Real Estate Investing

440 - Why Stocks Are NOT Real Assets

https://moneyripples.com/2020/11/18/440-why-stocks-are-not-real-assets/

Do your investments hold water?

What are the fundamental flaws in most people’s investment strategies?

Whose money are banks investing? Hint: Is not theirs…

What does Warren Buffett do that gives him success?

In this episode, Chris Miles tackles the topic of why stocks are not real assets. This is aimed to help you make better decisions based on what your goals are.

Listen in today.

https://www.blogtalkradio.com/moneyripples/2020/10/03/440--why-stocks-are-not-real-assets

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Hello! My fellow Ripplers. This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Hey guys, I want to welcome you out for a wonderful show. A show that is for you and it’s about you. Those of you work so stinking hard for your money, and you’re now ready for your money. Start working harder for you. You want that freedom, that cashflow, that prosperity today. Cause you know that cash flow equals freedom, right? Because you want to live that life. Doing what you love with those that you love. Whenever you want. But guys, it’s so much more than just financial prosperity for yourself. It’s about creating blessings and creating a Ripple effect, the lives of others. And as you become liberated financially, you can do the same too. And guys, I am so blessed and so grateful for you for allowing me to create a Ripple effect through you by teaching these things.

Cause I got to tell you, it’s awesome seeing what you guys are doing right now. It’s amazing to see the work that’s happening. And I see with some of you guys I’m working with one-on-one, I’m seeing what’s going on with some of the feedback you guys are giving me, keep it up, keep up the great work. You guys are making a difference in your own lives. And therefore you give hope and freedom to others too. As a reminder, check out our website, WWW.MONEYRIPPLES.COM Hey guys, not only is there great content on there too, but you can even go to our YouTube page. You can subscribe on there, the Money Ripples, Chris Miles page. If you go on there, you can see a lot of our podcasts are actually video version too. So if you’re a big YouTube fan, check it out because we’re now uploading our episodes there.

So check that out guys. All right today. So I want to go into something that really comes to heart because you know, this year has been a weird year, right? There’s no doubt. And there’s been a lot of different attitudes and you start to see things about people that bubble to the surface, right? And you start to see when people start having this gambler mentality, you start to see what happens with people. Start thinking what something might be real, but it isn’t. Right? And there is no doubt. There is no shortage of fake news out there, right? There is a ton of fake news out there. There’s tons of stuff that even you think that other people are giving you fake news. And the other side of the people that believe something different is fake news. I want to talk about Something

That is fake news and it has been for years before social media. So before AI could trick you, right? If you guys watched the social dilemma on Netflix, you know what I’m talking about, but before AI could trick you into what’s real news and what’s not guys, there was fake news long before, and I’m not talking about the National Enquirer. Although we do live in a day and age, where news is the National Enquirer, let’s admit it. But I want to go back years ago to when people talked about owning stocks and owning assets. Now I want to think about what real assets are today. And I’m going to argue that stocks are not real assets when you own stocks or mutual funds. Those are not real assets. Now, what do I mean by that? Now when I was about real assets, I mean something that’s going to be tangible.

Something that actually has intrinsic value. Now people argue with me all the time. They’ll say Chris, come on, stocks are in companies. These are real things are traded on exchanges. Hey, they’re backed up by everybody, right? Okay. Sure. Yo yes. They’ve got their on exchanges. Yes, they are actively traded and back and pass back and forth. But these things are really paper assets. And we’re really going into a world where I believe that paper assets and digital assets are going to become, you know, pretty false, right? They’re not going to hold water. When, when stress gets applied. It’s, it’s kinda like the the paper cup, you know, like you get those little paper cups at the gym. They look like the little cones. If you’ve seen them, right. You’ll put snow cones in them. You think, Oh, this is going to hold it.

Then as a snow cone melts or that, that water it’s in there, you start to realize that starts dripping out of it. Right? It starts dripping and dripping because it’s soaking through. And you’re like, this is cheap. You know, horrible plat. You have paper here. This is not going to hold water. The same thing is true with the stock market and the mutual fund market. And they are two separate, just so you know, they are very separate from each other. So let’s talk about this. And what’s fundamentally flawed because as a Financial Advisor, I was taught that this was the asset. In fact, I used to teach the fake news, the false belief that, Hey! the number one investors in the stock market are banks and financial institutions. So if they’re investing in these things, it’s gotta be good. Right? Here’s the problem with that.

What I learned later was that these institutions, these banks and these financial institutions are not investing in these places, they’re investing your money. They’re investing average, Joe’s money. These poor and the middle class, of throwing your money into there and gambling with it. Yeah. They’ve got the biggest assets going into these funds, right? But it’s not their money they’re throwing in. They’re throwing in your money. Where are they getting their money from the fees they charge you, right? Every transaction fee you do, you know, there every fee that comes out. Whether it’s administrative fees or even sales commission fees, whatever, it might be, depending if it’s brokered or not, there are fees coming out of your money and that’s how they get paid guaranteed. And their self-interests said, you know what? The more assets we have under management, the more people’s money they give us the bigger the pot is.

Because even if we make 1%, let’s just say a flat number of 1%, they have a billion dollars. That 1% means they make 10 million a year. Right? If they’ve got, you know, $10 billion, they’re making a hundred million a year, they’ve got a hundred billion dollars. They’ve been making a billion dollars yeah. Dollars a year. And so their whole goal is to get you to throw money in, leave it there and let us sit there forever while they collect their fees. And then of course, they’re going to make money in different variety of ways. Now how, because fake news is that the number one advertiser for them are typically the financial shows, right? Not my show. Right? But you’re gonna see the financial shows like the CNM Monies and things like that. You know, the shows you know, MSNBC, you know, or, you know, you got the, all those kind of shows that are talking about money and financial stuff.

Whenever there’s financial shows, you’ve got Cramer, screaming out loud breaking stuff or whatever, you know, you’ve got these companies advertising on their shows, you get the Fidelity’s and the Morgan Stanley’s, right? And the Merrill Lynch’s, you’ve got all these people, you know, putting their 2 cents in. They’re pitching the crap out of you. Of course, if you’ve got these companies paying millions of dollars in advertising fees to these companies, do you really think they’re going to trash talk them on the air? No, they’re not. That’s basically what’s funding. These news channels are these financial firms, right? These companies that are saying, buy our crap. Now you might say, Chris, I get it. I’m not into mutual funds. That’s not my thing. Well, first off mutual funds are not at real assets. Mutual Funds are like a copy of the copy, right? They buy stocks inside their portfolio.

But the thing is, you don’t own the stock. You own shares in a mutual fund, the fund itself. Now, the fund can go up or down in price, regardless of the market. Even if the stocks are strong, if a big amount of money gets sold in that mutual fund, you lose money. Cause it has its own share price, independent of the stock, just like the stock is independent of the business. The stock can go up down in price. Even if the business is profitable or not profitable, it can go up or down. However, at once you’re basically just gambling on guesses, right? And that’s what’s happened with these mutual funds is that you’re in this fund that is based on whether people buy more into it. Now people keep buying into it. Even if the stocks aren’t doing great, you could possibly see more gains.

If people start selling off of it, you’ll see losses. It has it’s own price, it’s own market. It’s again, when you, when you see, and people say, well, I’m investing Corporate America. Do you really think that your 2 cents that went towards Walmart really gives you a say in anything gives you any real asset and maybe you buy it, Walmart stock by itself, or maybe you buy Amazon stock or Zoom stock or Tesla. You buy any stocks. You’re like, I’m an owner. in this company. No, you’re not, man. I just put a slam down on that box. There. No, you are not an owner. They don’t give a crap about you because the real shareholders have those preferred stocks. They actually have ownership in the company, the stocks they sold off into the market. That’s just money being gambled with you. Don’t own squat. You have no say in the matter it’s just like Warren Buffet or Donald Trump, right?

Buffett does not buy stocks, Buffett buys companies. He buys shares in companies, actual, real shares things that he actually will have control and board meetings. Do you have that kind of control? No, you can’t do anything. The stock goes down. You can’t say guys, you need to shape up. You think they’re going to listen to you? No, they don’t care about you. They don’t see anything. Now, Trump, I love it. I have that little sound clip. It’s like a little eight, nine second sound clip from press conference back in March. But this is back when they’re talking about you know, people with insider information that started selling off a lot of politicians were selling off their stocks, right? They were selling off their money there and they asked Trump, they said, Trump, did you sell off stocks? Again, they’re trying to corner him and trap him, you know, to say like, Oh look, Trump sold office stocks.

He knew about the virus. Right? He knew what was going to happen. And Trump again, I’m not the hugest fan of Trump, right? But there’s times I’m like, that was pretty cool. Trump said, I don’t buy stock. I own companies next he’s like, I don’t buy stock. I don’t own stock. I buy companies. Guys, that is a profound few seconds statement because the wealthy understand, they don’t buy crappy stocks. They don’t buy something they don’t have control over. They don’t buy something that really makes them lackluster returns. Cause admit at the stock market is a gamble. Even when I taught people how to trade stocks and options, I taught over 200 people how to do that through a coaching, through some coaching programs like stock coaching companies and things like that. I would flat out just tell them, just to keep my conscience in good order.

I would tell them, listen guys, you’re gambling. You’re not investors. You’re a gambler because there’s no way because investors know how to control and manage the risk gamblers can’t. Yeah. You could say I can do different things here or there to lower my risk in stock trading. And I taught them the strategies. But the truth is you have no say in the matter what happens in the market, you are just guessing. And I do not like guessing. I like certainty. I like predictability. I like money coming in that’s predictable, that’s certain, that gives you peace of mind. And there is real financial freedom. You can never have financial freedom, just investing in things that aren’t real things that aren’t real assets like these stocks or mutual funds, you can’t have freedom because you don’t know what’s going to happen from day to day. You don’t know it’s gonna actually work out for you.

You can try to diversify your portfolio. You’ll want, which just admits that you don’t know what you’re doing. Because if you’re diversifying, it means you’re just throwing it all over the place. Hoping that someone wins, some will lose, but at least you won’t lose too much or gain, you know, but you won’t gain too much either. You’ll just be blah neh. That’s it guys. Real assets are things that have value. Things that people value regardless. There’s no doubt. And if you want to see where real assets are, the best place you can look is look to where banks lend money. I want you to go into the bank and ask them to lend you money, to put in the stock market, go and try it. Just see what happens. Do you think they’ll say yes? Not oh chance banks are not gamblers either. Banks had done enough gambling, you know, and some will still gamble based on people, but they don’t wan to invest in that kind of stuff.

They do not do that at all. They go for this close to a sure bet as possible. You asked for a big bank loan and you’re going to invest in the stock market. They’ll stop you. By the way. When I was selling mutual funds back up until 2005 is when I dropped my securities license. Right? When I sold mutual funds, there was a checklist I had to take people through that had an initial, one of those being, you were not borrowing money to buy into these mutual funds or to buy it from the market. Guys, they said you can’t do that. You can’t do that. Now. There’s things like margin trading and things like that. But again, the company holds the control and then they can stop it. They can call it do. I watched the guy who was, I was teaching how to trade stocks, right?

I just barely started with them. We’re just starting to hit into the intro. We haven’t gotten into the strategy yet. He wanted to jump the gun and get rich. So instead of even trying stocks, he went for options and he goes for those options. Right? And what happens? He ends up losing 90% of his money, 90% in a week. So then from one week to the next, when I talked to him, the stock tanked, finally there was a margin call. They took all their money back because imagine this like, say that the stock tanks and it did, he bought like this cruddy. It wasn’t even a good company. It didn’t have solid fundamentals. It wasn’t a penny stock, but it was low priced off. It was like a dollar something and a share, which is, you know, I talked about those, you know, certain rules or guidelines you do.

You don’t want to be trading those kinds of stocks. He did. And of course it had an auction associated to it, which was very volatile. Well, they called them out. They took all their money back because they took their 50% of the money. They lent him. Right. And, but the rest of the money had already lost. So because if it loses the thing about this, if it loses 80%, right, say the stock loses or in his case, the option lost 80%. Well, the loses 80%, you go from 10,000 down to 2000. Well, here’s the thing, right? Is that you well actually, they wouldn’t let you go that far. It wasn’t an 80%. That’s right. It was less because he lost about 40%. So when it went down to 40%, that’s when they said you’re out, we’re calling it do because they don’t wanna lose their 5,000.

So when he lost 4,000, he had 10,000, right? Lost four. And I was down to six, they took their 5,000 out. Cause that was the half they had initially left him a thousand bucks. So I ended up being like a 90% loss for him. They got their money back, but he didn’t, you know, guys that kind of stuff doesn’t work. But banks, what would they lend on? They lend on a few things. If you go in for a business loan, will they lend to you? Yes. If there’s some personal guarantees or you have some good track record, right? They will invest in companies, but they don’t invest. They invest as a debtor. For one, they don’t invest as an owner, they invest as a debtor and they want to make sure that you are actually making money and they want to make sure they put parameters around that.

And that they’ve got liens against you. They could put against you and everything else. Right? They have recourse. If something goes wrong, they have other assets. Even if it’s your own personal assets, though, they will lay claim to if they have to. On the other side, real estate, they’ll loan real estate all day long, depending on the type of real estate, they’ll give money for real estate because it’s a real asset. It’s real. It’s tangible. Think about it, guys. If you want to be a good investor, watch what banks do. They will invest and put money in things that are real. And yes, you know what? They even do it in life insurance. They actually sometimes put over 25% of their assets in buying life insurance. So yeah, they put it in real stuff, things with guarantees that behind it. And they’ll put it in some other things too.

But my point is, they’re not putting in the stock market, despite what I was taught as a Financial Advisor, and then trying to teach everybody else that banks and financial institution was the number one investors that is not true. They do not do that. It is a gamble. It is sham. You are not investor. If you’re putting the money in the market, you are a gambler. And I know some of you guys are putting money in the market and you’re probably ticked off of it. Some of you are even trading. You might be making money. Congratulations. I am happy for you, but you will soon find out there are still no freedom. There are still management. You got to do and things just to try to make money. But you realize there’s no passive income. There’s no real, any real income that comes from this good cash flow.

You have to earn your keep. You have to keep hunting. You have to keep watching. Even when I talk to people try to do it for like a half hour a day. You start to keep doing every single day. It’s way different. When I buy real estate, I don’t watch the thing every single day. I don’t watch to see what the price is doing, once a month to get a statement from my property managers saying, Hey, you got paid again. La dee da. You know, it’s so predictable in certain. Can Crazy stuff happen? Yes. Can there be unexpected expenses? Yes. But the reality is the majority of time that stuff doesn’t happen. It’s boring and boring is sexy because it’s real. It’s a real asset. And when crap hits the fan of the economy you start to see who has real assets and who has fake assets. And those that are stuck in the markets,

439 - Investing in Trailers with Jay Harvey

https://moneyripples.com/2020/11/12/439-investing-in-trailers-with-jay-harvey/

In this episode, Chris Miles brings in a great guest in Jay Harvey

Jay and Samera Harvey founded Trailer Cash Academy in 2019, which is the fastest-growing mobile home investing education and training program in the country.

Jay and Samera’s academy trains investors on how to close their first real estate deal in under 30 days with little or no money flipping mobile homes in parks. Together, Jay and Samera have created a thriving online community where hundreds of students can support and partner together on deals across the nation.

trailercashacademy.com

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/10/02/439--investing-in-trailers-with-jay-harvey

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Chris Miles (00:00): Hello, my fellow Ripplers! This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Hey, I welcome you guys out to this show because this show is for you and about you, those of you that work so hard for your money, and you’re now ready for your money to start working harder for you today, you want that freedom that cash flow, that prosperity, not 30 or 40 years from now, if the market smiles in you just the right way, buying crappy mutual funds, but you want that freedom today, to be able to live that life. You love doing what you love with those you love. But on top of that, it’s not just about your own prosperity, right? It’s about creating a Ripple effect for the lives of others. Because as you’re blessed financially, you can bless the lives of those around you and create a massive legacy.

Chris Miles (00:48): And guys, you are part of my legacy. So thank you so much for being a part of it. I can guarantee you guys are the best awesome podcast listeners out there today. You know, I know there’s different people that have their own opinions, but I gotta say, like, when I hear talk to you guys and stuff, it’s, it’s always incredible. So thank you for so much for following us. Here’s a reminder. You can check out our website WWW.MONEYRIPPLES.COM Or you can get that eBook Beyond Rice and Beans, Seven Secrets Free Up Cash Today to find more resource. And by the way, if you haven’t done so subscribe to our YouTube channel, where it is the Money Ripples with Chris Miles. So go ahead and check that out as well today, guys, I got a special guest here. I’ve got a guy by the name of Jay Harvey.

Chris Miles (01:26): Now, when, you know, as I always tell you guys, like when I get pitched by different people you know, I say no to the majority of guests that are pitching me and some of them have great portfolios resumes and that kind of thing. But this one was like a hands down a hundred percent. Yes. Right? Like I was like, I gotta have these guys on my show. And so particularly I’ve got here, Jay Harvey. Now Jay Harvey is actually the founder of Trailer Cash Academy, right? His Academy, actually, trains investors on how to close their very first real estate deal in under 30 days, get this with little or no money, flipping mobile homes in parks. The numerous student testimonials online prove that their system actually works and is driven by results, which is what the show’s about as a results driven. Right? In fact, one of their students get this was able to purchase a 40 unit mobile home deal for only $8,000 and create a portfolio worth over a quarter million dollars in just 90 days on their very first deal. Together, Jay and his wife scenario have created a thriving online community where hundreds of students can support and partner together on deals across the nation. So Jay, welcome to our show!

Jay Harvey (02:31): I appreciate you having me. Thank you.

Chris Miles (02:34): Absolutely, man. So how in the heck did you get into, you know, trailer stuff? Like, I mean, you know, I almost want to say trailer trash, but how’d you even get into that, right? Like what, what even led you down that path?

Jay Harvey (02:45): Yeah, man. So my wife and I, you know, we went up the corporate ladder, you know, we sipped the Kool-aid, we did everything our parents told us to do. And in terms of school, getting that job, working, you know, looking to have kids get the house, the whole American dream. And we were just like, we got there, we just weren’t happy. We weren’t feeling like we were being fulfilled. And we honestly felt like we weren’t hitting our our true potential in life. And we try to do things. We try, you know we were looking to open a gym today together. we did personal training. I was selling crazy wrap things with network marketing and things like that. And eventually we stumbled across a real estate investing. My wife actually came across a ad with Rich Dad, Poor Dad. We went to one of their events and you know, we were so hooked in that we dived in head first and unfortunately came across a bad mentor and that journey, we lost $30,000 on our first

Chris Miles (03:45): I believe it. I knew people that coach in that program for $12 an hour, that was their pay to coach somebody that paid 30,000.

Chris Miles (03:51): Yeah, it’s bad.

Jay Harvey (03:52): Yeah. And this mentor, he was separate from, you know, Rich Dad, Poor Dad. I just wanted to throw that out. There it’s actually someone we met at a real event and just, you know, just one of those shady mentors got us into a deal. We were so green and naive. The deal was actually being foreclosed on. And so while that is going through, we also have another product that we’re working on a fix and flip and we invested $60,000 on this home. We thought we would see a return in about three or four months, 15 months to get a return. So we’re just out of all this money. We’re like, man, what do we do? We know we’re not passionate at staying at our job. And if we decide to stay here, it’s going to take us years and years to pay off all this debt.

Jay Harvey (04:34): So we decided like, Hey, we learned our way to get to this point. We got to learn our way out of it. Thankfully, I had some really good friends, invited me to another real estate event. And this guy, he was about 80 years old. He was talking about mobile home investing. He said he was making about 20 to $25,000 a month. I’m flipping the mobile home. Wasn’t using much of his own money. He’s like, Hey, if you’re in real estate investing and you’re not using mobile home investing as a way to free yourself from your job, you are, you know, you’re missing the boat. So ran home, told the mayor about mobile home investing. She said the same thing you said, trailer trash. Nah! That’s not the way to do it. But you know luckily I have a really good wife. We took some time to research together found out the opportunity that exists here and opportunity to serve other people because of the affordable housing crisis. And up to date, we’ve done over 400 transactions and have post hundreds of students across the country on how to close their first deal with mobile home.

Chris Miles (05:36): That’s awesome! Yeah. And there’s different facets you can take with trailer parks, right? I mean, you can do the trailers themselves, but you can also get the land or you can do both. Correct?

Jay Harvey (05:46): Absolutely. What’s really cool. Is like you said, you can work in mobile home parks. There are investors out there that actually buy and sell mobile home park or buy and hold a mobile home park. And then you can even go on the real estate side whenever you have mobile homes on land. So we specifically focus on mobile homes in parts or the mobile home is on land and they just need that mobile home move. We’ll look into that Avenue as well.

Chris Miles (06:12): Right. So break it down for us. Like you got to tell us. How did that student go? Like take 8,000 bucks and create a quarter million dollar portfolio in 90 days? Like how did that work?

Jay Harvey (06:22): Yeah, man, it was really, really cool. So he found this opportunity where the park, they came under new management. They’ve had a ton of homes in this community that needs a little bit of repair work, but not too much. It’s just the park owner. They just didn’t have the time or the desire to want and get to one, to actually go into these homes, do the, fixing the thing, you know, find the buyer and then get them to sign the lease agreement with them. So our guy had a student queue he actually negotiated with the park. He said, Hey, I know you’ve got a ton of homes here. Let’s work out a deal. He was able to purchase these homes for $8,000 and then able to put a little bit of work in the many of the homes.

Jay Harvey (07:06): They didn’t need any work. They decided to actually sell them as is. And the reason he was able to create this $250 an hour portfolio is because many of the homes he was selling, he wasn’t just cashing out. He was actually doing buying, holding with these homes. So he would put them on a market, find a buyer. You knew he wasn’t, he was only into this home, this entire deal, $8,000. And most of the bills that were coming to that were bringing down payments anywhere from two to $5,000. And then he was creating longterm notes with these homes. Some of these homes, were going as high as 35, $40,000. So unique situation, not every student gets blessed with an opportunity like this. However, when you have the right knowledge and you’re prepared and the opportunity comes you can take advantage of, and that’s what he did.

Chris Miles (07:53): Yeah. That’s, that’s $200 per unit. I mean, that’s just cheap

Jay Harvey (07:57): Yeah, yeah. Honestly, when we saw the deal, we didn’t believe it. We were like, no, not what you, first of all, being brand new. And second of all, we had never done anything like that. And he was actually a real estate agent at the time before doing this full-time. So he had some good networking, you know, we had a little bit of insight about this opportunity before it even presented itself to the market. So he just took advantage. He started making the right calls and he had our knowledge and just combined those things and was able to present a lot of value to the marketplace. Cause in his particular area, there’s a lot of buyers out there that were looking for affordable housing and couldn’t necessarily afford regular traditional, single family homes.

Chris Miles (08:41): Yeah. Now, why would you say somebody should have this part of the portfolio? Because we’ve had people on here that of course talking about turnkey, real estate investing, right? And buying rentals of single family homes or duplex fourplexes. And we’ve had everybody all the up to apartment buildings with multifamily syndications and things like that. You know, why do you feel that that mobile homes and parks are like where it’s at?

Jay Harvey (09:03): Yeah. when I’m talking in terms of where it’s at, I’m thinking about that individual, first of all, who may be new, that’s talking about this individual, they’re looking to close their first deal. We know what obstacles they have to face on their traditional real estate side. And we’re just saying, Hey, there’s an easier way. You need less resources, less time. You’re not dealing with you know, title agencies and things like that. You’re not dealing with appraisals. You’re not dealing with inspections. These homes are pretty similar to selling a used car because we’re just dealing with a title to the home. And most of the time, at least the deals that we work in, we’re not going in and making these HGTV projects. So you’re able to get in and out and sometimes less than just a few days, sometimes even just a few hours.

Jay Harvey (09:49): And for that individual that is more seasoned as not just going in, looking for that quick wholesale opportunity. Well, there’s a lot of people, again that need these homes that are willing to come in and pay you payments for these homes. The cash flowing anywhere from four to six years on each property and you start doing the math, you start adding up, Hey, if I do four to five of these, each month, this cashflow starts to build up and then you have that knowledge. You take it a little bit further. There’s also mobile home park investing where you can generate even more cash flow that for that individual, that’s looking for that more longterm, sustainable income of 30 plus years or more.

Chris Miles (10:30): So let’s go with that. Let’s, let’s go with two different people that might come to you as students, right? So let’s say one of them is a brand new newbie. They haven’t gotten to real estate. Cause they’re like, they’re trying to save up at least at $25,000 down payment or whatever. Right? But they maybe they’re up to like 10 or 15, like let’s take them. And then we’ll go with somebody who maybe has a few hundred thousand or more dollars that say, why would they do it too? Is let’s start with the person. That’s the newbie. What would be an example of what they could purchase and what kind of cashflow they could get out of that?

Jay Harvey (10:57): Yeah. So any individual that is brand new now, let’s just say they’re coming in with only 10 to $15,000. We’re actually teaching them, Hey, build as much money in your business. First focus on revenue, revenue generating activities, and what revenue producing deals that don’t take using your money. So we’re usually teaching them to focus on wholesaling for the most part, when they’re just getting started. Since you’ve even focused on broker deals where you still don’t have to use your money you’re just using your time and your knowledge so much,

Chris Miles (11:31): more transactional wealth that way.

Jay Harvey (11:33): Exactly! Exactly. A typical deal. Most of our students they’ll come in and find an opportunity where an individual either once they in retail or wants to stay in the wholesale market, they want to stay at wholesale market. They might find a home that’s worth $15,000 retail, but this individual, for some reason, very distressed or motivated, you might be able to pick up that home for 2000 or $3,000 easily put it on the market for less than that. 15. Let’s just say they sell it for $10,000. Now, you made $7,000 very, very quick.

Chris Miles (12:09): Right?

Jay Harvey (12:09): If they want to stay in that retail space, let’s just say they want, you know, closer to $12,000, we’ll sell it. At 15, we collect our $3,000 commission as a broker feed. And boom! You’re good to go. You made 3000 and your seller is happy when you’re and we wanted to talk about the other investor, correct. The seasoned investment a hundred,

Chris Miles (12:31): Or they may not even be seasoned. They might just say, Hey, I’ve got money to sit in and savings here. Like, I’ve got a lot of cash. I want to be more of a passive investor. Right? Cause I’m busy. I don’t have to like babysit a lot, like, and a lot of them even think how I want to deal with toilets, tenants and trash as much, but you know, you know, minimal work, right? Like what would you recommend for them?

Jay Harvey (12:52): I would recommend a couple of options if you want to be more hands-on. If you’re just looking to just bring on more and more cashflow and you know, that a hundred, $200,000 that you have is not growing. You could come in as a new student and look to specifically just buy and hold deals, buy and hold mobile homes. And the great thing about having that much cash as you can do even more marketing that the average newbie couldn’t do. So think about this. Each home that we cashflow we’re usually typically cashflow on anywhere from 300 to $600 per home. If you start doing that again, four or five, 10 times per month, because you’ve got so much marketing dollars to spend each and every month, that adds up pretty quick. But then there’s those investors that say, you know what? That’s cool, but that sounds like work each and every month. You know, at this point in my life, I’m looking to just settle down, looking to retire. And that case I would actually recommend you going into looking into mobile home park, investing itself because you have so much money. You have so much liquid cash, 100, $2,000, $200,000. You’re going to be able to look into even financing these mobile home parks, seller financing with mobile home parks, creating even longer cashflow with more cashflow versus just being the Hunter, looking at deal over deal each and every month. So,

Chris Miles (14:10): so they become the bank.

Jay Harvey (14:13): Exactly. Exactly.

Chris Miles (14:14): Yeah. And what would that look like? Say they had $200,000. They want to throw into something like this. Like what, what could that look like with the deal? Maybe like an example of one that’s been done with by you buy you or one of your students for example

Jay Harvey (14:25): And for mobile home park investing, I don’t want to give out the wrong information because we haven’t gone into mobile home park investing in that’s something that we haven’t wanted to do. However, we have worked with individuals that have 100, $200,000 that actually want to get back in the field, working with mobile homes. And yeah, the great thing about them is they’ve been really able to zone into marketing most individuals that are new. We say with the basic levels of marketing, driving for dollars, communicating with park managers, real estate agents, and even putting out bandit on. But for those individuals that have a lot more money to spend, what they’ve been able to do is to set up a pay-per-click campaign, utilizing Google set up a huge direct mail campaign where you can work for yourself or partnering with other investors in your area. And they’ve been able to buy multiple homes in bulk each month, again, that somewhere between four to 10 and now that scalable as far as parks I don’t want to get into those numbers just because I haven’t done a park deal myself yet. Usually most of those individuals, we steer over towards individuals that have more season done at least 10 deals before you can give out any type of advice. That’s just our routine.

Chris Miles (15:38): They understand that the nature of the business more. Right?

Jay Harvey (15:40): Exactly.

Chris Miles (15:43): So you started out with mobile homes first, then you can move to parks later. It’s like step two, phase two for you.

Jay Harvey (15:48): Exactly. And for us, we decided, Hey, we started with mobile homes first, but instead of going to the park direction, let’s go into the education sector. And that’s, what’s taken all of our focus and attention.

Chris Miles (15:59): Sure. And what I can see with that is it’s definitely some of these, well, one, they’re going to take a little bit more of an active role, but like you said, with more dollars comes more marketing, bigger reach, right? More deals come to you as a result for that.

Jay Harvey (16:13): And even on the ability to even delegate more, we can say, Hey, you have that type of money. You shouldn’t necessarily be out in the field doing every single thing yourself. You’re able to let other people, other people’s time, energy, systems and their resources as well. So a lot of those individuals that we worked with that have that type of cash sitting around, we usually tap them in with our team, our team also in the field, there are peers. They’re out in the field that are acting as boots on the ground, doing all the leg work, utilizing their processes. So those individuals are more like a hands off. They’re just putting their money in terms of resources versus they’re hard on energy.

Chris Miles (16:53): Awesome! Love it. There’s some little something for everybody just depending where you’re at. Right?

Jay Harvey (16:57): Exactly.

Chris Miles (16:59): Fantastic. Well, if people want to like follow you or really, or even understand like what you guys do, your education and things like that, like how would they find you?

Jay Harvey (17:07): Yeah. honestly I think our best platform right now would be YouTube, honestly, because we have so much free training on there. If you go to WWW.YOUTUBE.COM/TRAILERCASHACADEMY Even if you just type Trailer Cash Academy in the search bar, you can get lots in our video trainings, we got a ton of free trainings on there. We’ve got a ton of example deals that we’ve done. And we’ve got a ton of testimonials of students that we actually worked with over the past year has been a really fun ride,

Chris Miles (17:36): Trailer Cash Academy, man, that is like the best name ever. Right?

Jay Harvey (17:41): So if the mirror was here. She was a Trailer Cash with a C because people always say trailer trash. So make sure to get it right? Trailer Cash Academy

Chris Miles (17:50): Trailer Cash sounds way sexier than Trailer trash.

Jay Harvey (17:55): Exactly.

Chris Miles (17:57): Awesome! Jay, I really appreciate your time. So everybody go check out www.youtube.com/trailercashacademy check out their videos and Hey, if that’s something route you want to take, I mean, I know there’s several of you that this could be the path you’ve been looking for. So definitely check that out. So Jay, thank you so much for our time and for your time today, man!

Jay Harvey (18:15): Oh man! Thank you for having me. It was very fun.

438 - Why This Australian Invests in the US with Reed Goossens

https://moneyripples.com/2020/11/09/438-why-this-australian-invests-in-the-us-with-reed-goossens/

In 2012, Reed quit his job in Australia and moved halfway across the globe to the US to change his life, and to chase a dream.

With limited funds, no investing experience, and no credit, Reed went from purchasing a small duplex to growing his own real estate investing firm, Wildhorn Capital. Reed now syndicates large multi-million dollar deals across the US. He has also achieved financial freedom and has taken control of life.

Want to learn how he did it? Tune in now as Chris Miles interviews Reed Goossens or visit his websites below.

www.wildhorncap.com

www.reedgoossens.com

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/25/438--why-this-australian-invests-in-the-us-with-reed-goosens

————————————————————–

Chris Miles (00:00): Hello, my fellow Ripplers! This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Hey, I want to welcome out for a wonderful show. That’s for you and about you. Those of you that work so freaking hard for your money, and you’re ready for your money. Start working harder for you. Now, you want that freedom. You want that cash flow that prosperity today, not 30 or 40 gazillion years from now, but right now, right? So you have the life that you love, doing what you love, being with those that you love. And like I say, here right here in the sign of right back here, it’s live your life now, not tomorrow, right? It’s all about having that prosperity and freedom today. But on top of that, it’s more than just your own comfort and convenience. It’s about you being a Rippler by creating a ripple effect through the lives of others, for those around you, as well as your family, creating a legacy that lasts well beyond you.

Chris Miles (00:54): And so guys, I’m excited to have you guys here so that I can create my ripple effect for you. And trust me, it’s such a pleasure. I got the best coolest listeners ever, even though I know my guest here might disagree. Definitely you guys are awesome. As a quick reminder, just check out our website, WWW.MONEYRIPPLES.COM We’ve got the free eBook Beyond Rice and Beans. You can download for free. Also, if you haven’t done. So subscribe to our YouTube channel, go ahead and check that out as well as you haven’t subscribed this podcast show do so as well. All right today. So I’ve got a special guest here that I met actually from another podcast show. So I don’t know if you guys ever followed the show, Investing in the U S but great show to follow. So on my show today, I’ve got, especial guests Reed Goossens here,

Chris Miles (01:36): Now Reed is a real estate investor. He is a best selling author, entrepreneur, podcast host. Like I mentioned, everything. Reed in 2012 actually quit his job in Australia and moved halfway across the globe to here the U S to change his life and chase a dream. Now he had limited funds, no investing experience and no credit. Yet. He went from purchasing a small duplex to grow his own real estate investing firm, which is called Wild Horn Capital. He now syndicates large multimillion dollar deals across U S and he’s also chief financial freedom is taking control of his life. And as I mentioned, he’s a podcast host of this show that investing in the U S so Reed, welcome to our show!

Reed Goossens (02:15): Chris, thanks for having me, man.

Chris Miles (02:16): Absolutely. So I really want to bring you on, because I want you to get rid of the crappy excuses that Americans make, right?

Chris Miles (02:25): And I’m sure you’ve heard it too, because you have your own investments syndication, and things like that. And you have people invest in and you probably hear different stories, but why here? Like why did you come to U S?

