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Coaching Call with a Million Dollar Investor (Chris)

https://youtu.be/mj51m79IOzQ

On today’s podcast we’re going to be doing a coaching call but a little bit of announcements. We’re going to be unveiling the new Infinite Banking e-course. I put this together to get all our questions on infinite banking. I think a lot of you guys listen to this stuff on a podcast and you hear all the benefits of it.

A lot of benefits, a lot of high net worth investors do it. I think every investor over a million dollars network should definitely have some sort of Infinite Banking policy but it’s not all sunshine and rainbows as you guys know. I do it! At the end of the day, I think the benefits outweigh the cons, but get yourself educated.

Check out our infoPage@simplepassivecashflow.com /banking to learn more there, get free access to that e-course. Probably tell you guys about a couple hours to get through, but again, that’s free. Check that out there. We’re also going to be doing a bootcamp one of these weekends.

Make sure you guys sign up there, get on the email list by going to simple passive cashflow.com/club, to get the invite to that free a weekend boot camp. And some other things that I’m following other than the Delta spike in COVID cases.

Peter Thiel, he screwed it up for everybody. If you guys don’t know the story, but Peter Thiel basically stuffed his Roth IRA with a whole bunch of severely undervalued stocks B shares, whatever you call it, but basically that he pissed off the government.

And now the government is tightening a lot of these self-directed IRA. And pretty much screwing everybody’s even doing the regular Roth and regular IRA. We’ll see what happens. Who knows they might put a capital in the Roths. A one thing I’m looking for is they might be putting like a appraisal requirement on all your assets in there where they make you get. a $5,000 appraisal fee

Which would pretty much Kubosh the whole point. You’re going to have to base so much in fees, but I’m looking for this in the next RISE Act. Something that was put on the faults when Trump was in office, but is coming back up. Of course it’s going to be sold as I forget what RISE stands for, but it’s Hey, let’s help Americans save money.

By changing a bunch of the ways that the self-directed IRAs, etcetera work. But I think it’s gonna screw a lot of you more sophisticated investors up. I don’t do any retirement accounts. I don’t know why anybody really does it. If you invest in real estate. If you guys do crypto, I’d probably do it on crypto, but, check out my long list of reasons why at simplepassivecashflow.com /QRP. But, beyond the lookout for that infrastructure bill, I’m actually pretty bullish overall. There was the recession is over the world’s shortest recession of what, like two months or something like that is over. And looks like rents are coming back up.

I think the rent more terms, how they stay how they are, always offers stability I feel bad for the small landlords. It’s the small landlords who are put in a hard space once all these moratorium are up and things start to open up. Whereas, on the larger apartments, the commercial property managers have a lot more tools at our disposal to adequate the protect ourselves, the landlords.

I’ll be on the lookout for the rise act, the secure act whatever, they’re going to call the infrastructure bill.

And then some of you smart investors out there that utilize the whole buying something under market in your IRA, swapping it over to Roth. That little chikaru you guys like to do that I think is a little risky. I think might be definitely going away as they might put in some kind of nasty language in the RISE act where they’re saying you cannot buy things under fair market value.

Which makes no sense if you’re a real estate investor, you’re always buying under a fair market value. But anyway, we’ll try and be on the lookout together. If you guys want some more insider tips, join our family office. Ohana mastermind, go to simplepassivecashflow.com/journey and enjoy the show.

We are going to be doing a coaching call with a million dollar. We’ll just call it that! Call it a million dollar net worth investor. Chris, he’s been part of the HUI pipeline club for quite a while.

About 2016.

I always remember when we have calls and I remember we were talking when I was at my past day job.

Back when you used to live here?

Yeah. Why don’t you give us a little context on yourself. You’re up there in Washington, where I used to be.

I live in the Northwest. It’s like you said, I work in the power industry as a technician there electrical task 📍 guy.

We have two kids, my wife works and we own a business also. Started chugging along on real estate when I started talking to you back in 2016 had done a lot of actual like futures trading and other types, like stock investing, hoping that would set me free, and learned a lot.

Then my neighbor’s house came up for sale and I started looking seriously into what it would take to have rental properties and dove into bigger pockets and your website at the time of your podcast and just tons of podcasts and got fired up on it. And looking at the slower moving animal that is real estate investing.

What made you finally get rid of like the stocks and options and all that type of stuff?

I don’t do it anymore. It was definitely time consuming and it’s just seems so unpredictable. Just trying to check on, I was doing an option selling and try to do that monthly income model. It was so volatile and just not a lot of fun trying to sleep in doing that thing.

I just ended up really, the fire got lit by this house that was right by me or which I did not buy, but it got the fire lit and I just started digging. And ended up, I got into the turnkey if you want to chat about that for me.

Why did you not end up buying that rental nearby?

The whole bigger pockets land and the financial calculators that you get the 1% rule is really why I did it. Honestly, it would’ve been a good deal for us just because of speculation and the houses have gone crazy around us. But you don’t know and so that’s the very first thing you learn, you don’t go for cashflow.

It would have been a break, even deal for us. As far as the rent, barely making it and no cashflow, but it would have been a great speculation as far as appreciation you don’t know that and no one tells you to do that.

People invest that way, right? Buy low, sell high, go on appreciation. And if you’re bleeding cash a little bit every month, most people that’s how they invest.

I guess I got talked out of it just because I’ve done the speculation thing with the stock trading and stuff. And so I wasn’t really interested in speculating anymore.

I was interested in cash flow and so I ended up not pulling the trigger on that deal and then really did a ton of podcasts on turnkey investing and retail turnkey thing. I ended up all over looking at tons of different stuff and really I just pulled the trigger on ensemble.

And after awhile I was like, I’m just going to do this. It seemed like a huge deal at the time. Now in hindsight, if you haven’t get operator, even though you’re paying retail, it still works. It still makes money every month. I’ve been in that for four years now.

And it’s just been chugging along for better or worse there’s been nothing to do. That’s where I’m at. I was not tempted to buy anymore. There was a fire lit buy pretty quickly by thinking about multi-family and mobile home parks in particular. And I went down that path and that’s been a two year journey of being involved in that.

Let’s get people up and where we are in the scorecard here. Cause this is what evolved really matters is what your net worth is. Your net worth is just shy under a million dollars, just call it that on a good day.

You’ve been pretty good with your money, right? Like most people in our group compiled a bunch of assets, have your liabilities in order. Now let’s take a snapshot of like your monthly velocity. You make a pretty good salary on 9,000 a month. You’ve got some real estate income. The important thing here is in net cash flow 3,600 a month. You’re able to put away and save maybe 40 grand a year. Is that about right?

Yeah, I would say, that would probably be about right. That’d be probably max right now, depending on. This has nothing to do with the business that we own right now, what you’re seeing here. I would say 40 is a good number right now.

That’s awesome! You’re not making a huge salary, like some of these other guys, but you’re definitely in the average of where people are saved. Most guys are between 30 to $50,000 a year. And at that point, you’re moving at a pretty good clip.

You’re not buying a syndication or two every year or two syndications or more, or three houses every year, but you’re steady making progress. And at this rate, you’d probably be a lot different financial situation. I don’t know if you’re gonna be financially free at five years, but you’ve got to definitely getting there probably going to be there and like under 10.

It all matters on your living expenses. And I know the picture here. I can just guess from seeing so many financial profiles like this, I’m sure you can tighten the belt a little bit, but you’re just seeing the light at the end of the tunnel and you’re gonna coasted there.

You don’t need to live in ramen noodles. We don’t. We have some perspective on that for sure. You’re going to live a little bit, and it’s like just there, right? As you lay out the plan, the tightening maker may not. When we talked a long time ago, you were doing the turnkey stuff. I think that’s what connected us in the universe. And then you went off the simple passive cashflow registrar. You became more of a do it yourselfer kind of guy. Tell us how that little experiment went. What did you go off by? What did you do?

I wandered out, I got very interested in the mobile home park thing.

And it’s why I got interested in it because when you look at mobile home parks, what’s interesting about them is that they can be passive in some respects. If the mobile home park is all tenant on homes that is a really cool model where the person that lives there owns her own home, they just climb you rent the dirt to them and you just maintain the property.

That’s not the part that we bought. We definitely saw the lure of the higher rents from owning homes so we bought a park and I have a partner on it. It was just two of us. We bought a park that that has 25-ish tenant and our I’m sorry, we own 25 of the home. It’s a lot of work.

As far as just keeping people in. It’s a low-income housing community is what it is. I’ve learned a ton about it. I definitely get that the tenants own their own homes or I don’t even know their names barely. Actually I say that it’s like, they’re really super easy they just do the thing and take care of their house.

They pay me rent every month. You run into problems in a mobile home park when you’re hunting people to collect rent and they don’t own the house and they trash it. You may have said this before, but it’s like pig pen or something. It gets, they go crazy.

And so you get to rehab or, do a rent to own handyman special kind of stuff, doing a lot of that stuff every year. Pretty much every couple of months with turnover. But the other thing I’ve learned is that, low-income housing is high demand and we never have an issue with vacancy.

You’ll have vacancy just because you’re turning one over, just cleaning it up, but really it is pretty incredible. I’ve seen the whole thing and I do realize that I’d prefer to be more of a passive investor at this point in my life. It’s something you’re always thinking about when it’s yours and you’re the operator you’re everything, and you’re communicating with the manager and doing all that.

That’s the story. The partner you went into was he more sophisticated operator experience with this stuff. Nope. We were both just interested in doing it. Had done like the kind of a Academy mobile home park bootcamp stuff. Exactly. Just pretty much just fired up newbies and dove in.

And the person we bought it from was super helpful. And that was probably the easy part honestly, we had that person helping us and they had tons of properties in that area, they just held our hand on it. And we got go on that way. And yeah, that was the story.

I will say like that the mobile home park education out there. There’s only one group that does it, but they actually do a pretty good job of actually teaching it to you. It’s a shame that there’s a plethora of multifamily crews teaching it but they only teach out how to buy the properties.

None of them actually teach you how to operate it because a lot of them have been operated them thing or own rental or own multifamily in reality. But I think Frank and Dave do a pretty good job. Yeah, you get a lot of operation stuff and they’re available to you, and it’s it was good.

I felt like he showed up with stuff. He just, I, yeah, it was like maternity thing. It was like once it was super scary and then we did it with the mobile home park too, it was like now we’re in it. However many thousands of miles away doing it. Both of you guys are remote?

It’s remote and he spent a lot of time on the phone. The business exists inside my phone? Did you guys know each other or you just happened to meet up randomly? Yeah, meet up randomly! That’s crazy! It’s just powered out and have been so two years in now over two years of doing it and we’re thankful for our manager.

