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Tips for Real Estate BUYERS

Let’s talk about some tips for our buyers, as well as their sellers are starting off for our buyers. This is information for tips that actually should be coming from your lens. When your buyers for mistakes that buyers make while they’re in escrow, or even before that number one is not checking your credit report regularly.

The statistic is that 34% of Americans have errors on their credit reports. That’s something you should request annually, review it and see if there’s anything that should be contested or removed or anything like another mistake is not being honest on the application. The whole. Drill is that your lenders underwriters are going to be dating into corroborate.

What you’re putting on the application. Does it make sense to put anything that even a little, what you think might be a little white lie? It could, yeah. Throwing everything off. I would say, just be honest, that doesn’t make sense to fib on it. Another mistake. And this is, you know, a little bit hard. Try not to take a new job while you’re in escrow is may not typically be a deal breaker per se, but it could slow things down.

And I say, this is hard because in current times, depending on your industry, this may be something you can’t control as much as possible. Try not to be transitioned to different jobs while you’re in this buying process. And if you do again, Be upfront with your lender and just tell them as soon as it’s happening.

Another thing is you talk to your lender and ask them what, what if I do this right? Will this have any effect? A lot of buyers while they’re in escrow, they’re like, Ooh, we’re getting a new house. Let’s go shopping for furniture. And we’re going to, where does it go on your credit card? Even worse when you buy a car and you take a loan out and that it’s going to affect your credit and making major purchases while you’re in escrow isn’t there isn’t no one or two, again, it may not be a deal breaker, but it could be, and it could also slow down the process and the timeframe that you close, it could throw kinks worst case scenario.

You won’t qualify it for anything. Final approval for the loan, but try to stick away from those things. If you’re in process, let’s say you’re walking on eggshells, but just be cognizant of what can affect your credit while you’re still in school.

July 2021 Monthly Market Update

https://youtu.be/Q9Wb_WwAOG4

What’s up everybody. This is the July, 2021 monthly market update. You can check out past monthly updates by going to simple passive cashflow.com/investor letter. Let’s get to it.

The freebie this month is we’re giving away the remote rental e-course light for anybody who goes and emailsLane@civilpassivecashflow.com.

In the subject line and we’ll get you access to that about by remote rentals. Great for non-accredited investors and great starting education for accredited investors. You haven’t checked out our Facebook group, all the YouTube channel and the podcasts. Check it out, Google my name or simple passive cashflow show.

You’ll find it. And those you guys who are starting to jump on live, if you guys want. Any questions, please do so feel free to interrupt as I go along and I hear we get going. So a few teaching points for this month. We had a pass couple of podcasts about Bitcoin and crypto investing in general. And, I think.

Think about crypto, there’s three ways of investing the first and probably the most conservative is just the staking and just investing in something like block five, where you’re just getting a straight return by lending your money out or staking it on a platform, which is a little more risky too.

Second way is investing in, the blue-chip cryptos area, more block fi or not block five, but Bitcoin. And then of course the, one that I think a lot of people gets a lot of tension is the investing in alt coins, which are your asymmetric return type of deal where it’s a high risk, high return type of environment.

But, not really differentiating between any of those three particular strategies with very risk levels. We in this discussion, there was this table that came. With the guest and different levels of investment based on your net worth here. I think crypto is here to stay and I think it’s going to eventually replace or become just as big as gold right now.

It’s about a 10th of the gold market. I’m in like the one, the 5% range, one or two here, this kind of scenario, choice out of my net worth. I’m not in anywhere near that. At this point, I’m too busy, doing real estate, but where my head’s at, I’m down here, but I would be concerned if you guys were up here.

A lot of people in our group, we’re probably less than five. Some of them were crazy. Crypto folks are around the 10%. Or less a range and the debate here, right? You can also get cash flow and value add in one, you don’t need to get two cats here. If you go into deals that are stabilized with value you can do both, but it couldn’t be turnkey rentals and it’s not going to be those bird properties that all the kids are doing, which to me is not a very good risk adjusted return because you’re just investing with a bunch of lower wrong contractors who at some point is going to steal your money.