Reed Goossens (02:36): Yeah, good well, two things. It was the chasing of two different loves. One love was for New York City. And the other love was for a girl that’s now my wife. So that was the two original reasons.

Chris Miles (02:46): That’s a big motivation.

Reed Goossens (02:48): Exactly. and for me, mate, it was , if you were watching the clock, I actually came through the United States back in 2009. And I backed pack through New York and I fell in love with the city. And

Reed Goossens (03:00): The whole impetus of moving to the United States was at the time I’d met this incredible girl who was American named Erica, and she’s now my wife. And she moved out to Australia for a period of time. And then at the end of 2011, I said, look, screw it. Let’s go live in New York City. And really for me, moving to the United States was just to be an expat and live and work in a new city and not be a tourist and try and be a local for a couple of years and then move back to Australia. But obviously things took a different path for the good, and I’m sure we’ll get into that here in a minute.

Chris Miles (03:28): Yeah, let’s just go with that. Like what led you down this path? Cause I mean, most people just say, great, I’m going to work here and then go back. But what kept you here?

Reed Goossens (03:37): Yeah. And look, before coming to the United States, I’d spent some time abroad in London and in South of France working, just having an incredible couple of years backpacking and, working as a structural engineer. That’s what my background is. And that was in 2008, 2009. I returned back to Australia in 2010. And you know, I’m sitting in my cubicle a couple of years out of uni had a couple of years of commercial experience under my belt as an engineer, but just really feeling like, you know, I had more to give, you know, how did, how can someone pay me to live my life and travel the world and surf all some waves and have a good time. Right? And that was really where I sort of said to myself, well, Hey, I can’t see myself sitting in this cubicle for the rest of 40 or 50 years of my life.

Reed Goossens (04:19): Like, there’s gotta be more to life than this. And at the time I had no idea what the word entrepreneurship meant. What’s an entrepreneur is, and really, it’s just a glorified word for a small business owner. Right? And so when you first come fast forward a little, a couple of months, I picked up the book, Rich Dad, Poor Dad in early 2010. And that was the real story for me that really sparked the intuition with inside me to go and want to do more and be more. And that’s where I started to think about real estate. And for me, real estate was a natural path, being a structural engineer, rubbing shoulders with developers, building stuff across the globe. And I said, Hey, this is my path. And I started self-educating in Australia. And then, you know, fast forward a year and a half later to the end of 2011, I was going to do some property in Aussie, you know, flip fix and flipping, or lease at least options.

Reed Goossens (05:08): But then I also really had a real desire and passion to move to the United States. And at that time, Erica and I were just starting to get our relationship off the ground. And she had come to Australia and studied her, master’s degree, and then the master’s degree finished and she had to return back to the United States. And I said, Hey, I’m going to come along with you. How’s about, we moved to New York City and give this thing a crack and just have a see what that’s like? And I rocked up without a job. And you know, cause as the intro says, no limited funds, not, I didn’t even know what a hell a credit score was. And that was a, that’s the start of coming to America.

Chris Miles (05:41): So how did you even start investing in real estate, especially when you had no money or very limited money? Right? No credit, So to speak, right? I mean he had Australian credit, but not U S credit, which is two very different things.

Reed Goossens (05:51): A hundred percent. Yeah. So for me, the big thing was it was the access to information here in the United States. I was blown away at the different and particularly being in New York City, right? Like it was the epicenter of fast talking loud Americans, you know, talking about the Lezlie investing lingo. And I think within two weeks being fresh off the boat, I had found some networking events to go to the, if you’ve never heard of this, it’s called The Rear Associations, The Real Estate Investment Associations. And they’re across every major MSA. And I was like, wow! This is incredible. Like so much incredible content for 20 or 30 bucks at the door. And it’s across the nation. Like we didn’t have that in Australia. And I was like, Oh my God! I wish I had this in Australia. So this whole like, wow! This is really incredible.

Reed Goossens (06:37): Plus also realizing that I was surrounding myself with other people who were aspiring to be bigger and better and do more. It was also, you know, it was really inspiring to me to say, Hey, I can push my boundaries. You’ve already moved halfway across the world. You already got a job. You just moved in with this new girl and started living together. That was a challenge in itself. And from there it just kept pushing those boundaries. And I quickly realized as well that the barriers to entry in secondary and tertiary markets here in the United States was so much lower than the barriers to entry in Australia. And that’s exactly what rich dad poor dad talks about is cash flow. So with the, again, no credit and I had a bit of money saved up. And at this point I’d been sort of self-educating for about two and a half years now it’s middle of 2012.

Reed Goossens (07:20): And I remember standing on the subway on the way to work with my nose stuck in a book reading about, you know, analyzing small cash flowing properties and say, look, man, I’ve got to get involved. I’ve just got to stop the learning. You’ve got analysis paralysis, let’s get and just go buy a little property and it’s your money. If something goes wrong, you know, it’s your money. You’re not, no one else to blame, but yourself. And I found these properties in upstate New York and Syracuse. And the reason I chose Syracuse was because I could get on a Greyhound bus and within four hours, I’d be up there or tour a few properties on a Saturday, get back on the bus and be home for a few beers with the boys on Saturday night and you know, all all in one day. And that was the start of it.

Reed Goossens (07:59): Right. And again, my whole thing about moving to the United States and trying to live life as you put it in the beginning, like on your terms is that I don’t want, I fear regret and I would never want to wake up when I’m 70 or 80 years of age and go, geez! I wish I moved to America, you know, all those years ago. And so for me, it’s all the decisions I’ve kind of made to this point of really being , you know, assessing the risks that involved in the worst case scenario. And if you’re okay with those worst case scenario, we’ll move forward with the decision. Don’t stop. Don’t sit on the fence and have analysis paralysis and don’t do anything. And so for me, it was like I’d already moved here, motivated a huge commitment to move to United States, buying a little property in upstate New York with my own money was just, you know, that was easy. And the thing for me is I realized you don’t get to deal number 10 without doing that first deal. And that was so, so important to me in my growth. So yeah,

Chris Miles (08:51): you know, you’re not alone. I know a lot of people listening right now run that analysis process. They’re probably, they’re actually not in just in analysis paralysis. They’re probably in podcast paralysis, right. Where they’ve listened to 10, 12 different shows, all talking about some of the same stuff you’re talking about here, but they just fear that first step. Cause they’re like, what if I do it wrong? What if I mess up? You know, what would you say to them having been in that position yourself? Like what really was the impetus to push you over the edge?

Reed Goossens (09:17): I think at the end of the day, you have to be okay with betting on yourself because that’s what it boils down to. You’re taking a bet on yourself. And if you can’t bet on yourself, who the hell can you bet on? And that’s really the permission that you give yourself to say, I’m worthy enough to go out and take a bet on myself. Right? And so many people are afraid to open the door or to push that boundary. Cause they’re worried about what’s going to be on the other side because of the failures of what people might say,

Chris Miles (09:43): Right.

Reed Goossens (09:43): Get over that like you have to learn to get over that type of stuff. Or if you’re really stuck in it, sit with it for a period of time. Think, what is the worst case scenario right now for me, the moving to America, it didn’t work.

Reed Goossens (09:55): I’d move back to Australia with my family and get another civil engineering job. That’s it? That’s the worst case scenario. Okay. Well at least I gave it a go, at least I’d live, but it was able to live in the United States and in New York for maybe six months. That was, that was it right by my first property. It was, I’d already done the work. I understood as much as I needed to understood. And I was going to go risk my own money in the worst case scenarios. I lose it all. Well, it’s my money. And I’m still, I’m not any worse off, I’ve got a job and I can still keep the bills paid. So for me, it’s all about assessing that sort of worst case scenario. And if you’re okay with it, take, go forward and don’t get me wrong. There’s been learning curves along the way.

Reed Goossens (10:29): And there’s been bumps and bruises and, you know, scratch knees and all that sort of stuff. But it’s about knowing that you’re not going to get to where you want to go without taking action. Because as you said, there’s so many people that are listening to podcasts. That’s great. I listen to podcasts every single day, but I’m also constantly taking action every single day. Even the little, most incremental steps I’m pushing that boundary. And over an extended period of time, you’ll realize that boundary has grown a heck of a lot. And you’ve started to do so much more than what you ever thought was possible. And for me sitting here on this podcast, I never even dreamt of have achieve quote unquote, achieve what I’ve achieved today. When I first moved to this country, I was literally just coming here to be an expat. And, but what I got good at was betting on myself and stop worrying about what’s on the other side of each and every door and just go and start opening doors and seeing where that leads you to. And that’s all it is living in the moment. Obviously being educated and making the right decision or making educated decisions and, analyzing the risk and moving forward and stop sitting on the fence. So, yeah,

Chris Miles (11:30): I love it. Now, after that, did you just go hog wild and start buying a bunch of properties or did you kind of sit with it for awhile and just kind of keep going?

Reed Goossens (11:38): Well, no, for me it was well, deal number one got me to deal number two, which got me to deal number three, which I had a small little portfolio of properties. I realized I was getting to the end of my tether from a lending point of view. And it was through a couple of conversations with some very good friends of mine, in late 2013 that were, you know, I was boasting to them about the seven little houses or units I had, but still working full-time, like a dog, you know, not financially free. And, they were telling me well, man, I’ll just close on a 70 unit deal in Canada, which is where they’re from. And I my jaw was on the ground. I said, 70? How the hell did you do that? Told me about a mentor.

Reed Goossens (12:14): They told me about, you know, other people’s money. They told me about seller carryback financing. And really the business model was all the same stuff that I was doing all my small triplexes and duplexes that were just doing it on a large scale multifamily project. And for me, that was really when I needed to go and say hi, again, re-betting on myself and saying, you are worth investing in yourself. Let’s go get a mentor, someone who can be your coach in your sounding board in order to launch you off into the stratosphere, you know, whatever that stratosphere looks like. So that was the next step in the evolution of where we’re going with that. Furthermore, I then said to myself, well, if I’ve gotta be in this country before, and the only reason I can’t stay in this country is because I needed a visa.

Reed Goossens (12:55): And so I needed a job, right? But I was also in , I had the skill set, being a structural engineer to say, Hey, I could go work for a developer. If I’m going to have to be in the corporate world for the next four or five years, why not continue to learn from the best in the business whilst will grow my side hustle. And that’s exactly what I did in 2014 when I made the shift to LA , I just literally was pinging a bunch of developers and say, Hey, I’m a structural engineer. I don’t know. I’ve got skills that you will need. Someone reached out and said, yes, love to have you on board. And I ended up going building high end luxury multifamily housing in Long Beach, California, whilst building my side hustle whilst spilling my own podcast and all that sort of good stuff.

Reed Goossens (13:33): But I was surrounded by real estate, 24 seven, and it became part of my DNA. And that was the most important thing that I wanted to get out of that, knowing that I wouldn’t be financially free within six months or even two months or even five years, you know, so for me, I only got to financial freedom, quote, unquote, be able to leave my day job when I got my green card. And that was in 2017, that’s nearly eight, seven years, eight years later after picking up the book, Rich Dad, Poor Dad. So it takes time. It wasn’t an overnight success. And again, success is relative because I’ve still got so much more, I want to achieve in the next decade, but I know the last decades have been pretty freaking awesome. So I’m gonna enjoy the ride.

Chris Miles (14:10): Yeah. You know, I love that the theme that keeps coming out is you’re betting on yourself. Right? And I think if you’re thinking of any asset class, the bet on real estate, it’s a much easier one to bet on than like the stock market. You know, so people listening right now, I guarantee all of them to some level or another has probably bought a stock or a mutual fund or something, or, you know, put their money in a 401k or some retirement plan, which they have zero control over. They can do nothing about it. They’re seriously at the mercy of the market, but then they say, wow! I just don’t know about buying a real property that has real value. I mean, that seems risky to me. I’d rather buy something that has no real value to it, you know, and it’s kind of a weird

Chris Miles (14:52): Backwards world that we live in. Right?

Reed Goossens (14:54): Exactly.

Chris Miles (14:55): So, well, let me ask you this one question here. I mean, why didn’t you, like, why haven’t you taken this and apply it back in Australia? You know, like why don’t you go into deals there? Yeah.

Reed Goossens (15:03): So good question. And here’s the thing I will eventually, right? The skills that I’ve developed here in this country can be applied across the world. There’s real estate in every single country that human needs is food and shelter, right? The nuances between Australia and the United States, for those people who are taking, you know, taking notes at home back home, but is actually, you know, and I can talk a little bit about if you want, is the fact that the Australia and the U S excluding Alaska from a land mass point of view, just mainland America, mainland Australia, a give or take, America’s a little bigger, but in Australia, we can only inhabit about 18% of our land because the rest is just a desert, right? Here in America.

Reed Goossens (15:44): You can inhabit North to South, to East, to West, you have 300 odd million people. We only have 25 million people in Australia, right? So when you have that limited land available to inhabit, it’s all constrained around the coasts. So it’s all a very high demand, low supply type of markets. So think of LA New York, San Francisco, that’s the Australian real estate market, and a lot of cash flow, but a lot of appreciation in the right circumstances then bring in the population aspect, right? You’ve got nearly 10 times the amount of population we have in Australia. And thus it also forms different lending opportunities. So we don’t have the Freddie and Fannie Mac, you know, agency debt, you know, for 30 year fixed low rate stuff in Australia, we only have maybe four or five major banks here in America. You probably got a couple of hundred different lending arms, with that lending.

Reed Goossens (16:38): We won’t call it lack of sophistication. We’ll just call it different lending. We don’t have multifamily in Australia. So we have a build to sell model. We don’t have a build to rent model. So you wouldn’t find a 200 unit God install apartment in Australia. You might find a small six Plex, but we have really condos, big high rises are built. And because of the again, call it the lack of sophistication of funding that the banks say, well, hang on, we’re not going to fund this development until you, pre-sell 30% of the units off of the plan, which means it’s a condo market, right? It’s very similar to Canada. So they won’t go inside. Okay, you’re going to have an NOI on this entire, you know, 200 unit property. And thus, we can, we can determine the value and thus, we’ll end on that future value.

Reed Goossens (17:21): They’re saying, no, no, no. We want to minimize the risk. You got to go. Pre-Sale 30, 40% off the plan. And that’s, that’s the market we’re in. So when I moved to America, you know, to see that one, you got this incredible financing, too. You’ve got these secondary and tertiary markets that have still have continued growth and moderate cap rates. And three, you have multifamily apartment buildings. I wouldn’t have achieved what I could have achieved here in America, in Australia in saying that I can still go buy hotels and commercial buildings and office space and use the benefits that I’ve learned here, which has made me a real, you know, sharpshooter to go. But, and I will eventually in the future go back. But right now, America is such a big GDP compared to Australia. You know I think the GDP of all of California and Texas two major states is more of that than all of Australia. So when you think about that, you know, it’s just, it’s on a different, you know, it’s, it’s a different league. So, apply my trade here. I eventually will move back cause I have family there in the future, but right now I’m really enjoying my journey here. And I guess that’s a little bit of the differences between Australia and the United States.

Chris Miles (18:28): Yeah. You got some opportunity here. You might as well take advantage of it. Right? Exactly. Yeah. And I know from my experience to where I’ve had Australians or new Zealanders hiring me, same exact thing. They say, we can’t do any of this stuff where we are. And a lot of them are complaining about their three different mortgages on their same property. Right? And how they all have different firms. And they’re like, it’s so dumb. Like lending’s horrible. And you can’t make the cash flow that you need. They can’t really get financially free, easily. They’re using their system. Right? So, yeah

Reed Goossens (18:55): Talk about a little bit negatively geared stuff. If you’ve ever talked about that on this show. And that’s just where you offset your annual income with the losses you’ve made in a rent real estate investment. And that’s sort of seems dumb to me.

Chris Miles (19:07): Yeah, exactly. Awesome! Well, I know that you have your own investors that invest in your investments too, and things like that. Like if people want to follow you or get to know you better, I know you’ve got your show, Investing in the U S they can follow that podcast, but if they want to know more about you or even the investments you have, where can they go to find that?

Reed Goossens (19:25): So if you want to know a bit more about the investments, head over to the business side, which is the wild horn capital, but it’s WWW.WILDHORNCAP.COM And you’ll be able to see our mission statements, our business side. And that’s for the investing side. If you want to more, the education side, you can head to WWW.REEDGOOSSENS.COM And that’s where the podcast and the books and the audio books and all that sort of good stuff is. And, you know, and for those people, you know, I’ll offer whoever coming through LA, whenever you get back on a plane, if you want, if you want to meet up and have a beer or talk shop, you can hit me up at info. That’s [email protected] And we can go make it happen.

Chris Miles (20:00): Yeah, That’s right. I forgot to mention you do have a great some books that you have there. Right? Investing in the U S is one of them. And then was it 10,000 Miles to the American Dream? Is that what it was?

Reed Goossens (20:08): Yeah. That’s it.

Chris Miles (20:10): Aussie. And they were in audio book as well?

Reed Goossens (20:12): So the first one is the second one is a 10,000 Miles is coming up soon. But both of them are all on Amazon and readily available online.

Chris Miles (20:19): Awesome! That’s great. I love when they’re audio books, I don’t read books hardly anymore. Now, it’s just all audio book.

Reed Goossens (20:25): Isn’t it, right?

Chris Miles (20:26): Yeah. Love it. Well Reed, I appreciate you being on our show today. Such great, valuable perspective that you have and just like all around as you say, a good bloke, right?

Reed Goossens (20:36): Well, thank you Chris, for having me on the show! It’s I think the parting words is, you know, my whole shtick is if, if an Aussie can do it, so can the average American, so I’m hope I’ve inspired a couple of your listeners to get off the fence and take some action.

437 - My Rules for Investing

https://moneyripples.com/2020/11/06/437-my-rules-for-investing/

Everyone has had different paths in this business. There are a variety of factors that can affect decisions such as what is available, what experiences have they gone through, what are their goals.

Chris Miles has had extensive experience in business over the years, especially with investing. Through that, he has created rules or lessons when it comes to investing.

So, what rules do Chris Miles follow when considering an investment?

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/23/437--my-rules-for-investing

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Hello! My fellow Ripplers! This is Chris Miles, your Cash Flow Expert and Anti- Financial Advisor. Guys, this show is for you and about you, those of you that work so hard for your money, and you’re ready for your money start working harder for you today. Because you want that freedom that cash flow that prosperity now, not 30 or 40 years from now, if the stock market does smiles on you the right way, but you want that freedom now. So you can do what you love with those you love. Whenever you feel like, but guys on top of that, you guys want to do more than just live a life of comfort and convenience. You want to be a Rippler or by creating a ripple effect through generations, beyond you, through your family and those around you, that you could be a blessing, the lives of others guys.

Thank you for allowing me to be a blessing. Your lives, create a ripple effect through you. Thank you for bingeing sharing. You do everything that you guys do here. It’s awesome. So thank you so much. Here’s a quick reminder. Check out our website, WWW.MONEYRIPPLES.COM Also guys, subscribe to our YouTube page, the Money Ripples Chris Miles page. Check that out on YouTube right now and subscribe. So guys, I want to talk about some of the rules that I have for investing because so many time that I hear people saying, is this a good opportunity or not? Should I do this or not? And the truth is we’re not going to give you advice on the show, right? Because legally that’s a bad thing to do. Also just as a you know, quick thing, I’m not sponsoring Nike right now, I’m just wearing a Nike shirt because I haven’t changed it on my workout clothes yet.

So here you go. I just noticed that I’d never really dressed up a lot for you guys, but one of these days I promise I probably won’t either. So, but anyways, I want to talk about my investing roles, right? Because one thing I learned through the life of hard knocks, especially with investing those, that kind of investing with hard knocks, right? I learned a lot of good, valuable things, especially during the last recession. And the thing is I see patterns happening again. You know, people start getting antsy. They want to jump in. Sometimes people are investing in things that really don’t, aren’t even real things, right? There’s people investing in companies that aren’t even real right now, blank check companies, IPO companies, they don’t even have a product or a service, but people are throwing money at it. Right? this is why mutual fund and hedge funds managers are like your riskiest people right now.

But I want to talk about like, if you’re looking at an investment, how do you know it’s good for you? Not for the person offering for you, but for you right now. So it’s about five key areas. I actually have more questions or more points that look than that. But these are really five key points that if you really answered positively to these, you would probably feel very at peace because I’ll tell you and investments not worth it. If you do not have peace of mind, if you can’t feel comfortable and sleep at night, knowing that your money’s invested somewhere, that’s not the place for you, no matter how good the investment might seem, that is not the investment for you.

So here’s the number one thing I use to eliminate most opportunities is one, is there a reason beyond money that I want to invest in this? Is there a way I can tie it in with my passions or with my interests that I have? For example, I actually think real estate is fascinating now, not every aspect of real estate though. Understand that. For example, you know, I hear a lot of my friends talking about wholesaling properties that has zero attraction to me. Now you can make amazing millions and millions of dollars doing that kind of business. But for me, that is sounds absolutely like just horrible. Like I would much rather dance with that pink Flamingo in the background, right there that’s a burden much yet. Right? It’s just not interesting to me, you know, not to say that’s not a good thing to do, but it’s not the thing for me. So I always look at, is there a reason I would want to do it because here’s the truth guys.

If I want to invest in something, right? I’m not going to invest in something that, you know, and I learned this from retiring twice, right? Becoming financially independent twice. You don’t want to invest in something that feels like a job. That feels like you’re just doing it for the paycheck. If you’re going to put time and energy into it, especially it should be something you enjoy something that kind of lights you up. Right? So that’s number one is, do I have a reason to do, to invest in this beyond the money? Because by the way, everything looks awesome. When you look at the money and the numbers, it’s got to have some personal connection to you.

Number two, how well do I understand this investment? Do you understand what makes it work? Why I get paid? You know, why it makes money? Do I understand the real economic engine behind it? That allows me to be profitable? Because if I, the better, I understand it, the better I understand that there’s something I might be able to do if something goes wrong, right? Or if something goes or could I make it better than it actually is, you know, then what’s returning right now. Maybe I’m not investing at all, but do I have an understanding of it to say, this makes sense. It’s not a mystery to me. I can, you know, I could probably explain it easily to my spouse. You know, even if they might have some intricacies to it, I can at least give the basic gist of it because I understand it. So how well do you understand it? Do you really understand it? If you don’t, don’t do it, you know, give you an example. I had a friend that introduced me to a company where they paid you 12% interest every 24 days.

Right? So 12% interest every 24 days. Oh, sorry, take that back. Nope. It was reverse that 24% interest every 12 days. Now that sounds too good to be true. Don’t worry. It was. And then even he admitted, he said, Chris, here’s the thing. It’s violates all the principles we talk about with investing, but dang! The money’s hard to pass up. He’s like, so my goal is because he used the rule of 72, right? 24%. Well, every 12 days, that means in 36 days, if he reinvested that money, it would double itself. So it would double itself every 36 days, which by the way, is not even possible. It’s like when the guy reached out to me and said, Hey, Chris! This thing makes four to 6% a week. Not a month or a year, even a month would be pretty crazy, right? A week.

And I was like, bull. That is not going to return that. And he told me what, and that example, that other one, right. That guy told me, he was like, yeah, it’s invested in the Forex. I’m like, nobody makes that much money. Even George Soros can’t make that kind of money in the Forex. So no way, well, this lady, same thing, this, this woman actually found out that she owned the company of this company’s called 12 Daily Pro. Right? You could probably Google it and find 12 deadly pro online. Well guess what? Total Ponzi scheme, right? Obviously she could not afford to pay 24%. Every 12 days, the Feds, you know, the securities exchange commission, frozen accounts, the whole thing blew up. People lost their money. People were complaining and whining that they didn’t have any money. Well, they threw their retirement money in there.

And how are they going to retire now? Well, hello you for, you didn’t even understand what it was invested at. Even when I asked my friend what she investing in to get these kind of returns? He said, honestly, I don’t know. And even says in the contract, you could lose all your money. So, and they did. And they lost all their money unless the people like pulled their principal out fast enough. Right? People lost their shirts. That’s the thing guys, is that, you know, do you understand it well enough to know what it actually is a three and this goes really close with it. These are really my big three. Right. You know, one is interest or passion beyond the money. Two is how well do I understand it?

And then three is how much control do I have? These are the three big ones for me. Do I have control of this investment? You know, for example, if something goes wrong, you know, can I get recourse? You know, I we’ve interviewed guys like Mitch Steven on here before, right? Like when he does his investments, I love it because he’ll have people, you know, lend money on a specific property. You were on title for that property. You are basically the bank. You are the bank lender on that property and he’s paying you returns on it. Now, if he, if he, if he doesn’t make his payments, you foreclose on it. You that’s your property, it’s all yours. And because he’s only leveraging about, you know, 50 to 60%, right? So say you gave him, you know, it’s worth a hundred thousand. He’s probably going to borrow from you about 50 to 60,000. So there’s equity, there’s at least 40,000 equity in there.

That’s a good thing. There’s control. There’s some security in there, because you have that first position. Now, do you have control in a stock market? None at all, buying it’s selling, by the way is not control. Just the ability to click an act and say, choose, I’m going to choose that stock or that fund or this fund. That’s not control. That’s what we’re talking about. We’re talking about, if something were to go wrong, can you do something about it? Or if it’s going right, can you do something to make it return better? Just like I’ve explained before, how much control you really have. I will sacrifice return any day to have more control. This is why I love buying my own real estate properties. Cause as much as I’d love syndications and I’ll put money in those too, right? I’ll put it in funds and syndications, just like the ones we’ve talked about on the show, however, it’s, you know, I have to make sure I’ve got good, you know, collateral there.

I gotta make sure I have good control. You know, if, especially if something were to go wrong, if I don’t, that’s not a good thing. And, and that’s why I love buying my own properties. There is nobody else to answer to, it’s me. Right? I might have property managers managing it for me, but all I call all the shots. I don’t have to wait about to hear from different partners or anything like that, I call the shots. So that gets extra bonus points, right for that. So one, is passionate beyond the money or interest beyond the money. Two is understanding. Three is Control.

Four is predictability. Can I have predictable stable cash flow from this property? I like to call this “predictable profits”. Right? You know, the two P’s they’re predictable profits, is it predictable and profitable one, am I actually going to make good cash flow? Is it actually profitable where I’ll make money? Two? Is it predictable? Meaning that how much certainty do I have that it will pay that? You know, for example, there’s some investments that are more speculative. Now, if you go in like the oil and gas industry, right? Even by investments there, there’s some speculation there. It might be profitable, but it may not be predictable. So how much of a predictability can you have? You know, I was just recently talking with one of my past casey, past guests that we had on here before, if you guys remember Randy Lawrence, the real estate preacher, you know, he talked about, you know, how he pays certain returns. He pays like a 7% preferred rate and then a 5% bonus on the back end, you know, per year. And so people will go for that easily because they say, well, I know that I’ll make my money.

I’ll get this set amount of money. Like, I’ll get this every single quarter, this much money paid since 2003 or whatever. Like I know I’ll get paid. And so people we’ll say cool, I’ll buy into that. Even if there is a promise of a better return somewhere else, people are like, yeah, but that’s predictable. It’s easy. It’s not guesswork. I understand it. Right? It’s, it’s simple to do. Sometimes simplicity is like that best option to go with. So again, “predictable profits”. This is why I love buying real estate because I know what my profits are going to be. Generally speaking before I jumped in to the deal before I even put any money into it. Guys, that’s that’s awesome. And if it’s regular stable cash flow, if it’s not monthly, at least quarterly, if you’re getting paid? Awesome! Now, if you’re not going to get paid for years down the road, you might question that, right?

I had a client who said, Hey, here’s the business idea that we’re going to do. And I said, great, well, when you start to be profitable? He said, two years, I said, that better be a back burner and business investment dealers. You’re doing there, put that on a back burner. Instead, what’s on the front burner? What can we actually start getting cash flow today? We went through some different ideas about what he could do his business. Did he take those ideas? Nope. did he ever paid from that deal? Not really. In fact the business idea I gave him, I just said like that’s all folks anyways. The idea I gave him was something to actually sell off the idea to another company, to speed up the process. I guess what, he didn’t do it. He didn’t try to get signed on as like an employee or whatever it might be.

The company actually went and created their own version of it just a few years later. His thing totally obsolete. So it’s key. So again, you know, Do you have interest beyond the money? two, Do you have control or two Do you understand it? Three, Do you have control?. Four is a “predictable and profitable”.

And then five is Who is it invested with? Like when I mentioned Randy Lawrence they’ve been paying since 2003, you know, Mitch Stephen, I mentioned earlier, the guy’s been paying for decades. Right? It’s really awesome to know who you’re investing with. It’s so important. You know, many times like when people are like, Hey, what’d you think of that Grant Cardone fund? I said, Grant Cardone is not an investor. He’s a marketer. I don’t trust that. You know, maybe that’s got nice popularity. Awesome, good for him. I would question that big time because he’s a marketer.

He will attract other marketers. I’ll tell you good operators attract other good operators. If you want to find the right people get in the right circles, don’t go for the people that are going for the pie in the sky, or just talking big numbers. Those people, the people that lose money and they lose other people’s money, including your own. But I go for the people that just do what I call as boring, sexy stuff, because boring is sexy, right? If people are just going and use their money to, you know, do the same deal over and over. Right? And it’s the same thing they’ve done. Like, you know, Lane Kawoka and I talk about his show. There’s a lot of his deals. I mean, he’ll do some new deals every once in a while at some variances. But when he does his normal everyday deal, I think.

Okay. All right. I’m interested in that deal. If it’s an apartment building, just like the ones he’s bought before. Oh, look, it’s Huntsville, Alabama. He’s done that several times. Cool. I would trust that more, but really the thing I’m looking for is what happened? Like, especially in the last recession, right? Did they keep paying, even when things hit the fan, did they honor their word? Who are you really investing with? Again, it’s not about the investment. The numbers can look amazing, but it’s really about who is it you’re investing with? And what does that, what’s going on there? That guys, that’s what I look for. That’s what I think is sexy. You know, the boring stuff they do over and over the guys that have great integrity or women that have great integrity and what they do with their investments. That is what I look at now.

I want you to take these five and think about it. Like thinking about this right here, apply this to the stock market, apply this to your 401k .

1. Are you interested in it beyond the money? Maybe you might have fun watching the markets, but do you really, I will tell you, by the way people that have invest in the stock market, very tiny percentage actually have a passion beyond the money. I trained 200 people I trade stocks and options. Just a handful actually liked it beyond the money. And those, the people that actually still made money now, they didn’t create good cash flow. They were still in the rat race, but at least they enjoyed it and they were profitable to some level. So passion now, do you have passion for your 401k? I bet you, a lot of you guys are ignoring your 401k. You’re ignoring the stock market, right? If you’re doing that, that’s a big warning sign.

2. Do you understand it? Do you understand how they’re making money? Do you understand that you don’t even own a company? You don’t own any stock in a company you own a copy of a copy. You own a piece of paper tied to the real asset, but it has no real value. You’re not an owner in that company. Even in a fraction of a degree, you basically have zero ownership. You know, do you really understand how that works? Do you understand how mutual fund money managers make their money? Do you understand how they have to? When they keep getting more money, they have to find investments. Even if they’re bad that they keep putting money in. Do you understand that in a mutual fund that you can’t that as a mutual fund money manager, you can’t unload stocks. If you know a stock’s bad, you can’t sell it all in one day. Cause that’s actually against the law. You can’t dump a stock crash it, that’s there. If you have so much money, you can’t do that kind of thing. So thinking about that, do you understand those kind of rules? That’s a big thing.

3. Do you have any control over the stock market? No. Zero. Do you have a control over the stock that’s invested in? Do you really think you have control? Warren Buffet, Do you think when he buys a business, he just buys a stock? Or does he buy ownership in the company that allows him to have control? It can go into the board of directors. Meetings, make, call some shots and manipulate his returns. Especially something goes wrong or to make it more profitable. So he makes more money different than being someone in the stock market. By the way you have zero control over it.

Is it predictable? Heck no, it’s not predictable at all. Now maybe you buying that boring stock that pays predictable dividends. Sure. but even that, even that’s not being so great lately.

And then who do you even know who’s managing your money? I will tell you when I was a Financial Advisor with my securities license, helping people buy mutual funds, I could even talk to the fund manager. In fact, they made it completely off-limits. You could not go and call or email and contact that fund manager. They are to be left alone. No one talks to them. Did I know who they were? Not at all. You know, when you buy a fidelity fund, you realize that sometimes a fire fund managers hire new ones. So what made that fund successful before, now

it’s not successful anymore because it’s a different person. See it, just these five questions alone. The fact that you put money in mutual funds and 401k, you are, the riskiest gambler I’ve ever met. You know, if you want certainty and peace of mind at night, find ways to find investments that actually fit this kind of criteria, where you have.

1. Passion beyond the money or interest beyond the money.

2.You understand what it’s doing and how to make it work, how it ticks.

3. You have control you.

4. It’s predictable and profitable

5. And you know, who is investing in it.

Im Ticked About ANOTHER IBC Policy - Saved Her $200K

https://moneyripples.com/2020/11/02/im-ticked-about-another-ibc-policy-saved-her-200k/

It happened again!

Chris Miles, again, encountered the same case, where the same “infinite” banker and the same company gave their client a quotation and this time it is even more drastic. They gave her the numbers but they didn’t give her the “MAXIMUM ROI” of infinite banking.

In Chris’ policy, by the time the client is aged 60 she has 200,000 dollars more!

Tune in, you wouldn’t miss this for the world!

https://www.blogtalkradio.com/moneyripples

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Hey everybody! Chris Miles, Cash Flow Expert and Anti-Financial Advisor. It happened again, lightning struck twice in a day. So, same thing. Someone sent me some number said, Hey, here’s what this person quoted. Same company, same exact company is the last person I just showed you with that person’s child. Right? She then sent over quotes that she got from somebody within the company, another infinite banker person, right? Sent over the numbers for her and her daughter and guys, it happened again, but this time was even more drastic. Even more. Let me just show you what this looks like. Right? so this woman’s a 33 year old woman. They showed her putting in $44,400 per year. Now in the first year they showed her having about 26,000. The breakeven point finally happened after she put in almost $400,000 by year nine, she finally had more cash value than what she put in.

Here’s the crazy thing. Same exact numbers, apples to apples, right? Here we go. Break even point definitely was not there. There’s over $50,000 more there. Look at this one thing is by year five, we broke even on the costs. She put in 222,000, we were at 223, say for four years to break even our costs. Here’s the crazy thing. Year one, she’s got almost 36,000 of cash value compared to this other person. The center was 26,500 cash value. There was over a $9,000 difference and I’m saving her. And just the first year alone, guys, nothing different here other than how it’s designed, same company, same dividends. Everything’s the same, by the way, even down the road, by the time she’s age 60, she has $200,000 more in my policy. So this saves her $200,000 and she still gets like over a million dollars more of death benefit.