Be cause it’s been a crazy year what really no desire to travel there right now. It’s just spend letting a check along that’s as we can given everything going on and still demand as far as that goes.

How many times did you visit that property?

Once I’ve only ever been there once. The weekend I bought it and I can say that crazy. We got a good manager. She managed a ton of the properties of, or three or four of the guys properties that we bought it from a regular human. We learned our lesson actually right off the bat.

Hiring somebody that was living there in the park. That was one of the low-income tenants. It was a lot of drama that we pretty quickly realized was a mistake. That’s what’s hard with mobile home parks because there’s not that infrastructure, there’s not a plethora of different third party property managers in that asset class.

The two you guys would have had the gun around and interview specific people have trained up on a day, which is hard. Exactly! We’re lured in by the money and doing it. It seemed great and it’s been fine.

It’s a learning experience but it’s pretty time consuming. And for where I’m at in my life, it’s just not the right time. Like I say, it is for sale we’re trying to move on from that and do some other stuff passively. Okay. How much money do you guys have tied up in it and get leverage?

I have about 225 tied up into it for me and I’m hoping to chat with you about deploying that.

You didn’t really make money on this? This is just got your original, down payment back out. We’re not, it’s under contract to sell. We’ll see how, in the end we should make some money, when it’s all done, I’m not going to say what that is until it’s all done.

We need to speculate on it now we’re talking taxes. We need to know. It’s 50 grand or something like that? Oh, it’d be more like about 70 grand. Okay. Here’s what it would be, but I can work with that. Not much. And then maybe you took some depreciation too throughout the couple of years.

I don’t know, maybe 80 grand capital gain plus depreciation recapture. You’re thinking. I think so. You’d have to speculate on that a little bit. I’d have to look back to read that. Okay. A lot of syndications, they’re going to get 50 to 70% of what you put in as passive losses to offset that right away. We can talk about that in a little bit. Like the turnkey in Memphis, how’s that guy going? It’s just smooth. It’s funny. And a super smooth we had the glitch this year with COVID itself.

The person lost her job. It was like a half payment one month and then I got, everything back the next month. It’s been super smooth. Far I’ve had a couple of patients it’s been. It’s a big operator. I’ve been tempted to sell, but I’m like, I don’t know why I would deal with it.

Just selling it. I don’t know. I guess I couldn’t do it a sec. I’ve only had it for four years, so I’ve just been paying interest or it’s the wrong end of the amortization table. I wouldn’t sell them until you’re tapped out on deployable capital and then look to sell it.

It’s not going to be a lot of money there. Yeah. And if it’s work, if you’ve got a good tenant, that’s gold, right? The good tenant is a big thing, but the search to get there is above the cost of the road to get there. Let’s put that on this tab right here, there’s like a deployment plan.

You can put on here what you’re going to sell to get funds and how you’re going to deploy it. That’s how to use this tab. Okay. But I would say. If you have any other liquid cash that you want to invest, or as we start to transition more into what’s the deployment plan now. The deployment plan is going to be the funds for the mobile home park right now.

I have cash sitting around that I’m wondering if I shaded this 45,000- ish cash that comes back in that’s really just the money coming back in from my investments. I could sit on that or not. I’m trying to decide if I should put that like in AHP type deal and I just don’t know how liquid they are.

You’re get the money back out a couple of months to two months. The other thing is there’s always the loan from my 401k, you can always do the 50,000 from that pretty quickly too. Probably faster than getting that money at AHP too. You are running a little fat here on liquidity definitely. I don’t think you need that much, maybe 20 or 30 grand, but yeah, I think that’s where a lot of conventional financial advice is, you need X amount of expenses.

You don’t really need that. If you are able to get it from a credit card line or take it out from your Roth IRA or IRA. You know that we’ve got to get your good to get your money in the game. You’re not $2 million stimulant dollars a year. No, I can flame it. Yeah. I’d like to get it moving. Oh, actually a question I had though for you, and I think as far as deployment, I was thinking about selling the note that there’s two notes up there, just up the page a little bit.

One of those is a, is it a self-directed IRA? It’s fine, but the $30,000 note originally, now it’s 25,000. In my name coming back to me, it seems like it might be better off deploying that into a syndication or something, instead of just income.

That’s taxed, like regular income. It seems like a better option to move it out of there. Sell that and move on and put it into a syndication. Yeah. If you’re only making 9%, age does everything for you and both of my ordinary income. Not saying you would go down one specifically.

I would say, correct me if I’m wrong here, but invest the mobile home park money 200,000 there. And then either the note or you’re gonna touch any of this, the stock stuff, or are you going to keep that where it’s at? Right now, I’ll probably leave that word is other than I may I have the ability to pull that $50,000 loan off my 401k.

Where seemingly unrelated question. But this ties in, what is your adjusted gross income around as a household? A 125. Okay. You guys don’t pay too much taxes. Now, you guys are under the 300 threshold.

This year will be quite a bit different more. We bought a business last year that has got quite a bit of income. We’re trying to get all of our books handled right now. I can’t give you an exact number, it won’t be a crazy high. It might still be under 200.

Next year, will the business do the same thing? We’re going to try to make sure it does. We have plenty of things that you can buy. We’ll keep it down. We’re pouring money into infrastructure right now. We’re we have enough expenses. I think that okay then to zero.

Yeah, the zero that income out. And that’s the goal of the business, right? On taxes. Okay. I’ll leave this alone. You can incorporate in as you feel comfortable with. I would think since you’re not in a high tax bracket, even with the business to take it out slowly would be the thing to do.

If you’ve heard me multiple times, I don’t like these types of retirement plans because you’d rather pay to taxes now. Taxes growing up. Your tax bracket is lower now and then you don’t get the passive losses that play that game from this stuff but if you take the character. Oh yeah.

Okay. You don’t have to decide now, but I would say, maybe think about just leaking out 20 to 50 or a hundred grand every year. Through like a 72 T thing? Or how would you say doing that? No just cash it out. Yeah. Okay. But I’ll just let that stew for you right now.

We’ll see. Exactly. Yeah. That’d be like a chat with the tax guy. No, it’s not tax for the tax guy. It’s a little right here. You don’t have to talk. No tax guy tell you about. It’s which way do you want us to stir the ship man? Yeah. The tax guys down in the engine room.

I’m telling you what happens if you do it. I’m telling you what’s going to happen. We all know. Just don’t worry. Your tax bracket is basically, and how much you’re going to take. And then just wait out from there is what you’re saying. But that’s more of a strategy thing, right?

You need to do the math on. All right. If you take it out and you start investing in cash, what will the implications be? Will you be making more money there? What kind of losses will you be getting? Will there be cost segregations done? That’s what you need. That’s your job.

That is not the job of your CPA tax person. Big thing. It’s your number one expense in life. Got to know what that is. That’s not the job of your tax guy. That’s unfair for them to know. I’ve definitely heard you say that before. It’s getting up to speed on that stuff is really a goal this year, just to be dialed in.

Good questions ask. Yeah, it’s pretty simple. I would say come to the bubble or get around the other people in our tribe. You’re not going to get it if you want to pay somebody to tell you how to do it. I think that’s costly. You guys can’t afford having office consultant under $5 million net worth.

But you’re gonna have to get this from your peer group of other high net worth accredited investors what they’re doing. I would highly recommend that and just getting around other high net worth people is a big thing and yeah not on the bigger pockets. That’s for sure. So I would think about that maybe taking out maybe 50 or a hundred every year and put it to investments, but you got a backlog, you got the mobile home park things first.

Ideally with the mobile home park thing, the way it’s going to work is sell it in the beginning of the year so you have the entire year that builds up your passive losses. Follow up, do you know how much passive losses do you currently have just built up? I don’t know, go look at your form. I think it’s 48 25.

No, it’s not. I don’t know. It’s 48 something. Okay. But if it is a form that has all your passive losses on it, your federal depreciation schedules. Okay. I would ask your CPA for that but they don’t give it to you or they screw around with you. They’re playing games, cause this is a big game that CPA’s played.

They don’t like to give it to you because now they know you’re shopping for a new CPA and that form has a lot of built in formulas and calculations in the spreadsheet. You might have 20 or $30,000 of built up losses, suspended, passive losses to offset that mobile home park sale. Again, I think you said you’re looking at maybe an $80,000 capital gain plus depreciation recapture.

So if you already had $30,000 to spend in losses, now we’re only looking at 50,000. Okay. Different. Okay. Yeah. Okay. So if you went into a normal syndication that does 70%, 80% leverage and does it cost sake and 50 cents of every dollar is, Put back as bonus appreciation. You’re one, you’d knock that out with a hundred thousand dollars investment.

Okay. But, so that’s how you that would probably knock out your, what you’re going to get on that mobile home park. Things move super slowly, right? As you’ve seen the mobile home park, it’s probably going to be quarter two when you actually sell it. But then you have to go in into another deal before the end of 2021 to kind of book that, to offset it.

Yeah. And in your opinion, given where I’m at, would you deploy do that in multiple chunks at a different deals? If they’re available, a hundred thousand electric 5% rule, right? I don’t want you to put more than $150,000 into anyone deal. You. You didn’t follow that role on the mobile home park?

No, I did not. You at 20% of all in it, probably back then your net worth wasn’t as high. So yeah, that was a, that was breaking a Cardinal sin, my friend, but Hey, it’s real estate. It works out well, most of the time. Yeah, it’s true. It’s a forgiving asset class. Slow moving and forgiving.

Yes. Deploying into multiple things this year, that would be hopefully if everything, hopefully deals are available and able to get that deployed. It’s just like when I sold my in 2018 or 17, I sold seven or eight rentals for our capital game of $200,000, but I had gotten two deals and I had several hundred thousand dollars of passive losses built up.

Have you sat the offset, so that essentially doing the same thing here for you,

Get that done. Then worry about the retirement funds, that’s okay. That’s definitely what I’m thinking. I don’t want to freeze stuff up. And like I say, I have the cares act distribution, which isn’t a huge cause you can chop that up into three pieces.

That’s not going to add much. To our bottom line this year, I tell it to you now, because you got to decide in the next few months, whether you’re going to really do this crazy idea that Lane’s talking about. you’re going to take out 30 to 50 grand every year, 30 to a hundred grand every year for the next three to five years.

It’s a slow thing. This note that’s not in your retirement funds? I would unload that as you can, just in the same style is unloading the turnkey. Like maybe just throw the turnkey on Roofstock they allow you to list it with a tenant in place.