I implore everybody that listened to simple passive cashflow. A lot of us are more accredited investors to invest more like a credit investor as a passive. Marker and start investing and start to look at your taxes for a lot of you guys are making over a hundred, several hundred thousand dollars adjusted gross income taxes is your big thing.

If you’re some guy making 40, 50, $150,000 a year or less taxes, isn’t a big deal. But it really starts to come into play. When you’re single making over 150,000 or married fell jointly making over three $30,000 a year. All the big shots. They figure out how to pay less taxes legally. Here’s their kind of their tax rates.

Someone said in the Facebook group that for Ilan is to get a new accountant because he’s paying 3.2, 7%. It looks like we got our first question here. Other ways you can defer capital gains for real estate books besides 10 30, 1 exchange as an opportunity for you. I’m not a, I’m not a huge fan of either of these opportunity funds or this, you can Google all about it.

But the thing about the opportunity fund is you’re investing in crappy areas. Why the heck would you want to invest in crappy the hours that the government has deemed that opportunity fund, where they want to help funnel money in because the aerial sucks. That’s just not the way I want to invest. I want to invest in good solid stable areas.

Whether there might be a problem with the management of the property or the property or the management is distress, not any particular issue with the property and especially not an issue with the area, which is what the opportunity zone is all about. For some time it’s time, you can find an opportunity zone with a Starbucks in it.

That’s an outlier of the map, but not a big fan of the light. And then 10 31 exchanges again. I don’t know why anybody really does. 10 31 exchanges that 31 exchanges, you got this timeline, you got to have 45 days identify all your properties. If you’re buying like lukewarm crappy deals, then yeah.

You can go into whatever you want. But if not, you’re a distressed buyer. And when we’re selling our apartments, we love when we have a 10 31 buyer, because we know that they’re distressed and they’re typically unsophisticated, most 10 31 exchange. People just have a lot of money and they don’t really understand how taxes work.

How do you defer capital gains or how I do it? I go into a lot of syndication deals that do cost segregations. Not all of them will do it, but if you go into. Does it have, I’m like, oh, I do. You’re gonna kick up these, you’re gonna pick up several hundred thousand dollars, a passive activity losses, and you’re going to be able to hold them and Curt, and they’re going to be suspended, passive losses to a, you use them to offset ordinary income.

I probably should stop and say that I’m not a CPA, blah, blah, blah, blah, blah. But look, I don’t pay too much taxes. You can go to simple passive cashflow.com/. And I put up my tax returns there and you can check out how much taxes I’ve been paying these last several years and in 2019 and pay anything drove up my adjusted gross income down to 25 grand.

And part of that is by driving, by creating more passive income and simple ordinary income. So I could use my passive losses to offset that, if you have. The hard part is transitioning from the traditional way of investing, not only 401ks mutual funds, but traditional way of real estate investing and into the more passive tax advantage way that we like to teach our folks.

And so the transition is a hard part and that’s really where the family office, a Honda mastermind comes into play. That’s where we source the best practices to do this. But in a nutshell, What you’re trying to do is you’re trying to build up enough passive activity losses. So you, when you do sell your property and you can offset that, pull down your suspended, passive losses and offset those gains right in that lunch transaction.

Case in point, I did this back in 2017, when I sold off, I believe seven of my rentals and I had a $200,000 capital gain day. Which would have sucked, right? That’s a capital gain and also had to pay back the depreciation capture on that because I had owned those properties for several years, depreciating the properties over that time.

But I had been going into syndication deals prior, and I had built up $700,000 of passive activity losses, which are used to offset it one for one. So if you look at again, go back to that website, simple passive cash.com/. You can actually see where there’s a little emoji that says thumbs down at the 10 31 exchanges.

Exactly. Because of this, being able to use passive to be losses in this fashion. And the reason I don’t like 10 30, 1 exchanges, you’re a distress seller. Everybody knows you’re a sucker because it through one of these things and you’re going to get abused. And a lot of times you’re going to be abused on the buying end when you’re exchanging the property.