Im Ticked About This Infinite Banking Policy And here Is Why

https://moneyripples.com/2020/10/30/im-ticked-about-this-infinite-banking-policy-and-here-is-why/

What Chris is about to share is not something that he would want you to feel depressed about.

Even though he has been semi-retired and out of the rat race, he has to come back out of retirement; primarily because he keeps seeing things that cost people thousands or maybe even millions of dollars.

Now this is why Chris Miles is ticked off!

Tune in, you wouldn’t miss this for the world!

https://www.blogtalkradio.com/moneyripples

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Hey everybody! This is Chris Miles. And that was just about scare me how I said that. Hey, This is Chris Miles Cash Flow Expert and Anti-Financial Advisor. Hey guys, I want to share something because I’m kind of ticked off right now. And I just want to share this, not to make you depressed or anything like that. But even though I’ve been, you know, semi-retired myself, right? I’ve been able to be out of the rat race for, I don’t have to work and do those kind of things. And so, I’m able to retire, but now I’ve come back out of retirement primarily because I keep seeing stuff like this over and over. And it drives me nuts because I know that it costs you thousands, tens of thousands and even hundreds of thousands or millions of dollars. And this is on a tiny scale.

I had a client just recently where same thing happened with them, but it was a $2 million difference in 20 years. I’m going to show you something really tiny because I want you to just to see how magnificently bigger this is. I’m coming up with words out of my mouth, obviously. Because you know, I had a client that said, Hey, I’ve got my kids. I set up a plan with them with a company I actually use. And this guy that’s done doing this, these policies. He’s definitely not no small beans. He’s actually a pretty good infinite banker, right? But again, like what I do is max ROI, infinite banking. And I want to show you that it’s not just about having a lower death benefit or anything. In fact, in truth, you actually can have both more cash and a bigger death benefit if you design these right.

And seriously, the only reason that this was designed this way as my guess is that because it was such a low premium, the guy wanted to make more money to make it worth his time. But that’s beyond the point, because again, it’s got to be about you and what helps you best. So I’m going to share my screen to show you what I’m looking at here, right? Let’s see. All right, here we go. Now this one right here, this is the example that was said. So this is a with the company I use Penn Mutual. I use several different companies, but this one definitely is great for creating biggest bang for your buck, right? Getting that maximum ROI. So I use this majority of the time, use this company. Now he’s showing you here. This is an in force illustration. So he already set this policy up almost a year ago.

But by this point now it’s actually about the, where it’s hitting that one year cash value, which you see here is going to be about 1178 about right about now. So now you see the death benefits about 264,000, right? Which is great. That’s fine. But here’s the thing. And I think he front-loaded this a little bit to make it higher. But notice he’s putting in 778 per year on his son. This is a seven year old son. He’s doing it for, so this is becoming kind of like his own, you know like college savings slash whatever he wants it to be. This is the savings for his child. And he did it for all three kids. Now you’ll see that they run this out forever, right? Like this goes out till basically you’re a hundred and voila, you know, they almost get it to a million bucks by age 100.

Now here’s the thing that ticks me off. Right? Because I’ve seen how this is designed. Like I know how to do this better. So I actually told them, I said, you know, when I send that, like I was crafting the email before I ran the numbers. I said, you know, you may not want to mess with us at all. It’s probably gonna be close. We’ll have to delete some of this because when I ran it, I said, okay, let’s take that 1178. I’m not encouraging him to really try to cancel to go with the same company again, like, that’s the thing we’re in discussion with, but watch this. Right? So 1178. So he’s already paid a big chunk, like the majority of your fees come out in that first year, you know? And in fact about half went here. So I’m guessing he probably put in over $2,000 to begin with in the first place.

So I said, all right, let’s just presume we do it again. So you have to go through that same period. But again, I minimize those costs as much as we can. So really my year one is going to be their year two. So there’s 1403 is what you have after two years. Right? So I’m going to, my year, one’s going to have the money from your one plus putting in money, starting over again, watch this your one 1614. Now remember, even with this policy where he’s already paid more of the costs look, 1400 versus mine already in year one 1614 day one, he’s already got more cash in his policy than that. Now here’s the one place he doesn’t have more knows the deafness 154,000 versus 264,000. So those are about a hundred thousand dollars less death benefit. But watch this, notice that his death benefit stays about a quarter million for really at least 25 plus years, right?

Mine ends up paying a quarter million. You’re roughly about, you know, where there it is. Yeah, right there 254,000, but 19 years in. So it does steadily creep up, but notice your five, I’ve got 4,600 bucks. Now they’re your six would be the same thing for them. 4,165. We already have 500 more dollars by year five, right? Five years in your 10 for mine, 10,000, just over 10,000 bucks. So already he’s got way more he’s put in, right? For them, that’s your eleven, 9300 bucks. Now look at this. So like, you know, 21, you’re 21 for them, 22,000 for me that same year 20, 26,000, almost 27,000. Now guys, this is assuming the same dividends. This is not like a little pinging contest between companies. This is the same exact company just designed differently with better cost structures, right?

You know, 40,000 by year 25 flash forward here, let’s go all the way to year with the age 60 here. Right? So you’re age 60 showing $250,000. Even by the way, the death benefits 580,000. So $250,000 of cash value. Now that’s your 61 for him? Or age 61 here. So age 61 for him shows about 180,000, 250, right? Like I just said before 250, right there versus just under 180,000, even by, I mean, even to get ridiculous here, right? Even by the, by was it eight? You know, you’re 60 here with them 245,000 with them. That’s your, what was that? 59, you know, 349. I mean, it’s just ridiculous. I even stopped at age 65. I didn’t put any more in, so I stopped at 330,000, even though it keeps growing from there on right. 330,865 for them, that’s your 59, 230,000.

That’s a hundred thousand dollars difference there in just and just what, you know, in those many years, right? Now, the crazy thing is I’ve actually dropped it down the minimum 329 bucks a year. So for those last five years, so really age 60 was like the last time that we were apples to apples and then I just dropped it off. And even though I’m putting in less, it still kicks the crap out of it. And by the way, look, it’s got a $659,000 death benefit where here, same place, 422,000. So I had a more death benefit, more cash value, more leverage, more everything main difference was just designed. It was just how you designed the costs. And that’s my point, guys. It’s not about dividends and all that kind of crap. Like those that’s just smoke screen. You know, I have companies that pay 1% dividends that can be companies paying, 6% dividends, but here’s the key.

It’s all about designing the cost. How can you lower those costs as much as you possibly can while keeping it tax-free while keeping it within those limits. That is the difference guys. And this is just, you know, over 700 bucks a year, right on theirs versus mine. Like it’s just ridiculous, by the way, look, he put in 44,000 to have 330,000 bucks. Now that’s over 50 years. Granted that’s a long period of time, but it doesn’t matter. The fact is that, imagine what that’s like, if this is just thousands of dollars, right? What if it’s just thousands? What if this is like, you’re talking about putting in 10,000, 20, 50, hundred thousand a year, don’t you think this is going to make a difference? Yeah. Huge difference. So guys, that’s why I’m ticked off. I’m ticked off because this should not be happening. Granted, this is good.

436 - No More Burnout with Mary Hyatt

https://moneyripples.com/2020/10/28/436-no-more-burnout-with-mary-hyatt/

Can slowing down speed up your results?

What do alignment and intuition have to do with reducing stress?

Mary Hyatt is a life and business mindset coach who specializes in helping high achieving female entrepreneurs move from living a life of burnout to a life where they are connected to their emotions, their body, and their spirit.

Mary is the host of the Living Fully Alive podcast that airs weekly where she dives deeper into the mindset and helps her listeners learn to embody a life fully lived. She is also a Top Earner with doTERRA Essential Oils, helping teach women how to support their bodies and emotions holistically. As a trained Hypnotherapist and Kundalini Yoga Instructor, Mary brings a level of consciousness and soul focused inner work to everything she does.

Tune in as Chris Miles discusses burnout and other topics with Mary Hyatt.

Website: www.maryhyatt.com

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/18/436--no-more-burnout-with-mary-hyatt

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Chris Miles (00:08): Hello! My fellow Ripplers. This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Hey, I’m welcoming you out for a wonderful show. A show that’s for you and it’s about you. Those you work so hard for your money and you’re ready for your money to start working harder for you. Now! You want that freedom. You want that cash flow. You want that prosperity. Today, not 30 or 40 bazillion years from now, but right now, because you want to have that life that you love to be with those you love doing whatever you love, right? But on top of that, it’s not just for your own comfort or your own convenience. It’s so much more than that. Because as a Rippler, you’re here to create a ripple effect through the lives of others. Because as you’re blessed, you can bless more lives too. So it’s so much bigger.

Chris Miles (00:48): It’s so much bigger than you would. All of us are. And guys, I appreciate it so much for allowing me to create my ripple effect through you guys. I love the fact you’re bingeing. I love the fact you’re sharing with others and creating powerful conversations from this. And that’s exactly what we’re here for. Hey, quick reminder, check our website, WWW.MONEYRIPPLES.COM We’ve got a great eBook on there called Beyond Rice and Beans. Seven secrets free up cash today. You can check out for free. And you just can check out the other videos and blogs and things like that. We have online. So check that out. All right guys. So today I’ve got a special guest here that somebody had tagged me on Facebook said, Hey, you need to interview somebody. You need to interview with this person. And, as I start to look at, you know, more about her, you know, and her background, I thought this is an awesome woman.

Chris Miles (01:31): You guys are going to love her. So that’s why I brought her on here. So Mary Hyatt, she’s actually a Life and a Business Mind Coach who specialized in helping high achieving female entrepreneurs move from living a life of burnout to a life where they are connected to their emotions, their body, and their spirit. She brings, help brings her one-on-one and group coaching clients back to their enoughness, wholeness and femininity. She’s also the host of the Living Fully Alive podcast that airs weekly, where she dives deeper into this mindset and also helps her listeners embody this life of living fully. Right? She’s also a top earner with doTERRA, which I know some of you guys are doTERRA people. So shout out to doTERRA, those you’re following. She’s also a top earner with doTERRA essential oils, and she’s been helping women, their support, their bodies and emotions holistically as well.

Chris Miles (02:17): She’s also a Trained Hypnotherapist and a Kundalini Yoga Instructor, which is pretty awesome as well as she brings this higher level of consciousness and soul focused inner work to everything that she does so excited to bring her on, because the one thing I know that all we talk about strategies and money and things like that, which is great. The thing is that if it doesn’t change your life, it doesn’t matter, right? It has to actually do something to give you a better quality of life, right? Because why have all this money, if your life still stinks, right? Like what’s the purpose. And I know a lot of you guys have mentioned, you know, same man. Like, I feel like I’m just burning the candle at both ends, or especially with all the things going on with the virus and everything else. Like there’s so much pulling your attention, pulling you away that you’re mentally and emotionally burning out, even if you’re not physically burning out. And so that’s why I really want to bring Mary on here to really dive into this. So Mary, welcome to our show.

Mary Hyatt (03:10): Hey! Chris, I’m so excited to be here. Thanks for having me.

Chris Miles (03:13): Absolutely! So tell us, why did you even go down this little path of yours? You know, because I mean, you definitely have this very broad variety of things going on. I mean, it all comes back to wellness, but what really inspired that?

Mary Hyatt (03:27): Yeah. So if you were to kind of rewind the clock like eight years, nine years ago, the person that you see today was not the person that I was, I was 240 pounds dealing with anxiety, like debilitating anxiety, panic attacks, all of that horrible depression. I had auto-immune stuff going on. I was in a really dysfunctional, unhappy marriage and was just dealing with a lot of trauma. And so there’s a saying that I can’t remember where exactly I heard it, but that the things that you struggle with in life, the things that are sort of like your cross to bear can end up becoming your medicine for other people. And so that’s kind of what I feel like has happened for me is that along my own journey of just figuring out, okay, who am I? Why have I sort of woken up and found myself in a place where I’m coping? where I’m numbing, where I’m totally checked out of life.

Mary Hyatt (04:23): And I just went on this honest to God, like personal self discovery journey of figuring out who am I really? How do I engage in life? How do I become a true? Like fully alive human being, where I’m feeling again, where I’m engaging with life again, where I’m experiencing all that life has to give us. So I think I was really honestly through this, just, okay, let me learn this and then let me learn this. And then let me learn this. And just sort of that like almost snowball effect of one thing, the different tools in our toolbox that led me to being a coach that led me to teaching yoga and meditation. That taught me all about incorporating essential oils into my life and into just the lives of so many other women that I work with. So it’s sort of like this hodgepodge medicine that got me to the place where I have this idea of, okay, let me help women come back to themselves, identify with who they really are and embrace that fully.

Chris Miles (05:24): You know, I could see that like your pain has kind of become, like I tell people your pain has become everybody else’s gain. Right?

Mary Hyatt (05:30): Yeah.

Chris Miles (05:32): And it’s interesting too, because you mentioned like being overweight, but you’re going through your own trauma. Like the thing is like, people don’t realize that a lot of times weight gain does, it has nothing to do with just, you know, just eating, right? It’s not, it has nothing to do with just calories in and calories out. A lot of times, like it’s more reflection of some sort of trauma, whether it’s physical or emotional trauma, there’s something there that your body’s trying to protect itself by adding these layers of fat around, right? Like it’s trying to protect your body. And people don’t realize that that often is the core. It’s not like, Hey, am I going to do Keto today or not? It’s more about how am I healing and really tuning into myself?

Mary Hyatt (06:08): Yeah. You know, everything, when you think about it comes back to mindset, it’s usually not what’s presenting. It’s usually not that surface layer that we see, whether it’s weight, whether it’s issues with our money, whether it’s our relationships, whatever it might be. There’s always a root to what’s going on the external, whether it’s money in your bank account, the car you drive, the house, you live in, the state of your body, the kind of relationship you have, all of that. It’s sort of the results of your way of thinking your way of believing your way of operating in the world. And that can be based out of trauma. That can be based out of just what you’ve had to do to kind of exist through life as you become an adult. And so to me, all the external stuff really isn’t that big of a deal.

Mary Hyatt (06:53): Isn’t really that exciting or that important. Like a lot of people are like, Oh! I want to, you know make a million dollars. I want to have this gorgeous home. I want to travel all over the world. It’s like, yeah, that’s great! But let’s take a look at the mindset. That’s going to be able to get you to that place. And then for me, it really boils down to that root, like, what’s really going on here? What are you coping? What are you numbing with? What are you giving your energy and focus to that’s causing your life to look this certain way that it is?

Chris Miles (07:26): Right. Yeah. Essentially you go, let’s go that route a little bit. Let’s go a little bit deeper with that. Right? This is keep going deeper. Right?

Mary Hyatt (07:33): Cool.

Chris Miles (07:33): Cause you already do that anyways. But yeah, cause I see that a lot too. Cause people will say, Chris, what did you do to be able to retire twice before you were 40? Right?

Mary Hyatt (07:43): Yeah.

Chris Miles (07:43): And I’m like, well, there’s what I did. But more importantly, it was what was going on up here. Right? Like what was going on inside of me and especially where some of the biggest results I had, had very little do with anything like it wasn’t like what a magic investment. That’s what everybody wants to hear, right? There was like, what was that magic investment? What did you do to make lots of money? I’m like, honestly I did the simple things. Like, I actually had to deal with some trauma and get through that actually went through a divorce that actually I hit bigger highs after my divorce, after that drag was, you know, not saying my ass is a drag, it sounds horrible. But there was some drag, there was emotional drag there that was kind of pulling me back. And when that was gone, it was amazing how I could almost feel lighter. I could almost go farther faster.

Mary Hyatt (08:28): Oh my gosh! I can so relate. And I also divorce, a divorcee, a divorcee I don’t know the right term, but I totally get that. Yeah. Tomato, tomato. I totally get that. And like for me, I think that when we look at okay, I think doTERRA is a great example. I’ll use that because I think it’s really helpful in this scenario to look at, you’re dealing with a group of people who sign on to sell these Essential Oils and you have the same product. You have the same shipment, you have the same way of building the business. So you have the same education on, okay, here’s kind of, you know, XYZ how you do it, implement it, et cetera. And having worked with not only my own team, but then also being a coach of a lot of people that are in doTERRA, outside of my team.

Mary Hyatt (09:16): What I find is that here people have the exact same resources. Some are successful and some are not. And when you look at gosh! Well, what’s the reason for that? It’s not that the people who are successful are special in some kind of way, like they have a better product or there’s more of a margin or whatever it might be. No, it really comes down to their mindset, their belief system, and based on how they see their own resourcefulness, their own capacity to create this business that is thriving. And you know, I mean, I’m sure for you, this is very true, but I know for me, like I had to get past so many of my own money blocks like this, this fear as a woman while I was becoming very successful while I was married. So I had a lot of fear around making more husband, more money than my husband and I had to get past that. I had to get past this idea that if I took money away from the pie in the sky, there was like a finite amount. It was going to leave other people without money. So it was like, I had to challenge all of the things I thought about success, all of the things that I thought about money, about being a woman with success before my doTERRA business took off, like I was going to inadvertently self-sabotage if I didn’t address those things.

Chris Miles (10:39): That’s right. So let’s, let’s give some examples, like were some people you would even work with where that was the case? Cause I know there’s people here that are listening right now that I know have these kind of money blocks they’re, you know, they’re stressed out, burnt out. Like what are some examples of people maybe you’ve worked with and maybe they did think it was something external and realized they had to go internal to find that answer.

Mary Hyatt (11:01): Yeah. So typically people think like when you’re, when you’re dealing with going out, let’s say you have to sell a product or a service of some kind and you, you see yourself doing these actions. So like for a lot of my clients and I work with female entrepreneurs of all kinds, not just doTERRA and business owners. And so they’re going out, you know, they’re making their contacts, they are doing the right marketing. They’re doing all the things, quote unquote. Right. But what’s so interesting is you start listening to their language and you start hearing how they’re talking about what they’re doing. So one of the things that I see so often is that people want the success, but they’re actively planning for failure, right? So like you might hear them say things like well they’re not going to really want to probably buy this from me or I’m going to come as salesy and pushy and that’s going to turn them off.

Mary Hyatt (11:55): I don’t want to come off that way. And so if you had this fear that people are going to assume that your pushy, ‘that you’re salesy it’s like based on that fear, you can imagine that that’s going to create a reaction and it’s going to cause you to shrink. It’s going to cause you to be quiet. You’re not going to be confident when you walk in the door, you’re not going to maybe talk about your pricing in a confident way. You’re not going to give them options like the whole time. It’s almost like you’re going to feel like you’re a burden, your an annoyance to the people that you’re approaching. And because we’re always communicating subconsciously whether that’s through micro expressions, through our energy that we give off, like, we all know that kind of experience where you walk into the room and you go, oh! This is a bad vibe.

Mary Hyatt (12:50): Or this is a creepy vibe or something. Right? So it’s like, people are going to connect with you and ultimately buy your products if they have this sort of unspoken connection. And so if you’re coming in, in a posture of insecurity of, I’m sorry to bother you to buy this, that person who’s on the receiving end, isn’t going to have that sense of trust or reciprocal confidence in what you’re selling them. And you’re probably not going to make that sale. So it ends up being like this giant mirror kind of experience where, what you believe internally. And this is what I see my clients. Oh my gosh! So often is that they have this idea of low self confidence, whatever it might be. And they end up basically creating that in their lives. People don’t buy. People don’t show up. People want to refund. They ended up thinking the worst about you because it’s all that projection that you’re giving off in the first place. And that’s what I see people. They just like shoot themselves in the foot, by the way, they see themselves in the language that they’re using.

Chris Miles (13:54): Well, whatever you worry about you bring about, right? If you fear something it’s gonna happen. I mean, it was like when I played high school sports, you know, if I was worried about dropping a ball, I would guaranteed drop the ball. If I stopped thinking so much, it’s amazing how things would just work out fine. Right? But it’s that fear. You start psyching yourself out. And I see that even with people’s sales conversations, like there’s a sales Facebook group that I’m a part of, right? That they give different tips and they talk about the stuff. And some people say, what was it that made you, like what sales strategy or tactic that you use to get better? And the funny thing is I just joke with people a lot of times, but I’m actually being serious. I say I stopped trying to sell. Like,

Mary Hyatt (14:37): Yeah. Totally!

Chris Miles (14:37): I just try to solve problems. Like you don’t have to worry about selling. You just say, great, is this gonna work or not? Like, if I can’t help you, then don’t waste each other’s time. You know? Like it’s easy.

Mary Hyatt (14:46): Well, and I think when you’re coming out of a place of I’m here to serve and I’m here to help, then that desperation, that desperate energy doesn’t come off. And like, there’s been so many times where I’ve had people come to me for one on one coaching. And I just know instinctively based off what they’re saying. I’m like, I’m not the right coach for them.

Chris Miles (15:06): Yeah.

Mary Hyatt (15:06): And so for me, like if I was just so focused on, I got to get this client to sign up and I’m in that, like, hyper-focused kind of desperate energy. I mean, that’s gonna be a miserable six months to a year and it’s not going to serve them. And I’m going to probably get a bad review. I’m probably not going to help them. I mean, it’s just, it’s not going to go well. And so for me, it’s slowing down and checking in and going, am I the right fit for them? Can I really help them? Can I really serve them? And ultimately, how can I be confident in myself, in what I have to offer and know in my confidence that, Hey, I’m not the right fit for you or I’m actually the perfect fit for you. And here’s why like, I want to help you. Like, let’s get this easier for you. And let me show you how,

Chris Miles (15:56): Yeah. That’s so much easier, so much lighter. It’s just better in general. Right?

Mary Hyatt (16:03): Totally.

Chris Miles (16:03): So what are the things people can do that actually start to release a lot of trauma or be able to kind of get out of this burnout that they’re dealing with?

Mary Hyatt (16:12): You know, I think that so many of us, we are in this perpetual state of hustle. It’s like, go, go, go, go, go, do more, create more. I gotta, you know, be the last one to leave at work. I wouldn’t be the first person to show up in the morning, especially for people who are sort of building a secondary passive income in addition to their regular job. There’s a lot of like, Oh! I got to work till 2:00 AM. I’ve got to sacrifice my self-care. I’ve got to sacrifice everything to build this business. And to me, what I love to talk about and what I teach my membership clients, my one on one clients is what does it look like to come from a place of alignment? Because when you are aligned and when you are in flow, and to me, that means being connected to source.

Mary Hyatt (16:55): So everything can, to me could be fixed by slowing down, recognizing in yourself, why am I feeling all of this pressure to hustle? Why am I willing to sacrifice myself to get to this end goal? Like where? And that, to me, that’s the whole mindset piece. That’s the whole belief piece. It’s like, where is my thinking? Where’s my thinking wrong in this? And ultimately slow down and go, okay, let me connect a source. Whether that’s prayer, meditation, whatever that might be slowing down. And I said, going up, getting aligned first, what am I here for? What is my purpose today? What is it that I need? Like today might not be the day to push it. I may need to rest. I may need to nourish my body. I may need to connect with a friend, call a therapist, call my coach, whatever it might be, but just kind of like taking that time, scarcity off the table to slow down realign, go up, connect to source higher power, whatever that looks like for you. And then from that almost informed place then sort of going, okay, so what does my aligned action look like? If I’m not in this perpetual looping hamster wheel of hustling, what does it look like as contrast to take aligned action, informed action, that isn’t desperate, that isn’t fueled by stress and fear and pressure, but it’s like, okay, what, what needs me today? What does asking for my highest attention today? And, and what kind of energy do I actually have to show up for that?

Chris Miles (18:36): Guys? I would rewind this last two minutes over and over again. Cause seriously, you know, when I mentioned like, you know, for me like about five years ago, going through that divorce burning out and then where I accelerated my progress, what she described is exactly what I did. So it wasn’t just, yeah, I bought a couple of rental properties or this or that invested here or put my money there. I’ve got my business to do this or that. It was seriously about aligning with that intuition. Right? It’s about aligning with who you are listening, slowing the freak down. Cause like I stopped passing. I went from 50 or 60 hours a week down to like five to 10, you know? And then all of a sudden, like I was working about 10 hours or so a week. But my profits 10 times themselves, you know, my revenue even jumped up five to 10 times as well, all because I slowed down and sort of listen to that intuition and start checking in versus just go, go, go, go, go! Right? Like the Energizer Bunny, you know, where it’s almost like a Tony Robbins mentality. I’m not or Grant Cardone or you know, those kind of guys were as awesome as they are still. There is a lot of like, Hey, you gotta make it happen! Go, go, go! And it’s almost like a power versus force scenario. Isn’t it?

Mary Hyatt (19:47): Totally, I was like force versus flow. And I can tell you, because I’ve done both, I’ve gone the forest route. I’ve gotten the hustle route and the flow route that inspired action connecting to your intuition. Number one, it’s really effective. Number two, it’s way more enjoyable. Like it just feels better. And it’s going to allow you to get there in a way that you’re not losing your hair. You’re not having panic attacks. You’re not ending up in the hospital. It’s like, Oh! This is how it’s supposed to be. But it requires that slowing down, which I know for entrepreneurs can feel a little bit like pulling teeth, but I promise the more you do it, it gets easier and you’re going to prefer it. I promise. and a lot

Chris Miles (20:29): Guaranteed. And it’s scary too, because I remember when I started doing it, I started thinking, wait, am I working hard enough? Am I doing it right? You know, like this doesn’t seem right. Like I should be doing more. And so there’s all that guilt that was trying to pop up as like, no, I know it feels right. Just go with it, trust it. And a months, you know, as months went by, it was like, Oh my goodness! How did I not trust this before?

Mary Hyatt (20:52): Yeah. It’s almost like you have to redefine what it means to be successful. Successful doesn’t mean exhaustion. Successful doesn’t mean burnout. It doesn’t mean hustle, working hours and hours and hours. It’s like, what would it look like if it’s success meant being in total alignment and flow that you worked less, that it felt easier that it was more enjoyable and that you felt like totally in supported to me. I mean, I had to do that. Totally redefined. What was possible when I thought about success, that it doesn’t have to be so miserable and hard. That’s an old model. It’s like, busyness does it equal productive? And so I had to rewire all of, again, it goes back to mindset. I had to rewire those beliefs to, Oh, what if this were easy? What if I could go up instead of just grind? Okay, let me sit. Get still listen and then move from that place.

Chris Miles (21:46): Absolutely. Ah! Guys, I know we’ve had great guests on, but seriously, like if you’ve listened to this and actually apply this, this will make a bigger difference than any of the other strategies we’ve taught you. I hope you understand that this is huge. So awesome. Hey Mary, I know we’re short on time, but you know, tell us if they want to follow you and get to know more, even like, I know you have an eBook as well, right?

Mary Hyatt (22:10): Yeah.

Chris Miles (22:10): Oh, how can they do that?

Chris Miles (22:13): Just go to MARYHYATT.COM Go ahead. Follow me there. I’m on Instagram, Facebook, which you can find on my website, subscribe to the podcas,t Living Fully Alive. And yeah, if you just go to MARYHYATT.COM/RECOVERYKIT I have an Anxiety Recovery Kit that includes Three Guided Meditation. From me included one, is about panic attacks. I have a breathing technique that you can do that instantly lower stress and cortisol. So great in times of major stress and panic, and also a PDF full of my favorite Essential Oil blends For Anxiety. So MARYHYATT.COM/RECOVERYKIT To grab all those resources.

Chris Miles (22:55): Awesome. We’ll put that in the show notes for sure. So everybody can click on that, especially if they’re driving, we don’t want them to like kill somebody while they’re trying to get this down. So Mary, again, I appreciate your time so much. It’s been so valuable. Thank you again.

Mary Hyatt (23:07): Thanks Chris!

435 - Skate to Where the Puck Is Going

https://moneyripples.com/2020/10/21/435-skate-to-where-the-puck-is-going/

What is the current state of the economy and what is really going on?

What is the medium-term outlook for the economy?

Where is the opportunity going to be?

Chris Miles has been in the industry for many years. His experience and wisdom helps him make predictions of what will happen later on and position himself to take advantage of potential opportunities.

Tune in to find your opportunity.

Listen to our Poodcast:

https://www.blogtalkradio.com/moneyripples/2020/09/16/435--skate-to-where-the-puck-is-going

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Hello! My fellow Ripplers! This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. And coming to you from Tampa, Florida today. So I thought I would do a special little show for you guys, because this show is for you. And It’s about you. It’s about those of you who work so hard for your money, and you want your money to start working harder for you. Now! So you have all that cash flow that freedom, that prosperity today, not 30 or 40 years from now, but right now, so you can have that life that you love. Doing what you love being with those you love. And on top of that, as Ripplers, you’re not here for your own prosperity, but you’re here to create a bigger ripple effect in the lives of others by blessing others lives, as you’re blessed as well. Guys, I’m so proud to be a Rippler with you.

I’m proud that I can share this and create ripple effects through you guys. Whether you’re bingeing, we’re sharing this with other people, creating massively great conversations, something that’s different, something that’s real, a conversation. That’s not just the mainstream norm that really leads to no success when it comes to financial success and you guys are doing it different. You guys are the rebels and I love you for it. So thank you so much for following. Here’s reminder, check our website WWW.MONEYRIPPLES.COM There’s great information there. And remember to subscribe to our YouTube channel, Chris Miles with Money Ripples, you can actually see a lots of different videos and including these shows on there as well. So check that out. Today, guys. You know, a, lot’s been on my mind about the current state of the economy of whatnot what’s going on, right? You know, and I’ve even mentioned some things to you guys last week.

And I want to talk about, you know, the questions that often come up from you guys, whether you’re hiring me as a consultant or even many of you guys have been asking me, even if you’ve been reaching out to me about you know, how to set up these max rate of return? These max ROI, infinite banking policies, or these whole life policies and how does design them? And what to do? Because I know many of you guys are wondering, what are we doing right now? Like, what is happening? Because if you look at the economy in the world right now, it’s kind of taken a breath, isn’t it? Like all the things we thought would happen that was going to come crashing down is kind of been delayed. It’s like a plane crashing, you know, the wings have fallen off, but somehow these temporary little paper wings have been put onto it.

So it kind of glides down, but it’s still kind of coming down in a way that is just delaying the crash. Right? And that’s what we’re noticing right now is like, it feels like this is the calm before the storm is almost like this is the eye of the hurricane, you know, the first storm passed through. And then we’re like, Oh! Are we done? The skies are clear. Look at it. Of course, ironically, I’m calling from talking from Tampa, Florida just as a hurricane Sally passed by. Right?. But you know, but then the next wave that comes, which is often even more dangerous, which it could be the back end of the hurricane. Right? And that’s what I foresee happening with a storm. And I’m a mastermind of that right now with a bunch of real estate investors. And we’ve been talking about, you know, what are the things to look for?

And of course, they’re talking about, you know, seeing much worse things happening towards the end of 2021 and into 2022. So this is over a year away. Right? Now, I think one thing we could agree upon is that until the election, there’s not going to be a whole lot happening to hurt the average American, right? They’re going to do everything they can to prop up the economy, make it look good for election sake. After that point, that’s where it becomes questionable. And that’s where we wonder, like, will it start to tank? I mean, will we see the stock market tank more than it has been after hitting new highs? We’ll start tanking after, you know, not initially after the election, I think, and I believe that Donald Trump will get re-elected. Right? But if after that happens, you know, will the market kind to continue to go up? And then, come down as, you know, they start to realize, Hey, we can’t keep paying your bills forever guys.

Sorry. And then we start to see, as we take away that money, see what really is happening beneath the surface. Right? It’s like pulling back the curtain and seeing what’s really behind that curtain. And I think that’s, what’s going to happen. Now, we kind of go with that quote that Wayne Gretzky’s father told him, right? Which is skate to where the puck’s going to be, you know, and that sort of thing. And yeah, no, if you’re a hockey fan, you’re gonna say, well, that’s a dumb advice, you know? Okay. Whatever. The fact is where’s their opportunity going to be? Right? Where do we go? You know, where you find that? what do we do in the meantime? Now, I honestly do not know all the things that’s going to happen, because the truth is that we’re just guessing right now.

Right? We do know more short term, but we can kind of see what’s leading up to the events. We do know that there’s a lot of money being pumped into our economy from money that’s not ours. Right? This is money that has been generated that the feds are trying to give for the government to pump out to all the rest of us. Their goal. If you’re trying to look at economics is try to keep the economy moving. Right?, To keep it pumping, you know, keep, keep blood pumping, right? There’s gotta be flow. If money’s not flowing, everything dies, right? So they gotta keep pumping this blood money. You know, that sounds horrible. This money like blood, it’s got to keep flowing to curate life in that economy once that money stops and where that money will stop, we’ll determine what happens with these different markets and whether different opportunities will show up because the best opportunities are often where the biggest pain happens.

Right? I think one of the biggest places that we will see opportunity, not quite yet. Although I think we’re starting to see it a little bit, but commercial real estate, you know, especially with business buildings, it may not ever come back. Right? It could start crashing down and shrink accordingly because people won’t be looking for physical offices. Now, I do agree that a telecommuting and whatnot has it’s place. I think there’ll be other types of you know, virtual offices and things like that will come and pop up. And that can be an opportunity too. But I think for big part, you’re going to see a lot of these commercial buildings have to get converted to something else. Right? And I think about a story of Joseph Kennedy Sr., This is Robert Kennedy and John F. Kennedy’s father. Right?

I was studying up on him, a very kind of controversial guy. When you think about it, this guy, I mean, he definitely had a pretty good ego. He was definitely smart. If anything, he was well-informed and well connected. If there’s anything that you say on the positive side, negative side, did he exploit that, you could argue that. Right? But I mean, the guy became a Bank President age of 25 back in the teens, around 1914. And the guy also like in the 1920s, decided to start his own investment firm. He worked with an investment firm for a while. And then he started his own, primarily doing things like insider trading and market manipulation, things that you see, like in the movie trading places. Right? He was highly involved in that kind of stuff, which ironically, he became the head of the SEC, the Securities Exchange Commission, right?