Okay. Okay. You’re not obliged to sell it. You’re still making cash flow on it. And then same thing. Like this note, you can sell it while you’re collecting payments at the right price. What I would recommend. You don’t want to really sell this in the next few months, but just put it up anyway.

Just put it up at a, make me move price and see what happens. Yeah. The turnkey or the a note. You mean both of them. Okay. I’ll have to look into that. And then. Yeah, they squeeze down the liquidity. I don’t think you need as much. Yeah, I can definitely deploy that. Yeah. I don’t know if you want a little bit of a cashflow stream.

Maybe you thought 20 grand and HP or something like that before they, their current fund goes away. Pretty straight forward, I think. Yeah. There’s not a ton of moving parts right now. Yeah. It’s just, yeah. We’re waiting on kind of a load of capital to come in and then nothing crazy to do right now.

I don’t think unless I get that. We’ll move forward that your highest and best uses at your day job don’t get fired. I don’t know what all the business is, but it’s the business of a capital intensive business. You need money to do marketing or. Not at all. Nope. It’s a local service business.

And we bought it, it was already cash flowing. An owner finance deal. There’s not a lot to it. It’s not capital intensive at all. We make money. If anything is just time, it’s time, that’s all it is. Yep. It’s learning.

We’re going to build it up to turn it into an asset to try to possibly. Sell that to you at some point here. We’re learning the ropes of that business now, too. I guess we’re glad for it. Mobile home park now, service business, just learning. Yeah. That’s, you guys are in a good spot.

You got a day job. That’s probably low stress makes pretty good money. Yeah, recognize that you can not put your heart and soul into it and put it somewhere else and make money there. And that’s your, all your highest and best use to put your overflow time into the business? I think the only thing for you guys is maybe this is maybe years down the road, but I don’t own that service-based business.

You can turn it into some kind of passive cashflow stream as opposed to right now it’s ordinary, right? It’s a business. Yeah, but maybe you, when you reposition it, you stabilize it, you sell it off to somebody, but you retained investor rights. You find some young whipper snapper who wants to trade his time for money and you just, you maybe you’re still working on it.

Don’t get me wrong. But you change your compensation from, An ordinary income business to more of a K one passive stream. So that’s a conversation you could have with your CPA, but, follow me here. Yeah, you’re the one having steering this conversation. They’re not going to tell you, Oh, Chris, we should turn this into passive income so we can take your passive losses that you have a glut of and offset that they’re not going to come up with that stuff.

Yeah. That’s not their job. Their job is not to transform your life

okay. Yeah. I definitely, I need to get more education around that and, just to know what the right question to ask my dad at this point that’s certainly a goal this year. I don’t know if that’s possible in your business, we have some Doctors, they own a medical clinic and that’s how they do it.

So they changed the color of money from ordinary the passive. So now they’re able to use the passive losses to offset their ankle and they don’t need to be real estate professionals to do that. Okay. Yeah. That’s, the goal is to, is you nailed it yet, finding that young whippersnapper and all that to get them, it would be a good,

it’s not a high tech job. And who cares if you’re getting paid top dollar, I don’t know what your salary from that, but like maybe you were making a hundred grand a year from that business who cares if it’s 50 or 60,000 young worker stuff, it doesn’t get the game. It doesn’t get the perfect picture you’re getting paid and the passive income color, which you can drive down to zero.

What’s your other stuff going on? Yep. That’s the goal. We’re just building it right now. It’s slightly more time consuming. Does your where your guys’ AGI is getting real, super professional status, I don’t think is a big deal. You don’t really need it.

That’s more for the guys above 300,000 a year. Does your spouse work? She runs the business. She’s the sole owner. Okay. We could make, use the owner and free her up if you made a lot more money at your day job, if some people are listening, that would be a move that we look into, but for where you’re at, the way you guys are doing it is optimal.

I think. Okay. It’s just where we are now. We’re, it’s a, it’s learning as we go and seeing what works best for us. And this is, best right now. It sounds like you might need a new CPA,

we’re in the hunt for that right now, actually. There’s a section in the e-course currently that has how do you interview a new CPA? Okay. But I would ask them in your situation Hey, I have this business. Can you tell me about, changing this money from ordinary income to passive income and how that would happen?

What if I were able to do this, how would the passive loss would I be able to use my passive loss to offset my passive income for my business? That’s the main point of doing that is to offset the passive losses from your investments. Is that what you’re saying? You want to ask him that at least that’s my style.

How you ask him not a stump, the chump question. Oh, tell me about non conservation easements, right? But you want to have a dialogue with them and just feel them and see if they, you can work with them. if I have a lot of passive losses, how can I use them?

They’re like, no, you can’t do that. That’s a business. You can’t do that. Then, you’re not working. It’s somebody who’s open-minded who’s creative. Maybe they just don’t have the experience. Okay. I think that’s one way you can ask, that’s the least of my style in our mastermind.

We have people do it different ways to vet the CPA, but that’s my style. It’s I go in there, how can I use the passive losses to offset this cup right here? They’re like, Oh, you can’t do it. That’s not someone who you want to work with.

We want somebody who’s Oh, okay. So this is ordinary income and you can’t offset it with passive income service professional. If we were able to change it from ordinary to passive, right? Like your notes, for example, that’s yeah. Yeah. So to have that intellectual conversation with your CPA is unfortunate.

That’s maybe you have to get up to that level of yourself too. I definitely need to get there, but it’s I feel like I can have a conversation with them. I think that’s what’s hard for a lot of CPAs. Most of their people coming through the door or totally blew this up and stuff.

They’re like, Oh my goodness. Another sucker. You’re only going to have to do 401ks or self related Roths. Sorry buddy that’s all you got. They know you don’t have anything else cooking, just like the average American out there. Right! Yeah. I’ve been on the hunt really for somebody for a while.

At least gonna ask me good questions too. And I’m willing to pay for it for a while for sure. We’re gonna figure that out this year. Cool, Chris, I appreciate you doing this. I think a lot of people, follow the little journey out to mobile home park.

Yeah. Glad to chat with anybody about that. Yeah. There’s a lot of stories. If you guys haven’t please check out the website and join our clubs simplepassivecashflow.com/club and we’ll see you guys next time.

The Practice of Groundedness with Brad Stulberg

https://youtu.be/7cWGKbyouhk

hey, simple passive cashflow listeners. Today, we are going to be talking with Brad Solberg, who is dropping his book It’s releasing this week, the practice of groundedness. We’d like to take a break from the real estate investing tax legal.

Infinite banking, which by the way, we’re also dropping the infinite banking e-course this week. If you guys want to pick that up, go to simplepassivecashflow.com/banking. A lot of you guys are high paid professionals, and what also say are really type a personalities , with the path to financial freedom, you guys realize that it actually is pretty simple.

But how do we create a well-rounded life with happiness and something that doesn’t pressure our soul, which we’re going to talk about today. Brad, thanks for coming on.

Yeah Lane thanks for having me on the show and a chance to talk to your community about the new book.

Talk to us about how you started down where did the book come from?

I like to think about this topic using the metaphor of a mountain and when most people see a mountain, the first thing that they notice is the peak.

That’s where their eyes go, everybody glances up. And the second thing that you’ll notice, particularly if it’s a striking or really prominent mountain is the slope, the steepness of it. No one ever looks at a mountain and says, wow, look at the base of that thing. Yet without a strong and solid base when rough weather comes, the peak and the slope, they can’t hold. They’re not stable. The mountain degrades over time. And in my own executive coaching practice, what I realized I worked with so many very high performing entrepreneurs, executives that have spent so much time focusing on the slope or the metaphorical peak of their mountains and not enough time tending to their foundations or that base.

And as a result, even though they experience great conventional success, they often feel a lack of fulfillment. I call this If-Then Syndrome. They tell themselves a story. If I get promoted into the C-suite, then I’ll be content. If I hit 2 million in saving, then I’ll be content. If I buy this house, then I’ll be content.

And what they find is that once they get to that place where they thought that they’d be content and fulfilled, they’re not. They still want more. Some of this is just. You’re driven. You’re high achieving. You want to strive for greatness, but if that striving for greatness gets way too unchecked, then you don’t have fun along the way.

You can’t experience joy. You constantly feel empty and that ultimately led me to explore , what would it look like to pursue success in a way that is more grounded? Hence the title of the book, the practice of grounded-ness. What does the latest research, what do you ancient wisdom traditions?

What do people that really practice this have to say about building and maintaining a strong foundation? A strong base on top of which any striving can . And the answer, it’s paradoxical. It’s not that you stop striving. You don’t become a monk in a Zen monastery, completely disconnected from the world.

What happens is you still strive, but the texture of that striving changes. It goes from a place of compulsion or need or fragility. To a place of fulfillment and strength. And that’s the practice of groundedness. And then the book, obviously as well, how do you develop this quality? What are the principles that make for a healthy foundation?

And we’ll dig into that a little bit more, personally, like I’ve literally done that in the last five to 10 years where, I have a journal in the form of a spreadsheet of course where I’ve written down, like when I get this, I will be happy when right. And every six months I’ve written stuff down.

10 years ago, it’s funny. It’s I’ll be happy when I have three rentals or 11 rentals, or when I, invest passively in my first invest our apartment. And then it was like moving away from Seattle to Hawaii or having this wanted like a C class Mercedes car. That was a big thing for me.

If you do this, you have to write this stuff down and you don’t just go on autopilot in life. You start to realize that when you put that flag in the sand or, summit the mountain one step over a period of time, you start to realize it’s endless maze, or it’s just a constant path. I would encourage everybody to go through that exercise. It’s probably going to take you guys a handful of years. You guys are really smart and like philosophical about this stuff. You guys will figure it out and maybe six to 12 months. Where are we go from there, Brad?

An exercise in the book in a huge part of the book and it walks readers through this is to reflect on what I call your core values. So these are the things that you most aspire to that make you who you are, or perhaps even if you really admire, look up to someone else, these are the things that you admire about them.

The qualities and characteristics that you see. And want to embody yourself. It could be things like health, creativity, love, family, community, vulnerability, presence, authenticity on and on. You pick between three and five of this. Then it’s super important to define them in very concrete terms.

Lane, let’s say that you tell me a core value of yours is community. That’s really ambiguous and broad. What does community mean to you? Give me one or two sentences and I’m asking you you don’t actually have to do it right now, but really get concrete. What does community mean? Let’s do the exercise.

I wouldn’t say community is a big for you, maybe like honor. Okay, great then how would you define it? Not having like spineless people that just take over on you and I want to personify that, right? I’m not just doing things for money or because it brings me, money in the bank, but do things that Sprite at the end of the day.