Everybody knows you need to buy. If not, you’re going to pay the government Volvo taxes. So you’re usually going to pay 10% over market price. If you don’t think you are, you’re probably the doesn’t, isn’t aware of this. And then, sophisticated investors, they don’t want to put all their eggs in one basket.

And this is what’s very typical. You see these people running around with large capital gains in, a hundred thousand dollars to a couple of million dollars of capital gain. Likely they have a huge chunk of their net worth. I’m a big advocate that you don’t want to have any more than five or 10% of your net worth of any one deal because things happen and it’s good to be diversify.

Another, you want to spread your eggs all over, all around and not be too leveraged. Thing right there. Thanks Bruce. So they can close up that. 10 31 exchange thing. not a huge fan of it at all. Why do I like real estate? If you cut the news recently, the Chinese ban Bitcoin mining.

All of these like Bitcoin mining machines, they get bricked and they’re not worth anything who knows. They’ll head off to it’ll go somewhere else. I am sure. But my rules of investing is invest in stuff where you have enough income to pay for all the expenses for a positive cashflow with leverage, right?

None of this, oh, I bought a property cash employer, California net cashflow. No, you’re not, but you are technically, but your net worth isn’t going up by anything because it’s not a good cash flowing investment. And then we like real estate because we’re able to leverage into favorable debt terms. And it’s a hard, real.

Oh gold. And technically crypto is a hard asset, but it doesn’t produce cashflow. Kemeny leverage it that well. And that’s why we keep coming back to real estate question here or up comment.

I thought passive activity losses can only offset passive income. I didn’t realize you can use that against capital. So again, I’m not a CPA guy here, if you’ve held on to that property for a while, it’s considered passive income. That’s the distinction. That’s where you need to have that educated conversation with your CPA license.

It’s doing things really conservatively and it doesn’t do real estate. And Mike puts you in a category of house, flipping a burry. And this is why another reason why you shouldn’t be doing this burning stuff, you’re doing this activity, right? You want to be going with the attention of being a passive investor, buying coal at that point.

Now you can create that capital gain and turn it, and it being a passive thing. Now some CPAs would probably argue. But it’s your job as an investor to steer the ship with this stuff and justify why it is a long-term capital gain. And that’s being able to use passive activity losses to offset it.

If you’re doing real estate professional status, so taxes, which a lot of us in our mastermind do. It’s all a mood point. It all turns, it doesn’t matter if it’s a cat if it’s an active, ordinary income, short term, passive or short-term capital gain, long-term, it doesn’t matter right now you’ve created the situation where you can use the passive losses to offset, whatever it becomes.

A free-for-all that’s a little bit more of an advanced strategy, but, I think this comment here was just talking about. If I have a capital gain in a real estate property, yes, you should be able to offset it with passive income, but Hey, I’m not a CP, a embassy engineer that I was able to quit my day job doing this stuff, and I’m able to use the right experts to do my taxes for me.

That’s really all their job is just to do the forms and paper work for you. It’s I think it’s the investor stopped to empower themselves with the information. To be able to guide the ship on this, or at least be the architect of your financial future and your taxes. Let’s get into the news here.

Shopping center, business reports at HSBC sells 90 other branches and is exiting the retail banking sector. Maybe not big news, but some you guys bank here looks like the citizens bank will be picking them. On the east coast and Catholic bank will be picking them up on the west coast. But just another example that banks, they market themselves as big institutions, but they come and go just like anything else.

This is a report from Zumper reporting that rent creases are on the rise. If you haven’t noticed. I think the last couple of months we’ve been reporting on it, but it’s been consistent since about the turn of the new year, January. And some of these they’re even reporting three, four or 5% or higher, just that this one report I’m reading more into the article, two bedrooms, apartments rose 4.8% year over year with a 3% increase in one bedroom.

Bay area rents have flattened with San Francisco, Oakland and San Jose. One bedrooms are all gaining compared to April. National rents are accelerating. Driven by growth in cities like New York. And I think this is the bounce back of the big urban areas which actually got hugely flatten, independent gear because of the people wanted to move away from the highly dense areas.