When it first opened up, he was one of the guys that helped spearhead that with Roosevelt. I thought that was ironic. Cause he was the very guy that would know how to do it since he had broken, what would become later laws against that kind of stuff? But he was definitely well-informed and well-connected. That’s why, you know, it’s interesting. He says that, you know, because he heard tips from a shoe shine boy, back in 1929, that he figured that the stock market was going to crash because the shoe shine boy was giving stock tips. Whether that’s true or not, it’s another story, but you can’t deny the fact that, you know, when 1929 hit, he started doing the thing that people weren’t doing the market, he had already started betting against the market. He started shorting the market, meaning that, If the market went down and he would make money.

And who knows that there’s manipulation behind that too. But the thing is he made money there. Now in 1929, he was worth about $4 million. But over the course of the great depression, he not only did he have his own cash, but he also was good at raising money too. Right? He was able to get other people’s money involved in sell and kind of sell those opportunities. He did a few things, you know one, he was buying up entertainment industries towards right towards the beginning of the depression, buying, you know theaters and studios, even radio, he helped create RKO radio. Right? He even did things with buying film production companies and whatnot. When they were going broke, he found opportunity where things were on sale. He was really good at buying things that value. He also, he even got, he got ahead of the curve.

Of course, he went into partners with Franklin Roosevelt’s son to do a Scotch Whiskey Shipping Company. So right when the prohibition ended, they were right there to start shipping out alcohol right off the get-go made lots of, lots of money off alcohol right there on 1933. Eventually he went to real estate. What did he buy? He bought commercial real estate in New York City. So he went from in 1929 worth 4 million to just six years later in 1935 worth over $180 million, which in today’s dollars would be multi-billionaire right? Well, what did he do? He went, he looked for whether it would be opportunity in the future. He was looking ahead if it was just a little bit ahead, he didn’t have to be a lot ahead. He just had to be a little bit, he was looking for opportunities.

He was looking to see where, you know, essentially where the puck was going. Right? He was looking to see what was going on with the markets and what was happening. And so, again, I’m not going to predict the markets. I’m not giving investment advice here at all. The one thing I know for sure is that many more of you have sort of reach out saying, where do we store cash? Right. You can keep it in savings. You keep it somewhere short term. I’ve had a lot of you say, let’s set up these whole life policies and do that. And that could be a great place to store cash. Even if you don’t know where to go. Even just saying, I don’t trust anything right now. And maybe I won’t for the next few years, at least I can store it somewhere where it can be earning tax free returns and it can be good.

And that’s great. Right? But you know, the truth is, is that you want to have cash. You want to have capital it’s okay to invest a little bit. Now I know of trying to buy properties right now. It’s getting harder. It’s getting harder to find. There’s still good properties out there, like for turnkey real estate, but it’s harder. You have to really fight to get these properties. So there’s not as much. And that’s okay if you’ve got cash sitting on the side a little bit, no problem. You know, just make sure it’s doing something in the meantime, or it’s available to be in your possession short term. Right? Because I really believe that when you start getting towards the latter end of 2021 or so, we will be seeing more opportunities for bigger deals. And you will be just like you were maybe in 2009, 2010 saying, Oh! Now I want the cash.

Right? And that’s when people don’t have it. Here’s where I see is going to happen. Here’s what I can predict. And I think will happen is that there will be a percentage of the population that will not have cash. Right now everybody’s feeling great. Like people are kind of starting to put money away. But I think a lot of people, what they’ve been doing right now is we’ve been propping-up the stock market. We’ve been Jacking that thing up by throwing more money in, that’s going to become the place that dumb money goes into. Right? You’re gonna see more people saying I’ve got cash. And then they’ll say that they’ve got cash early. They got cash in the stock market. You know? And I mentioned last week, there’s 43% of retail investors. The normal trade, people trading in the markets are leveraging their money in the market, which means that they’re borrowing cash from the broker to go and invest with it.

Which means that they lose, they lose double, right? It creates this. If they’re doing with options, they can lose everything. I remember had a client who was trading options before I was coaching him. This is back when I was a stock and options coach. And I remember he came to me. He said, okay, Chris, yeah, I’m investing in this option right here. I’m like, Hey! You should start the trade stocks first, get, you know, get your feet wet first there because whatever you are as a stock trader, you’re at least one level worse as an option trader cause options can go up higher, but you can lose more cash too. They’re way more volatile. And they’re not as cut and dry as stocks where stocks a little bit easier not to lose money or not to lose a lot of money in these things you can literally lose all of your money potentially in these kinds of options.

Well, anyways, he decided to do his thing. He traded on margin. The company did what was called a Margin Call, which means that when he, so he bought on his a call option. So when it goes to the price, the stock goes up, you make lots of money. Well, the stock price are going down, which means he was losing accelerated mounts of money. Well, because 50% of that money was borrowed from the broker. The broker knew exactly what price to say you’re out. So they got to a certain price. That’s Nope, for selling it out for you before you can even sell it, we’re going to sell it for you because we want our money back. They got all their money back. And when he had left was about 12%. He lost 88% of his money. And man, that guy was depressed.

He was like, man, Chris, like, I can’t believe how bad it was. Oh my goodness! Like, I don’t know what I’m going to do. And I seriously thought he was going to be a little bit like depressed or even suicidal. I was wondering if we’re going to even have calls after that, but I’ll tell you that little weapon, right? That taught him a big lesson. He was the most coachable client I had after that point. He wanted to make sure he did not lose money. He was not going to be gambling on options and trying to learn that the trading game. But that’s the thing. It’s still a game. You’re still gambling. Right? I was just trying to teach them to do it in a way that wasn’t a risky, but that’s the thing guys, is that there are a lot of people doing that kind of stuff right now.

And they’re not feeling you’re not seeing these effects, but there will be effects of this. There will be effects, where people will be losing our cash or there won’t be access to cash. I think the banks will keep restricting more and more money. They’re already doing it, but they’re being kind of quiet about it. You know, they’re saying like, Hey, if you want these PPP loans and idle loans for your business, great. But when it comes to the consumer, trying to get cash out, there making it tougher on you, aren’t they? Any of you guys have done this? No. If you took my advice from over six months ago about trying to get the home making and a lot of credit, it was way easier back in March than it is today to get that money out and they’re restricting how much you can get out.

And so there’s going to be this, I believe this cash crisis, this affordability crisis. I think there will be some inflationary things happening. The price of lumber, you know, the last year has gone up more than double, almost triple from last year. We haven’t seen the prices of new home construction go up as much yet, but there will be some of those things going up. There’s going to be a point where I think people are going to be strapped for cash. And this is where your opportunity will be is where people need something. You can help provide it. If you become the bank and bank start restricting money, you can become the bank. You can start lending your money and you can name your terms and name your interest rates. As long as it’s pretty competitive with what other people are doing. You can make more that way as well as being essentially a lender, right?

I think there’s going to be opportunities, definitely for buying assets for cheap. Possibly not like I said, not in all the real estate game, but I think there will be pockets of things, especially around commercial real estate. You’re going to see some of this stuff. So there’s going to be opportunities for sure. But you know, if you’re looking to store cash right now, maybe it’s just a savings account. Maybe it’s in whole life insurance, so you can get better return and get it protected from lawsuits and creditors, you know, whatever it might be. You know, the thing is that you want to make sure you are ready, when this opportunity comes up. Doesn’t mean you don’t invest today. That’s why I’ve got people right now. Consulting with me. We’re still buying investments. I’m still buying investments, but I’m still letting more cash build up at the same time.

434 - Illinois Real Estate Investing with Mike Fisher

https://moneyripples.com/2020/10/19/434-illinois-real-estate-investing-with-mike-fisher/

Chris Miles is joined by Mike Fisher about real estate investing in Illinois.

Mike Fisher is the Founder and CEO of Get CashFlow Today Inc. and MF CashFlow. Starting his career as a builder/contractor, he gained 20+ years of experience building customer relationships, negotiating supplier and subcontractor contracts, and performing hands-on building, renovations, and rehabilitation of homes, apartments, and other commercial structures.

In 2008, he decided to embark on a career in real estate investing, building his own investment portfolio while helping others learn and explore opportunities for developing their own real estate investment strategy.

As a dedicated real estate investor, he has developed his personal portfolio to nearly 90 units and growing strong!

Tune in to learn about his career and the advice he can provide for yours.

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/11/434--illinois-real-estate-investing-with-mike-fisher

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Chris Miles (00:08):

Hello! My fellow Ripplers. This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. A Show that’s for you and about you, those of you that work so hard for your money and you’re ready for your money to start working harder for you. Now! You want that freedom, that cash flow, that prosperity. Today, not 30 or 40 years from now, but right now! So you have that life that you love, being with those you love, doing whatever the heck you love, right? But so much more than just doing that, so much more than just about yourself. It’s about creating and blessing more lives around you by creating that ripple effect, because that’s what you do as a Rippler. You create a ripple effect with people’s lives, with the gifts and the resources and everything you’ve been blessed with to be able to make the world a better place.

Chris Miles (00:54): And guys, I’m so proud that I can be a part of that with you. Thank you so much for bingeing and sharing this with others and making this awesome. Like guys, I’ve really been so grateful for how you guys show up. And by the way, I’m grateful the fact that you guys are just real true, genuine people like you are by far the best listeners out there. I might be biased, but I know that’s the case. So I know my next guest may disagree a little bit, but Hey, you know what? We’ll fight it over later. But anyways, quick reminder, check out our website, WWW.MONEYRIPPLES.COM You got the free E-book on there, Beyond Rice and Beans. You can check out to be able to find some more cash today. And also of course there’s the, all the video blogs that these we got on there from other episodes too. So check those out.

Chris Miles (01:36): All right. So I got special guest here. So, as you know, I love real estate, right? There’s no secret about that. I know that real estate is not all inclusive. We talk about other things too. We’ve mentioned things like oil and gas before. We’ve mentioned things with, you know, different types of funds and different types of investments. But the one thing, you know, I’ll never teach about very fondly is going to be about the stock market, right? Despite the experience I’ve had there, I don’t like it, but Mike is different. Like Mike actually is all about cash flow. Just like we’re all about in this show too. He’s actually the Founder and CEO of the website. I probably should have gotten it years ago, which is called Get Cashflow Today, Inc. He’s also the owner of MF Cashflow.

Chris Miles (02:16): He started out as a Building Contractor. We’ll talk about that, where he had 20 experiences building customer relations and negotiating supplier and contracts and things like that. And being hands-on and dealing with these homes. Well, after a while he got burned out and he said, Hey, I’m going to go the real estate investment route and was able to do that from self-creating the freedom for himself, building his own turnkey real estate portfolio, where he’s got his own properties and now even offers them to other people as well. So, excited to have them out here from Good old out, just out near Chicago. But Hey! Mike, welcome to our show.

Mike Fisher (02:48): Yeah!, Dude. Thank you! Thank you! I love it, man. You’re calling your viewers Ripplers man.

Chris Miles (02:55): That’s right. They were ripped. That’s all I can say. You know, like.

Mike Fisher (02:59): Jacked up Ripplers, man.

Chris Miles (03:02): That’s right, man. So tell us more about you. Like, honestly you started in construction, but what led you down this path of real estate investing?

Mike Fisher (03:10): Yeah, so you know, I’ve been self-employed now for 29 years and you know, just doing a lot of remodeling and new construction and went through a few waves, you know real estate waves and 2003, I was like, you know what? Like, man, my body’s not going to sustain physically like this for a long time. Because I’m literally beating it up. Carrying drywall and plywood and shingles and ladders and compressors. I mean it says crunch into the bones, the back, the bit, I mean, I was going to the chiropractor two or three times a week just getting adjusted and stuff and they’re like, dude, you gotta make it. You gotta figure something out here, you know, stretch, stretch, stretch.

Mike Fisher (03:56): So I was like, you know what? I’m going to just buy one house a year and I can manage it myself. I could do the maintenance on it. It’ll be easy. This will be my long-term goal here. You know, this is my way of getting out, you know, I just, that was my vision back in 2003, like, Oh, you know, Hey one a year. So I did, I bought one in 2003, it was a house with a house in the back. So it was not a bad start, started out pretty quick. 2004, I skipped not up to a very fast start, but I had two with the first year, 2005 bought another one, now I’m buying all these in A-class communities. So, and then 2006 went through a divorce and things kinda got crazy and I couldn’t do much. So I was just doing some flips again out in A-class communities and 2007, 2008, and even adding a few more to my portfolio, still all in the A-class communities.

Mike Fisher (05:00): And I think I had like five now in 2009 and just doing some flips, really trying to really focus on homes around my area. Well, 2009 I educated myself and I said, you know what? I, there’s a huge opportunity about 15 miles East of me. And I’m like, man, I could buy these homes for, you know, 20, $30,000, $40,000 at that time 40,000 would have been a lot, but like, and then just put another, you know, fix them up. Cause that’s my background. I can fix them up, take my guys, put them over there and fix them up and put them into my portfolio and I’d be paying cash for it, go into the bank and do like five at a time or something, pull out all the equity and go out and do it again and again and again and again, and I got to the point to where I’m building up my own portfolio and there’s so much inventory out there.

Mike Fisher (05:55): I’m like, man, I could be like selling these properties off to investors and they can be cash flowing.

Chris Miles (06:02): Right.

Mike Fisher (06:03): Man, I’m helping them. And I’m moving product. I’m making a difference in the neighborhood. I’m helping the investor out. I’m making some money, of course. And I’m providing housing for people like, you know, clean, safe, affordable housing for people. And I’m like, this is awesome. So of course I have to also manage their properties and manage my own properties. So I went to a mastermind out in LA and I was just really, it was just me and a Part-time Assistant. And from there I he said, look, he gave me, I talked to him for like 20 minutes and it was a three day mastermind. I don’t know what the hell was said in the three days, but I could tell you what was said in the 20 minutes prior to even meeting in that mastermind, like the group.

Mike Fisher (06:50): Cause it was, I could have left at that point and came home and bam! And I just did what he said to do and I’ve just, I’ve never looked back. I just took off and today we’re managing 300 and I think it’s 368 properties. I’ve got my own portfolio that my team manages we’re cranking up. We’re building up right now to go to over 600 properties. So yeah, I mean, it’s just, it’s been a, it’s not a great ride. I love it. You know, I love to be able to live fully love openly and make a difference, you know, and, and just help people, man. It’s just so great. And it came to a point where you know, property management became more of a priority for me than building my own portfolio is the value of the homes went up and the rents kind of stayed level there.

Mike Fisher (07:39): So right now we’re, as far as adding to my portfolio, I’m not too anxious about adding to it. But however, we do have properties that are investors want to sell off, because they want to get into something else. Maybe it’s oil or something. You know, they’ve gotten the next new wave and they’re like, out of real estate and into oil or something, even though it was, but yeah. So that’s it, that’s how I got into it.

Chris Miles (08:02): That’s awesome. And in your Illinois, which I know like Illinois is best way to describe it. I mean, it’s not as bad as inside Chicago. Chicago’s like, you know, I call it the big HOA, right? It’s so hard to do real estate, but I know guys, like you have figured that out. Like, what have you done to maneuver that? you know.

Mike Fisher (08:21): You know, there’s a lot of little, it’s not any one thing. It’s a lot of little things, right? Because you have to know just, you have to know what to say, what when to do it, who to talk to. It’s not what you know, it’s who, you know, also it’s just, there’s so many little key factors there, especially in this business, in real estate business, if you’re an investor and say 80% of our investors are in the West Coast and I’ve not even met probably 90% of those, I’ve never even met. I just talk to them over the phone build a relationship. And you know, a lot of them never even seen the house, man. So, but like they’re so far away, they were managing their properties and that is the key thing to this business. If you don’t have amazing property management in place, it’s not a matter of if you fail, it’s a matter of when you’ll fail and when you fail, you’re going to be like what?

Mike Fisher (09:19): Like going into real estate investing that was stupid. I lost 10 grand. I lost 20 grand. Oh, that’s stupid. Well, the fact is you didn’t have the right property manager in place.

Chris Miles (09:29): Right. Especially when you’re going do it yourself or too. I’ve still got yourself around that problem as well.

Mike Fisher (09:35): Yeah. If you want to self-manage and grow, you’re not going to do it. Cause I had 30 some doors back when I went to that mastermind and I took off from there is like 30 some that’s nothing, man. I almost tripled that now. So, If you want to grow, you’re not going to do it. Even if you just want to self-manage one, my recommendation is let the professionals do it.

Chris Miles (10:02): Yes.

Mike Fisher (10:02): You know, there’s so many reasons why, and we don’t have time to get into each one of these reasons, but there are so many reasons why you should just let somebody else manage your own properties.

Mike Fisher (10:13): And if there’s any questions, I’d be happy to speak with somebody. Why? Or just go to my YouTube channel to MF Cashflow, Reasons Why Not to Self-Manage but yeah, that’s a disaster.

Chris Miles (10:25): Most people would agree on this show, people listening here, they’re saying, Hey, I’d like it to be passive as possible. Even buying the property they’re going through that. Headache sometimes seems like a lot for people, right? That’s always that barrier of entry is just buying the property. Once you do that and you have a good property manager, it’s really like watching grass grow, it’s kind of boring, you know?

Mike Fisher (10:44): Yeah. Well, we get a lot of that too Illinois, a lot of grass growing. So I, from what I understand it, California Grass doesn’t grow that much.

Chris Miles (10:52): Right.

Mike Fisher (10:52): So we got to get the grass cut, you know, four or five times in a month.

Mike Fisher (10:56): They’re like, what the hell are you guys feeding that grass out there? It’s called rain. Something you guys don’t get in California either. Right?

Chris Miles (11:03): Exactly. Well tell us, like I know a lot of people, even some of my own clients, like they’ve really, even though I’ve said differently, they’ve said, Oh, I’m so nervous about buying real estate right now because everything going on in the country and everything’s shutting down, like what if renters don’t pay and everything else? What would you say to them?

Mike Fisher (11:23): So over 60, I think it’s like 62% of our portfolio is section eight. That’s guaranteed money coming in, now a lot of people,

Chris Miles (11:33): That’s government sponsored, right?

Mike Fisher (11:35): Yeah. Some people are like, Hey the government. No, no that they’re bad tenants. Whoa! Remember what I just said a few minutes ago? If you don’t have good property management in place, be prepared to fail.

Mike Fisher (11:48): Well that goes back to putting good tenants in place.

Chris Miles (11:51): Yes.

Mike Fisher (11:52): So we screen our tenants again. If somebody wants to know more, I’ll just refer them back to the MF Cashflow, a YouTube page. We go into great, great detail on that. I know where to look. We got one person. That’s all she does is just screen tenants, very successful at it. And we know all the little scams and self like five, Oh, is it a Fiverr? Like, I’ll give you one thing. Fiverr. People can go to Fiverr and come up and they’ll make fake pay stubs, fake bank statements. Like what the hell man? So we have ways to find out about all this and just call them out on their crap and no, sorry. But yeah, that’s guaranteed income coming in is sweet. Right? The first one a month comes in. Bam! It’s you know, and they might have a small portion.

Mike Fisher (12:41): It could be, you know, I’ve seen people as small as $3 a month, as high as you know, on a $1,200 a month rent, maybe they’re paying $900 or something out of their own pocket. But the thing is that section 8 is not going to set them up for failure. And we always get.

Chris Miles (12:59): It’s hard to get approved for that too. For the section eight tenants, they have to go through a process just to get approved that property. They don’t want to move. Right?

Mike Fisher (13:06): Right. Yeah. They don’t know. And the thing is that their, that money is coming in and they’re not going to set them up for failure. That is coming. And if there is a problem, guess what? Now we go back to section eight, we got leverage.

Chris Miles (13:18): Yeah.

Mike Fisher (13:19): Back to say, Hey look, we took pictures or that tenant’s is not paying their rent. And they’re going to go call them and say, Hey, what’s going on? They don’t straighten up. Then they’re going to be out of the program. So you don’t have that with a cash paid tenant, right? Your don’t. So, I mean, there’s so many more, even with the cash pay, we don’t want to lose tenants. Cause it causes vacancy causes cashflow loss, and you got attorneys involved and you got a refresh cost and the cost of putting another tenant in place, which you’re talking about thousands of dollars, real money, man. So we want to keep those tenants in place, keep them happy and keep them in there, man. Like, cause you know, everybody goes through hard times. We’ve all gone through them. It doesn’t mean we’re bad people. It just means we going through some bad times and we’ll be like, you know what, how much extra can you pay him on? An extra 200 that’s way, better than five grand losing five grand, you know?

Mike Fisher (14:14): And not knowing when it’s going to end. So we’ve been doing this a long time for sure. Yeah. Good question though.

Chris Miles (14:20): Yeah. And right now you probably aren’t seeing the default rate really happening, are you?

Mike Fisher (14:24): No, no, no, no, no.

Chris Miles (14:26): I’d had the same experience. Yeah.

Mike Fisher (14:29): Even through Covid and you know, went into it. It’s a lot of uncertainty. Right? And it’s still coming out, shining very happy to see the smile on my face. My own portfolio is will be 100% occupied in five days. So,

Chris Miles (14:48): Wow!

Mike Fisher (14:48): Yeah, I know!

Chris Miles (14:48): That’s great!

Mike Fisher (14:52): That’s incredible. So very happy.

Chris Miles (14:54): Well, that’s fantastic. Well, if people want to like follow you or learn more about your properties, cause I know there’s plenty of people here looking for good turnkey providers in different areas. Right? And I know we’ve got a lot of people from Illinois in fact that are there saying, Hey, that’s in my backyard.

Chris Miles (15:09): How would they follow you? Like how would they find or reach out to you in contact you about that kind of thing?

Mike Fisher (15:13): Yeah. So you can just go to WWW.MFCASHFLOW.COM And there’s a contact us page on there. Go ahead and fill that out. And you can even schedule some time, you know, if you want to schedule a few minutes to talk or whatever, I’d love to talk to you also we’ve got what we call a Friday Email blast. So on a Friday Email Blast, our cash flowing properties that we already manage. And the cool part is, is that being that we manage it, chances are we’ve managed it for quite a while. And like I mentioned earlier, these investors just got, you know, the shiny object syndrome or whatever, and they want to get into oil or maybe they want to diversify and they have a large portfolio or something they just want to diversify, which is cool.

Mike Fisher (15:54): So they want to get out and you know, they they’re getting out of a home that, you know, we didn’t have the maintenance history on it. We have the tenant history on it. They’ve been with us for whatever three to five years or something. And we know the whole thing, but like where are you going? Just buy something off the MLS or some other site. You don’t know what the hell you’re here, you know? And we really have the great systems in place, the people in place to grow. And I really just want to see somebody that wants to get into real estate for that passive income, because I feel like we got such an edge on on what’s going on out there and just really like we’ve got the right systems and processes and then the edge coming that we know the history on this home already we’re here.

Chris Miles (16:42): And when somebody is on board with us, like they don’t get just a little bit of us. They get all of us, like we’re going to set them up. Like, the scary process, the draining process of the lender. Right? So we’ll set you up with two lenders, we’ll set you up with two people to do a home inspection and also for home insurance. So we make the process as simple as possible for the person coming on board. And as we’ve done this so many times, like I had a goal of a hundred doors for two years in a row and I both years I did 92 flips both. I couldn’t break a hundred, you know? So we’ve done a lot of flips, literally thousands in my life. And just to get to this point where I just like want is help people.

Mike Fisher (17:30): Cause it’s like, it’s in my blood. I love what I do. You know? And, I’ve mentioned it to you before live fully love openly and make a difference. Right? I can certainly live-off my own portfolio. I’d be bored out of his, out of my mind because I love what I do and I love helping people and I love to help making a difference. You know? Like there’s people, Chris that come over to us and be like Mike, regarding your property management, I’m with ABC property management and you know, I’ve got this vacancy been going on for three months or to maintenance is killing me or all these problems. They’re like, yeah, we’ll help you just remember though. It didn’t get like that in a week or two or even a month. It took months to get like, you know, and though I’ve had a guy from Stanford, I brought over eight units.

Mike Fisher (18:24): He was less than 50% occupied and we’ve got them a hundred percent occupied now. And it took while I was like one of the buildings, the tenant started on fire her. So it took a little while to get that building back up. But you know, and that was a multifamily. So we have multi-family and single family. I would recommend anybody if you’re going to have one get to,

Chris Miles (18:45): Yes.

Mike Fisher (18:46): You don’t want just one. Cause that’s your single point of failure. And you know, multi-family, you know, we got two unit four unit building, so that are fully-tenanted and cash flowing. So yeah, WWW.MFCASHFLOW.COM

Chris Miles (19:00): Awesome! Yeah, we’ll put that in the show notes as well, but yeah, I really check that out. Like it’s so good to have options, right? And so good to have those things in place.

Chris Miles (19:08): And I can’t tell you how amazing is from my own personal experience as an investor to have a team on your side saying, Hey, we got this handled. You don’t have to go shop around looking for this lender or looking for that insurance agent or whatever you have to do. Like it’s all done in house. It makes it so, so nice because you’re too busy. You’re too busy. You have to worry about that crap. You’re trying to build that active income right now to use that, create this passive income. So you shouldn’t be stressed yourself, that kind of stuff. So the guys check it out. MFCASHFLOW.COM Also check out his podcast, MF CASHFLOW as well, which is a fantastic show. So definitely check that out too. So yeah,

Mike Fisher (19:49): Yeah man, you need one more thing. You need four things to create every deal and maybe there’s more, sure there is, you need time, money, credit and knowledge.

Chris Miles (20:01): Yeah.

Mike Fisher (20:01): I’m sure you’ve heard it say, other people’s time. Other people’s money. Other people’s credit other people’s knowledge, but like the investors have the money and the credit leverage our time and our knowledge and you got something that is going to be cash flowing, man. That’s going to make a difference in your life. Have the Ripple effect. Right? That’s it.

Chris Miles (20:23): Right. Well, it’s so good to have a team because you can’t afford to screw it up yourself. You know like when people try and do it themselves, I’m like, okay, you probably should have bought that property in the first place. Let’s go to a turnkey person. Let’s have them look at it, you know, get to something and get it done. Right. You know, and I totally agree. So Mike, again, appreciate your time man. And appreciate having you on. And, and again, everybody check out his stuff, you know, should go MF Cashflow guys, and WWW.MFCASHFLOW.COM

433 - Are We In A Bubble

https://moneyripples.com/2020/10/16/433-are-we-in-a-bubble/

Is real estate at an all-time high?

What will happen to the Stock Market? Gold & Silver?

Is this a repeat of Y2K?

What will the Recession look like? Are we in a global recession?

Find out what bubble has your money in danger, and where it is safe with your money a Chris Miles provides his thoughts and predictions due to current and upcoming events.

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/10/433--are-we-in-a-bubble

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Hello! My fellow Ripplers! This Chris Miles, your Cash Flow Expert, and Anti-Financial Advisor. Guys, thank you so much for joining us today because this show is for you. And it’s about you. It’s about those of you who want to create passive income today, multiple streams of passive income. So you work because you want to, not because you have to, so you have that life to live that dream life. We can be, do what you want with those. You want whatever the heck you feel like it. Right? But on top of that, it’s so much more because you guys want to create a ripple effect by blessing more lives, because as you become free, as you become relaxed and stop worrying about the mundane and surviving, and you start to thrive, you can create a greater impact of good for those around you and guys, I’m excited that I can be part of that ripple effect with you.

Again, thank you for bingeing and sharing and, applying these concepts here today. And thank you for those that have reached out to me that say, Chris, I think I’m ready for you. I think I need help to take this to another level, whether it’s been on the infinite banking side and doing things there, or it’s been on the consulting side, you know, but you guys seriously inspire me and fire me up. So thank you so much for being a part of this. Here’s a reminder, check out our website, WWW.MONEYRIPPLES.COM But also remember to check out our YouTube channel, which is Chris Miles with Money Ripples, if you check out our YouTube channel. We’ve got all of our podcasts. We start to upload there on video as well, as not just the podcast version too. So check that out today, guys. I want to, I’ve had a lot on my mind.

I’ve been listening to different people in the marketplace. I’ve even been pulling out Kiyosaki. I take a little piece of Humble pie when Gold and Silver dropped and Bitcoin and things like that. And he’s realizing, okay, there’s different markets and you can’t get sold on one thing. But the big question that I often will have people ask me is in one way or another, are we in a bubble, right? Like with what’s going on right now? How is this working? How is it possible that the stock market’s hitting all time highs when there is no reason for those all time highs? For example, how do we hit all time highs? When the Gross Domestic Product, the GDP is down like 30%, right? How is it possible that we’ve got 10% or more unemployment? And we’re hitting all time highs in the market, right?

How is this even possible? How is it possible if the country being partially shut down? And this is where you start to realize that the stock market and the economy are not the same thing and what’s going on right now. There, Are there bubbles? Yes. There’s a big bubble here. And what’s happening is that the bubble keeps building up. Have you guys ever blown up a balloon? You just keep blowing it up and blowing it up. And you get to that point. Cause even though from bad experiences as a kid, and when you blow up a balloon too much, it pops in your face. It’s scary. And sometimes it can even sting, right? Well, you blow up the balloon. You know, it’s getting that point. Like it’s bigger and bigger and you’re like, Whoa! Do I keep going? Because if I keep going, will it pop?

Right? We’re in a point where we’ve stretched this balloon beyond what you thought was possible. Haven’t we? You haven’t expected to do this. I told you that the timer right now is perfect. Real Estate’s an all-time high there’s bidding wars going on, where people are, your value of your home is being driven up. It’s a great time to access cash from your home, whether you sell it or get the cash out from a refinance. Although they’re trying to penalize you for doing cash out refinances right now, depending on the kind of loan you use it’s a great time for money in the market because right now the markets have hit all-time highs. You have more money in the market now than you probably ever have. The question is now what? And I’m here to tell you the bubble will pop.

It may not be in the next few months, but I’m telling you there is craziness, crazy things happening right now that remind me of Y2K, you guys remember that one, right? There were some weird things that happen there. And by the way, Y2K didn’t go straight down. No, we’ve never had a recession where it just goes down, down, down, down. And if you think the recession happened back in March, right? That it goes down for a couple of weeks and pops back up that little V-shape type recovery that people talk about, Oh my goodness! You are delusional because recessions don’t work that way. And the truth is we are still in an economic recession and we’ve got a global recession going on too. But the stock market doesn’t show it as it. And this is where you can fall asleep at the wheel.

Because if you’ve got your money sitting in the market, you’re going to say, well, just keep it in there. Well, when it goes down, you’re going to say, well, it went down, back in March, it came back up. I don’t want to lose money. So you leave it there. And then what happens next? You can actually hit a real recession. And even the market where reflected worst case, you know, we can be up, you know, in a good, strong economic times. The market go down. We could be in weak economic times of marketing can go up. The question is, do we really want to be in a place that you can’t even predict? Even, other people are just, we’re at a point of euphoria. Most people are just saying, you know what? All that doomsday stuff, that’s just a joke. Tech stocks are great right now buy Tech, buy Tesla, buy Apple, by the way, when you start hearing normal people say, buy something.

That’s when you should get out of it, you know, and you’re going to see this happen more and more, by the way, when you see Tesla jump up by over eight times, but Tesla is not really posting that big of a profit. There’s a problem when Apple and Microsoft, or even like, you know, Amazon when they’re massively swinging up, but the money’s not there. The earnings aren’t there, they’re just doing it off a speculation. You should fear that when there’s greed in the marketplace, you should fear that when there’s fear, that’s when you can get more greedy again, fear and grief is to stay out altogether. Those are emotions of scarcity, right? But you got to understand, when everybody’s starting to throw money at something, that’s when there’s a, and the more they throw money at it, the bigger it is. And what’s happening right now is the government’s keeps throwing money at us to keep that market propped up.

Because if it looks like we have a strong economy, you’ll re-elect Trump. Whether you like him or not, you’re probably going to re-elect them because presidents don’t lose. When the economy is strong, when economy goes weak. That’s when new presidents come in. So of course they want to pump money in the market, right? They want to put money in your own pockets so that you keep spending money, but what’s going to happen after re-election? Say he does get re-elected. What’s going to happen next? He’s probably not going to keep pumping money in your pocket. Because he doesn’t have to campaign for your votes anymore. He’s in office for four years. The same thing happened for Obama. He stopped really trying. He kind of went a little bit lazy for this last term. When Obama hit that last term, he was like, Hey! I got my healthcare plan in.

I got re-elected, smooth sailing. You know, he did a few things, but he really didn’t do a lot. After that point, Trump, might still do some things if he gets re-elected. But the truth is that he’s not going to have to try to force pumping money in because it’s artificial. It’s not your money. It wasn’t produced from you. Economies are strong when there’s production, when manufacturing is down. By the way, the reason you’ve seen the market’s up is because it’s very tech heavy. The S & P 500 is very tech heavy. If you look at like the other indexes may like the Wilshire 5,000, it’s not as much tech stock heavy. Right? But the NASDAQ do not look the NASDAQ during Y2K. The NASDAQ tanked 80% because there was a tech bubble boom or a bubble burst, right? There’s a bubble boom.

And then it burst. So NASDAQ dropped 80%. I think you’re going to see something similar to that here. Especially in Tech Stocks, because people are pumping money into Tech Stocks, there’s Tech Stock, there’s IPO Tech Stocks that get this, have don’t even have a single dollar of profit. They haven’t hardly produced a company or a product yet. And people are trying to throw money at these Tech Stocks. Guys, this kind of speculation should concern you. And there’s people, there’s mutual funds and companies right now. And even hedge funds managers investing in these things. The bond market I mentioned before that there was a bubble in the bond market, especially corporate bonds. Well guess what? The feds are pumping money into that. So that’s staying solid, right? When you got money being pumped in that what’s gonna happen with the bond market? Is it possible that we could see a stock market and a bond market?

Like the last recession, both drop? Could we actually lose money in both those areas? So you got to start questioning what is going on here? Because, there is not a support to go there. By the way, I started looking at I started getting a membership to the Wellington letter, which talks about a lot of these same things and even goes into the depths of it. So if you really, if you check out a what’s his first name? Bert Dohmen, D-o-h-m-e-n, you look up him, he’s actually got a letter. He prints out a letter that analyze the markets and he’s predicted seriously predicted the economy and the crashes accurately for years. Right? He’s saying the same thing he’s saying right now, it’s ridiculous. Even predicted that gold would drop, which it did last month. It dropped a little bit.

He said, Nope, it won’t sort of 3000. It’ll drop a little bit. It’ll come back up eventually. But short term, you’re not going to see that happening. Like what Peter Schiff was saying, right?. Things like that are going on right now. There’s so much in the marketplace that is out of whack. So the question is, what can you put your money on? Where can you invest? Where should you be looking? Now there’s two things I would recommend to look at. I mean, first and foremost, like, I like to go into things I can control. That’s what I like to do. This is why I invest in business. I’m even looking at franchises, American Daily. I’m looking at franchises for myself right now. See if I want to add that to my portfolio. You know, but even my own business, my, I can control this.