If you think about your day to day life or your week to week or month to month life, what practices can you engage in that represent honor?

Do things that make things better at the end of the day for majority of people not just driven by the bottom line, thinking if you can, and I know I’m putting you on the spot here, get even more concrete. What is that? Give me an action that does that.

I mean find people in my network and cut people out that don’t personify that. But then you have those people in your network how are you honorable with them? Okay it’s more for things I’m doing personally?

What are you doing? Yeah.

Trying to figure out how to help them, whether investors or employees.

I would push you to get even more concrete and maybe it is three times a month help an investor or an employee in a way that has nothing to do with your own success or bottom line. That then is how you practice honor.

What the book asks you to do is identify three to five of these core values, get really concrete. Like we just did into practices and then you show up and you practice those values consistently. Start at a very noble or honorable core value, and then you get all the way down to habits you can practice.

And that helps ground you in the present moment because regardless if you get that C class or you get that house or you get that passive income, whatever it is y ou can show up today, act in alignment with your core values. And it’s really ironic. We think in so many bullshit self-help offers tell us this, that we need to be like super motivated and inspired to get going.

But what all the latest scientific research says is actually the opposite. You need to get going to give yourself a chance to feel inspired or motivated. Don’t have to engage in positive thinking or self-talk, or get all hyped up. You just show up and act consistently in alignment with your core values.

And I argue that’s ultimately the key to building this kind of grounded foundation upon which you can strive. There are two ways to strive for that c-Class one is without this foundation and you get there and you might be pretty stoked for a day, maybe even a week, but then ultimately you feel empty.

It’s like what you said, crap. What’s the next thing. The other way is to strive by showing up day-to-day consistently acting on your core values and then the C class you enjoy it. It’s a nice thing to have, but it doesn’t leave you immediately seeking the next thing because you’ve built a steady foundation that day in and day out.

Cause that C-Class gets old and a little dirty. Researchers call this, the arrival fallacy in the arrival fallacy is just that. So many people myself at times included, this is all humans, we tell ourselves a story that will arrive when something magical happens. But the goalpost is always 10 yards down the field.

We never really arrived. We’ve got to learn how to be able to embrace the process of going for outcomes that we care about because it’s the process that makes up our days. It’s about also you could argue it’s shifting from an outcome oriented mindset to a process oriented mindset. And if you nail the process and you enjoy the process, the outcomes take care of themselves.

Whereas if you’re so fixated on these certain outcomes, it can cause you to become pretty anxious and restless.

And I think that’s exactly what I do, when, like whenever we do a deal, I personally find like one little stupid thing. I want to buy on Amazon or like a little reward to get me to that next goalpost.

I also do this with my teams. I’ll tell them like what’s the goal. What’s something that you guys want on Amazon again. Cause it’s easy. It’s like when we hit a goal, you’ll get that. But yeah, I guess what you’re telling me, that’s the wrong way of going about it, right? That’s the achievers.

Again, I want to be clear. It’s okay to Buy a nice watch, buy a nice car, whatever it is . This is not about not achieving or not chasing goals. I think what I am saying is it’s about not getting so fixated on those goals and instead, figuring out what can I do today to show up live alignment in my core values, how can I be present?

How can I be patient? How can I be vulnerable? How can I build community? How can I do these things that I know are going to be the solid foundation? That are there for me. And they keep me strong, regardless of what’s happening externally. This is the stuff where your portfolio absolutely crushes out of your mind performance

and this foundation provides you gravity so you don’t completely go off the rocker and make a mistake. Take a risk that’s unnecessary. The flip side is also we go through a recession portfolio tanks. There’s some kind of external event that you could never imagine. It’s this foundation that holds you up during those difficult times.

And again, the whole argument of the book is so much about the current culture tells us to only focus on the peak of the mountain or the slope. Again, this is the metaphor for our own lives and we neglect these foundational principles that are really the most important thing that support everything else.

What is another common value that you see in, what are maybe a few habits that you’ve stumbled upon that you see a lot of people? I think one that your listenership in particular Lane will resonate with is taking something that is very common in sound investors and applying it to all of your life, which is don’t go for like big heroic efforts.

Don’t try to hit home runs just consistently put the ball on in play. Small steps consistently taken over long periods of time, lead to big gains. In investing, this is the rule of compounding. But the rule of compounding is also true for developing relationships, for taking control of your health for better nutrition, for really any kind of daily practice.

Again, the current culture says. You should find a way to hack your way to greatness. There’s overnight success, take 19 different supplements and you’ll be Superman or superwoman and none of that’s true, of course. The real way to get long-term gains no different than investing is to be patient.

And take consistent small steps over time. It doesn’t mean that you shouldn’t adjust your strategy as you go, but if you try to swing for the fences, you often strike out. So it’s much better to just have small, consistent gains. That’s how you build a durable base. So that’s one key value of groundedness.

Another key value of groundedness is this notion of accepting where you are to get where you want to go. So often we don’t see clearly the current situation that we’re in. We put on our like rose tinted glasses and we tell ourselves a story that it’s better than it really is, or it’ll quickly change, or, a whole bunch of these kinds of stories that dilute ourselves from actually seeing reality for what it is.

And it feels good in the short term, but in the long-term it’s detrimental because if you’re not clear about what’s actually in front of you, then you can’t take wise action to impact. So there’s a practice in the book around self distancing, because so often we’re better at giving advice to our friends than ourselves.

For areas of our lives that we’re really struggling with the exercise is pretend that a close friend is in the exact same situation as you. What advice would you give that friend and then go do that thing so often. People give advice to a friend that’s very different than what they’re doing it’s so simple, but it’s hard.

The example of this is I’ve worked with some elite athletes and they hate being injured and I’ve coached elite athletes that are literally limping out the door with a sprain hamstring to go do their workout because they don’t want to miss it. And I say, Jim, if you saw a training partner, limping out the door to do a workout, what would you tell.

He’s like, I tell him just rest, take one or two more days off. So you don’t blow up your hamstring. And then it’s why are you limping out the door to do a workout? Like you need to follow that advice yourself. Acceptance seeing situations clearly, even when you necessarily , even when you don’t necessarily want it to is another key principle.

Community, we talked a little bit about this, but investing in relationships, realizing that if you are going to take this process view of life much of what makes a process fulfilling and enjoyable is the people that you’re along the ride with. And I think what happens too often with high achievers is we’ve become so focused on what’s out in front of us.

So focused on efficiency and optimization that it cannibalizes the time and energy that we need to build those close relationships. So it’s a little bit about reprioritizing, the role of community in our lives. Obviously COVID has made that challenging over the last year and a half. But I think we’re seeing even more so just how important it is because we’re realizing like, wow, it’s really tough to be isolated.

So those are just a few other examples. That community thing is a big importance and especially in investing. Lot of people , they listened to the podcast while they’re doing chores or just stay in their boxers on their computer.

These are the guys who go through this syndication e-course . But the whole point is you get to know a little bit baseline so that if you do happen to find other accredited investors, you can build those relationships. And that’s the community aspect of it.

And we do a lot better in communities too.

We like to think and tell ourselves a story that we’re the center of the universe, but we’re actually not. We’re just a little speck and the people with whom we surround ourselves have an enormous impact on us. So the best way to be a really thoughtful, patient, consistent investor is to surround yourself with really patient thoughtful, consistent investors.

The best way to become a great athlete is to surround yourself with other great athletes. The best way to become a loving patient parent is to develop relationships with other loving patient parents. And again, I think what happens in our like outward focused optimization hustle culture. Because we spend so much time pushing forward for these things out in front of us, that we neglect the time and energy to build those communities.

Going back to the whole community thing your network is your net worth is what we always say. I still have free onboarding calls if you guys want to get signed up for that fees to go to the website I think it’s simplepassivecashflow.com/contact but we asked you guys to join the club first, do your pre-work first before booking that call with me.

Some strange people that they’d like to do everything by themselves. They’re most of them are introverts office, but these are the guys like investing in notes and private money lending and there they stay to themselves. To them, they think 10 31 exchanges is a good idea.

Their strategy is just whack, right? And there’s a huge difference between those people like that and people who get all these other investment constants that we get, the biggest difference is like those people don’t interact and play nice with others, from somebody who sees a whole bunch of different people, the successful people and the people, they might have a semi high net worth, but they’re just doing it the wrong way.

They’re driving around with a handbrake on. It’s the ability to who you know, and collecting the best practices from your network so just another plug for community there. But Brad, your kind of mindset I like I really personify with the stoicism type of mindset.

For those you guys not aware of that. I’ll let you define that for us.

Yeah. So the Stoics, it’s a group of thought that came out of the ancient Roman empire. And it is very much one of trying to cultivate equanimity. So inability to absorb life’s highs and lows and counter to common belief.

Stoicism is not about not feeling emotion or not showing emotion. I think a lot of people are very misconstrued and confused about that. Cause we hear oh, you’re so stoic. You don’t show emotion. Now the Stoics had tons of emotion, but what they realized is that the human life is going to contain all kinds of highs and all kinds of lows.

And if you’re going to have skin in the game and you’re going to care deeply about pursuits. Eventually those pursuits are going to break your heart cause they don’t always go your way. And what stoicism teaches is that you take the highs and you smile and then you kiss them goodbye and you take the lows and you let them hurt you.

And then you kiss them goodbye because everything’s impermanent. There’s this quote at the start of the book from a stoic philosopher Epictetus that said people complain that their hands and feet are hurting in callous. Of course your hands and feet are hurting if you’re going to live a life and you’re going to use your hands and feet, then your hands and feet will become hurting in callous.

The point being that there is no free lunch. And if you want to have skin in the game and you want to put yourself out there, it is going to be distressing at times. And we have to accept that. And if we refuse to accept that, what ends up happening is we don’t take risks. Our lives become smaller, not larger, or we dilute ourselves and we’d pretend that none of that bad stuff’s going to happen.

And when it does, we get totally surprised and completely blown apart.

Another stoic lesson that I like is the obstacles the way, when things are getting tough, that should be a good sign for you that usually makes most of the other competition give up. And when you get past that obstacle, things are going to be much better for you doing the lower competition.

Look, I talk about being at the point of discomfort. So growth comes from being a little bit uncomfortable. If you’re always comfortable, you’re probably not growing. This is true in any domain of life. So it’s really important to identify what areas of my life do I want to grow in. It could be anything from lifting weights, becoming a better investor, being in more intimate relationships.

