the week is this, we spend a lot of time all of us creating a lot of content. And what we don’t do necessarily is go back and watch how that content is performing. And we don’t tweak the content that’s underperforming to try to make it a little bit better. I think that if we spent a little bit more time optimizing our content, paying attention to analytics, and we’re talking specifically about web pages, if we spent more time making those better, and watching the numbers, and we wouldn’t necessarily have to create so much content. So it’s good all around to prune your content and get rid of stuff that’s underperforming, maybe combined pieces that make one longer, more substantive post, but just having lots of little underperforming web pages aren’t going to do much good.
Tyson Mutrux
That’s very, very true. Look at the numbers follow the data. For sure. Josh, we always ask our guests to give a tip or hack week could be a book could be a podcast could be just more big picture stuff. Do you have a tip or hack for us?
Josh Zieglowsky
I think because it’s on my mind is I’ve mentioned a couple times that who not how Dan Sullivan and hardy I think it’s Darren I’m a huge fan of them. And what they did for for me on that book, they just came out with another one called the gap. And again, that’s a really great one. I would say if you have not read or listened to who not how like, buy it in the next five minutes, because that was my advice. Someone gave me that advice two years ago, I was literally eating sushi at lunch and he said you haven’t read that you just seem like you already kind of do that. But you should read this. And I literally got my phone and I bought it on Audible right then I do the same thing. Daddy, my advice. Love it.
Tyson Mutrux
Very good. So my tip it’s kind of it’s gonna be kind of goofy to some people and I’ve talked about on the podcast before, but I always kind of joke about my uniform. I wear the exact same thing pretty much every single day. It’s like I wear the same pants the same shirts only. But I’ve always struggled with my summer attire by shorts and my polo because it’s they always get a little summer too long. So do baggy. But I finally found a shirt and shorts combo that works great for me for the summer. The point of it, though, is that I cannot tell you how easy much easier it makes my life by having this streamlined in the mornings, whenever I just go to my closet, pull out the exact same thing. And it may seem goofy, but it saves me so much mental energy. Just having that stuff taken care of. When it comes to shoes, socks, underwear all it’s just taken care of everything’s the same. You can mix up the colors, but I do recommend it. If you lose a little bit of a flavor. I don’t have a cool shirt like Josh has right now. But it does make things a lot easier for me. So just I know it seems goofy, but I highly recommend it. It’s actually really good. But Josh, it’s rare that we find we have an episode where we can make our listeners so much more money just by doing a simple thing. And I’m hoping that you’re gonna be able to help a lot of our listeners. So thank you so much for coming on. Really, really appreciate it.
Josh Zieglowsky
Yeah, I really appreciate you guys. Thanks. Thanks, guys. Have a good weekend.
Jim Hacking
Thanks, Josh and congratulations on your success you
Josh Zieglowsky
should be really proud of yourself. Thanks, guys. Appreciate it. Thanks, Josh.
Speaker 4
Thanks for listening to the maximum lawyer podcast. Stay in contact with your host and to access more content. Go to maximum lawyer.com. Have a great week and catch you next time.