I can manipulate the returns of my business, regardless of what’s going on in the world. Now, world can still affect things just like it could do with anything else. But if I can control it, I can manipulate it and make better returns. I can pull it out of the mire. If something goes wrong, I have control. And therefore peace of mind. I know with real estate, certain kinds of real estate, when I own it and control it, I can do that. This is why I’m still buying real estate right now. Those are all things that I’m currently doing. I’m not saying I’m recommending you do this, these investments. I’m not saying that’s what is for you. I’m just saying there’s plenty of opportunity. There’s plenty of things you can do that are way more certain than bubble markets right now. And there are some crazy markets, especially in the stock market.

And even you haven’t heard it much lately, but I believe the bottom market. You’re going to hear more about that in the future. Now, here’s the other thing I say, watch for scarce resources really keep an eye out for what’s becoming scarce. I think there’s a lot of things with all the news and all the hype and everything going on. There’s things happening right now that aren’t also adding up. For example, I mentioned manufacturing has been an issue, right? Have you noticed going to the store lately that it’s hard to find certain products still, this may not be toilet paper anymore, although that might still have an issue depending on where you’re going. But if you noticed that certain items, even foods aren’t as readily available as they were. Guys, I said this before, I’m going to say it again as a huge word of warning.

One of the first places you should be looking to invest to protect yourself right now is in things with emergency preparation, things like food, water, emergency supplies, those kinds of things. Get that. Now that it’s already getting harder, like I already know, trying to buy these things. There’s people already thinking the same thing. They’re buying it up, right? By way Chinese, the Chinese people are buying copper right now. We’re buying tons and tons of copper, right? They’re loading up. Why? Good question. Why do they want copper? Now? I’m not saying go invest in copper, right? I’m just saying there are some resources out there that are scarce and that are becoming scarce. I think properties in some ways they’re becoming scarce a little bit too. You know, trying to find properties, not everybody’s selling it’s a lot of times I’m gonna build properties right now have to do construction, you know, to find properties because honestly like people are still coming to this country.

The people are still immigrating here and there’s still a lot happening. So anyways, look for scarce resources, but really build your emergency reserves, build your savings, right? Again, you know, you don’t have to keep it all in a bank earning 0.1% and getting taxed on 0.1%. That’s where, like I talked about the whole leasing life insurance is a tax free supercharged savings account that you can use to do that. Right? You can design policies to be low cost and allow you to have more cash in them and get better returns than making nothing. You know? You can do things with, again, not just storing cash, but storing real assets, real food, real water, real stuff that you need. Again, you’re in different places of the country or even the world you’ve got different needs. Right? But I would really start looking there. Look there first and yeah, you’ve got more money.

Cool. Invest it. But invest in places. You can control that. You can do something about it. If something goes wrong, you can pull it back out of that hole. If it even better, if it’s good, can you even make the returns better than they are like working have control. And there’s few places to do that. I’m not saying you don’t put money with people that might have certain funds or anything like that. Those could still be good. But I’m just saying that right now. If you’re looking for certainty, you want to make sure that you’re in place, that you can control the returns. No, those are going to be the easiest, most, a peace of mind type places to be. But again, make sure your defense is in play. Then focus on your offense, defense, offense. You need both. And when there’s bubbles and I’m telling you, I think there’s going to be unemployment.

It’s going to skyrocket soon. There’s going to be more. There’s going to be more things that are going to happen that will affect our markets. I might sound like a doomsdayer, but I know I’m not the only one. Like you can just feel it in the air. And I know many of you have talked to me and asked me and said, Chris, I feel like something’s not right. Something’s not adding up. And you are 100%, right? People are pulling their money out of bonds because it’s too cheap. So the feds might be pumping money into bonds, but people are pulling their money out. Investors are throwing the stocks. That should be concerning. If they’re, everybody’s trying to throw their money in stocks and get this. I just saw the article today. They said 43% of retail investors, retail investors are people like you and me, right?

As normal investors. 43% of people are leveraging money. That means they have, they’re actually trading on margin. That means if there’s a loss, they see massive impact it’s. Now, if they get gains, they make a lot more, but people are becoming speculative, gamblers guys, you don’t want to be here. I had a guy reached out to me just yesterday saying, Chris, they’re doing this digital currency, this digital currency. I’ve been making six to 14% a week. And I said, bull! I said, it’s impossible for anyone to maintain six to 14% a week. Or you would be richer than Jeff Bezos in the next 10 years. Not going to happen. And he’s like, Oh!, But it’s, it’s good. It’s I’ve been paid that every time, like good luck buddy. Guys, there is so much speculative speculation and greed and stupidity, plain old stupidity out there right now.

The best thing to do is not get caught up in the hype. Don’t think you’re missing out on anything because you’re not the only thing you’re missing out on. If you’re buying, if you’re not buying real assets, real things, not paper, crap, not the fake stuff, but real assets. Yes. There’s opportunity there. But the fact is that you guys, it’s a ticking time bomb. That balloon will pop. It just depends on how long you’re going to wait for them to keep pumping air into it until it does. And the longer and bigger it gets that balloon, that bubble that gets the bigger, the pop. And it’s going to be heard around the world. So guys, get your crap in order. Make sure you’re doing what’s right for your family, doing what’s right for you. Don’t be the gamblers. Don’t be the dumb money that’s being in the markets right now because there’s a lot of dumb money.

432 - Mistake Free Real Estate with Marck De Lautour

https://moneyripples.com/2020/10/14/432-mistake-free-real-estate-with-marck-de-lautour/

Chris Miles has the opportunity to talk with Marck de Lautour about mistake-free real estate.

Marck de Lautour graduated with a Masters Degree in International Business Management, from the University of Missouri – Kansas City. He is the Founder and CEO of SBD Housing Solutions, a Turnkey Investment provider based in the Kansas City area. He has been investing in real estate since 2002 and has successfully flipped over 1,100 homes in the United States of America. His property management firm currently manages a total of 560 rental homes.

Tune in to hear Marck’s amazing story.

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/05/432--mistake-free-real-estate-with-marck-de-lautour

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Chris Miles (00:00): Hello! My fellow Ripplers. This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Hey! I’m welcoming you out for a wonderful show. A show that’s for you and about you. Those of you that work so hard for your money and you’re ready for your money to start working harder for you now. So you work because you want to, not because you have to, so you can have all that freedom, that cash flow, that prosperity. Today, not 30 or 40 years from now. If the market just happens to smile on you the right way, but right now, to ensure that you have that life of freedom, that life of comfort and ease, but on top of that, more than just having that life of comfort, right? More than just having that wealth, it’s much, much more because as a Rippler, you’re here to create a ripple effect in the lives of others, not just your family, which is great to create a legacy, but the lives of those around you to bless more lives.

Chris Miles (00:56): And guys, that’s the real purpose of creating wealth in your life is be wealthy in all areas, not just with money. And so guys, so appreciate having you guys here, you guys have been bingeing. You guys have been, you know, downloading and going crazy with these episodes. I appreciate it. Those of you guys that have gotten 50 episodes, good job! You got 300 and some odd more to go. So keep going. But you know, Hey, I appreciate you guys sharing this and really making this ripple effect possible for me through your lives. As you are able to create a ripple effect through others, check our website WWW.MONEYRIPPLES.COM There’s great stuff on there, including blogs, including even videos of this show that you can watch on there. So check that out. So today guys, I got a special guest, a guy I’ve known for a few years now and definitely someone that I admire and respect greatly.

Chris Miles (01:41): It’s actually somebody we’ve been talking about getting on this show for a while and now we finally made it happen, you know? So this guy is Marck De Lautour and one of the big questions I get from many of you is okay, Chris, with everything going on in the world, should I, you know, should I really be investing in real estate or is real estate the best way to go? Or is there something else? And that’s exactly what I brought Marck here to do, because some of you guys, I mean, some of you guys wonder like, Hey, is it going to go to heck in a hand basket, right? You know, from, you know, to make it, you know, G rated for you guys on this show. So anyways, let’s, you know, a little bit about Marck, you know, Marck De Lautour who were actually graduate with a Master’s Degree in International Business Management at The University of Missouri, Kansas City, He is the Founder and CEO of SBD Housing Solutions, which is a Turnkey Investment Provider based in the Kansas City area.

Chris Miles (02:27): He’s been investing in real estate since 2002 and it’s successfully flipped over 1100 homes in the U S his property management firm currently manages a portfolio of about 560 rental homes. And so the big thing of course, guys, that I’m just like, I’ve had a few other Turnkey Providers here before Marck is definitely one of those guys in the KC area and it’s knocked out of the park. So Marck, welcome to our show!

Marck De Lautour (02:51): Chris. Thanks mate. It’s really good to be here.

Chris Miles (02:54): So tell us, obviously, like I know, you’ve been here to Missouri for quite a while, right? Tell us a little bit about your backstory because we could tell by your accent, you’re not from Missouri or Missouri, sorry.

Marck De Lautour (03:06): Yeah, no, actually the irony is I’ve actually lived in America longer than I’ve lived in New Zealand, which is quite strange, but now born and raised in New Zealand went to a private boarding school, which I think developed my leadership traits from a young age. Very entrepreneurial came over here to get my undergraduate degree on a tennis scholarship actually. So I played four years of collegiate tennis and then stayed on to get my MBA. While I was there, I fell in love, got married and, and stuck around. So I always say that tennis brought me to this country, but love kept me here.

Chris Miles (03:38): I know that feeling. That’s how I got stuck in Utah. It’s like, wait a minute. What happened here? Now? I got my wife and kids and they say you know that here you are that’s home, right?

Marck De Lautour (03:48): No truly blessed. I love Kansas City. And you know, I only graduated with my MBA in 2001, so I’ve never had a job, Chris, I’m a little bit unique in that. I you know, had the blessing of my partner, my wife who actually we celebrate 20 years married next year. Yeah, she was able to support us from the beginning when I just wanted to go and try flipping a house and stumbled across and made all the mistakes along the way I have made them all. But yeah, we’ve now successfully flipped, like you said, over 1100 homes, which sounds like a crazy amount, but you know, it just starts with the first one, right? In that first one, we happen to make money. And so just kept on going and I’ve never done anything since it was really the downturn in 2008.

Marck De Lautour (04:35): When things changed for me though, and that’s when, you know, the Turnkey Operation became a reality money was very tight. And I actually got burned from a bad business relationship at the time. And so I kind of got back after being, you know, a millionaire by the time I was 30 suddenly got back to literally zero, all the, my I’d built up, we had 120 rental property. Had a really good you know salary coming from the business and all that got stripped away and I was back to nothing. But, through all of that, I was you know, would flip to probably at that stage about 400 homes. You know, I had a really strong business. We’ve been in business to get a seven years. I’d been the sole operator with two silent business partners. And even though they become became unsilent and kind of, it became a two on one operation that kind of led to the downfall. It was certainly an opportunity for me to say, Hey, look, I know what I’m doing. I’m just going to keep doing the same thing over and over. And that’s when it led to, well, how about I just do it for other people and use their money to get me through this downturn until I can do it for myself again.

Chris Miles (05:39): Right. It’s interesting. Cause like you went from tennis to turnkey, which is interesting. Right? But you know, I love the fact that you went and you got burned because a lot of people’s fears, especially those have never really been much in real estate is getting burned. Right? And essentially, cause you have a book that just came out called Mistake Free Real Estate, you know, and obviously it hasn’t been mistake free for you. So tell us more about that and just some of the lessons that you learned.

Marck De Lautour (06:06): Yeah. Look, the mistake is very much, I mean the the title of the book, Mistake Free Real Estate is very much tongue-in-cheek. But the idea is that partnering with a Turnkey Provider who has already made all the mistakes and real estate is a really good way for a passive investor to avoid those mistakes and be able to invest in real estate mistake free. So yeah, no, it look I’ve you know, bought the wrong house. I’ve bought a house with termites. I bought a house with a crumbling foundation. I’ve had vandalism with AC’S getting ripped off and I mean, you name it. But what you learned through all of that is how to avoid those mistakes from happening in the future. And you know, I think anyone who can be knocked to the canvas but keeps getting back up, I think that would be a good description of my early years and, you know, through resilience comes the power to you know, educate and learn and help others through that same process.

Marck De Lautour (07:00): So yeah, I mean, look, my real estate mistakes have really been, I’ve been very blessed. I mean, they’ve been few and far between with, you know, through the first 400 homes, I’m proud to say we actually never lost money on a real estate deal. You know, because buying on the courthouse steps were just getting massive rips at the time through a largely untapped channel of acquisition. And so we were able to go and buy houses for 30, 40 cents on the dollar. So, you know, even if you have termites in the house, no big deal, you rip out the wood, you replaced the bed wood with the new wood and you move on. And you look for that. And the next one, if you have an AC unit ripped off or vandalism, sometimes you use the insurance because that’s what it’s there for.

Marck De Lautour (07:40): Sometimes you just roll with the punches and you figure it out and you move on. Or, and honestly there were times when we got upside down on a house, but the great thing about real estate is it can still cash flow. So, you know, you don’t realize a loss if you don’t sell. And so we would just sometimes just hunker down and get it looking as good as possible. And even if we were all in for house at a hundred thousand, that was only worth a hundred thousand, well, let’s just cash flow it. And in five years time you know, you can either sell it at that time or continue to cash flow it. So I’m a buy and hold investor at this stage in my life. I know that I’ve you know, I’ve made enough mistakes to know where to buy, what to buy, how to buy it. And so now we’re just trying to lead others through that same through those same paths, Chris,

Chris Miles (08:26): You know, you mentioned some that there’s a big difference in mentality between that. And like when people try to invest in the stock market, right? Because what you just said was key is that you say, when you know, with the value of the home goes down. Right? In that case, and that doesn’t happen very often. I mean, out of the last six recessions,

Chris Miles (08:41): That only happened once. Where we actually saw values decline from point A to point B of a recession, right? From beginning to end. And that was the last one. You know, I’m not saying that won’t happen again. But what you said was key is that even if you, your value goes down you said the same thing people in the stock market will say, which is, well, as long as you don’t sell, you don’t lose money. But the main difference though, is that you’re actually getting paid. You know, we’re in the stock. You don’t, there’s not cash flow in the stock market, but with real estate, there is. And so for you, the value is like, well, value is irrelevant. If it’s paying great cash flow, if it keeps doing what I hoped it would do, who cares? Because if its stock is declining so that the stock lost 20%, and then you pull money out, that’s, I mean disinvesting, right? That’s actually pulling out money. So if say you lose 20% and they pull out another 10, now you’re down 30%. There’s no way you’re going to get back up to where you were. And like you said, like, Oh, now I just have to hope I don’t run out of money too quickly. Because I just pulled out money when I was losing. And that doesn’t happen with real estate.

Marck De Lautour (09:44): Yeah. Look people asking the wrong questions, Chris. People are asking, you know, how much is it to buy that house? What they should be asking is more like, you know, I liken a house to an ATM machine. Okay. It’s just a box that money comes out of. So instead of asking, how much is it for that box? They should be asking with how much I have to pay for it? How much does it give back to me each month? Or how much is this box returning to me every single month? Because a, like an ATM machine, you have to have dialed in maintenance and management to make sure that that ATM machine is primed at the pump that it’s still able to cycle through and spit the cash out. That the cash is still cycling in each month. AKA attendant is paying on time. And so management is key and that’s obviously one of the four pillars from, from the book.

Marck De Lautour (10:29): You know, we talk about you know, dialed in property management, but they’re just asking the wrong question this day and age, I mean, even if I have an investor that saying, well, you know, I want to make sure my house has equity. I’m like, well, I can give you a house with equity just done cash flow very well. I would tell you not to buy that one, but I’ve got another one that cash flow is really, really well that you may have to pay a hundred percent of market value for today, but if you’re not going to sell it down the road, what does it matter? What it’s worth today? You just want to buy houses that are really strong cash flow.

Chris Miles (10:58): Yeah.

Marck De Lautour (10:59): That’s the key.

Chris Miles (11:00): It is. If it keeps paying you, there’s not really a reason to get rid of it, you know? And I know it’s one of your beliefs in real estate is kind of key to, for, because most people that are nervous about getting real estate. I mean, I think turnkey is a great way, because like you said, it’s more done with you in the sense it’s somewhat done for you because you’re managing the property. You’re taking care of all the hassle, you’re finding the right properties for them. Right? But the other thing too, is that sometimes they get people saying, well, maybe I’ll just start off buying one. You know, what do you think about that philosophy?

Marck De Lautour (11:32): I think it’s awful. In fact, we don’t allow it when people come on board with us. So we insist that they buy a minimum of two or three asset minimum two, but we prefer three. So our ideal strategy for an, a new onboarded investors, you buy three assets up front and then one per quarter for the next four years. And lo and behold, you’ve got 23 assets after four years and then you’re aggressive or four or five years. And then you start aggressively paying down those assets. So we scale with leverage and then power down the debt, you know, real estate is best done at scale. It, you know, to have one or two assets, you have one bad little experience and people are crying. Oh my gosh! my cash flow is all gone. Or, you know, I’ve got, I’ve got a hundred percent vacancy.

Marck De Lautour (12:15): It’s like, well, yeah, you have one house. I mean, if the tenant moves out for a month you know, you might be burned. But if you have 20 homes and one person and moves out, then it’s no big deal. I’m look, I’m a believer in real estate. I’ve been doing it a long time. I own 70, you know, single family goals, myself you know, proud of the fact that, you know, I am choosing to work rather than needing to work. I, the cash flow that spits off from those 70 assets is enough to support my family. And we’ve been aggressively powering down that debt for a long time now. So I think our cumulative is somewhere around a 50% LTV. And you know, that’s enough to really give you some nice cash flow through that time period.

Chris Miles (12:53): Right. And do you refinance along the way? Or you just try to just keep powering down and paying down that debt until eventually it’s paid off?

Marck De Lautour (13:00): Yeah. Good question. I mean, those investors that bought in with us about 10 years ago, absolutely. That refined now into one note. The other thing I, you know, when you’re buying one at a time and using leverage, it is a little cumbersome. I got to the point personally, where I had, you know, about 40 different loans on 70 doors. And it was just kind of, you know, each year I’d be having to refi’s and you know, wondering what the rates were going to do? So, finally actually in January this year. Thank the Lord. I was blessed to actually you know, do a massive right term refi. And so now I have one loan on all of my assets. So which is, which was great. And a couple of reasons, one you know, I actually, I was, I’d paid them down to about 30% LTV.

Marck De Lautour (13:44): So I actually did a cash out up to 50% LTV debt free on my personal home and a couple other things that I was able to infuse the business with some additional capital and real estate is a great thing, right? I mean, I had held these assets all the way since 2002, three, four, five, six. I mean, I’m just an accumulator of assets, but through asset accumulation, you have options. You can obviously, you know, if people think of real estate being very illiquid, I disagree. I think it’s pretty liquid because you can always again, given time you can always pull some cash out. You can pay it off. You can, if, so, if you have more capital, you can pay it down and get more cash flow. If you need a bit, you know, a chunk to go make another transaction, you can leverage it and then go take that cash and infuse it into another deal that you’ve got going. So we were fortunate in January to be able to do a, so now I have on one loan portfolio, it’s been nice.

Chris Miles (14:38): Yeah.

Marck De Lautour (14:39): That didn’t work 10 years fixed at 4% buddy. So but the plan is to have that paid off in 10 years time as well. I’m kind of done with the debt thing,

Chris Miles (14:48): Right? Yeah. Just get it done with for you, right?

Marck De Lautour (14:50): Yeah.

Chris Miles (14:51): Well then they’re free and clear. And then you got the cash flow it’s, you know, other than the property management fees is basically your profit, you know.

Marck De Lautour (14:57): It’s pure profit. So, you know, the math for us in Kansas City is about a thousand dollars per door per month after management fees. So once these things are paid off if you have 20 assets, that’s about $20,000 a month of passive income. So again, with our investor clientele base, we’re saying, Hey, scale up to 20 doors, then aggressively pay down the debt. And so that you can get debt-free you know, scale up in five years, aggressively pay down debt in five years. So in 10 years we’d like to have them completely debt-free and with about $20,000 a month of passive income.

Chris Miles (15:28): Gotcha. Awesome. Well, now if people want, this has been an awesome stuff and I know people want to get this book and get access to it. Because I know with your system, the great thing is they can have a big portfolio, but not have to worry about managing all the little details you handle that kind of stuff for them. You know, if people want to learn more about your system or about, or even get your book, what would they do?

Marck De Lautour (15:49): Sure. So you can visit our, We have a landing page for the book specifically. Our company is called SBD Housing. It’s out of Kansas City, Fostering Key Provider, but for the book specifically a WWW.MISTAKEFREEREALESTATE.COM So jump on there, check it out. You can download a free chapter if you like, what you see, just click through and Amazon will print and ship it to you. So, yeah, it’s amazing times.

Chris Miles (16:13): I love it. Awesome! And you have a podcast as well, coming out called the MISTAKEFREEREALESTATEPODCAST right?

Marck De Lautour (16:18): Yeah! That’s going to be very new. We’re just kind of accumulating a, you said 400 episodes of your own. I’m like, wow! That’s impressive. How long have you been doing the podcast to get to that number of episodes?

Chris Miles (16:29): We’re in our sixth season right now?

Marck De Lautour (16:31): That’s impressive. Well, congratulations, Chris! That’s awesome.

Chris Miles (16:34): Thanks.

Marck De Lautour (16:34): Yeah, we’re very much on the infancy of that. You know, the irony now, as you all know, is that we actually don’t need any more investor clientele, to be honest, because it’s an inventory issue. I mean, if you just have 30 investors that are buying one per quarter, that’s 120 doors. Well, we only spit out around 150 doors a year. So I mean, we don’t really need to onboard that many new investors. But having said that I’m passionate about educating and explaining to people, you know, what the turnkey model looks like and how to identify good Turnkey Operator.

Marck De Lautour (17:03): There are some people out there in the industry that, you know, say they’re a Turnkey Operator, but all they have done is that partnered with a Property Management Company. So they buy and rehab an asset and then sell it to you. And then they’re like, Oh, by the way, there’s another guy that’s doing the Property Management. That’s an inherently flawed model and that is not full turnkey. I dissuade anyone from going down that model because they get burned typically with a non-performance on the warranty issues. And then also the management companies now. Oh, great! Now we’ve got another guy to come in here and gouge through fees and maintenance. So read the book if it resonates with you. Literally, my I put my email address right there on the website, so people can reach out to me if they have any questions.

Marck De Lautour (17:45): I’m just passionate about people doing it the right way, because you know, passive and real estate for the longest time period, Chris has just been, it’s been ignored as a retirement vehicle. And I feel like everyone from a young age has just taught, Hey, when you start your job starting this in the stock market. And it’s just the wrong mentality and real estate is available to those that have a small nest egg and can start really powering down and aggressively going off to some real estate. It’s a, it can be done passively. It is risky when you are doing it yourself. In fact, I say in the book. One of the, you know, the most risky forms of assets out there are, you know, stocks, individual stocks, but another one that’s highly risky is self-managed real estate for actively working, you know, professionals.

Marck De Lautour (18:34): I mean, if there’s a dentist that’s doing you know, real estate on the side, that’s an extremely risky venture for him because he doesn’t have the experience, but Professionally Managed Turnkey Real Estate is one of the safest vehicles out there. Truly it’s very, very hard with a buy and hold mentality to lose money in real estate.

Chris Miles (18:53): I totally agree, man. Well, man, I appreciate this so much again, everybody checkout WWW.MISTAKEFREEREALESTATE.COM Right? To get the book and then definitely check out his podcast and MISTAKEFREEREALESTATEPODCAST as well and follow Marck. That’s awesome stuff. Great information, Marck. I really appreciate it today.

Marck De Lautour (19:10): Thanks, Chris. Really enjoyed your time, buddy.

431 The Greatest Pandemic of All Time

https://moneyripples.com/2020/10/14/431-the-greatest-pandemic-of-all-time/

There is Hope, but our society is heading down a path of destruction.

How does scarcity affect your stewardship?

Are you lazy and prideful?

Today we are talking about the Greatest Pandemic of All Time. And I’m not talking about COVID-19. What I’m talking about is something that every single one of us will come into contact with. It is spreading throughout every country around the world.

This would have been in your home every single day not just this year, but in previous years as well. And it’s destroyed so many lives. What I’m talking about today is SCARCITY.

Tune in now to find out more.

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/09/03/431--the-greatest-pandemic-of-all-time

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Hello! My fellow Ripplers. This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Guys, I’m welcoming you out for a show that’s for you and about you. Those of you wanna, you’re so tired of working so hard for money. You want your money to start working harder for you today. You want that freedom, that cash flow that prosperity right now, not 30 or 40 years from now, if you’re lucky, but you want to be able to work because you want to, not because you have to be able to spend that time doing what you love with those you love. Whenever you feel like it, you have that freedom to be able to do those things. But on top of that, you want to create something greater. You wanted to create a greater impact in the world, a life of meaning and purpose. Be able to use the God given talents and gifts you you’ve been given.

So you can use the spill, spread that to others, to build, create that ripple effect in people’s lives and not just your children, but everybody else around you too guys. And that’s what I’m so excited about today, guys, because you’ve allowed me to create a ripple effect through you and this show’s been growing and it keeps expanding. And that’s all because of you guys, right? Seriously, you are some of the best listeners I’ve ever had. And I would argue to say, we’ve got the best listeners out of any of these shows here because you guys are here for something more. You’re not about the status quo. You’re not here just to live a life of , you know, just live a life of mediocrity, right? You want something more and that’s what we’re here for. And that’s why I’m here for you. So thank you so much for checking this out.

Check out our website, WWW.MONEYRIPPLES.COM There’s great other videos and blogs that are on there as well as podcast episodes, you can check out and a free eBook, Beyond Rice and Beans. You can check out there today. So check it out. All right guys, So I want to talk about a massive pandemic. That’s been spreading and it’s been getting worse this year. Guys. I’m not talking about COVID-19. That is by far not the most pervasive virus, the most pervasive pandemic we have going on right now. If you think that’s the thing that I should be worried about, then you’re falling into the trap that everybody else is falling into, because that is not what we should be concerned about today. That is very little, very few of it would even be impacted by that. But I guarantee what I’m talking about today. Every one of you are going to be affected by every single one is guaranteed to come in contact with this pandemic, this virus that is spreading throughout our societies throughout every country, across the world.

And it’s in your very own homes. In fact, I guarantee it has been in your home every single day, not just this year, but probably to your entire life. And it’s been affecting you. And you may not even notice it. This pandemic has nothing to do again with, it does actually have something to do with your health. It does kill people. Literally does kill people. It has been known to start Wars. It has been known to actually devastate entire societies and even destroy them at its worst at its best. It has actually created lives of well, of lack. It’s created a life of fear. It’s created a life of suffering. People have committed suicide over these very things like this is something that is really pervasive into all aspects. It’s helped. It’s destroyed people’s faith, it has destroyed people’s hope, it has destroyed people’s marriages, their families, and our lives.

So guys, this is not a crappy little tiny virus called COVID-19. It’s not even the flu. It’s not even Anthrax. It’s worse. What I’m talking about here is something that’s pervading between all people it’s scarcity. Scarcity is the thing that’s destroying people’s lives. It’s creating a spiritual weakness among our people, even among us US citizens. It is destroying our societies. We are seeing an entire generation rise up that is falling victim to this, and then trying to guide it as something of being more critical, woke being more you know, really being more enlightened. But in truth, if you look at history, this is actually lead us down a path of destruction. Now, I know the show is about creating hope and I’m not going to disappoint you. There will be hope here, but I really want to really impress upon your minds, the severity and the importance that this must change.

And it starts with you because I guarantee your life has got some of these things too. Just like mine does. All of us are imperfect. All of us are doing things that are in some ways not helping society, right? And it comes from this basic emotion of fear, greed, impatience, entitlement, and ultimately scarcity. It’s all comes back to this. Now, I know some of you guys say, Hey, I’ve worked so hard on this. I worked hard to have an abundance mindset and all that, Chris, I get it. I’m there with you, but I can tell you from my own home firsthand experience that I’m not perfect with this either. If you’re a human, if you are a human being, I guarantee that every single day scarcely tries to sneak itself in. Have you ever experienced any kind of fear or doubts or worries that’s scarcity?

If you experienced any kind of a feeling of being a victim, right? Do you ever feel you’ve been victimized that somebody harmed you in some sort of way? Not saying that you haven’t had harm inflicted upon you, but how you choose to respond to it means everything. If you’ve ever had a situation where you felt entitled to something like I deserve this or that or whatever it might be, you’re a part of this. If you basically, you’re part of the, I’m sorry to say this. Because I used to be one myself. So again, I’m speaking from my own experience here, but if you’re a part of that illiberal socialistic agenda, you are destroying society. Period. If you believe in socialism, socialism destroys prosperity. Now, you might think there’s elements are good about it. Yes. It creates this nice utopian image, but unfortunately behind that utopian image is actually destruction.

Now, it always comes back to once again, scarcity, by the way, capitalism with scarcity is also destructive. So don’t think it’s just any one system. Now, if I were to pick any system that in genders prosperity, it’s capitalism in its pure form, not in the really it’s a socialistic version of capitalism, which some people will try to guys as being capitalism, but in truth is actually scarcely disguised as capitalism. Right? And so that’s the kind of thing that I see as the most dangerous thing. Now, I believe it starts internally with us personally, this is not just a political thing or economic thing. This is a personal aspect. For example, you know, when we talk about money, right, we’ll go there easily. If you have fear or worries about money, that scarcity is destroying you. And trust me, if you know anything about my story, you know, I’ve dealt with massive financial scarcity.

You knew that even the last recession, even after I was able to retire the first time in the last recession, because I cut off streams of income because I got lazy on being a wise steward of my money, right? Even tracking my money, I wasn’t even doing, because it was coming in like air. It felt so abundant. I became lazy with my stewardship. And what happened is when I became lazy and prideful, that is when the downfall came and that’s when I actually started losing money. That’s when I found myself in the hole, 16, $15,000 a month, I was short each month. And that eventually led to being over a million dollars in debt, especially when the market started crashing and real estate and things like that. I was affected again because I was in that gambling mindset. I was trying to skip steps to hit the prosperity, you know, really applying those true financial principles that do work always.

But again, like I was trying to shortcut things, I was trying to create it. And when I went into more scarcity, I made dumber and dumber decisions. Right? You know, I’ll give you an example. I mean, when I first started, I worked with a guy named Garrett, Gunderson of you guys might know him. We started a company together. And when I did that, I was like, Hey, I’m going all in. You know? And when I started going all in, I still have my multiple streams of income, but after a while he said, Hey, Chris, you need to be a team player. Get rid of these other quote unquote distractions. You need to be focused all here. Now I was bought into the mission about teaching people, things kind of like I’m teaching now, right? So I was like, okay, fine.

I’ll do it. And, but something in the back of my mind bugged me about that. Well, of course, when that happened, what happens? I lose those multiple streams of income. And then bam! You know, I don’t have enough income coming in. I’m making five, $6,000 a month from active income working with that company. Unfortunately, the people we’re marketing to were real estate investors who are now no longer had money to pay anything. So I was only making maybe five, 6,000 a month, but between my business and my personal expenses, there are right around 21,000 plus dollars a month. So with all that going on, you know, one was there personal consumption happening, but two, there’s also the business and those upstart, you know, the startup costs we had going on, I was in the hole. And the funny thing is he actually didn’t cut off any of his streams of income, but I did now here’s the thing.

I could act like a victim in that period of time say, Hey, well with everything going on, I couldn’t have predicted what was going to happen. That the markets we’re marketing to were real estate investors that were really gamblers in the real estate market. Not really good and real estate investors, I could have said, Hey, I didn’t know that throwing money in my house like Dave Ramsey would suggest, would tank all of the equity out of there. And I lost all that money that sat in there. Thank you very much, Dave Ramsey. I could have blamed Dave Ramsey for that, right? Just like I said there, but it wasn’t all of those decisions. All the market conditions that were out of my control, I, it wasn’t me. Right? I could be the victim here. I was victimized. It was like the perfect storm, but in the George Clooney sort of way, that kills everyone.

Sorry, spoiler alert on that movie. But it’s 20 years old. It’s at this point, if you haven’t watched it, you probably don’t care to anyways, but that’s the thing I could plan to be a victim, but is that useful? No, it’s not. The thing is there are people that came out of that recession that are still to this day victims. They still feel victimized by what happened and what happens as a result. They do not progress. They do not prosper. Even they started to get to a place where they feel like they’re better off. I didn’t file for bankruptcy. I could have, I had every justification to do so. The numbers definitely justified it more than most people, that claim for bankruptcy at that time. But, I didn’t. Now, if he did, if that was you? Fine, whatever that’s your choice. My point is this, is that every decision you make is your choice.

You are not a victim. You, if you want to be the hero of your story, you cannot play the victim role. Victims remain victims and die. Think of a horror movie, all victims die, right? And no one likes a story about the victim. Those are not the fun stories. Those are the movies or the stories that people want to end. Now, here’s the thing. Every hero though, has challenges. Every hero goes through something they have to overcome. And it may not necessarily be a financial ruin type of thing. Like a situation like I had, right? It may not be that, it may not be a situation where someone has to die. It might just be personal, emotional struggles, right? It could be all those things. And then some, but here’s the truth is that we are in control of our lives. We have that control.

Now what’s happening right now in this society is we’re relinquishing control. We’re saying, Hey, politicians, solve it for us. Figure this out. Help us out of this mess. You know, first off, if you’re relying on politicians, remember politicians are only voted out of the people. When you complain about a politician saying, Oh! The politicians we have nowadays are stupid. Well, guess what? You voted them in. Now you might say, I didn’t vote for that person, that guy or that woman, I didn’t vote for them. It doesn’t matter. The fact remains that as the general purpose of the people, think one way you allow certain candidates to come into play. Now you might say that person was better candidate, but they may not have been here. They may not have been the better candidate. The reason why Reagan won so well is because he was a great communicator.

Many times I see great candidates that are not great communicators or seem like crazy people. The cool thing about a guy like Reagan, back in the day, if you ever watched some of the speeches he gave, he dumbed it down for the American. Not as dumbed down as Trump, but pretty close, right? He dumbed it down into plain language, but he taught principle. That is the key that most people do. Most people focus on policy, but they don’t focus on principle. He would bring up principle. He would even use humor as jokes to make it seem stupid, to believe against that principle because principles governing principles are true whenever. So he would be able to knock down beliefs by teaching true principle. He was a teacher. That’s what got him elected. So the problem is, do we have teachers being elected? No, we don’t often have teachers be elected.