Learning more about NASCAR, you name it. And if you’re completely comfortable in those areas of your life, then you’re not setting yourself up for growth. Now this isn’t about jumping off the deep end that just leads to anxiety. That’s no fun. It’s about finding just manageable challenge is what I call them in the book.

Things that are adversely slightly outside your comfort zone, and then going and pursuing those things. Again, you don’t want to do this in all areas of your life at the same time, either because that can be overwhelming. But for those select areas that you do want to grow in, it’s so helpful to make yourself a little bit uncomfortable.

I see this play out and I see people get a lot of success with this especially like most of our listeners are introverts. They don’t really get it. They’re a little scared of people. They come out to the Hawaii meetup and the retreat and they meet their tribe.

More introverted people that are interested in these types of financial topics and their financial fat fanatics. But yeah, I think a lot of you guys, I don’t want to pigeon hole the audience, but I think a lot of you guys out there do subscribe to the stoic philosophy and I think it’s your jam.

I do think there’s a lot of misconception around introvert too Lane. I think that introverts and I’m an introvert. We get this wrap is being like very much wanting to be isolated and left alone. And what the research shows is that’s not the case at all. What introverts generally want is really deep connection in focus and conversation.

If you go to a huge party, which most introverts don’t like doing, it’s hard to have that, especially if it’s a deep party where you don’t know anyone. You’re not going to get that one-on-one intimacy or finding your tribe. Whereas most introverts thrive in small groups of like-minded people. So it’s not that

I’m either in or out it’s do I thrive walking into a room with all kinds of people or do I want to be a little bit more deliberate and intentional about how I build that community? So for introverts is kind of like, you know, you’re getting out of your comfort zone and when you feel that typically is a good sign, And so the other two that I wanted to briefly go over Brad, if you could help us explain you also follow the ancient wisdom of Buddhism and a Taoism what are the kind of like the two big takeaways from those two, for those people who aren’t super familiar.

Yeah. So like stoicism, a huge takeaway from Buddhism is this notion of impermanence, which is the everything changes. As an investor, it’s really important to remember that because it prevents you from clinging to the highs and then being really disappointed when they’re no longer high or getting so caught up in the lows that you become despairing and depressed.

So you could sum up Buddhism. In two words are the teachings of Buddhism, which is everything changes. And. I actually think that’s really empowering because what it means is that the future is not yet determined. And if we can build again, the strong foundation of grounded-ness to support everything else that we do in our life, the stuff that comes and goes and changes will be able to hold all of that.

See it clearly, and then take wise action as a result. And Taoism is very much about paying close attention to what is going on around you. Ancient houses and they called it the way and the way is the flow of the universe. And what Taoism teaches is that we are always operating in harmony with what’s around us at the highest level.

Alluded to this earlier, you never really go at it alone and paying attention to what’s happening around you is so important for yourself. And I think all of these ancient wisdom traditions, they really point toward the value of I’m going to sound like a broken record, but accepting and seeing things clearly so that you can take wise action being really present

that’s a part of seeing things, clearly paying close attention. Patience which is letting things unfold on their own time. Taking small steps for big gains, realizing the consistency compounds, not trying to always hit home runs, but being really deliberate and just walking a long path, having a long view and vulnerability, which is about putting your skin in the game it’s really easy to fake it and be too cool to care.

And I believe that’s a protective mechanism because you’re scared to actually try something because if you try something you could fail and you have to be okay with that.

Other than picking up your book, the practice of groundedness on Amazon. Brad Stulberg , B R A D S T U L B E R G, any other last parting thoughts?

I really appreciate you having me. If you all liked what I had to say I’d be honored if you read the book. I tried to write it in a way. I guess this will be my last thought. I wanted to close the knowing doing gap in this book

so many books are all about knowing. So they help you understand the topic.

Which is great, but they miss the doing part. Which is okay, now that I understand these principles, now that I understand this philosophy, now that I can express this mindset, how do I actually show up day in and day out and implement it.

In every single page of this book I checked against the criteria of, will this be valuable for someone to actually do something in their life that is productive and different as a result.

And I think that for anything that you read, whether it’s my book or something else. I would really push yourself to realize it’s one thing to know and be able to talk about something. It’s another thing to do it and practice it, which is why the title is not just groundedness. It’s the practice of grounded.

Yeah, thanks for thanks for doing that because that’s, it drives me crazy. And why don’t I try not to read too many books? Cause like they like tell me all these stupid scientific studies, like what’s the one, the power of habit. That was a horrible book. It just told me all these stupid like scientific studies and nothing like nothing practical that I could implement.

It just wasted my time. I hope that if you guys read my book, it’ll be a very different experience because I tried to write like the kind of anti at that book. I want every single page to be hey, here are concrete practices that you can implement in your daily life that will make you more grounded.

And I think that’s maybe that’s a type a and me like everything. I do everything I spend my time on. It should create some kind of habit change or actionable item if it isn’t, it’s just wasting your time. Yeah. But I need to be more grounded. Shut out a little bit too. You’ll read the book and hopefully your whole community does too.

I appreciate you having me on the show today.

Thanks, Brad. Again, the practice of groundedness and get out of your comfort zone guys. Join our community simple, passive cashflow.com/club. I don’t know why you haven’t signed up yet and reach out to me.Book your onboarding call.

I won’t fight. I’m a real person. So many people have been listening for two to three years. And it just finally now picking up the zoom call and talking to me. Those are your action items. Pick up practice of groundedness, read practice in pick up the phone and call Lane, or schedule your onboarding call. I won’t yell at you guys.

I promise. All right lane. Thanks for having me on. Thanks everyone for listening. And if you pick up the book, I appreciate it. Take care of everyone.

Tips on Who to Trust in Getting an Insurance Policy

Best Way to Define Infinite Banking

https://youtu.be/AHAdPH_UzIA

I best define infinite banking is it’s really our process. In creating private vault for you to use as your bank. And overall it’s a process, the vehicle that it uses his whole life insurance and its dividend paying whole life insurance is the product of choice on that. I specifically like from our multiple reasons that we’ll go over, but that policy then is you overfund it.

And in that way, it has a cash value that you can access your cash at any time via policy. That’s the overall concept. And as you pull that out, the money still continues to work in your vault or in that, in your account. And you’re able to deploy that elsewhere and pretty much have your money work in two places at once.

The way I personally use it, when I had a policy, when I first started to do $50,000 a year after a couple of years, two, three years, they had at least a hundred thousand dollars of cash value built up in there. I always try and keep my liquidity low in my bank. You never want to have too much cash making nothing, but that’s why the next money is in your infinite banking policy to cash value, where it’s making a nice little tax-free yield.

That the first component of why we like infinite banking so much when the money is in, I call this the government in pull, but it’s just for some strange reason. Yeah. Life insurance, your yields, there are tax free. That’s a place to store my liquidity. And then when I need to go into a dealer too, and I need to drain that liquidity, I have it, but at least it’s not sitting in my normal checking account savings account, not doing any teeth growth, the use of whole life insurance.

It has a guaranteed aspect of it. Current gross rate of that is, 4% that is about to change, but the policies are ranging from three, three, 3% to three and a half percent uncorrelated not tied to the stock market directly on some policies you may have. And you can be in control of that, of how much funds are correlated.

But one of the main benefits for investors that this is not correlated to the stock market protection, but it is a product. So there is a life death benefit portion of it. But in addition to that in states, it varies, but there’s also some liability. And bankruptcy protection with the cash value or the death benefit over policies.

Some of our doctor clients, what they like to do is they stuff a lot of cash in here mainly for this protection aspect, right? There’s all these different asset protection strategies out there. There’s not one that’s going to get you to trying to build your castle with multiple layers of protection and diversifying.

So by putting some money into life insurance policies, Think that one part of your portfolio. Yeah. And liquidity, that’s one of the main appeals for investors where your funds are not tied up. You have access to that and it, you would have access to it in the forms of policy loans. And that’s what keeps it also, tax-free where you have access to the growth and all of your policy.

How a Near Death Experience Turn Your Life Around

https://youtu.be/moWuliNb8b8

Like you had empathy in the, he gave you empathy to see it from those people, the needy person’s eyes, or was it more, am I going to be I’m on earth for a little bit more? What it was this money? What else could this money be going for? So interesting being dead because you didn’t have anything physical.

You had you, there was that whole thing of you can’t take it with you became abundantly clear. I had no jewelry on nothing that was there except myself. And what I did on earth that I brought with me, which was the good that I did. I brought with me. So when I saw people, like I had this thing after being in a wheelchair for quite a while, I had this thing about being invisible.

When I was in a wheelchair, it was an awful feeling. So when I got out and I would see somebody. Particularly homeless people in a wheelchair. I would go out of my way to look in their eyes and I say hi, and just get the shock on their face. Oh dude, I’m not invisible anymore. Same thing that sounds like it’s like you have that higher level of empathy or you are aware a lot more aware of other people.

Yes. The sense that we’re all one, we’re all pieces of God. One person is not any more valuable than them. What you have is not as important as what you do. And that’s what really brings you joy. It just seems to me that money is a wonderful thing and it’s because you can use it to do things just to support it, or just only for myself just brings a hunger for more.

That’s when I found I still love my real estate, I love what it can do for people. I have a real empathy. Homeless my book. I didn’t get into it to make money. I knew I was sent back to write it to the book is more than just that one little. Three or four chapters about how it’s about my whole life and my family’s lives going way back, a couple of generations up till now and how we all struggle with things and we have to help one another.

And. I don’t know. I just feel like the homeless are the people that need the most help. So I’m an advocate that direction, any money I make, half of it goes into Tacoma and I’ve already given them a lot more than I’ll probably ever make, but it’s, it’s always worth it. .

How To Gain Profit From ATM Business

https://youtu.be/f5pFaKulP68

Just to give people some magnitude in their head. Was it one of these ATM machines costs if you were to do it on your own, and if you’re using these kinds of operating management type of companies, that kind of gets you going good, an easy way to think about it. And again, I’m not an expert, but from what I’ve learned, you can get an ATM for a couple of times.

If you want to go turnkey, let’s just call it a, just double that. So 4,000, let’s just say then of course, you’re going to have to put money in and that is going to depend on what type of place you put it in. So if you’re in a mall, you’re going to need a lot more money than that. If you’re at the tattoo shop around the corner, the amount of investment.

On that side of it varies drastically. And then of course, how busy the place is, will determine either how often you go or how much money you choose to put in at the time. So that’s an easy way to think about the cost of the ATM as far as. The cashflow again, that’s going to depend greatly, but let’s just say an average of $300 a month to $300 a month is a nice, easy way to, annual Ally’s that’s a few grand.