Now someone would say, Hey! We have Ron Paul. Cool! Ron Paul was great. He didn’t have the marketing behind him. He had some, but again, he was lacking on those things. If you get them to work together, then it’s awesome. Now I get it, beause I’ve most, a lot of the people I vote for don’t get voted in, but it doesn’t stop me from trying. It doesn’t stop me from still doing my part. Especially as a parent where I’ve got children, I don’t want them growing up as being this crappy generation, right? I’ve just entitled, spoiled jerks. Like we kind of seen with some of the millennial generation, not all, but some, right? We saw this happen and we saw what the consequences were of giving participation trophies out, right? When there wasn’t a winner or loser, like everybody’s a winner! Well then when life hits them hard, they’re not prepared, right?

They weren’t prepared appropriately, not their fault, our fault. I’m part of generation X, that’s our generation and the baby boomers as well, trying to soften up the blow for our children. That wasn’t good. There’s a whole another Generation, worse than the millennials being raised right now. They have the potential to be the greatest generation. But unfortunately at once again, even us Xer’s, right? And now there’s millennials starting to raise them this generation too. It’s perpetuating as going beyond. And we hear people that are, you know, these politicians saying, Hey, it’s not your fault. What’s going on. You’re the victim. They’re having you play in this victim role, which is so nice that you can play a victim, right? It’s so nice to say, Hey, it’s not my fault. It was not my fault at all. And in some ways that’s true. And in some ways it’s not because to say, it’s not your fault to then claim that you were helpless.

Victim is not useful. This is when somebody can step in and come in. By the way, Nazi, Germany, that’s all it took. You just had to have a leader to point it out saying, Hey, it’s not your fault. It’s this group over here. They did it. And by the way, it wasn’t just Jewish people that they massacre, right? They’ve massacred people like Jehovah witnesses. They massacred other Christians just because they weren’t the mainstream. We’re seeing this today. Guys, we’re seeing this very thing happening and how do they do it? They get it to when you’re at your lowest, when you’re feeling the most scarce, Germany was dealing with economic situation, we’re not even there yet. We’re seeing great all-time highs in the markets. We’re seeing all-the time highs in real estate. Now the problem is that we’re not seeing all-time highs in employment, are we? We are seeing some things that aren’t quite equating to one another.

There’s some weirdness going on in the marketplace, right? But as long as the government keeps pumping in money, it artificially keeps it going right? As long as money keeps circulating. Because once your principle is exchange creates wealth. As long as money still exchanging hands, everybody still stays wealthy to some level. Once that stops, once something happens to this exchange, boom! We collapse. Now, I could go on for hours and hours about these different aspects of scarcity, right? But the one I want to go into is about being spiritually and emotionally strong. This is required. And yes, what about spirituality? It could be religion. It may not be religion for you, but there is a point of this moral focus on principles, not just policies or strategies. We talk about strategies all the time in the show, right? We talk about all different kinds of things that you do, whether it be with real estate or other types of alternative investments, right?

We bring up all kinds of stuff, even. Yeah. We’ve been brought up franchises, which I’ve been, I’m looking at, investing in myself. We’ve brought that kind of stuff on this show too we’ve all these things you could doing outside the norm, the mainstream, if you’re following me, I guarantee you’re probably not wanting to be part of the mainstream. And you’re probably already agreeing with this message. But, I believe that we have this responsibility to stand up as leaders. This is why I want you financially free. Not now. You don’t have to be financially free to make a difference. Understand that a lot of the coolest things I’ve done when I was broke, I understand that the cash flow process they created for my clients and helping them find money that in that eBook Beyond Rice and Beans, that happened when I was broke and trying to be resourceful, the cash flow index I talked about the best way to pay off her debt happened when I was broke now creating ways to create multiple streams of income.

I did it even when I struggling with money, I wasn’t flat broke, but I still wasn’t hugely prosperous. I wasn’t retired yet, but I learned those things along the way to then once again, retire or be in the place where I can retire, obviously do I look retired to you? No, I’m still working 10, 20 hours a week, right? I’m telling you lately, it has been pushing close to that 20 hours a week. I’m getting closer to my max and that sort of thing. But, that’s the thing guys, is that we are in this place of responsibility. We have the choice to show something different, to be in abundance. Even in those scarce times, you can still choose abundance. That’s when you know, you’re truly abundant person. When you choose abundance in the face of scarcity, when it’s rear it’s ugly head and it’s in your face and you choose otherwise, that is when you know you’re truly an abundant person.

When you choose abundance in the face of scarcity, that is when you’re an abundant person. Now, when things are all going nice and well, furthermore, you’re not a victim. You know, you’re actually can be the hero of your story. When you could play the victim and you choose to be the hero, you tend to be the person that has faith. When your faith, when you’re faced with something that would challenge your faith, but you still choose faith. Otherwise, when you choose something in the face of the opposite, that is when you have power. That’s when you have control of your life. And that is when you have real true freedom, true wealth comes in those places, but it starts spiritually being strong first, mentally and emotionally being strong. Be able to choose this even when you’re facing this opposition. And then three, of course, make sure you’ve got your physical body in place, creating wealth in all aspects of your life.

Not just with your money, these things all need to be aligned. If you’re not aligned in these areas, it doesn’t matter how much money you make. You could easily lose it. You get my point here? That’s probably the most important thing I could teach you is if you get out of alignment, if you’re not focused on all these things of your life, you can lose it all, including the money and even more so. And I know I’ve lost so much. Some I’ve lost financially. Hey, I’ve lost family. I’ve lost, you know, losing my, I’ve been through divorce, right? Really two divorces. I’ve been through a couple of divorces on my third marriage because scarcity got in the way. If I really would take that responsibility now was there scarcity and stuff on the other side, of course there’s always two sides to every story, but I had control of me.

I could have chosen differently, guys. This is so critical right now. And we have a generation of people being raised currently, right? That are just soft weaklings, emotional and spiritual weaklings right now. But I’m telling you, I’ve seen it in this rising generation. They have the potential, even the millennial generation too. If you want to criticize them. All of these, the younger generation right now has the potential to be greater than our generation. Even greater than the potential of what they called the greatest generation, right? Those that were fighting in world war II, less than a hundred years ago, they called that the grace generation, because they would just do things because it was their job or their duty. They would do amazingly heroic things. They would overcome so much. They went through so much trial and they came out better. Guys, there is struggle going in the world today.

We have the potential. We have this generation right now that can come out stronger and better. If, we teach true principles, that is my hope I’m offering today. Here’s a strategy to go with that. You’ve heard me probably mentioned this on previous episodes. You know, everybody I know that’s successful has some sort of morning ritual. You know, Tony Robbins calls it the hour of power, right? Some people call it power hour. Some people call it the morning routine or the miracle morning or whatever, little cute term they give it. They have a morning ritual. It focuses on mainly three key areas. Although you can go into four or five, the three key areas are physical body, mental state. Like you’re learning your mind. And three your spiritual state as well, you know how you connecting you with your spirit, with yourself and understanding who you are at the core, your passions, everything else.

So spiritual it start with that one because that is the vital one. Spiritual, you know, I personally do this, like when I do my exercise in the morning, depending on the exercise, some of them are so labor intensive, I have to focus on only the physical part, which is a form of meditation in some ways. But I’ll do a prayer of gratitude, read scriptures and things like that. Like Christian scriptures I’ll pray. You know, like I said, like prayer gratitude. I’ll even just pray in general. All these things are part of that. You know, you can journal, you can do yoga and meditation. You can do things of that nature. Things that walk out in nature, you know, you can do physical and spiritual same time, but saying, Hey, I can be healthy with my body and spiritually too, mental. You could be doing that same thing.

Walking in nature, you can put in ear buds, you could be listening to this podcast. You’d be listening to audio books or reading actual books. You can be doing things to learn your craft, your trade, whatever it is you do to become better at it. Right? All these things are part of that mental game. You know, even the emotional side too. Learning about how to deal with emotional side and, and getting your mind in check. By the way, the whole reason you do these morning routines is to get yourself in a place of winning. You do this so that you start the day in abundance. Because if you don’t, you become someone who reacts, not someone who creates. You want to be a creator and a producer, someone that actually creates and is abundant. And it actually is about doing something good in the world that requires you to do something more.

It requires not just rolling out a bed like most of Americans today. They roll out of bed and drink their cup of coffee, maybe eat breakfast. If you’re lucky and then go off to work. And they’re waking up, they’re trying to wake up for the whole day by 2:00 PM. They’re finally starting to be productive. But by that point, their work is over, right? That is not what I want you guys doing. I want you to start the day off, right. If you learn nothing else from this, besides the fact that I need to press money, this pandemic is real. And it’s, literally destroying people and is starting wars. It is creating massive chaos in the world right now. The world is burning. Not, just because of political ideology, but because of the scarcity, all you have to do is get someone.

If you want someone to take control of your own mind, all you have to do is go into a scarcity mode and allow them to talk to that scarcity, they talk to that victim part of you, they talk to that fear part of you. Fear is what gets people to start wars. Fears is what gets people to create force, communism, which actually is not a good thing for financial or for your own personal prosperity, by the way, don’t you know? That the founding fathers, what they created, they studied cultures over millennia. They were reading books and multiple languages studying what happened with the greatest societies and what led to destruction of those things, great societies. They set up the constitution and everything they did when they founded this country in the United States, based on that, and that created revolutions, the revolution of America, great revolutions in France and other places around the world.

It created a catalyst of people really becoming woke right now. People are sleeping at the wheel and they say, they’re woke. It’s jacked up. It’s not woke at all. It’s just people rising up in and using that fear and that scarcity to then try to demand justice. There are injustices in the world. I don’t doubt it. And I want you to fight it. Same time. you cannot be a victim when you do that. And you can’t say you’re a hero while being a victim, the two connect coexist at the same time, just like fear and faith cannot coexist in the same person at the same time, light and darkness cannot coexist. These things are darkness and is destroying our planet. And I guarantee Wars will be started because of this. And people will start trying to force other people to do things that aren’t right, that will violate our very constitutional rights, because they’ll say out of fear, Hey, this is the good of the collective.

This is what’s good for the community, AKA communism. This is what everybody needs. Trust me. That stuff is a lie. It’s not, there are things that are good for the community, but it requires freedom. And it requires focusing on true principles. And yes, with freedom means that some people will be free to choose crappy things. That means there will be people out of greed will try to rob you. Guess what? You punish them. That’s what laws are for. Laws are to protect those freedoms, allowing everybody to prosper in that environment, to, you know, de-incentivize people from trying to do those kinds of things. So, anyways, guys, I don’t want to go into a long rant about this, but I’m just telling you that some of the most important things I can teach you have nothing to do with these financial strategies. The reality is that if we don’t really nip this in the bud right now, if we don’t do this correctly, right now, we don’t become that example and fight for what’s right and fight for principle.

We don’t do that. What’s going to happen is we’re going to see a society that’s going to get destroyed and you will lose your money with it. So guys, I’m here to try to prevent that. I don’t want that to happen. I want to say, allow us to be abundant free and a peaceful people. Imagine what the world would be like. If we all woke up, we all did this kind of morning routine. And when we woke up, we did in a way that we looked at the world with different set of eyes. We didn’t look at as people trying to hurt us, right? As a place that’s trying to abuse us, but looked at a world of opportunity, a world where we can be a creator in that world where we can create something new, all amazing leaders created something new, or they created something that’s really been old.

All the things I’m teaching right now, or things from years. But we forget, we’re always constantly a state of place of remembering or forgetting. Right now we’re in a world of forgetting. We forget that the things that a lot of people are burning, literally burning cities for right now, right? Is the thing that destroyed societies. It actually does not do any good. When you try to create destruction, you have to be a creator. You have to do something more. You have to be someone more to create greater prosperity and peace in your life. And in this chaotic world, don’t we need peace more than ever? That requires you guys to stand up to be something great, to choose faith over fear, to choose creating value for people versus trying to screw people over for lack of a better word, to try to exploit them or steal from them.

430 - Questions to Ask BEFORE Investing Featuring Christopher Huffman

https://moneyripples.com/2020/10/09/430-questions-to-ask-before-investing-featuring-christopher-huffman/

What sort of questions should you ask a real estate investor BEFORE investing money with them?

Today, Chris Miles interviews investor and deal operator, Christopher Huffman, about the questions he would ask before putting any money into a deal.

Christopher Huffman is a serial entrepreneur who has bought and sold several successful real estate companies, generated millions of dollars worth of returns for investors nationwide, and has built teams around integrity, hard work, and a “win-win” mentality.

Tune in now!

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/08/28/430--questions-to-ask-before-investing-featuring-christopher-huffman

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Chris Miles (00:00): Hello! My fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. A show that’s for you and about you. Because it’s about those of you that work so freaking hard for your money, and you’re ready for your money to start working hard for you. Now! You want that freedom. That Cash Flow. That prosperity. Today! So you work because you want to not because you have to. So you can do what you love being with those you love whenever the heck you feel like it. But guys have so much more than just being financially free and driving fancy cars. It’s not about that. It’s about living a life of meaning, of purpose and creating a Ripple effect in the lives of others too. So as you’re blessed, you can bless more lives. And guys, I’m excited to be a part of this.

Chris Miles (00:47): Thank you for allowing my ripple effect to go through you. And again, thank you for bingeing, sharing and doing everything you guys do here. Quick reminder, check out our website, www.MoneyRipples.com. There’s great blogs on there, including videos of these same episodes on there and everything else, as well as the free eBook Beyond Rice and Beans you can download for free today. So check it out. So today guys, I’ve got a special guest here Christopher Huffman, right? I almost mixed you up with one of my clients, Christopher because, I have a client named almost like yours, but in fact, he’s probably listening right now and he’s laughing, but anyways so I have Christopher Huffman here today with AIM Capital. He’s the Founder and Owner of that company. Now, the reason I brought him on, I mean, not only does he have great deals, right?

Chris Miles (01:30): But the big thing is, is that he’s a serial entrepreneur he’s bought and sold several successful real estate companies. He’s generated millions of dollars for investors worldwide or nationwide at least built teams around with integrity, hard work and a win-win mentality. But on top of that, his company Aim Capital has unique strategic partnership with another marketing company called The Verge Marketing, which is being able to produce incredible off-market leads, branding organization, and top of the industry marketing funnels to attract the best deals, all this stuff, his course for you guys, he works night and day doing hundreds of deals. And in specifically he’s even got his own apartment deals and things like that. And that’s how I got to be introduced to him as well as through other investors, people like you that said, Hey! You need to talk to this guy, check him out.

Chris Miles (02:13): So today, specifically the topic we want to talk about is “How do you know if a deal is right for you?” Right? Like how do you know? Like, especially if you’ve got somebody who’s a sponsor or a deal operator out there, how do you know if it’s a good investment or not? Should you be jumping into these deals or not? Especially with everything going on in the world right now, the charlatans, the posers, those are the people they’re actually going to go out of business, but the real deals, those are the ones you need to find. So how do you know you’re funding an investment? Especially if somebody else is running the deal, doing the real estate deal, how do you know what’s right for you? That’s my breakfast for on here for here today. So Christopher, welcome to our show!

Christopher Huffman (02:51): Thank you very much, Chris! I’m excited to be able to be here. You know, you have definitely been creating a Ripple in a lot of different ways and I’m just greatful to be a part of it.

Chris Miles (03:00): I appreciate that man. Really do, man. So what, so tell us, like, you know, what even got you down the real estate path? What led you down this path in the first place?

Christopher Huffman (03:09): So I had other family members in a variety of different fields, but surprisingly, I can’t think of a single family member who was in real estate when I was growing up. And you know, my dad was always, was a business owner and he always taught me discipline and hard work growing up, but I never exactly had an individual to follow into the real estate world. I was going to college here in Utah where I’m based out of it, Utah State there’s any other Aggies out there. But I actually took one of my real estate professors out to a breakfast. You know, I was super, he was extremely interested sorry. He was very interesting to be able to listen to. And he actually had gone out there into the real world and been successful. And now he was coming back to give back and I took him to breakfast and he told me what a cap rate was, how to measure return on investment and show me one of the more recent deals he had done. And ever since that day I have been hooked. So I’ve been through a couple of different companies. We started in the Airbnb space before Vrbo and stuff got bigger. I was a consultant a little bit. We did, I actually owned a development company, a brokerage and our main company is Aim Capital, which focuses on multifamily syndication now.

Chris Miles (04:33): Yeah, absolutely. And you’re starting to find some deals yourself out there lately. Aren’t you?

Christopher Huffman (04:38): A hundred percent. We’ve got a lot of you know, there are a lot of individuals, it’s interesting to see people’s mindset when things become a little less stable, you know and or when maybe when the media gets a little bit louder or there’s, you know, a lot of like ups and downs and people don’t know what’s going to happen next month.

Chris Miles (04:59): Yeah.

Christopher Huffman (05:00): COVID is surprisingly brought a lot of different opportunities out and a lot of different things that we’ve actually been able to utilize in a positive way, you know, kind of taking a negative experience for a lot of people and hopefully being able to come back out of it bigger, better, stronger than before. So

Chris Miles (05:19): That’s one thing I’ve told a lot of my clients, even some of the people on the show, right? Is that in the springtime I was saying, Hey, watch out. Like once you get to summer fall, you’re going to start seeing some more deals pop out. Primarily. I said, there’s probably gonna be some more deals popping out from people that just aren’t great operators. They’re not really good at managing their properties. And that’s going to be the ones that the people are, the real deal are building up cash and starting to raise capital right now to be able to buy into these great commercial properties, you know? And right now maybe not buying a Strip mall is the best thing currently. That’s the calm, I’m expecting that one to come down the road, The Pike’s here pretty soon,

Christopher Huffman (05:55): A hundred percent.

Chris Miles (05:57): Well, tell us, like what in your experience, like what are some good questions to ask someone if they’re looking at an investment? If they’re trying to figure out, okay, is this person the real deal or not? Is this not even just the person? Because I know it’s the investor first you got to look at, then it’s the investment second, right?

Christopher Huffman (06:13): Yep.

Chris Miles (06:13): What are some of the questions you ask? Or you look into to say, all right, this is good versus this one I would definitely pass on.

Christopher Huffman (06:21): Yep. So, I mean, first and foremost, syndications, I can say very straightforward as a syndicator who raises capital for projects. We structure deals in a variety of different ways, syndications aren’t right. For every situation, you know, a lot of the individuals you’ve either had on your show or a lot of individuals that you’ve worked with. It really won’t be the best solution for everybody, but there are a lot of situations where it is one of the best options out there I’ve ever found. I compare a syndication to a horse race. You got a horse and you got the jockey. You know, the the jockey is going to be your team and the horse is going to be your market. So there are four general areas that we look at whenever we’re either, I’m looking to invest some of my own money into a deal, or whenever I’m talking with investors.

Christopher Huffman (07:14): So we have the sponsorship team, the market, the property, and the structure. And nine times out of 10, you are betting on the jockey or the team far above and beyond, but the property, the market and the investment is still a good thing. If you don’t have a good team, or if you have an incredible jockey, he’s going to put you on the right horse.

Chris Miles (07:42): Right.

Christopher Huffman (07:43): Even if you don’t see it the same way that he does. Whereas if you don’t have an experienced team or know who you’re, you know, betting on the horses, they might get lucky, but at the same point, I’d rather be consistent over a long period of time than lucky once or twice.

Chris Miles (08:00): Nice. That’s it. I wholeheartedly agree. So, what are ways, especially with finding the right jockey, right? What are some good questions or where are some good things to look at to understand whether that person is really the real deal?

Christopher Huffman (08:14): Yep. First and foremost, the number one question you should ask every sponsor or individual you’re going to invest with is what are you putting on the line? How much skin in the game do you have and taking it one step further, You know, like sometimes

Christopher Huffman (08:34): Sponsorship teams will be made up of multiple people and even multiple companies knowing who the biggest stakeholders are, who’s putting up the money and who’s really putting their own personal name on the line for that deal is far more important to me than the overall amount. If that makes sense.

Chris Miles (08:57): Well, what you’re really asking is this person actually taking any of their own risks? Do they believe in it enough that they’ll put their own money at risk to do this? Versus those that say here, I’m just raising money, but I don’t have any money in this deal. I’m just trying to make money off these people. Right?

Christopher Huffman (09:11): If you’ve got a team of, let’s say five individuals, I would dig in and ask of the five individuals, what are your responsibilities? Who’s in charge of asset management and executing the business plan?, Who has the construction experience to, you know, who created the business model in the proforma? Who is the one responsible for making sure we stay on budget? Who’s going to be responsible for selling? Knowing what role each of the team members has is important. And knowing what percentage of skin people have in is, is also vital of those five people. You could have only one person, you know, the sponsorship team could be putting up 15, 20% equity and you can go, wow! That’s great. But it could be coming from one and the other four, haven’t put a single penny in. So their interests aren’t aligned and they might be the key. You got to find out who the decision maker is and who the lead sponsor is.

Chris Miles (10:12): Yeah.

Christopher Huffman (10:12): In a deal.

Chris Miles (10:12): It might just be putting in sweat equity, which is not horrible. But if everybody’s is doing sweat equity and there’s only one person funding the whole thing, and we’ve got an issue.

Christopher Huffman (10:20): If somebody hasn’t put any skin and in their own, it’s not a deal breaker for me, because in my very first deal, I didn’t have a penny to my name. You know, our very first development. I with my partner, we had to raise three and a half million dollars. I don’t recommend doing that for your very first one, but I had like $3,500 to my name and we had to figure it out. And if they strictly went off of how much money, like they wouldn’t have been able to make a really, really good return when we went full cycle on that deal. So,

Chris Miles (10:55): Yeah, that’s great! What are some other good question that people should be asking?

Christopher Huffman (11:00): Absolutely. so for the sponsorship team specifically, has the sponsorship team done a deal together? If there are multiple companies involved that are partnering and it’s not just coming from a single person, have they done a deal together? And if they haven’t, what are their responsibilities and dig into the individual experience to make sure that they’re in the right seat?

Chris Miles (11:23): Right? It’s kind of like a championship team, right? If you look at the NBA or something like that, you know, if you just throw a bunch of players together, they’re not going to jail came, right?

Christopher Huffman (11:33): A hundred percent.

Chris Miles (11:34): You got to have that history that past and knowing how to work and knowing what roles work.

Christopher Huffman (11:39): One other question for the sponsorship team is do you have three to five people that you’d be willing to connect me with? Who’ve done business with you, who’ve invested into one of your projects that I could talk about their experience.

Chris Miles (11:52): Yeah.

Christopher Huffman (11:53): See if they’re willing to be open and transparent with you and their contacts, because sometimes sponsors can be very cautious of sharing contact information with others, but if they’re willing to be transparent with you, that is a golden star in my book.

Chris Miles (12:10): Yeah. I get it. Because obviously there’s gotta be some privacy there, but I know when people ask me the same question, I would say, well, I have to ask for permission from these people first.

Christopher Huffman (12:19): Absolutely.

Chris Miles (12:20): You know, I’ll see if I can connect with some of these people. You know,

Christopher Huffman (12:24): As an example, I’m in one of our more recent properties, I had a new passive investor come onto one of our deals. He’d never invested with me before, but we had known each other a little bit. And he asked me that very question. And so I shot out an email to all of our passive investors currently in that deal or in some of our other projects and say, Hey! Who would feel comfortable? Having a quick conversation. And there were three or four of them that did, and I connected them and he was incredibly happy about it. So

Chris Miles (12:53): It is a good sign. You know, it’s a really good sign. People are actually willing to speak about it too. Really good.

Christopher Huffman (12:58): Absolutely. So it’s kind of digging in a little bit further, you know, I’m going to come back to the sponsorship team when it comes to how they actually structured the deal. But the second one is the market. We always want to be able to bet on a good market, that if we got stuck into a deal for 10 years, we’re going to have overall growth and be able to sell for more a market like Detroit. That’s constantly, you know, if we had, if we were forced to stay in longer than our business plan, every month, we’re going to be losing money because home values have decreased for, you know, two decades. Whereas if you bet on a market, even smaller markets, like even St. George, Utah, or some of the markets were up in an Idaho or Tucson or Phoenix, Arizona, those markets have really good, strong population growth. There’s a variety of different indicators that we look at. It’s markets are a hundred percent data driven. And have you gotten to connect or interview with Neil Bala before?

Chris Miles (14:04): No. I know who he is, but I’ve never had them on the show or anything.

Christopher Huffman (14:08): So he’s a wonderful example of somebody who uses data to find good markets. He’s extremely analytical and actually has a lot of criteria is that he used that we’ve adapted into our own underwriting for when we’re looking at new markets.

Chris Miles (14:24): Yeah .I remember that was a question I had for you on one of your deals. It’s like, Hey, this market, it’s a small market. Like tell me about this a little bit more. Right? Yeah.

Christopher Huffman (14:33): Yup. So I can go through like, you know, a couple of these, what past experience does the sponsor have in that market? What you’re really digging for is do they have a good network? Do they have a contractor base? Do they have a relationship with the property manager? Because if they don’t have those, they could hire a property manager and have to fire and that’s going to cost the investor’s money. Or the contractors could have to do jobs twice because they don’t know the standard of work. That’s going to slow down your renovation schedule or increase your budget. So, all very important. Even more so than the actual data of that market is a sponsor’s past performance in that market rather than just the number of deals they’ve done.

Chris Miles (15:17): I agree. You definitely have to have that team there and I’ve seen some people try to go into brand new markets. I think you’re on crack. Like I have no clue why you’re doing this, you know, and you have to be careful. What about the other two areas as well?

Christopher Huffman (15:32): Yep.

Chris Miles (15:32): Yeah. We have the sponsor and the market, and those are big. What about the other two areas?

Christopher Huffman (15:36): So next is the property. The main thing with the property you want to dig into is the assumptions and the stress testing that the sponsors put into their underwriting. I am, I love Excel. I can make a property look any way I want by changing about three different things and it’ll make it look like the best return in the world or the scariest most return in the world. So you need to be able to be careful that you’re not being sold to. So here’s a few different things to look for. When you’re looking to underwrite a property, number one is how did the sponsor find the project? Is this a special deal where they actually got a good project? Which you talked about the marketing company divulge marketing that helps us. And we specialize in working with sellers directly and some of the psychographic stuff to be able to identify sellers that are willing to they have different trigger points, making sure we’re getting a good deal, rather than just a mass marketed Daisy Chain property and more the one who’s willing to pay the most.

Chris Miles (16:44): Right, exactly.

Christopher Huffman (16:46): A couple of other things. So, you know, what assumptions are they using for their growth rates and expenses? Especially in a covered environment, you know, no growth or 1% seems realistic. The biggest two questions to ask is what is the exit cap rate of a market? Because that is what your IRR is going to change drastically with by even 50 basis points, your return will change drastically. So they’re off, like how did they arrive at that? And how do you know it’s conservative? And secondly, is there a refinance? Because a lot of investors today, and this is one of the business models we even use, but they’re able to supercharge returns by returning capital to the investors faster through a refinance, So if you’re using a stress test that we use, it’s called a permanent debt coverage test.

Christopher Huffman (17:41): And all it essentially means is we’re going to adjust the vacancy rates and we’re going to adjust the rents up and down. And we’re going to make sure that we’re going to see what happens to our DSCR, which is your Debt Service Coverage Ratio. It’s a huge indicator. Your lender is going to look at when you’re refinancing. And that is going to determine what Loan To Value or LTV your lender is going to give you on the refinance. If one of the biggest parts of your investment is, Hey! You’re going to get all your cash back in two years, I would be really questioning, okay, what loan product are they going to use and how much room do they have for being able to do that? Because if they only get me half of my cash or a 30% of my cash, the returns don’t look so good now. So,

Chris Miles (18:30): Yeah. And that’s the thing I don’t want to kind of spend a second on this too, because no banks, really, everybody listening right now, you want to be like the bank. You want to look at a deal like a bank, right. Whereas, which is, you mentioned stress testing. I know I had several clients say, what do you mean by stress testing? Right? What we mean is you change the numbers. Say if like, you know, like you said, vacancy rate, like if there’s not as many people renting this facility or renting the apartment complex, right? There’s less renters. Beause people are defaulting or whatever it might be. Will the numbers still hold? Will they, will you still make money? Or are you going to be in the hole so badly that you’re going to lose the whole deal? Right? And that’s what he’s talking about.

Chris Miles (19:09): He’s talking about, we adjust numbers, you just vacancy rates. You just like, Hey, what if we can’t refinance all this money out? And it’s still work. If there’s still debt servicing, you have to do on this property for still making these payments or that thing that, you know, those kind of things. And that is essential to look at this, what’s some of the downside protection? You know, like if the numbers still work, even if you had say, Hey, half the people moved out, we’re still, we’re still at least breaking, even good sign. You know, that’s amazing! Actually. You don’t usually see a deal like that, but if he can see something like that, that’s awesome.

Christopher Huffman (19:39): A really important question to ask is under what circumstances can we actually lose money? I’ve never seen a Pro forma that loses money.

Chris Miles (19:48): Exactly.

Christopher Huffman (19:49): So ask the sponsors. What, how can we lose money here? Like, tell me, what are we thinking about? The last thing I’ll say about the property is what are the biggest challenges we as a team have to overcome with this property and how can I help? Whether it’s a large cap X, whether it’s a new market, whether it’s you’re repositioning a tenant base, you’re going from a class C property to a class B there’s some big expense there that people don’t realize. So I know we’re short on time. So the last section is the structure asking, you know, like, is it a 506 C or a 506 B? Which is different, like asking what kind of syndication do you have to be? What’s called an accredited investor. Which is a fancy way of saying you either meet certain income or net worth requirements you qualify to invest.

Christopher Huffman (20:40): What are your, give me an outline of your fees that you charge what happens in a capital call? Which means if we run out of capital, the sponsors have technically the ability to ask for more money. And if you can’t give your portion of, you know, you invested 50,000, they do a capital call for $10,000 from you. You can’t give it or your shares diluted. Did the general partners come in? What happens under that scenario? And what happens if something happens to the sponsorship team? If you go bankrupt, if you, one of the sponsors dies, Because that would be terrible. But under that scenario, how do I get my money back? And how do I make sure my investment is protected?

Chris Miles (21:26): Exactly. That’s so important. Again my mantra is expect the best, but prepare for the worst, right?

Christopher Huffman (21:33): A hundred percent.

Chris Miles (21:34): Make sure that’s going to be there. And like you said, most of this weight, if you’re looking at the weight between these four different points, I mean, definitely it goes towards who are the sponsors, like, who is really doing this deal. And definitely, is there a track record there. Like, have they done this? You know, through thick and thin, have they honored their word? Because, I mean, there’s like you said, you can look up Pro forma and it always looks awesome. Right? It always is great. The real question is, is what’s behind the numbers.? You know, that’s, that’s, what’s really important.

Christopher Huffman (22:02): Like when you’re, when you’re looking at the past performance of a deal sponsor, I said this in the beginning, in the beginning, and I want to say it again, focus on performance, not the quantity or size of deals. Focus on quality. If you have a sponsor, that’s done 50 deals and 48 of them didn’t go so well, you know, like I’d rather have an individual who’s worked hard. Who’s a hustler. Even if they’re newer and, you know, they’ve done two or three deals better than inexperienced sponsor. Who’s done 10 to 15 deals, but they got into trouble with the SCC. He’s lost multiple deals before, like dig into performance.

Chris Miles (22:44): Yeah, that’s right. Well, this is great stuff, Christopher. I really appreciate it. This is awesome. Now I know you’ll, you’ll have a PDF that people can actually download, like with more of these questions. Right? They can actually go through and say, Hey, these are the questions I want to ask somebody when I’m looking at it. Right?

Christopher Huffman (23:00): Yep. So if you guys want, I’m going to make this available to anybody go to www.aimcapitalco.com/20questions And you can go there. It’s a free download. You can download it onto your computer. I’ve got it right here. If you can see it to front and back, and you can use it as reference you know, take it to your sponsor interviews and just look down on the corner and you use it to help you guys out. And I hope it provides value.

Chris Miles (23:28): And that’s /20questions with a 20. Is that correct?

Christopher Huffman (23:31): Yep. With a 20.

429 - One Night Retirement

https://moneyripples.com/2020/10/06/429-one-night-retirement/

Can you create financial freedom now?

What Asset Could You Use to Create Passive Income Immediately?

If Savers lose, and Spenders lose, what’s left?

Chris Miles discusses creating passive income that leads to financial freedom so you can live the life you dream of.

Tune in now!

https://www.blogtalkradio.com/moneyripples/2020/08/26/429--one-night-retirement

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Hello! My fellow Ripplers! This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Hey, I’m going to welcome you out for a wonderful show. Show that is for you and about you. Those of you who work so hard for your money, and you’re ready for your money to start working harder for you. Now! You want that freedom. You want that cash flow. You want that prosperity. Today! Not to have to wait 30 or 40 years from now. If you’re lucky the market smiles on you the right way to finally retire. No, that’s not why you’re here. You’re here to create that life that you love today to be with those you love doing what you love. And on top of that, you know that as you’re blessed financially, you have more options. Because cash flow creates options and options is where you create freedom. And as a result, that’s where you get, create a ripple effect to the lives of others that help people and be able to create value and serve ways that you make this massive imprint on the planet.

When whatever way you feel like you want to do that, it’s not just about your own comfort convenience, it’s about blessing the lives of others and creating a legacy beyond you. Guys, I’m so proud to be a part of that ripple effect with you. Thank you for allowing me to share my gifts and talents with you. And thank you so much for bingeing, for sharing with other people. I love just seeing how this show has grown and expanded, by the way, we just surpassed over 300,000 downloads. We just did a hundred thousand dollars in the last nine months. So that’s all because you guys, so thank you so much for being a part of it. It just gets bigger and bigger. And even more importantly, not just a bunch of you listening, but you’re applying it and making it work in your life.

Guys. That is a thing that I love. So thank you so much for being part of this show. As a reminder, check out our website at www.MoneyRipples.com We’ve got the free eBook Beyond Rice and Beans you can download there as well as some great videos and blogs and things like that. You can also check out, so go check that out. So guys, today, I want to go into a subject that actually came up twice in one day. And it’s funny because I put a note on there. I had an old memory. So I have a friend that some of you guys may know, you might even be following him, a guy named Garrett White, or he goes by Garrett J. White. And so, I knew him back in 2006, when he owned a mortgage company this was, if you have ever heard his story, he talks about those kinds of stuff.