Yeah. Yeah. Like 3030 500 somewhere around there. And you’re going to spend anywhere from two to 4,000 on the machine, plus the cash to put in it. So let’s just say $10,000. That’s how I think about it. Like when I was finding out about the turnkey rentals and everything for the. Okay, 20,000 to get you a hundred thousand dollars home.

I think about these the same way, $10,000 to get me a home, but I’m going to make two or $300 a month, but maybe somewhere, but as one of the odd casters would say, there’s no tenants, toilets or trash with this. I thought that was a pretty fun. Yeah, there’s no leverage to involve your buying. These ATM’s cash.

You can’t leverage. You could possibly, once you get more at this, you can probably get a business loan, I would think. But at this point starting off, it’s pretty lucrative actually has gotten my wheels, turning. It could be, you’re making about what a hundred. I got some random questions. The repairs do these things break.

What do you do when it typically breaks on these things? Usually around 10 years or so before you’re going to have to start replacing parts in the 15 years. And at that point you might replace a card reader, a piece that actually reads the card that goes in, or maybe the speaker, just little things.

There’s not major repairs that I have in made aware of. And obviously I haven’t been doing it 10 to 15 years, but there are people that I’ve met that have been doing it 15 to 20 years. I think that’s the most detrimental part about the businesses I’m buying this piece of metal and it just going downhill and it’s.

Something where I can just, oh, Hey, I’m going to upgrade this and it’s going to be awesome. No, you’re going to have to buy a brand new one and just start. It’s like a car, a depreciating asset. And when these things break, I’m sure you had little mishaps, like you just call somebody and they go check it out and associates, you don’t have to go out there and do diagnostics on yourself.

Cause you don’t know what you’re looking at. To technical support to help, but yes, I do everything right. That could be a hurdle for a lot of people. What if people are very technically inclined, they could just call a dude to go do that for them. I know that there are people that you can call that, do this kind of thing.

I haven’t done it. It’s not that technical. It’s more unscrew this and turn that and okay. Put that back in and screw it back on. It’s not your techie. That makes sense. But you got to watch your six in case someone comes up and hits you in the back of the head. Yeah. You wanna go when nobody’s around

Tips to Find the BEST WINE

https://youtu.be/Ndt8KOLU8mA

So you guys are the experts with this. Like, you know, I, I hear two big tips, right? From suppose the wine snobs, which everybody calls themself, a wine stumped. It’s like, hello everybody. I’m an audio file. What do you have apple air? Right. Not an audio file, whatever they call it. I don’t know why, so that people will say, Hey, find something that you like in your palette, doesn’t matter how expensive it is.

And you got guys who are more like, if there’s the numbers, right this 96, 97 points. Yeah. What is your opinion on like, all right. I don’t know what I’m looking at. How do I pick a good one? How do I go about doing. Yeah, it is really hard and it tastes is so subjective. So it is difficult to try to boil it down into a hundred point scale.

And obviously the a hundred point scale has been highly debated for decades. Now, I think ultimately it’s, it’s still very valuable for people because once you start getting into the high nineties, especially like that 98 point Dow. And especially if you start seeing that it’s got. Scores from three different publications.

So there you go. That’s the wine spectator to Canberra and Venus each giving a 98 point score. You can be completely confident at the very least, even if it’s not your taste. That is a well-made wine. There’s no flaws in it’s in balance. So there, there are a couple. Things that are objective rather than subjective when it comes to wine, like, is, is it oxidized?

Is it, does it have some sort of acetone issue? There’s all kinds of different flaws that can be in a wine that just make better characteristic of poor wine making. At the very least, when you start to see the high scores, it doesn’t have any of those problems. And that’s helpful at the very least there, there is something to be said about the particular, the particular.

Place that those scores are coming from. So some reviewers tend to give out a little bit more freely high scores than others. There’s not that many scoring publications that you have to care about. So you can pretty quickly learn what a 93 means from this place versus this other place. If you are more numbers, minded person, you can pretty quickly start to cut through the BS and see where those scores are actually in value.

But that being said, Yes. So use it on wine searcher and you can, this is where it’s great. You can see the price over time and then yeah, exactly. Wine searcher is invaluable resource for anybody. And what’s so cool about it is you can pop on there really quick. And see what people are paying for. It can usually see all the scores.

It depends on how popular and common the wine is. Thousands, probably the most famous port in the world. So there’s a ton of information on it on here, but then it’ll actually link to all of the individual sellers shipping offers you can see. And so we’re beating we’re sometimes there’ll be some stuff on here, like some random retailer in the middle of Kentucky.

And if you actually call them. I don’t even add the wine. It’s not, we’re not trying to beat those kinds of offers, but we’re definitely trying to beat all the real offers that are out there and we do a good job doing it. And I actually really appreciate that transparency. Yeah. If you guys are listening to this on the podcast or playing around with us on the unit, Version.

If you guys want to go to the YouTube channel or go to simple passive cashflow.com/wine, and we’ll keep this stuff for you guys to refer to, but we have we’re poking around wine spies.com and wines-searcher.com but school site. But one mistake I’ve made. I’ve bought some wine off eBay. I think it was like oxidize or fake.

I’m guessing I still drank it lately. I just been buying it from Costco.

September 2021 Monthly Market Update

Welcome everybody. This is the monthly market update for September, 2021. If you guys want to check out past episodes, you can go to simple passive cashflow.com/investor letter, and we are going to be going over some teaching points and some articles that I’ve stumbled across over the past. Some freebies for you guys, if you guys are interested in learning more about this thing, we’ve been talking about quite a bit, infinite banking from yourself.

What the heck is this? Why do the wealthy do this? Why does Lane say it’s not for people under a quarter million, half a million dollars net worth? Come and check it out on Saturday, September 4th from 9:00 AM to 11 Pacific time. If you can’t make it shoot me an email at lane@simplepassivecashflow.com. I will send you the recordings, but we’ll also be put a page for you guys together, which you guys can access@simplepassivecashflow.com slash banking.

And also my book is coming out. If you guys want to help me out with the review, should meet email and get you guys access to that. Just finished up the audio book. I know how you guys are, ” another book”. You can listen to it on two X speed and you can probably knock it out four to five hours.

What does infinite banking? Why do you do it? Well this is why we do it. Take an example somebody stuff’s a hundred grand in there. You create this phenomenal where you bake from yourself for infinite banking, where you now you’re able to take a pretty substantial loan against your policy.

Now you put that into other investments, such as syndications, private placements, rental properties should something happen in life you’re able to take the money out. That’s what that little cone comes in the middle of the road. You have your genuine income within the policy. The policy grows tax-free and that’s why we’re using the life insurance as a loophole here, guys. You also enjoy the benefits after asset protection with it being a life insurance.

And I, you stop worrying how to grow your wealth and worry about teaching the next generation, how to do all this stuff. If you guys haven’t met me before my name is Lane Kawaoka grew up in Hawaii, was in Seattle from 2003 to 2017. Got a couple of engineering degrees, but more importantly started investing in 2009.

2015, I had 11 rentals, but as of late, I’ve been more involved in private placements and syndication. Currently over 6,000 units now are working on our 37 38 project.

I also have a podcast, simple passive cashflow. And for those of you guys who like the shorter form quick tip podcasts can check that out. Quick tips. I think it’s quick financial tips from the rich uncle. If you wanna go on search that on iTunes, Google play.

But let’s have at it teaching points.

This is a chart of different cap rates in different markets. Now, of course, you could probably break down and take one market like Dallas in dozens of different sub markets and asset classes and different classes of assets, such as a, B and C D class . But this is just, comparing geographic locations San Francisco, New York, LA San Jose Portland, or have some of the lowest cap rates.

Which means is you don’t get the yields there, which also means that it’s a lot more stable. This is where a lot of the insurance companies will invest so they’re going more for capital preservation. But we as investors, we’re obviously not blind to the higher cap areas.

Some these are all major markets. If you’re in more of a tertiary market, that’s smaller, you’ll probably see caps on the five to 7% range. You’ll probably be talking to them for a pulled up ton at that point. These there’s different ranges of these markets the lower the cap, basically the means the more stable the market is.

But that doesn’t necessarily where the better returns are. Obviously, the places that we like to invest are in the middle of they’re good solid markets, but still good cap rates. So we can get yield.

For more information about this, check out, the guide at simple passivecashflow.com/vacation and we’ve got about 12 people checking in now, the live feed. This also gets put on the podcast form and the YouTube so you guys can enjoy all the pretty pictures and I have access to the comment feed.

If you guys want to ask live questions, as we go along, feel free to do so. Somebody told me this on one of our investor calls this past month Dunning Kruger effect. It’s a kind of starts off like this where you don’t know what you don’t know, and you realize that you don’t know, and then you start to hit a point and inflection point when you really start learning and eventually head office in a mastery.

Now, a lot of people, they still invest in their 401ks, Roth IRAs, and supposedly BofI ETS, that’s I say, you don’t know. This is like the 5 29. There’s just investment plans for the clueless, in my opinion. Get educated check out more of our content and here’s a text, the spade to be a joke.

You guys or gals are always trying to get your spouses to read that purple book. Rich dad, poor dad. Just tell them that, your ex stopped by your work today and then they’re going to get their attention. And then you hit them with she wanted you, or he wanted you to read rich dad, poor dad, happy face.

Anyway, moving on. The difference between sophisticated investors and accredited vestors really isn’t much. There’s a lot of accredited investors that don’t really know much. Typically sophisticated investors are more, but they have lower net worth . And that’s where we want to get everybody.

We want to get everybody to be speed semi-educated so that you can make the right investment decisions for them. Ultimately you guys own it. None of this in this presentation is supposed to be equal advice. If not, you’re an idiot, let’s face it. You’re going to take Eagle tax advice from some guy in the internet that happened to, use the tactics for his advantage.

You’re an idiot. This is just for entertainment. But sure you go pay a CPA lawyer, five, $600 per hour, most of those guys haven’t figured out how to leave their day jobs behind. One thing I wanted to point out this one when you have a lot of LLCs, you will get a lot of solicitations in the mail.

A lot of you guys will want rental properties are probably hit up with dozens and dozens of yellow letters, trying to get you to buy your house for pennies on the dollar, because they think you’re an idiot. I guess it works some of the time. Here are some correspondences I got from a LLC servicing company

and it’s confusing. I think when you first get your LLC set up, you get your registered agent and you’ve got the servicer, you’ve got the place your PO box goes to. It can be confusing and don’t forget the old people who solicit you to get those stupid posters that post the minimum wage that you don’t really need in my opinion. But who am I to say?

I think it’s important to check up on, where are these people saying any of these bills that do you need to pay these. One thing that tipped me off or what I got attention to was we see on this left side, typically spoof emails will not address you by your first and last name.

They’ll give you a generic name like you’re the same valued client. And then the first paragraph here is just scammy and they say, congratulations, it’s your company’s first. Our anniversary is time to pay your bill for your annual dues. I eventually found out that this invoice was legit, but I am going to use my other lawyer to just be my registered agent for me.

So instead of paying 350 bucks, I’m going to pay about $67 for LLC.

Another plug for learn how the wealthy bank from themselves go to simplepassivecashflow.com/banking to sign up for the free e-course and the live training this coming weekend. And you’re catching up this stuff late. Go ahead and sign up there so you can get you those videos.

Now, here is a flow chart that depicts when do you do a HELOC or cash out. Now, the reason why I put this in here is a lot of people realize that, yeah, I want to an alternative invest and get all that garbage in the 401k mutual funds. And maybe I’ve been doing some crypto, but that stuff is super risky at this point.

I want to invest in real estate and other alternative investing can take control over my financial picture. So you burn through your cash, right? Not many people have that much cash and I don’t, I’m smart. I have it in my infinite banking policy where I keep my dry powder, but for most people coming in, they don’t have that set up and they burn through their cash to invest.

Where do they go find their other, 30, 50, a hundred thousand dollars today? A lot of times it’s either going to be in their primary residence or the rentals or their retirement funds. Typically I would recommend people to go and rate the equity in their house. So their rentals first, before they go to the retirement fence, unless in some sense, some situations, the client will be like, I’m just freaked out about the stock market.

What you have good reason to be, because it’s all fake money in there. They’ve been pumping that into the system . We could probably debate this for quite a while. Now, this flow chart helps you choose whether it’s a HELOC from your home equity, which is cool because it’s reversible, right?

Should you not like to alternate invest? You can put it right back into the house. You don’t have to pay a lender that origination fee to get the cash out refinance, which is on the right side. The HELOC is sorta reversible the bad side of what the HELOC is that, if anything happens to the economy, the banks can pull those notes and pull the lines at any point where they cash out refinance you’ve pulled that equity.

They can’t come after it after that. Different circumstances. I tell people, Hey, do you want to live in that house for one and five to 10 years? If that’s the case, I would probably push it more towards this right side, getting the heat. Or sorry on this right side of getting the cash out refinance because it’s more of a long-term thing.

If they are going to be living in the house for just a little bit longer, I’d probably lean them towards getting the headlock and then just selling that house at some point. But if you don’t know, I would say maybe, default would be, he locked first just for a short. Until you get proof of concept, then you tap the equity more permanent via cash out refinance for more information about this HELOCs to go to simple passive cashflow.com/HELOC.

There’s full page on that type of content. I’m now getting into some of the headlines. Jobless claims reach the fresh pandemic era low of 348, 000 . Unemployment is definitely coming down weird. I’ve been seeing a lot of like commercials trying to get people or hire people, or looking for good people to work for us. I’ve never seen that in my lifetime where paid advertisement is going out to not for customers, but people that work at their freaking company. I don’t know. It’s weird. Perhaps that means companies want to burn up their PPP loans.

I don’t know, maybe that has to do with it, but I think people are looking for good people to hire at this point. Or I guess the other thread is, people will like to complain that, people are lazy sitting at all Belkin they’re on our plug checks, which we don’t want to get into that argument space.

Now this is the census here. This is discussing the demographics change in different ethnic groups and some of the biggest movers and shakers, Texas, Florida, California, Georgia Washington. And if I were to summarize this for the people listening in podcast land generally, all of these are five states.

The population is going up, California. Only going up by 6%. Texas, Florida, Georgia Washington are going up by low double digits. But the biggest differential I see is the Hispanic population. And those states are going up by 21 to 40%. White alone category here is staying pretty flat-line and actually decreasing by 8% in California.

You can see these other ethnic groups. I guess the message is minorities are taken over and that’s what’s happening?

Monthly report. This is from JP Morgan. The job tracker based on alternative data, this is the total employment. Overall the trend is strong.

It’s been four months since we had the disappointing 2 69 K report in the report in early September is close to a million. The fed could easily make the argument that goal of substantial, further progress has been achieved, which means, there isn’t much of a reason to keep putting in stimulus, but they still.

And the stuff that I’ve been hearing about quantitative easing pumping fake money into the system is probably going to be going on for at least another quarter or two. If I was a gambling, man, I’d probably say over a year, at least, but who knows? And I don’t invest in stocks.

I don’t really follow this stuff too much business or. Came up with the school map, with the best paint states for tech workers in 2021, a lot of you guys out there are computer programmers. Let’s see the top. I’m gonna read them out in terms of the top. Washington best I guess the average is 122 grand. Next is California at 116 brands.

Number three is DC. Number four is Virginia. Number five is Massachusetts. Six is Maryland seven, New Jersey, eight or nine Colorado. Those are your top 10. And for those you guys are just curious, Texas is at number 14, Georgia is number 19. Florida is kind in the middle of 27th . The ones that are bad or where are the non-tech areas?

Montana and North Dakota.

Mississippi. Wyoming is dead last.

Now this is a chart that we talk about quite often. It is modeling the cap rate in the deal. . Which has been slowly coming down over the last decade. This is where people come to complain about cap rate compression yields are lowering and this is what like drives me crazy.

Like people are like I’m not getting 130% return in five years. I’m only getting 110%. Dude because the yields are generally going to lower. This is marketwide. . The dark blue is the ten-year treasury rate, which moves around with the interest rates and for investors, they say this time and time again, it all is this teal minus the dark blue, which is the cap rate minus interest rate.

That is the Delta that investors make the spread. And of course they applied leverage onto that to leverage that yield. And that is what investing is. They move up and down together. If interest rates go down, cap rates go down and people always freak out that interest rates will go up.

Cap rates are going to go up and interest rates go up. The reason why they push it up or they let it go up is because the economy’s doing really well. And therefore, if you want rental real estate or any assets, you’ll probably be the beneficiary. Some of that flow into the market and good economy.

One thing I’d like to point out on this diagram, to me, cap rate compression is when you have a temporary squeeze where it comes off of the historical averages, where say in mid 2018, there was a bit of a squeeze right here in terms of how much delta there was, or in terms of investor returns. There were the times when you want to get involved or, around when there was a larger, healthier Delta, honestly you can’t really time.

That type of stuff, it is what it is. And by the time you’ve gone into a deal, the market has moved a little bit anyway, but I think one thing is for certain except the 2006 to 2008 era. Like you’re always going to have the cap rates higher than the interest rates.

I think that’s just a fact of life. That’s a basic fundamental

. Cap rates lowering . Now this is comparing the major markets that lower cap rate markets like your San Francisco Portland. Austin, Texas is like your, where you have your lower caps and your non-major markets where you typically have your higher caps, but overall they’re all coming down.

But I think one thing, like if you look at this as it’s coming down, I think you have good stable cap rates for the most. And then here was that other slide we showed earlier with the, the lower cap rates area were places like San Francisco, New York, Los Angeles, San Jose, Portland, Austin, Boston, Seattle, places like that.

Top five multi-family markets for red growth. This is from Yardi matrix. And in order it is Boise, Phoenix, Spokane, Tampa, Inland Empire. But then I started to look at this chart and I started to call it BS here because not all of these are major markets. And I put here in red, the population of these markets, everybody talks at it depends who you hang out with.

I would say unsophisticated investors always talk a lot about what because it’s jumping like crazy. But Boise is a really small market guys. It’s like a quarter of a million people. I think Hawaii is way bigger of a population thing. Whereas Phoenix is a major market.

61.6 million people live in Phoenix. Spokane Tampa are on this chart and Spokane is even smaller. And Boise yet 217,000 Tampa was a little bigger, but still under half a million population.

To me, a major market is going to be at least half a million or definitely getting over a million. I think this is a bogus chart here. Inland empire, shoot what’s inland empire. Do you like, do you call Rancho Cucamonga, inland empire? Do you call Ontario?

Ontario, California in an empire. I know certainly San Bernardino is in an empire, but they have about a quarter million population. why do you guys call it in an empire? It’s like a, this is a bad imagery, but it’s oh, you go to the barber.

And then like you tell the barbers like how far do you want me to cut down your neck? Like some people they got, yeah. They got the hair going all the way down to their neck or their butt. It’s the same thing. Where do you draw the line to get this data? But anyway, don’t want to offend anybody.

Of course, people get the offended these days. But here’s another chart, small and mid-sized that shows with the most economic growth in Read the small markets, mid-size markets and then the larger markets. The small markets, again, you gotta be careful investing in smaller markets because it’s not a stable.

Sure. You can get a lot of, yields there for the short-term, those would be Spartansburg South Carolina, quarter lane, Idaho, Sebastian bureau beach, Florida, Winchester, Wyoming. . Those are your small markets now, your mid-sized markets. Number one, Huntsville, Alabama. Number two, north port Sarasota, Florida, three port St.

Lucie, Florida, four Boise city, Idaho five over Utah. And then your major markets. Number one, Nashville Davidson Franklin, Tennessee. Number two Raleigh, North Carolina, number three, Austin Roundrock Georgetown, Texas for Jacksonville, Florida, five Orlando. Those are your top five for your large Mitchells.

I don’t know how they came up with this composite score. It has to do with percent change in total employment, unemployment rate average monthly building permits per a hundred thousand and average monthly home sales per 100,000 did we talk a lot about the south and Midwest? They’re landlord friendly states, good economic growth.

But what are some of the Western markets? I’m not a big fan of investing in Western markets because they’re typically more bluer states, a little tougher for landlords out there. But, Western states getting beat up in the pandemic. Maybe the current intuitive thing is from an stoic investor is to go in now, right?

Maybe it’s the time to go and do a development in New York city just saying. Those top Western markets for growth is Boise, Phoenix, Las Vegas, Tucson, Colorado Springs, Reno, Albuquerque, salt lake city.

All with huge rent growth, you could probably make the argument that all the tide raises all boats Arbor released their quarter to 2021 single family rental investment trends reports. This is not apartments this is more single family homes. Some of the key findings were occupancy rose to 95.3% highest level since 1994.

They can do occupied rent growth, accelerated 12.7%, a record high and cap rates dip to 5.8% of its rising asset valuations.

There’s a chart here showing single family loan to value ratios. Now, my takeaway on this is I think everybody’s like thinking what is the bubble going to happen? And, typically people who raised that question up on internet forums, BiggerPockets. People who’s only been around for one and a half years in a freaked out because the prices went up in the last 12 months.