He’s got his own channel and that kind of thing too. And his own podcast. Anyways, it’s like, I remember one of the presentations he gave that blew my mind. Because I had just quit being a Financial Advisor, but he taught it. And remember, he’s a mortgage company owner at this point, Right? So he’s teaching about mortgages and what you can do with them. And it expanded my mindset to help me teach what I’m teaching you. And he called it “One Night Retirement”. Now, obviously that is a pretty dang good hook line and sinker, because I thought “One Night Retirement”, how is that possible? Well, I go to his little seminar he’s put on these were live seminars. He was doing and it got me. It was great. Well, you know what? Some of those same strategies and principles that go with it apply today, right?

Because of the principle we teach here is that, It’s not about how much money you have, Or how much net worth you have. It’s about how it actually creates month to month difference in your life, whether that’s less expense or more income, right? It’s gotta be one of the two. And that’s what I mean by cash flow. Cash flow means that your income is higher than your expenses. Ideally, if you want to be out of the rat race or as I call it, you know, be able to retire, right? Or hit your freedom number or whatever you want to call it. Everybody has different terms for it. You want to be financially independent where your income, you know, especially your passive income is surpassing your expenses each month. Now you’re in a place of power. Now you’re in a place where you can actually say, Hey! I can work or not work.

I can play. I cannot play. I can do whatever the heck I want. Right? Because now I’ve got passive income streams coming in that are replacing my money. You know, it’s paying for my expenses, my day to day living. And this is what we’re all trying to do to get to that point of retirement, right? This is not even relying on Social Security from the government. We’re not trying to rely on them and be the victim here or hope and pray that someone’s going to bail us out. This is about creating freedom now. And it’s about you taking the reigns and taking control of it. Now, I’m not going to go as much into the investment part of today. I’m going to talk about this concept that we talked about with “One Night Retirement”, right? Now, So I want to go into that specifically.

Although it does go into investments, I’m not doing that. Here’s the key thing for this to work. You have to be of the right mindset, the right mind frame here. You have got to be a steward. You can’t just be a spender because you’ll blow it. You’ll ruin the strategy. If you’re a saver, you won’t be able to see it anyways, because if you’re too much in scarcity and fear, you know, especially if you’re being, you know, if you’re doing these things haphazardly or arrogantly or even ignorantly, whichever way you’re going, right?. Whatever you’re doing here, this could actually reverse the results we’re trying to get here. And so let me give you a real life client example, had two clients reach out one client asking about refinancing their mortgage and ask for options there. They’re ready to retire. Another client wants to replace his income his active business income that he has.

He was asking about, Hey, I’m getting a, you know, I’m getting more extra money coming in from a business loan and things like that. I can have that pay for my expenses, but that frees up a quarter million dollars. Should I invest that? Or what should I do? And how do I know if it’s a good thing? Well, let me give you those examples here specifically. So, let me go and start with this one client, because this client would probably apply to most of you to some degree or another, right? Here’s the thing is that cash flow is key here? It’s always about what kind of income do you have coming in that can replace it? Especially if you’re relying on your active job or your business income that could go away. We already know with COVID and everything going on.

So everything’s temporary, right? And so they said, Hey! Chris, like we realized that our house appreciated. Remember I talked about, in the previous episode? We talked about the golden opportunity. I would re-listen to that. Again, we talked about their house. They did appreciate it. They said, our house is worth 400,000. Our mortgage, we owe 210,000 and they’re in their sixties. So they’re saying, we are getting ready to retire? And but they have two different philosophies between husband and wife. And I’m sure those you have married have never run into the situation before where you have an idea and your spouse has a different idea and you guys are trying to figure out which one is the best way to go. Sometimes, I feel like I’m a marriage counselor, some of my consulting clients, and when we strategize and game plan, these things here.

And so that’s kind of what happened here. She’s saying my perspective is, I think we should refinance cause they had their mortgage. They’re seven years into their 30 year mortgage. They’re at four and a half percent rates have dropped, right? They could easily get 3% on a 30 year mortgage. So her idea was Chris, I think we should, you know, do a refinance and do another 30 years to free up more cash flow. That’ll allow us with the passive income we’re trying to create to hit our goal faster, right? Because now the expenses have lowered. Our passive income is still the same. This allows us to still free up cash without any money out of pocket. She said, I would like to cash money out, but my husband’s kind of against it. He’s more thinking 15 year mortgage, which would raise our payment.

Now they’re paying about 1,220 bucks a month. If they get a 15 year mortgage payment and it goes up to almost 1,450 a month. So they actually ended up paying a well over $200 more a month to pay it off in 15 years. And I ran that at I actually about a 2.6, to 5% interest, right? So they could shorten the timeframe just by lowering the interest significantly, almost a full 2%. It would increase their payment by about 200 or so dollars a month. But that’s the option. And I said, okay, let’s look at those options, right? And again, you have to look at it from a steward. You have to look at it from a space where you’re willing to use money. But you’re also looking from a space of what’s the best and highest use of this money.

What can I do to create real freedom? And so, I said, let’s look at it. I said, we’ve got two options here. One, I told her, I agree. I would not do a 15 year mortgage because at their space, why would we want to increase costs? Just so that hopefully in 15 years they have a paid off house. By the way, 15 years would put them well into their seventies going on to their eighties, right? This is not ideal. So I said, I do not agree with the 15 year mortgage. Do not do that right now, by the way, any of you here, I would not typically, I would not agree doing a 10, 15 year type of mortgage the longer the term, the safer it is, the lower the payment, the less commitment that you have in case something does go wrong. Beause if you’re always fearful about what might happen. Everyone’s fearful about.

What if I don’t have my mortgage paid off? I’m more fearful about the time in between. Because you’re talking about 15, 30 years out that somehow you’re going to have this perfect life. Not assuming that something could go wrong and that’s what we’re trying to attract it, but we never know life can throw us curves. Having a lesser payment is ideal. That is good. The true principle here that fits this strategy is that you want to live within your means, right? You want to produce more than you can consume. The worst. Most riskiest thing you can do is get a short term mortgage, increasing your payments. That’s great for the bank, puts them at less risk, puts you at more risk. And how do I know this? Because I had just a client just about a month ago, say, yeah, I couldn’t qualify for a 15 year mortgage.

But when I went to a 20 year mortgage, I qualified. I said, well that’s because your debt to income ratio. Because even though they’re not broke because they have some other payments, but because they don’t show it a ton of income what happened is that it was too much for the banks to feel comfortable. They say, no, that’s too much of a commitment. We’ll do a 20 year mortgage, but not, not a 15 year mortgage. Isn’t that interesting? Even though the bank wants you to pay off faster, they think you’re higher risk. If you try to get higher payments. They’re 100%, right? But unfortunately in our little brains, because of what we’ve been taught by stupid financial advisors and the pundits out there, they’re telling us no pay off your debt as fast as you can stuff it all in and gamble away in the market.

Why would we pay off a mortgage that was certain to then gamble in the stock market anyways? Dumb. Right? So anyways, so I said, no, 30 year mortgage is better. So here’s what we did. I said 30 year mortgage, if you just refinanced, didn’t take any cash out. Just refinanced it. Add another $5,000 at closing costs that would put you at 3% interest. It would put you at $906 a month, which would free up $315 a month. I said, this is good. Like, Hey, if this puts you at a place of much more certainty, right? Because this allows them to get that passive income up. Now they don’t have to create an extra $315 a month to get there. And I said, this is great. You know, a lower payment is awesome. Worst case, here you go. I said, but I personally, because again, based on my knowledge and my stewardship and they know some of the stuff I’m teaching too, cause they’re clients of mine, right?

I said, I would look more at doing a cash out refinance and a 30 year payment at a lower interest rate than what they’re paying. Remember they’re paying four and a half percent now. Anyway, they go, they win. Right? So I said, what if you cash out up to 80% of your value? So that’s a $320,000 mortgage, but they get $105,000 in cash. They could do whatever they want with. Here’s the interesting thing, guys, their payment goes up $200 a month. So their minimum payment basically goes up the same as if he did a 15 year mortgage. But now we’re doing a 30 year mortgage, but he’s getting an extra $105,000 out. Now somebody is freaking out thinking, Oh! But wait, Chris, what if we can’t make the payment? How long do you think the extra 200 bucks a month can be paid with a $105,000 bucks first, right?

That’s 2,400 a year. Do the math. You can go a lot of years on that. If there’s an emergency again, I always encourage people to have emergency funds set up first, before they just go and try to invest everything, right? Like they need to have cash reserves so that if something does happen, they don’t lose their home. You know, that’s the key, right? You got to have the defense going with your good offense. So I said, now you get a $105,000 to deal with your payments. Now $1,437 a month. If it’s at three and a half percent, they might get lower. But again, I’m trying to be conservative here a 1,437 a month, they get a 105,000. So only $216 more a month. Okay, well a 105,000. What if they earned just 12% on that money? That’s $1,050 a month. You might ask where can they get that?

Real estate, easy place to get it. There are some possible other areas too, that might pay you more or less, but I’m just going with real estate because that’s more, the less risky thing. If you’re going to pull that equity from your home, I don’t see it that bad of a strategy to say, let’s pull the equity from my home to put an equity of other properties. Then your net worth is basically the same, but now you’ve got cash flow. That’s the key. Now they’re getting a $1050 a month. Think about it. You know, they it’s either one. He does a 15 year mortgage where he’s paying over $1,400 a month or two. He has a $1,400 a month payment, but now he’s getting paid 1,050 a month with that extra money. You see my point here, the difference between the two and the only difference.

I mean, you might say, well, he’s in more debt. You would think that. But if you do the balance sheet, you’re not in any more debt, you’re in the same exact position, but that money is going to buy a real estate, right? That’s cash flowing you money. That money right there is now making sure that he only has a net payment. This is where the “One Night Retirement” comes in. His net mortgage payment is less than $400 a month. That’s the only difference he has. Even if they refinance just civil refinance, that could be a good spot. It’d be over at 900 bucks a month, or they can make that net payment less than $400 a month. By the way, even we don’t count rent increases. The fact is rents will increase year after year because property managers will put that in there saying, Hey, we’ll increase rents by 5% that eventually after five years, the rent will probably be at least the same as the mortgage payment by that point.

But I told them, I said, let’s not even count on rent increasing in case there’s unexpected expenses or whatever. We’ll take that out of the equation. Let’s see where you are in five years because remember $1,400 a month, he has to pay that for 15 years to be debt free. So I said, well, what if you bought about $475,000 with the properties with a hundred grand, 105 grand, that’s about three properties you could buy there, right? So you buy three properties, possibly four, depending on how small they are. The cash flow is 1,050 a month. There are times you could possibly get more than that. Again, I’m just going with a nice, easy number. This is the number that I even go for as a benchmark of why I want to make at least 12%. I just closed on a property that I’m currently making about 15 to 16% on right here from day one, i got another property, same thing I’m making about 15% net on that coming up.

I’m closing on that. And this next week, it’s not an unheard number. Okay. That’s cash on cash. Like the actual net cash flow profits coming from the property. So let’s get back to the numbers again. Right? So 1050 a month, you’re making all this cash flow. Well, what is that? That’s 12,600 bucks a year. So I told her, I said, let’s factor in all the other returns with the real estate too, because if you’re buying $475,000 real estate also you’re leveraging bank money to get those mortgages on top of the cash flow, you’re getting that 1050 a month. You’re also paying down your mortgages with the renters’ money. Not, your own, your renters’ money. They’re paying that down. Because that 1050 after you’ve already paid your mortgage payment with their rent, that’s the net profit. After all the bills been paid, right?

So anyways, I said, let’s look fast forward, five years. And I even said, let’s look at even if the property appreciates so much, like only 20% total, which 20% roughly after five years, it’s just a little over 3% a year, not earth shattering, right? I have a property right now. It’s already appreciated about 20% in the last two years. So that’s not farfetched. I think in five years you’ll have a 20% growth again, I’m playing conservative numbers, right? So here’s the numbers. Here we go. So five years total, even if the rents didn’t increase, you would make $63,000 in rent over that period of time. Right? That’s five years at 12,050 a year. So 63,000 in rent on top of that, the fact that your renters have paid down your mortgages for you. I paid it down $39,000 of equity that you’ve built up, a little over that I just rounded down to 39,000.

So 39,000 plus 63,000. Even if the property didn’t appreciate, you still made with your a 105,000, you still made $102,000. Right? Wait, hold on. Let me do the math again. Yeah, that’s right. $102,000. So you made $102,000. That’s pretty good. Right? So you made a 102,000 bucks from that 105,000, 5 years, you’ve basically about double your money. Even if the market was flat, even if your property stayed the same price all five years, not likely, especially if you’re buying lower, you know, lower, you know, like a property is around 120, 150,000 or less. I mean, they’re not going to depreciate very likely even in recession, those things usually appreciate. Because people start downsizing into these smaller homes, creating competition, driving your prices up. So even in a recession, that’s not too unheard of. Anyways, going back to this again.

So you’ve already made 102,000, but this is say you did grow your properties grow by 20%. Over those five years, that’s a $95,000 gain. Now what’s happened is you’ve made 197,000 from 102 or a 105,000. You’ve made nearly a 200% return in five years. Again, this is not guaranteed. This is not recommendation. All the disclaimer to go with this. I’m not saying that’s the case or course figurative. Right? But think about this $197,000. Now, of course, when you sell those properties off, so you get the $105,000 back, guess what? That’s over $300,000 you just made. But wait, there’s more. Here’s the thing you’ve been paying on the last five years. You’ve been paying down that 30 year mortgage after five years, that $320,000 balance is now 287,000. What does that mean? You just made over $300,000. If he decided to sell off all your properties, right?

Those three properties you bought, you sell them off. After five years, say I’m taking the money out and getting my money back. No extra money out of pocket, same payment as you did the 15 year mortgage. But guess what? 300,000 will pay off your $287,000 mortgage. You may or may not even have some change left over. You just paid off your house in five years, not 15 with a lot of risk along the way, five, five years. And again, the X factor is of course that you have cash flow along the way. So something does bad to go wrong. Hey yeah, you get the mortgage payment, but you’ve got money still paying, right? You’ve got other streams of income to support. Maybe your one mainstream income that you have where you’re playing a gamble. You’re basically playing Russian Roulette, right? Where you just hope that that chamber, that bullet’s not in that gun that might hit you that point because your jobs aren’t guaranteed, your business is not guaranteed.

You need multiple streams of income to ensure and create safety in your situation. But unfortunately, financial advice is telling you, Hey, rely on that one stream of income, save up all your money, lock it away in your 401k. So you can’t touch it even in emergencies. Or if you do, you have to borrow at a ridiculous, you know, payback amounts or you know you to try to get to it. But again, you’re getting taxed on money and everything else, right? Lock it up in your equity for home. Here’s the thing. If you had to sell something, would you rather sell your investment property or sell your own home that your family lives in? You don’t want to sell your own home. Let’s be honest. You don’t have to go to the resort to that where you’re trying to sell your house fast, hoping that you have to short sell or even foreclose on it.

If something goes wrong with where your income stops, this is the safest way along there. But look, it’s only the safest, but it’s the fastest. And that’s again just saying that in five years. So their situation they could have their house paid off in five years. If they chose to, or they could keep building that passive stream of income and saying, why would I want to pay this thing off? This has been a massive golden goose for me. Why would I kill it? And so they might just keep it going. But at least you have options where most people hit retirement. They don’t feel like they have any options, at all. That’s what they tell me. They’re like, I’ve got this money, but it’s not enough. And I don’t think I could save enough in this lifetime to be able to truly retire the lifestyle that I want, where I can actually have some freedom versus living on a very tight budget, fixed income, not visiting my children or my grandchildren.

I have to be stuck here, guys. This is the difference. It’s such a big difference. This is the kind of thing I’m seeing the guy at the SBA loan. He asked the same kind of question. Now the numbers were like about double what I was talking about with them, but it was the same kind of thing. I ran the numbers for him as well. And I said, Hey, even if you had to pay 50,000 of interest on a loan over those five years, because that’s what we calculated with the terms being only at 4% for the money he’s cashing out. I said, that’s $50,000 of interest who cares if you’re making anywhere from 300,000 to $600,000 off of it. That right there from a business standpoint, for things from a business owner’s eyes, if I can invest 50,000 in my business to make 300, 500, $600,000, am I going to stop that?

No! That’s brilliant business sense. That makes common sense. It’s the same thing with your money. If you were looking at your money the same way as looking at as profit, not just all the dumb rhetoric and not even just rhetoric, it’s almost the point where it’s dogma. It’s almost religious in nature for people that you should pay off your home, you should save in retirement plans. Again, all taught by Financial Institution, telling you to do this stuff, right? We’re telling you to do this for years and what’s happened? People aren’t retiring free. They aren’t feeling any better off, if they pay off all their debt. And I know because you guys have reached out to me that have been the Dave Ramsey poster children where all you have is maybe a mortgage. If that, and even now you’re saying, okay, but we have no income.

It hasn’t translated to actual income. And that’s how we will retire. That’s how we become free financially, right? Guys, that is the point of this. So that’s what I mean by “One Night Retirement”, you create so much better options. And that I just talked about a five year timeframe because the calculation, when you get out 10, 15, 20 years, it gets ridiculous. It becomes the point where it’s hard to imagine and believe. You might even think of the five-year. One is hard to believe, but it’s not, guys. Like I said, I’ve got a property for the last two years that already now has got about 75,000 of equity in it. I only put, I only paid 32,000, including closing costs into that. My down payment was 27,000. I now have 75,000 equity, you know, with and plus the cash flow I’ve earned too. So I’ve been making cash flow on that.

Then making about 14, 15% a year cash on cash return. And guess what? Now I’ve got a bunch of equity in two years, even without the appreciation still that was building up equity. They appreciate it. It was nice though. Now that’s what I’m saying, guys, like buy real assets, buy things. A steward wants to buy things that allows them to expand and grow their stewardship. And to be able to create more value in this world to make a bigger impact. You can’t do that for money’s locked up in prison. You can’t do that. If you’re following the same old mainstream advice, you’re waiting, you’re in this waiting game, hoping and praying something will happen. And the truth is guys. The only thing you can do is stop hoping and praying and start taking action. Hey, if you’ve got a situation like this, you’re saying great, Chris, I’ve got money.

I even got money sit on the sidelines and savings or something like that. Or I might have money locked up that I can get out, but what should I do? Guys, this is where you can just shoot me an email, [email protected] and Hey, let’s find out. See if that’s a good thing to do. Can we do with infinite banking and do some cool stuff like that? Yeah. In as much as it works with this, using these alternate investment vehicles, right? It’s gotta be something that works together. You can’t just trust. I can tell you, you can not just trust on life insurance whole life to actually help you retire. There is no life insurance product will ever get you to retirement, no mutual fund. None of those retirement plans, not even 401k with a hundred percent match will get you there.

427 - Is Fear Slowing You Down

https://moneyripples.com/2020/10/05/427-is-fear-slowing-you-down/

Did the last, or current, recession destroy your wealth?

Are you suffering from ‘once burnt, twice shy’?

How do you overcome this?

Don’t let Fear Slow you Down.

Learn the ONE secret that I use when deciding on key decisions with my money, business, and life!

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/08/20/427--is-fear-slowing-you-down

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Hello, my fellow Ripplers! This is Chris Miles, your Cash Flow Expert, and Anti-Financial Advisor. Hey guys, this show is for you and it is about you. The reason I’m doing this show is because I want you to be free. I want you to have that cash flow, that freedom, that prosperity today, where you work, because you want to not because you have to. Right? Where you can have that freedom that prosperity right now, not 30 or 40 years from now. If the market just happens to do the right things the right time. And if you happen to scrimp and save and sacrifice and suffer your entire life away, that is not what we’re here about. Guys. We are here about freedom and cash flow. Now! If you guys want that passive income, this is why you’re here, right? You want to be able to have those options, that choice and that freedom.

And guys, it’s not just about your own freedom. It’s about creating a ripple effect in the lives of others. Because as you’re blessed, you can be more powerful, more free to be able to bless others lives too, and create a legacy, not just for yourself, but imagine your family and your children and what you can create by creating something different than what most everybody in America, especially the United States have been dealing with. That’s what we’re here about today. Here’s a reminder, check out our website, www.MoneyRipples.com. You can download our eBook. What is called? Beyond Rice and Beans. That’s right. I’ve said it so many times. I’m forgetting it, but you can download Beyond Rice and Beans. Seven secrets free up cash today that you can get great tips for finding money, especially if you need it. If you’re the type of person that says I’ve got money, but what I do with it?

You can even use the contact desk page and reach out to us and say, Chris, like, what can I do in my situation? Maybe I can become free in the next five or 10 years. Yes. That could be you reach out and ask us those questions. So anyways, guys, check that out. So today, guys, I want to talk about something that I’ve seen. I’m seeing happen a lot in the last few months, and I think it’s one of the biggest money leaks that might exist. And the question I have to ask you is this is, are you dragging your feet? Are you preventing yourself from investing right now out of fear? Are you kind of holding back because you’re scared or uncertain about what the world is what’s going on in the world today? You know, maybe you’re saying I’ve got cash, but I’m afraid to invest it.

Because what if I pick wrong or man in the past I have picked wrong. I made mistakes. I don’t want to do that again. You know what? understand? I completely understand you guys. So let me give you a story here. When I was, you know, when I went through the last recession. Right? Now, it’s up to 2006, 2007. I thought I could walk on water. I thought I had “The Midas Touch” that whatever I touched turned to gold. Right? You know, it’s like, man, money’s coming so easily. It seems like I go to this investment. I make the money back. It’s great. But I was really delusional, right? It wasn’t because there was something wrong with the markets. There was something wrong with me. And I think one of the biggest fears that people have not so much about what’s going on in the world, but more people I find as we dig deeper is they’re more afraid of themselves.

Is this you? Like, are you saying, you know, I think it’s like the markets, but really in truth, if I knew what I was doing or if I was confident in what I was doing, I probably wouldn’t fear what’s going on in the world so much. I would probably say, great. I know how to maneuver this because I have the knowledge and the tools and the expertise to do that. Right? And that’s true. That’s what happened to me. I was just naive. Right? I was overly optimistic and I got burned in the recession. It was interesting because as I came out of the recession, that was, you know, building my way back. Right? Trying to get to that point where I was able to retire the second time. For me it was, it was scary. You know, especially as I started to try new things, like when I bought my first real estate investment property, again, I was scared to death. Right?

Because the properties I have before I lost or had to sell and was barely able to break, even if that it really costs me money, you know? But you know, I had lost properties. I had bad renters. I had all this kind of stuff happened where it looked like anything I did was horrible. Right? All the things I thought I did was amazing. Found out that in truth, everything I was doing was wrong. And I remember I was talking to a friend about this and she said, you know what, Chris? You know, if you would stop holding yourself hostage to the past, if you would just let go of the past, forgive yourself and look forward, don’t look back like, sure. Learn from those lessons. But she asked me, she said, Chris, are you the same person you were several years ago?

I said, no, I guess not like, I definitely, that affected me a lot. Like, I definitely have been changed. I’ve you know, I’ve definitely gotten a little bit wiser because of it. She said, well, Chris, why are you afraid of the same thing happening again? When you’re a different person, the same thing can’t happen. If you’re a different person, it won’t happen. Just like, if you just let that fear barrier go, you’ll make millions. And I remember that time, like again, I was just trying to struggle and get out of it, making millions to me, it was like, wow! That sounds incredible. I would love to make millions. Like I came in fathom and that’s like the make millions. I can tell you guys now from hindsight, she was 100% correct. But the fear has got to stop for you guys. Right? You got to get over that hump, that fear, the best way to do that is really a few things you can do here.

Right? One, you know, you can always reach out to someone that could be like a mentor for you. Right? It doesn’t have to be me. Right? It doesn’t have to be me at all. You could be reaching out to someone that’s a family member that you know, is kind of been through the life of hard knocks. Right? They’ve been through something. It could be a friend or something like that. But someone that definitely has been where you want to go or is currently are where you want to go. Don’t judge them by having cars, nice houses. Don’t go off that, go off of actually have done the thing that you want to do. You know, like people come to me all the time. They say, Chris, I come to you because you’ve done it. Not only just do it once, but you did it twice.

So I figured you probably have something to teach, even though I’ve done things for years, you know, even some of them was like, I’ve done real estate forever, or I’ve done investing forever. But I feel like maybe you can give me a different perspective on it. Right? Find a mentor like that. Someone that say you can give me a different perspective or at least an outside perspective to help me see what’s going on. Because if some of the times, the best thing you can do is have somebody that’s forward thinking, or maybe in your future to say here, I know how to bridge that gap. Let’s get there. So that’s one, you know, two sometimes the best way to overcome fear. This is just do it anyways. For me, the only way to overcome that fear was buying an investment property. Right? I had to do it.

I had experienced it. That’s why I was, I rave about it now, you know, because I said, Oh! I did it. And look, it worked. I didn’t get burned. You know, by the way, key point, if you’re looking at investing in real estate properties don’t just buy one, buy multiple, right? So that you can say, look, I can prove it because if you get that one, then something bad goes wrong. You say, Oh! It happened to me again. I’ve had clients like that where they said, Oh! I bought this one property and now the renters are moving. And now I haven’t been paid on my rent for the last two months, you know? And I’m paying my mortgage payment and it’s like, listen, like it doesn’t have to keep happening again. Sometimes people will attract the very thing. They fear, whatever your fear you’ll tend to attract more into your life.

So be careful of that whatever you worry about will come about. So don’t worry about that. I’m not saying don’t worry, be happy, you know, but kind of like that. So anyways, sometimes just doing the thing you fear will do it will help. Right? That’s why I did a marathon last year. You know, I had to do the marathon that hurt me so bad. It got me to quit marathons. I had to do it again just to say, look, I create a new and different experience. Here’s the third thing. And I want to put some emphasis on this. The third thing is, this is learning to trust your intuition. You know, some people will say going with your gut. Right? Trusting your gut. I’m going with that feeling that’s inside. I would tell you, looking in hindsight, when the last recession, before it hit, I had absolute feelings.

I had little whisperings and feeling that said, this doesn’t feel right. Like almost like, it’s almost like the spidey senses go off. Right? It was like something doesn’t feel right about this. I was like, but you know what? Hey, I’ll make the numbers work. It’s fine. I’ll make it happen. You know? And then of course the very things that I of course were worried about did happen. The other thing too, is that there’s been times in my life that I felt something was right. Sometimes I didn’t act on it. So I don’t know what happened. It’s nothing happened. But when I have acted on those right feelings, things worked out. So for example, my business model here with, with MoneyRipples, right? Had shifted, you know, in 2015, I’d done six live events, you know? And I was inviting people from all over the country.

I was trying to fill seats. It was a lot of work. Also during that same year, I went through a divorce which was burning. It had burned me out. Even by the time we got to the last two events of the year I was done. It was so hard for me to do those events and want to keep putting energy in. I was exhausted. And I remember my mentor at that time said, Chris, you know what? You need to do like what my model is, you need to do at least one of these months. So not just six in a year, 12 in a year, you had a double it. And I thought, Oh my goodness! That’s Oh! That sounds horrible. And I remember at that time, I started to really pullback the layers of myself, get to know myself again, as well as my business.

And I’ll tell you the more you get to know yourself, the better, more powerful you can become. As I got to know myself, I sort of realize, I said, you know what? My guts telling me not to do that. Like somethings deep down is telling me, don’t go for that. And so I said, you know what? I feel like I shouldn’t do more events. I should do less. I’m going to do three. Instead of I’m not going to do double, I’m gonna cut them in half. And instead of trying to fill seats, I’m only going to invite people. I want to be there. So I’m going to invite people that I think should be there. Not just trying to make my ego feel good by filling a bunch of seats in a room. I’m like, I’ll see what happens. And guess what? My ego was definitely not inflated because the first event I did had 5 people in it, not 50, five just five.

And one of them was really a helper. I knew she didn’t have any money. She was just helping me out. So really there’s only four people and there were just two couples. Here’s the crazy thing. They were the right people. I knew the right people. They knew they were the right people. One hour into that event. I turned around and told them. I said, guys, listen, I already know that you guys are perfect clients for me. Let me just teach some great stuff, you know, over the next couple of days. And then we’ll figure out how we can work together. Sound good? And they said, yep. Guess what? And at that event, both people became clients. I made more profit from that event because it was such a small event. Right? I made more profit from that. Then the bigger events I did and it was, I was happier.

I was more relaxed. It was easier to manage and maintain. It was awesome. Guys. Each of you have this kind of spidey sense. You have this intuition within you. I’ve had some of you telling me, Chris, I don’t have that intuition. Or I don’t trust it because I feel like anytime I try to listen to it, I get it wrong. Here’s the thing you’ve got to learn to listen, to hear what it is it will, for me, what it is is that I get kind of this. Yes! Right? If I get kind of this stupor of thought or I get, you know, we’re just, or if I have something that feels exciting I let it wait out for a few days, I kind of wait out that emotion. And a few days later, if it’s not on my mind, if it’s not still sticking with me, it’s not a good thing for me to do.

If even after a couple of days though, I’m like, this still feels good. You know, that’s what I should do. And I’ve done that. And I’ll tell you, like it made a difference. Also, you know, if I don’t get excited about it, I don’t do it. I mean, there’s times I’ve had people reach out that. In fact, just today I had somebody reach out that I knew immediately. Even just from their message that I wasn’t the person for them. And so I asked some follow-up questions, of course, just to kind of verify it. But my intuition said no, like it almost felt like the sinking feeling where everyone’s right. It feels almost lighter. Right? It just feels right. It doesn’t mean that it’s always going to go smoothly. I’ll remind you that it doesn’t mean you get this perfect little paved path, although they can happen.

That’s not always the case, but it feels right. And I’ll tell you, that’s when my business shifted. My business went from one. I reduced a lot of expenses and overhead to the point where I, 10 X my profits in about a year. But then, or within a couple of years, actually it was probably 5 X within the first year, 10 X after a couple years. But then even my revenue had gone like 10 X as a result of that. And so that’s the cool thing guys, is that when you listen to that intuition, the fear can go away. You can actually start to trust it more. So my advice to you is this is that. And again, it’s different for everybody. Sometimes you guys will feel it differently. You might get tingles, you might feel certain things. I would just say, go back to the decisions you made.

It might have been whether or not you should go on the date with that person that eventually became your spouse. Right? You just knew it. It was the right thing. That’s the thing is that when you get the right information, you know, even with investments, you know, I’ve told people, even with people that traded stocks, I said, listen, even if all the numbers look right, but something just doesn’t feel right. Don’t do it. That’s like investing 202. Is that regardless of what all the numbers say and the data says, if it doesn’t feel right, don’t do it when in doubt stay out. But if it feels right, that’s the time to do it. I don’t have a rhyme for that one. Sorry. But I could probably create one, but anyways, if it feels good, if it feels right, go for it.

Don’t let your fears pull you back in. I’ve had so many clients where, especially in the last several months, pulled back because of fear. And I’m here to tell you that most of that fear was unwarranted. It was not even worth it. It was all just mind games. They overthink it, right? Sometimes the best thing to do is to not overthink, feel it out, trust that instinct. Because that intuition sees things subconsciously that maybe your conscious mind can’t pick up on, but it knows trust it, go with it. And I’ll tell you that. Even for my investing, it’s been the best thing ever. You know, when I just liked the properties, go on from feeling, going off the gut. Even if the numbers say something one way, the gut tells me another, I go with the gut. If they both line even better, right?

426 Investing in Real Estate as a Single Mom - Interview With Lauren Hardy

https://moneyripples.com/2020/10/02/426-investing-in-real-estate-as-a-single-mom-interview-with-lauren-hardy/

Lauren Hardy Joins Chris MIles today.

Lauren started flipping houses. Southern California became a tough market and she looked out-if-state for more opportunities.

Lauren Hardy is a real estate investor with a “People First” approach to business.

Investing in hundreds of properties in her career, including developing spec houses in Nashville Tennessee and hundreds of flips in her other out of state markets, Lauren has the unique reputation of being a successful “virtual investor” having not lived in many of the states she’s invested in.

She has only ever worked in real estate so launching her own real estate investment company made sense.

Lauren has developed a reputation in the industry for persevering in extremely competitive markets by constantly following the market changes and being flexible and willing to move market territories when needed. Lauren currently lives with her two daughters in Southern California and travels to her market territories several times a year.

Listen to our Podcast:

https://www.blogtalkradio.com/moneyripples/2020/08/15/426--investing-in-real-estate-as-a-single-mom--interview-with-lauren-hardy

Follow us on Twitter and Facebook:

https://www.twitter.com/chriscmiles

https://www.facebook.com/moneyripples

#FinancialAdvice #RealEstateInvesting #Finance

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Chris Miles (00:07): Hello, my fellow Ripplers! This is Chris Miles, your Cash Flow Expert and Anti-Financial Advisor. Welcome you out for a wonderful show. Show that’s for you and about you. Those of you that worked so freaking hard for your money, you’re ready for your money start working harder for you. Now. You want that freedom. You want that Cash Flow. That prosperity. So you work because you want to not because you have to. So you can be able to be with those that you love doing what you love, whenever the heck you feel like it. But on top of that, it’s more than just your own comfort and convenience, right? It’s not just about getting rich. It’s about creating a life of meaning and purpose about being a Rippler by creating that ripple effect in the lives of others. Blessing more lives because you are free. And as a result, you can spread that as well.

Chris Miles (00:49): Guys, I appreciate you being on here. I appreciate all the bingeing you guys have done. Some of you guys are trying to tackle all 400 plus episodes and that’s awesome. More power to you. I can’t stand, listening to my voice that long, but I appreciate you guys do that. And Hey reminder, check out our website, www.MoneyRipples.com There’s great blogs on there. And there’s the book Beyond Rice and Beans, 7 secrets free up cash today. If you want to find more money to invest now. So today I’m bringing on a special guest here, Lauren Hardy. So now again, like I get different people that come to me, but you know, when I see someone that I can tell is the real deal, right? They’re not the posers. They’re not fake, they’re actually doing it. They’re, It’s kind of that been there, done that and still doing it today.

Chris Miles (01:32): And that’s a key. And Lauren actually is a real estate coach and investor, and a wholesaler herself a little bit about her. First and foremost, she’s a real estate investor with a people first approach the business, right? She’s invested in hundreds of properties over her career. She has a unique reputation of being a successful virtual investor. Having not lived in many of the States that she invested, which a lot of times we talk about in this show, she’s also been able to persevere an extremely competitive markets by constantly following the market changes and being flexible and willing to move market territories when needed. She currently lives in South Southern California and with her two daughters. And he, by the way, the one reason I’m bringing her on the show is that she’s actually like a single mom doing this stuff. Like actually making this stuff happen, wholesaling an active business, not passively investing, actively investing and rocking it right now. So Lauren, welcome to our show!

Lauren Hardy (02:25): Hey! Thank you for having me.

Chris Miles (02:28): Absolutely! So tell us what even got you down that path of real estate in the first place?

Lauren Hardy (02:33): Well, I actually have been in real estate for a very long time. Since I graduated college, it was, I, it was always what I wanted to do. My dad had a rental property rental portfolio growing up, we lived in, we still live in Southern California. And my dad had a portfolio in Ohio and I just grew up around, you know, the rental business. So I always assumed that I would get into estate. I graduated college in 2008 and it was right during the recession, right when it started. And I got into commercial real estate as my first, you know, venture into real estate. And it was a terrible time to get into it. I failed miserably did not have a great time. It tried to become, I was trying to be like a real commercial real estate broker. And it was very, yeah, that was like the worst time.

Chris Miles (03:27): The worst time for essential was bad, but commercial is worse.

Lauren Hardy (03:31): Commercial was just, yeah, terrible.But I was very lucky. I got a job more on the corporate side of real estate working in franchise development for subway restaurants at the time subway was doing amazing because subway does very well in recessions because of the $5 foot long and.

Chris Miles (03:53): Yeah.

Lauren Hardy (03:53): Right.

Chris Miles (03:54): about that thing a whole day, you know, for five minutes.

Lauren Hardy (03:57): I know. Right? Yeah. So I got really lucky because that was like a company that was expanding over a recession. So I got that job at that time, hung out, hung in there for a bit. And I eventually wanted to get into investment real estate myself because I wanted to have a job where I could work from home and I could be there for my children. You know, so, you know, corporate world corporate life was not fitting that in the bill for me. So that’s how it all started. And I started out as a house flipper just in my backyard when I finally like really got started into house flipping, it was 2012. So there was still quite a bit of seller distress. It was pretty easy to find property in my backyard where there was a significant discount where you could still put money into it and make a really decent return. I was doing that, you know, having a great time for the first couple of years, but it got really hard. And in my market in Southern California, as the market started, you know, doing better heating up.

Chris Miles (05:06): Yep.

Lauren Hardy (05:07): Got really tough to find those deals. So it forced me to look at out-of-state properties to get the margins that I needed to get, to be able to sustain this business.

Chris Miles (05:17): And that’s not easy, like I’m going to match my group of ton of wholesalers and it’s, it’s not an easy way to just go virtual. Right? Just to go into a place like that. So how did you get through that learning curve? Like what was it you were able to figure out to make that work for you?

Lauren Hardy (05:31): You know, it’s funny, it’s so much trial and error at the time. There was no educators. There were no like virtual wasn’t really like that common of a term. So I really had to like figure it out myself. I had to go, okay, what do I do in California? And now, you know, what people can I hire to do the stuff that like you would need me there. Right? So like, do I, need what boots on the ground? You know one thing that I will say is I started virtual actually when I was in California because California has terrible traffic. If anybody knows my markets where I had some of my flip properties, it would sometimes take me two hours in traffic to get to them. So I would often try to get the contracts and get these houses under contract without even seeing them, because I didn’t want to waste my time in a set with a seller that wasn’t, that motivated, that ends up, you know, I drive two hours and the seller never even ended up signing the contract.

Lauren Hardy (06:34): So, I taught, you know, I kind of learned how to get really good at convincing sellers to sign contracts over the phone without having to meet me. So I got good at estimating repairs you know, without having, you know, sight unseen. And I would estimate repairs based on the description of the property that the seller was giving me with the understanding that, you know, I do have an inspection contingency and if I do get the property under contract and I do go there and I see that there is something that the seller, you know, didn’t tell me about that. I renegotiate my contract at that point. So that was really how I started virtual. And then I thought, well, gosh! I mean, what, how is this any different than if the house was in Tennessee?

Chris Miles (07:21): Yeah.

Lauren Hardy (07:23): And so I made it work.

Chris Miles (07:25): Yeah. And you just still do over the phone or you start doing more like with zoom and things like that now, or?

Lauren Hardy (07:30): I do it, we do everything over the phone. So I have a team now. I don’t do our acquisitions. I more manage the company and I have staff that runs my business. I mean, like 100%, I just kind of check in about once a week for an hour to make sure we’re still closing deals. I do handle all the marketing. I do a lot of seller marketing. We market direct to seller. That’s how we get our deals. I don’t buy anything on the MLS or off the MLS. So I manage the marketing campaign still. But yeah, I, we do everything over the phone. Acquisitions is all in-house. And if we do have to have someone meet the seller to drop off a contract, because some sellers are not as savvy with computers, we have runners. That’ll do that for us. So I, yeah, we’ve, we’ve basically, you know, figured out a system and it works then now that we’ve been doing it for so long, I don’t really know any different. So I don’t think it’s, I don’t think it’s that hard.

Chris Miles (08:29): Yeah. It’s a matter of pattern because as I know some people and I’ve heard wholesalers say this, they’re like, well, I don’t know how to not do this business where I’m not belly to belly. Right? Like they feel like they have to be face to face to earn trust and you figure out a way to do it just with not even seeing you, like, it’s just, just hearing your voice. Right?

Lauren Hardy (08:49): Yeah. That’s a misconception. It always makes me cringe. When I have, like, when I hear like other educators say, get the appointment, get the appointment, you have to get belly to belly with them and all that. You have to sit on their couch and pet their cat and don’t leave their house until they sign that contract. And, and honestly, I just laugh. I’m like, you know, the amount of time you just took like it to do that all like that probably took you two hours to drive to the seller’s house. Sit there, drink tea, you know, talks to them about stuff, pet their cat. Like by the time you’re done doing that and they, but yeah. Get ringworm. I mean, by the time you left and what if this other didn’t even sign the contract? You know how many times that happened to me, where the seller does assign the contract, then I just want to like kill myself at the end of it.

Lauren Hardy (09:35): Like cool. That’s two and a half hours. I’m never going to get back out of my day.

Chris Miles (09:39): Yeah.

Lauren Hardy (09:39): You know? So I realized I was like, I could’ve made five offers over the phone of five sellers. And one of that, one out of the five might say yes to that offer versus not one out of one that you’re going for for that day.

Chris Miles (09:53): Right.

Lauren Hardy (09:53): I mean, seller meetings are exhausting. If anybody’s ever gone on them, they are exhausting. But you know what? Calling sellers on the phone is not that exhausting. And you can make five to seven offers a day pretty, easily. And out of those, you’re likely to get a deal. So that’s my approach on it. And I would argue, you know, any seller, like I’ve never heard a seller say, Oh, well, I’m not going to listen to your offer because you won’t come to my house and tell it to me, to my face belly to belly. Like no seller will say that every seller is going to say like, well, yeah, I’ll listen to what you’d offer me. Like sure! Of course. You know?

Chris Miles (10:37): Yeah. That’s cool. That’s really cool. I think that now the timing is better than ever to where people are already realizing they have to go virtual. Whether they like it or not.

Lauren Hardy (10:46): I know. Yeah. Like, I mean with COVID there’s no excuse like you guys have to go for a trouble. It’s like, it’s been amazing to be like, well, I can’t meet you with lady. Sorry.

Chris Miles (10:58): Now you have the perfect reason. Right? There’s.

Lauren Hardy (11:01): Right. Totally.

Chris Miles (11:02): Well, that’s cool. And how do you balance this? I mean, how old are your daughters right now? I have a six year old and a nine year old. Oh my goodness! That’s a fun age right there. How do you make all that work together? I mean, run a successful wholesaling business and raise a family by yourself. I mean, how do you manage that?

Lauren Hardy (11:19): Yeah. You know, I mean, yeah, so I’m a single mom. I have a wonderful co-parent. Their dad is very much, you know, how he helps me out and we definitely co-parent very well. But yeah, I do juggle a lot. I pick up my kids every day from school when they were in school. And you know, I do the car pools and everything. I time block I’m very Monday through Friday, I’m on a very strict schedule. I wake up in the morning. I work out at eight in the morning after I dropped them off from school. My Workday starts at about nine. I skip a lot. Okay. I don’t do my makeup every day. I don’t do my hair every day. I stayed my, I said, yeah, you look great. You’re natural beauty.

Lauren Hardy (12:06): I mean, not so much, but that’s okay. I have to be okay with looking ugly. I, you know, I sometimes will stay in my gym clothes, you know, all day, like until I pick them up from school. So I do skip some steps in my grooming process. But I have to stick to my schedule. I also have a lot of help. So I recommend to anybody as you make more money, you need to start putting money aside to pay for support staff. What is support staff? I hired a wife. I call her she’s my personal assistant. She helps me around the house. She comes on Fridays and she just kind of picks up the girls rooms kind of helps me organize a little bit. She picks a little section. She does, what what a wife would do? Well, you know, for me.

Lauren Hardy (12:53): So I, it’s fantastic. You know, I, and she helps me with the laundry. I have house cleaners, they come and they clean the house. I, as I, you know, as my income allowed, you know, and it wasn’t all at once. It was step by step. It was like, Oh, you know, I can afford a house cleaner now. I can afford daycare. I can afford a nanny. I can afford this. So you’ve got to invest in that because the amount that you’re going to pay them, you know, say you pay them 15 or whatever an hour, you know, depending on kind of going rates in your area, but like 15 to $20 an hour, you have to think, well, if I’m making a hundred dollars an hour or more, you know, it’s worth it. What I mean, it’s, no brainer that it makes sense to hire someone. Your time is better spent doing what makes you more money period of time is better spent doing that for $20 an hour.

Chris Miles (13:47): Absolutely. I agree. And that amaze me too, like you know, Barbara Corcoran, Right? From shark tank, right? Like I remember I had a family member saying, yeah, I nannied for this lady in New York. She was, she’s apparently famous. I’m like, well, what’s her name, Barbara Corcoran. I’m like, well, yeah, yeah. I definitely know her, but yeah. I mean, she, she said the same thing, like, yeah. She had to get support in as well. And especially where she’s even an older mom. Right. Like she’s doing that in her fifties and sixties, you know? So yeah, it was, it was kinda cool to see that happen, but obviously that’s not something you just throw right in. Like, that’s gotta be developed over time.

Lauren Hardy (14:24): Yeah. I’ve been developing this over eight years. So I, and it’s very much for me. It’s, lifestyle by design. I basically outsource everything I hate doing. So it started with eight years ago, me doing everything, and then it was okay. The first thing I need is I need childcare. Like once I quit my full time job, and I started doing investing full time because I did do investing first with the corporate, you know, full time job. I I did both for a year. I started my company and I did both for a year until I had enough money in savings to quit my full time job. And then I thought I could work with my children at home. And I learned very quickly that that’s impossible. So as soon as I need, you know, I felt comfortable enough to put my kids, you know, to afford some daycare.

Lauren Hardy (15:16): I put them in daycare three days a week and it just built from there. It was like, and now the house cleaners, you know, and then the nanny, you know, I need your personal assistant. And also hiring staff, you know, for your actual business. You know, I did seller calls. We do a lot of direct to seller marketing, so we could get in, you know, five to 12 seller, new seller leads per day, Monday through Friday. I don’t have time for that. So that’s the first thing I hired for my company is, you know, an acquisition manager.

Chris Miles (15:49): Yeah.

Lauren Hardy (15:50): Yeah.

Chris Miles (15:51): Yeah. You gotta have, yeah. You got to keep delegating and keep building that out.

Lauren Hardy (15:54): For sure. For sure. Yeah.

Chris Miles (15:57): Yeah. That’s true. I mean, it’s, I keep thinking of what my life would be like if I were more full time. Cause I’m semi-retired. Right? Now, I’ve got eight kids blended with blended family of eight, so it can get chaotic. Some of those days, those are the days I cannot focus at all. Like, just like you say, like, there’s no way you can focus when they’re all in your ears and asking questions, like, okay, I checked a few emails. That was good. You know, that was it. Yup. It’s crazy. But it’s cool that you found that way to make it work and extremely successful. And I didn’t even mention this before, but you’re not only a coach, but your coach with Wholesaling Inc. Correct?

Lauren Hardy (16:33): Yes.

Chris Miles (16:34): And a Podcaster with them.

Lauren Hardy (16:36): Yeah.

Chris Miles (16:37): I know some of our people follow that. They probably even know you already,

Lauren Hardy (16:40): Maybe. Yeah. Yeah. If you guys have listened in the last month, some of my episodes just started dropping, but my focus is more is the virtual real estate, virtual real estate investing angle. So I’m their new virtual coach. My program is virtual investing mastery. So it’s great. A lot of my episodes have to do more with the topics of investing virtually.

Chris Miles (17:04): Yeah. So if people wanted to learn more how to invest virtually, right? Like what would they, what kind of resources would they go to or how would they find you guys to do that?

Lauren Hardy (17:12): You know, I post so much on my Instagram. I post a lot of free, great content real actionable, you know, items are on there. So follow me on this. Mom Flips, that’s my handle this month flip tons of free stuff. And I have, I’ve got videos on YouTube. My videos are on the Wholesaling Inc. Youtube page. So check that out. I would say, you know, I would argue, I think my program, I mean, there’s not a lot of virtual programs, you know, so I’ve got to say, and I’m totally biased, but I think my program’s the best. So I would say, you know, check out what, you know, I have to say, listen to it. And if you like, you know, my style and you think that, you know, I can help you. I do have the coaching program that people can apply to.

Chris Miles (17:59): I think one thing you have a huge advantage of too, because this was one thing that caught my eye. Initially, when I, when I first heard about you, right? Was one, it was actually someone doing wholesaling. That’s a woman, which is hard to find. Cause anytime I go to the wholesaling mastermind groups, it’s almost all men like very male dominant. And I know I have women ask me, they’re like, well, okay, it’s cool. But what about someone like me? You know, like someone I can’t even relate to. And it’s so cool to find someone who’s doing it. Like I said, been there, done that and still doing it today. And so it’s so cool to see you doing that right now. And actually like breaking that mold finally, you know, like I think that’s awesome.

Lauren Hardy (18:39): Yeah. I do notice that there’s definitely more it’s male dominated for sure. But I don’t know. I wouldn’t say there’s anything special about me. I mean, I think women have a lot to add, you know, or bring to the table when it comes to wholesaling. You know, wholesaling and investment real estate in general is, is the art of finding discounted deals. And the way you find discounted deals is marketing to sellers. So there’s marketing and after your marketing it’s sales and I, I would argue that one of the most important qualities to be coming a really good salesman or sales woman is having a lot of empathy. And I think as a woman, we have a little bit, I don’t know if it would be that we have more empathy or we just show it more.

Chris Miles (19:30): Probably both.

Lauren Hardy (19:31): Maybe a little bit of both, you know? And so I think that it makes us very good salespeople.

Chris Miles (19:38): I agree.

Lauren Hardy (19:39): So I would say, you know, the, to any female who is standing on the sidelines, because they’re a little afraid I would say that you definitely have the advantage in that department because the empathy thing that we have makes us very good in sales, a lot of women don’t realize that.

Chris Miles (20:00): Well. And a lot of people don’t realize too, the whole thing isn’t about just making money. It’s a very much a people relationship business, you know, and especially if it’s virtual, that’s gotta be like dialed in. That’s gotta be done. Like it’s, it’s got to happen that way.

Lauren Hardy (20:14): Absolutely. It is a people business. I always say my business is a people first business and we treat our sellers with respect. So we do what we say we’re gonna do we’re 100% transparent. We do not lie to the sellers. We don’t we’re, you know, we don’t play games and we don’t say we’re gonna do something we’re not going to do. We don’t, you know, over promise under deliver. We always tell the sellers exactly how it is, because I don’t want to have to explain, you know, why something didn’t work out or why it disappointed the seller at the end. So, and I think that, again, that’s empathy, you know, knowing that kind of being able to put yourself in the seller’s shoes, knowing you know, that they’re probably dealing with a situation. So they’re looking at you to solve their problem and help them at a time in need.

Lauren Hardy (21:01): The last thing they need is, you know, some smooth talker and he was also a really good negotiator to beat them down on price and then lock them under contract and then take advantage of them at that point. So I think as a female, you know, I’m able to you know, portray that, you know that, Hey, I’m an empathetic person. I can see that you’re in a situation. Let me tell you how I’ve helped other people in that situation. This is how we can help you and listen, no matter what, even if we don’t end up working together, I’ll point you to any direction that will help you. You know, I’m happy to help either way. So.

Chris Miles (21:36): That’s a huge advantage right there.

Lauren Hardy (21:39): Right. In a lot of our competitors who are males, like I’ve, so I’ve taught, I do have men on my team, but they learned the script is from me.

Lauren Hardy (21:49): And what they say is from me. So they talk, like I just talked right there. They don’t talk like, you know what they read in a book, like what, you know, the Wolf of wall Street or you know, they talk the way I talk. I taught them, you know, my script and my sales approach. And they always say like, I hear it all the time. Like, Oh yeah, we were talking to these other investors, but they were just so pushy. And you know, they weren’t, you know, they were just like kind of hard nose negotiators where you guys just like, see, like, if you want to just be our friends, you know? So.

Chris Miles (22:22): I love it. Lauren this is awesome. Like, and I know we’ll definitely make sure we get that, that Instagram handle in there as well as the YouTube link. Cause we gotta have people following you. This is good stuff.

Lauren Hardy (22:33): Thanks.

Chris Miles (22:34): So we’ll thank you so much for joining us today. This has been incredible. Everybody you’ll reach out to Lauren like check her stuff out, check out her Instagram, you know, all the education she’s got there and great, just great resources. You can utilize that it’s so essential. Especially if you’re looking to go into an active type role in this business because passive is good. Right? We talk about a lot about passive investing, but active investments were real wealth can be created on a much more amplified basis. You know, passive is great. If you’ve got a lot of money, but using your time and energy with your money, now, you guys can create multimillion dollar type of businesses doing this kind of stuff. So definitely check your stuff out. So everybody thank you so much for joining us today! I hope we make it a wonderful and prosperous week. We’ll see you later,

425 - Savers Will Become Losers

https://moneyripples.com/2020/09/30/425-savers-will-become-losers/

Should you keep money on the sidelines?

Should you pay off debt right now?

Is the stock market a good place for your money?

Learn how savers are becoming losers right now, and what you need to do about it.

Listen to my Podcast:

https://www.blogtalkradio.com/moneyripples/2020/08/13/425--savers-will-become-losers

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Hello, my fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. I want to welcome you out for a wonderful show. The show that is for you and it’s about all of you. Those of you that work so hard for your money, and you want your money to start working harder for you. Now! You want to work because you want to not because you have to. You want that freedom. That cashflow. The prosperity. Today. Not 30 or 40 years from now, if you’re lucky and the market just happens to smile on you just the right way, but you want that freedom right now. You want that real life, the ability to be able to be with those you love and doing what you love, but guys, not only do you want that life of freedom, that financial freedom, but on top of that, you actually want to be able to have a life that makes a difference where you can bless more lives, because as you’re blessed, you can share those blessings with others.

And I don’t just mean donating your money and giving that away, although that’s great, but it’s actually be able to show up more powerfully as someone who is free, abundant, and prosperous, and there is where we can change the world together guys. That is the kind of Ripple effect I’m here to create. And I appreciate all you guys being here as well, because through you, I can do the same. So thank you so much for sharing this with others. Thank you again for bingeing and trying to learn and apply this. And again, thank you for those that reached out to me that said, Chris, like, I’m trying to learn how to do this better, whether you’re just, you’re trying to figure out how to get out of the rat race yourself, or you’re like Chris, like, I want to learn how to double dip on my money. Like, how do we use this infinite banking thing? Great. I appreciate all the questions and the fact you guys reach out because that’s what makes me feel like I’m making a difference in your life. So I thank you so much for that.

As a reminder, you can check out our website, www.MoneyRipples.com. You can download the eBook Beyond Rice and Beans to find ways to create more cash or find more cash now. And you can also check out other videos and blogs as well. So check that out.

So today guys, I want to discuss something that’s, that comes up a lot. Right? And I know I just got done telling you guys that right now, getting liquid, give, be able to keep your cash available is key. Right? I thought about, you know, right now is the golden opportunity. We’ve got crazy high prices in the real estate market we’ve got, we’ve got, you know, and I don’t, I shouldn’t say crazy high, but they’re higher right now than ever because there’s demand for it.

People aren’t selling, but there’s tons of people trying to buy. So there’s more demand for real estate right now. So that’s driving it up. The stock market is going nuts. Like it’s going crazy high just because they’re hoping for a virus, for a virus, they’re hoping for a virus! No, they’re hoping for a vaccine, right. To a virus. But even then the numbers are completely crazy, especially with how things have been shut down. But we’re seeing the stock market all the time high, right? We’re, we’re seeing all this opportunity. Plus with the cares act, you can even access money that was before tied up. Now you can get to it and get to it without a penalty and early withdrawal penalty. So there’s all this great stuff. Right? So I talked about how it’s opportune to be able to get liquid and get cash. But I want to take it to that next level now is that if you’re a, if you’re the traditional saver, you’re going to become a loser. Right?

Savers are losers. As you might hear Robert Kiyosaki say. Right? And this does not mean that you’re a loser if you’re a saver in the sense that you’re, you suck, right? We’re not saying that at all. What we are saying is that great. You, you got some good discipline to be able to save money or put it away or to pay off debt faster. But that’s not what’s going to create freedom because I’m telling you many of you that have already done this. You’ve had hundreds of thousands. If not millions saved up in mutual funds or in savings or whatever it might be. You’ve been debt-free, you might even barely have a mortgage, but even that’s nothing. Right? So you’re already in this position, but you don’t have freedom because you don’t have income coming from this money. You have money, but it’s not actually translating to real income, like real interest earned.

And that’s a key difference guys is that it’s got to equate to that day to day lifestyle. Now you may not have all those mortgage payments, but you still have your life. You know, when people think that they can go debt-free and just life will be wonderful. I’m telling you, it’s, it’s, it’s easier to be debt-free. I can assure you of that, but it’s not. It’s not what is all cracked up to be, and it does not generate real freedom. You still have expenses. You still have to make pay bills, even if you’re debt-free, don’t you? Well, why would you think that debt-free makes you free? It doesn’t. If anything, it just means a few less expenses or costs, but other than that, you still have to pay for everything else. So we got to find this balance. If you want to be a wise steward of your money, we’re not about being spenders. Right?

We’re not talking about blowing money, but we’re also not talking about being in scarcity as a saver where you can never save enough to make a difference. We’re talking about going in the middle with being a steward. What does steward do? Well, steward wants to get those resources working for them. A steward says, how can I make the best of the resources that I have? Money for certain, but it could be also your time, your energy, your talents, and everything. How can I use this in a way that blesses more lives? How can I use this in a way that’s actually going to, actually create some freedom for me and be able to allow me to expand my influence. They’ll expand my service to others. Right? That’s really, if you go deeper, that’s really what being a steward’s all about. It’s not just about being financially free.

It goes so much further than that. Like, that’s just like a little step in the bigger scheme of things. But here’s what I’ve noticed is that I’ve had two people in the last 24 hours, right. Both of them have, they’re both great savers, like fantastic savers. I mean, Dave Ramsey would throw them up on a poster and say, these guys do what they do. Right? you know, one of them is, you know, they’re both in the medical fields. Right? what was interesting is that one of them made a comment. He said, yeah, I’ve got some student loans just paid one off, freed up 9,000 a month, which I said, Ooh! That is awesome. That’s what it should be like. Right?. 9,000 a month is nothing to frown at it for sure. And he said, yeah, but I still got another couple hundred thousand left of student loans because you know, being a doctor is expensive.

Well I started to ask them to break down those loans and tell me about interest rates and whatnot, and the highest interest rates like around 7%. So I said, okay, that’s a decently high amount for a student loan, but not ridiculous. And in fact, the lowest one, I saw the one that made the most sense to pay off if you were to pay one off was when I had a $56,000 balance. And I don’t remember the interest rate, but I just, if for his sake, I said, let’s even overshoot the industry. It’s probably lower. But I said, let’s say it’s 7% because he was paying $715 a month for 56,000. Now here’s the thing is 7%. And he’s like, I ran the numbers for him. In fact, I’m going to share my screen so you can see what that looks like.

So for those of you watching the video, great, for those of you that aren’t watching the video. Well, you know, you’re just gonna have to, you know, follow along verbally, at least. So I put this up on the screen for him. It was a zoom call. I said, all right, you have $56,000 on the starting principle. You’ve also got this at a, sorry, that’s the wrong one. Here we go. $56,000 7% interest. I said, if you’re paying 715 a month, that’s going to take you about 8.75 years figure out the payment, right there’s about 715 a month. I said, at that rate at 7%, for $56,000, you would pay over the seven years, 19,000 of interest. His response was, Oh! Yeah, that’s bad. I said, okay, cool. Yeah. 19,000. That’s no pretty, that’s definitely a pretty penny, right? That’s definitely some money coming out of pocket.

Considering he has 56,000. He owes, but he still has 19,000 of interest to pay over the next, almost nine years. I told him, I said, what if. And he hadn’t seen the compound versus simple interest effect. I said, what if. You, instead, you mean, and he was about to get 56,000. He had enough money coming in the next month or so that they would be able to pay off that one loan. And I’ll tell you from a cashflow standpoint, right? If you’re looking at just buying a property, you know, from a pure cash on cash standpoint, cashflow standpoint, paying off this loan is not a bad idea because it would free up 715 a month, see $56,000 down. If you bought like a property with that right now, if you did different funds and whatnot, like we’ve made 8% or 10% a year, you definitely would not be making a, you know, 715 bucks a month for the next nine years. Right?

Now maybe it might, I mean, there might be a possibility that depending on the, on the investment that you’re in, it could pay more. Even if you did a property, you see you’ve got paid 12% a year, 56,000, making 12% means 560 a month. That’s not quite 715, so it’s not horrible. But I want him to see that he could pay this off of the cash coming in the next month. Or he could not pay it off. And so I show him what would happen if he didn’t, if he just left the cash growing. And I said, unless they say, you only earn 5%. Right? So it’s costing you 7%, but you’re only going to earn 5% of his money. I said, what do you think of the interest you would pay on this? He said, Oh, it’ll probably be about, I don’t know, 12,000 or so.

I said, yeah, because proportionately speaking that’s about what it looked like if 7% cost you, 19,000, well, that would mean 5%. Should only make you about 12,000. Right? Well, ran the numbers and here it is. Boom, boom, boom! Okay. For those, you guys see my screen, of course you could see this. The interest that’s earned is not 12,000. It’s nearly $30,000 only earning 5% for the next 8.75 years. So if you had that 56,000, he could pay off his loan and save that 19,000 interest for the next nine years. Or he earned interest that compounds. Right? At 5%, he earns almost $30,000 of interest. Now he still has, it still costs them the 19,000 interest, but he still gains over $10,000, extra interest doing the same thing, just earning less interest. And I said, well, watch this 7%. If you’ve even matched the interest. Boom! Now you made 45,000.

So now you’ve made about 25,000 more in interest than you would have if you had just paid off your loan. And I said, what if you made 12%, right, again, like doing properties. I said, now it’s getting ridiculous. Now it’s about $95,000. Yes. It will cost you 19,000. But would you, I mean, that, to me, that looks like an investment. If I can put in 19,000 to make 95,000 in nine years, how many of you guys would do that investment? Right? I mean, it’s awesome. Now the cool thing is I showed him. I said, well, to break, even we did about 3.4%. There it is. If you only earn 3.4% of your money, you earn about 19,000 of interest. So I said, your goal is to earn at least three and a half. He said, Chris, I could easily do that. Basically I can invest in almost anything within real estate and make at least that much.

I said, I agree. I said, you could definitely pay off the mortgage or pay off the student loan, but you may not want to. And so I said, great, you know, it’s up to you either way you win, right? The question is which one’s going to make you the most money. Right? Which one’s going to really make the difference because see, let’s think of this practically say that you did put 56,000 and you bought really two properties with that. Right? Those properties paid you a total of $560 a month or a 1% a month type of return. Well, that’s just the one aspect that’s like, what’s above the surface. That’s the top of the iceberg. Right? But beneath the surface, there’s other things happening. For example, if you bought that with leverage with a mortgage. Well, cool! Well now that’s paying down your mortgage, your mortgage balance. Right?

So that’s starting to go down at least a few thousand dollars every year. Right? So you’re probably over those nine years, you’ll probably gained, I’d say at least $25,000 to $30,000. I’m not running the exact numbers, but it’s going to be pretty close. So in nine years you’re going to gain at least 25,000 to 30,000 of equity. Even the house didn’t appreciate just because you paid the mortgage balance down and you don’t even have to pay it, your renters do. Right? So not only did you make 560 a month, but now over nine years, you’ve averaged at least 2,000, 2,500, maybe $3,000 a year. And actually I’m probably being, probably being a little bit conservative on that number. So anyways, that’s a big thing there. That’s not including appreciation. There’s appreciation now? Oh my goodness! Now, if you’ve been writing off the interest on your student loans or your mortgage, because this applies to a mortgage too. Right?

Well now you’re writing off interest as well. So even the interest you are paying, you’re writing off on your taxes. Plus if you make real estate income, you don’t get the, because of depreciation and all those kinds of things and cost segregation. You really, you can actually walk away with zero net gain, even though you’re making hundreds or thousands of dollars a month, because now you’ve got tax credits. It becomes like a tax free investment while write off the interest. So that’s a 7% student loan guys. What if this is like a freaking mortgage? So that was the other person I talked to. They had a mortgage. I said, you know, and it’s funny because like their mortgage payments are so high. Cause they’re trying to aggressively pay them off that they could even get a HELOC. You know, not, not that they were broke by any means.

They had enough money to actually pay off their mortgages now, but they’re like, no, I want to get a home equity line of credit. Maybe I use that to invest. The bank rejected it because their minimum payments were so high compared to their income. They said, no, that’s too much. So I said, as I told them, I said, listen, instead of trying to aggressively pay it off and he was paying 3000 a month to his mortgage, I said, instead, let’s refinance it to a 30 year mortgage. I’m like, I know this scares you as a saver. This will scare the heck out of you. If you refinance that for 30 years and say, you’ve got at 3%, which is not hard for him to do because he’s got great credit. Right? And right now mortgages are so dirt cheap. It’s amazing.

But 140,000 for 30 years, at 3%, his payment drops down to 590 bucks a month. As you can see on the screen here, 590 a month, that doesn’t include taxes, insurance, you know, California’s expensive. Right? But that’s still, I guarantee that’s still at least 1,500 plus dollars cheaper than what he’s paying right now. He can always take that 1,500 of cash. He can always put it in a savings account. He can put it into life insurance. He could put it somewhere where he can store it and let it grow, do his thing to where he could pay off his mortgage later if he chose to. I said, but man, you can drastically reduce your expenses. Which why, by the way, will reduce your debt to income ratio. So then the banks will say, yes, to that HELOC. Because the banks don’t want to take risk. They view you as risky as a saver because you’re trying to aggressively pay off your house.

So you made your mortgage payment, you know, at a minimum. You said, Hey, I want a 10 year loan. Let’s fix that payment. Make it super high. His payment was actually 2,300, but he was paying 3,000 a month. Right? But still at 2,300 a month, the mortgage company is looking at, or the banks are looking at saying, Hmm, no. That’s too high of payments that he’s making. That’s risky. Even though by every financial, most financial advisors standards, including a Dave Ramsey would say, that’s awesome! Good for you. That’s what you should be doing. Thanks for saying no, you’re risky. Why? Because of his income drops at all, he has to still make those huge mortgage payments. Wouldn’t it be better if you have the option to make a bigger mortgage payment, which you had a lower payment. So I said, if you’ve made it at 590 a month, that’s way better than if you were stuck at 2,300 a month.

Well, I mean, or even with tax insurance, right? Maybe it’s 1,200 a month say it’s a thousand dollars a month cheaper than what he’s required to pay. That’s a thousand dollars. He does not have to pay. If something goes wrong. See, understand that often savers will always look at a calculator and we’re just go off of emotion or based on what they’ve been taught. And it’s always been taught by depression error mentality. Remember in the depression, banks were actually allowed to call your note to due, if you had a mortgage, even if you’re on time as their payments, they could call it, due but because of what happened to the depression. They changed those rules. They said, no thanks, you need to make it easier for people. As long as they’re making monthly payments, you cannot foreclose them. You cannot call the note due and make them pay the whole mortgage balance and take their house away.

You can’t do that. And so therefore banks don’t really do that. It’s very, you don’t see that option happening too often, unless you’re buying some investment properties, that might be the case. But in most cases, the mortgages, you’re no longer in danger. As long as you make your monthly payment, you’re fine. So the rules have changed, but people haven’t changed their rules. They’re still playing by old rules and you will lose the game if you play by old rules and that’s what’s happening here. So I said, listen, you can always put the extra payment on top of the mortgage. Although I wouldn’t recommend it. I would say, put into savings until you had enough to pay it off. If that were your goal to pay off your mortgage, then do that. Great! At least you had the money in savings and it builds up some extra security in case something goes wrong. Right?

In case life happens, which never happens to us. In case a crazy virus happens or whatever might happen. Right? That’s the difference guys. And so my point to you is this. And by the way, if you run numbers on a mortgage or what they could earn, you’re earning even 8% or 10% on that same, 140,000. It’s ridiculous. It’s like hundreds and hundreds of thousand dollars of more interest that you would earn in which you would pay. But again, we’re not taught to be stewards with our money. We’re not taught to be wise investors with our money. We’re taught to play by the rules. The banks given us, the banks want us to pay off our loans as quickly as possible, which is why they keep incentivizing us with more, you know, more of that kind of crap, right? They want you to pay off your loans faster.

They don’t want you to be in debt. They want those balances down as low as possible. So you create as little risk for them as possible. But remember all the time in the meantime, they’re getting paid. They’re always getting paid. They are the best investors. If all you do is copy and mimic what banks and financial institutions did, you’d find out that you could actually be an investor too. For example, banks wants you to pay back your money faster. If you have money in an investment, don’t you want that money back too? Even if it’s paying you interest, you eventually want to get all that money back just in case. Right? Just in case something goes wrong with that company. You know, if you’re investing with somebody else investing money with them, you want them to try to pay that principal back too. Not just an interest only. Right?