One thing I look at is, like the loan to value are people like over their head of debt? They’re still in this band that they typically been in between 63 and 68% loan to value. Granted, you could probably make the argument that the home equity values went up.

So their loan to value was down. At least we’re not saying like that this thing’s spike. Cause the scary thing is like when the loan to value spikes, that’s when you know that people are using debt, like the unsophisticated people that don’t invest for cashflow are going after debt.

I think of the big shore where the taxi drivers and the strippers are buying rental properties or just banking on appreciation. Now, one thing that’s interesting here this chart investor percentage share of single family home purchases. This is showing how much mom and pop investors are buying the stock out there versus the institutions.

And this is going to be a story of moving forward, that the institutions are starting to get to the game of residential real estate. Why? Perhaps it’s something good to invest in whether it is, that’s what the smart money is doing. So in 2000, investor share was a little lower than a three to 4% range that has peaked in 2011.

Where I went all the way up to 9%, but since 2011, it’s been steadily declining, which is saying that it’s probably the institutions are buying more of the stock. That’s coming out,

Freddie Mac release. This is their interest rates. You can get Freddie Mac Fannie Mae loans, but I think this is just a good indicator of what’s out there or how historic rates are trending. These might not be the rates you’re personally looking at, especially if you’re working with a Daisy chain lender that marks it up, whatever the heck they want.

This is like the relatively how interest rates have been tracking, earlier in the year we hit a low and then things came back up, but we’ve been kinda summing back to those old time goals. Once again. Newer investors, they really freak out about interest rates going up by a 10th of a point.

But like I said, if you will look at that chart with the cap rates versus interest rates go up, stoic investors like cool, man, that means that the economy is doing well at my rents are going to be going up. And my cap rates are probably going to be going up to a, this is a chart showing the employment, rebounding across all industries.

the takeaway is the leisure here got absolutely killed and is about, I want to say 60 to 70% of where it was pre pandemic,

whereas, government workers on scale healthcare education. A lot of these. In information, financial professional services. Most of these definitely took a hit. But nothing like the leisure sector,

This is the stuff that you have to deal with when you’re a rental property owner. Most of the accredited investors are like, why the heck would you want to own a rental property? It’s a pain in the ass. I don’t like legal liability, just give me a syndication.

And these are the exact reasons why, this is what changed. That was a big occurrence for investors were rent, extension, having to do rent, forgiveness, nonsense. They had to decrease their rents, miss payments. The decreasing rents that’s all like it’s all the commercial professional property managers that are just killing these tenants in my opinions with five to 10% rent growth, the mom and pa investors

to me, they just don’t have the or the market data to raise the rents where it should be another reason why the mom and pa investor gets left behind. Deferred maintenance is a big thing. The only things that went down as a common currency were charging rent fees. They stopped doing that because they were desperate for renters and increasing rents, which is the

inverse of decreasing rents. Fun things here from shopping center business taco bell is releasing a new concept of drive thru lanes here. It’s a cool, it’s got this light pink or purple pink hue to it. New concept. It’s a two-story restaurant where you drive underneath it, and then it’s Jack in the Box

they’re going to build 64 new restaurants as part of the 16 franchise development agreements across Arizona, California, Idaho, Texas, and Utah. The goal Jack. Another thing that you guys might’ve seen is only fans. They’re not going to allow sexually explicit content anymore their the entire business model was gone. And this is the way I feel about short-term rentals, right? Everybody’s like I’m making a killing with this stuff, but short-term rentals are discretionary items. It’s what people spend their money on in good times. And when in bad times are pandemics where you can’t travel, it goes kaput

and just like how the government got rid of only fans sexually explicit material. The government can just remove and create some kind of law that takes them away. Do I think that is right? No, because they ultimately feel like it’s the big hotel industry and the big players lobbying against Airbnb and VRVO people at the end of the day, but it is what it is.

This is why I like to invest boring workforce style house. You guys want to get more into our inner circle check out our family office, Ohana mastermind to learn more about a simple passive cashflow.com/journey. It’s all about who you know, and building your peer network of other peer passive accredited investors.

And again, if you guys want to check out my book, go to simple passive cashflow.com/book, you guys can help me out. We’ll get you guys a copy when comes up, but I need some help. People who want to give me some views, go ahead and sign up there, shoot me an email.

And this is the point where you guys can put in some questions into the chat box, but there’s some personal stuff I’ve been going on.

So in terms of growth, yeah, I think everybody’s got goals they’re working on. I think things that like the way this year has been going it’s with the whole Delta pandemic and everything. It’s just been a little slow. I’ve been forced to stay at home lately, so it’s it’s been a bummer.

I want to see all you guys how I’ve been making contribution back in the world. One little thing at a time you guys asked for the infinite banking I-Corps. Here it is. We’ll get it for free, simple classic castle.com/banking. For those you guys who make under 50, 60 grand a year and network under a quarter million, this is not for you.

Do not waste your time with this stuff, right? This is more for the people with a little bit more dry powder and the higher net worth folks. But you can still get it for free. And I know you guys like free stuff. Three significance here. If you guys haven’t checked out. Our Facebook groups, which are mostly on invite.

I used to have calls with everybody. When I first started to do these things, slightly opened it up a bit. A lot of people are inviting their friends, but you guys can join our Facebook group, the Cooley passive real estate investor, Ohana for sophisticated and credit investors there.

And if you’re in Hawaii, we’ve got aria. They’ll have that. Oh for you guys to join up there. We’ve also got the subgroups. I think you guys can get these links and simple pass a capsule.com/networking. And if you haven’t lately go to simple passive cashflow.com and check out all the little links at the top and go handle on that stuff.

There’s all that stuff is for free, right? The whole point is that you guys don’t spend your money on some stupid guru charging 10, 20, 30, $50,000 of charge after upcharge. In terms of uncertainty? I’m a little worried that we may, I think we will, but we may not have the the January retreat in 2022 of you guys want to get the latest on that.

Go to simple passive cashflow.com/ 28 22 retreat. I just had a call today. Unfortunately we can’t have it at Bishop museum. That would’ve been cool. They’re already booked. But here in Hawaii, there’s a big Delta, we’re getting our kind of our first wave in terms of COVID with the, that the Delta variant.

But, my outlook is that the stoic philosophy of the obstacles were right when you have uncertainty, you, and you’re uncomfortable. That is typically when you’re going to be hitting gold pretty soon. So suck it up, but then good days are right. One thing I liked that has uncertainty in my life is the one thing I can count on is whether interest rates go up or down or even go up, which is some people think is bad.

The cap rates usually bounce along with it. And as investors, the cap rate is usually higher than interest rate is which you borrow. And then you apply leverage via good leverage. That is how we make money folks. It is simple as that. And that allows me to have some certainty in this crazy world. I’ve been hearing a lot of you guys.

Most of ha I guess, half of the people coming into our tribe these days are off of referrals. So I really appreciate you guys telling your friends about simple passive cash flow. I think a lot of you guys feel my pain where, people think you’re crazy and. I call them muggles. If you watched the, not the Lord of the rings, but Harry Potter muggles are like the non magic wizard people right there.

The people, the regular people, they’re the non-believers in a way. So don’t worry about the muggles. A lot of my friends are muggles. That’s cool. But if you guys realize that there’s a better way of doing this without the high fee. A lot of middleman, 401k, each fund, give your money to a financial planner who doesn’t really know anything like it just gets paid off permission.

Join our tribe and join our club@simplepassivecashflow.com slash club. Some things I’ve been buying for two dads about this, like both sleep buds. I tried out for our one night. I think I might return this thing. I don’t think it’s the greatest. I got desperate. I got a three month year old. I don’t get much sleep.

I got desperate. I bought it like when I was like, probably be returning it. But anyway, if you guys want to get the I released a free, basic financial, e-course probably better for the kids. If you guys got basic financial skills, this thing would probably be pretty basic for you guys.

But if you guys want to go text the word BASIC to 3 1 4 6 6 5 1 7 6 7. And for those of you guys want to get access to the free remote investor light course can text the word you guessed it. REMOTE to 3 1 4 6 6 5 1 7 6 7. Tell your friends. Again, none of this was made to be legal advice.

And we’ll see you guys.

250k Net Worth Chemical Engineer Coaching Call

https://youtu.be/pQvWa44YSdU

At what point would you say? I should start thinking about syndications, like investing in those. So for most people, I would say get up to half a million at least, but you’re already, still connected. That’s how you got into this stuff in the first place. Like you have the great ability to invest via proxy.

You got people around, you already investing in syndications testing the water. So by the time you’re ready, which you could probably do it now, you just jumped right on and it’s like, This is kind of what I call like investor proxy. If you have a couple of guys here, your buddies I’ve already invested in, they found that they’d found a good operator and just jumped in how bad can it be?

It’s the ones where a lot of investors are like really dumb these days and they just want to sound cool. So they say, oh yeah, some really good. And you come to find out that they need didn’t get, invest their money in it. They just, I don’t know what the heck they’re going off of or referrals. Great. But it’s not.

Good as like a real referral where someone is actually investing money with, I got hurt a couple of times where investing with that silver level referral to empty referral, what I call it. It’s just like when people are trying to find property managers. Oh, ABC property managers. Good. Do you have any houses with them?

Where did you just hear? Because they happened to be the sponsor of their local region. .

Smart Tip for Your Student Loan

https://youtu.be/wSMWaqSP4cA

📍 And student loans, like you don’t have too much of it, but tell us a little bit, like where you started off with your strategy. Get to this. Yeah, so a little bit, it goes back. So I did a co-op program. So I, it was a work study. I did five work sessions over five years. And so I graduated with about 18 months of experience and they actually paid extremely well.

I was. Probably close to what a full engineer was making my final year. And they were also paying for my housing in Chicago, which was tax-free. So that ended up putting me in a position when I graduated college with a, roughly 20,000 in cash and 30,000 in student loans. And so I started rapidly paying down the student loans and then for the first eight months of my working career, And then I kinda got the bug of, I wanted a new car.

And I had always told myself once I paid off my student loans that I’d get a new car, but I ended up deciding that I wanted the car sooner. And so that’s when I took out a more expensive car loan for me. And so I, at that point I reduced my student loans to the minimum payment and then had been paying down my.

Yeah, man. What’s life without a nice car getting the financial independence. I actually just refinanced it from the, so I extended the paydown a little bit, so we reduced it from 6 55 down to 4 52. And so I’m just going to make the minimum payment on all of these loans with my plan and then take the extra cash and invest it. .