Milwaukee grew a lot 8.9% year over year, but cooled off a drop 5.2% month over month. And that’s just of. To be expected when you have those big fluctuation. Think of it. Like the volatility of like alter altcoins pops up and then it dives down Glendale, Arizona, and one of the top growing nutshell area with 15.7% year over year increase and Phoenix within 9.1% jump.

Question here. Austin is like Boise. I’m not a huge fan of them. I think Austin has really overheated it. Doesn’t cashflow there, so I’m not interested, but I’m sure rent increases are up there too. Maybe I might be able to pick it up here. Oh yeah. Austin. Number four here, Austin in Baltimore made 5.1% month over month gains, but Austin remains down by 0.8% year over year.

There’s your answer to your question, Giles. Thanks for sitting. But the top five, for those of you guys catching this up in the podcast form, which gets released once a month we’re not able to check out the the PowerPoint presentation on the YouTube channel. Number one, Irving, Texas rose 5.4% and like many DFW suburbs it’s up year over year, as well as 9.3%.

San Francisco. Madison was Constable rules, 5.3% in June, but our year over year trending in different directions. The Moines, Iowa and Reena that are rose by 5.2% in June making the second month in a row that Moines has finished in the top 10. I’m actually trying to sell one of my properties in the Iowa.

And the price that we’re getting is a lot higher than what we had for offers two or three months ago. Things are, everybody knows it right now. It’s not, it’s no secret that things are definitely turning around Plano, Texas to Troy, Michigan, and Chandler, Arizona rolls by 5% in June, which Chandler being a Walker eight point 18.4% year over year.

Okay.

What’s on the downward slide. So here’s the top five of the downward is Spokane Washington, one bedroom rent slipped by 5.2% compared to me, but are up 13.6% year over year. That’s a little misleading, right? It went down 55.2% in just in one month. But overall, I mean it’s up year over year.

You as an investor need to take everything with the greatest. Richmond, Virginia dropped 5.1% in June, but it’s essentially flat year to year Durham, North Carolina, New York, Newark, New Jersey rents tumbled by 5% in may. Milwaukee experienced a wrench up a 4.5% in June, despite the year over year gain of 5% and Boise, Idaho has been one of the highest.

Markets in this pandemic because people are, moving out of LA or whatever the thesis may be. It doesn’t really matter. It’s just, Boise’s on fire, but Ritzville 3.9% in June. And that’s just, I think is, if it went up a whole boatload that it has to resettle and settle out. But I think one thing I caution everybody with Boise.

It’s this very small market. It’s a small tertiary, right? One, a little impact there. We’ll make the numbers jump quite a bit. . I’m not quite sold on the market. It doesn’t cashflow too. So I’m not too interested in Boise. A leader’s for annual rent growth include Riverside, San Bernardino, Phoenix, Sacramento, and Las Vegas.

This from the same metric, but at different new source real page. But you were going to go through some of these , top rent increases charts, and you’re going to see the same leaders of some of the ways they measure. Data’s a little bit different. I would think, just take everything relative to ranking, but the top ones are Riverside center, Bernardino, 13.5%, Phoenix, Arizona, 11.4% Sacramento, 10.4%, Las Vegas, 10.3% Tampa.

Memphis Atlanta, Jacksonville Greensborough, salt lake city, rather than at the top 10

same data or same metric here. Top right increases for me 2021. This coming from realtor.com again, Riverside center being in Dino, Ontario, California, 19.2% Memphis at 17% Tampa at 16.9%. Phoenix Mesa SKUs, the Arizona 16.8% sacramental 15.8%. And then Richmond, Virginia, Atlanta, Las Vegas, Cincinnati, and sending San Bernandino goats too.

San Diego Tara the top 10 according to realtor.com. Moving away from apartments, talking a little bit about office. Commercial property, executive reports that rising sublease rates boost office vacancy. What’s happening here are the bigger players are taking over space on the smaller folks.

Take like a JP Morgan or Experian, they’re eating up the available space, left over by people who just jumped ship, dropped their lease. But on the contrary, like wash street is a big Black rock , one of the big players that you may or may not want to follow as the smart money they’re agreeing to sell their office portfolio off and shifting more towards the multi-family sector.

And this is a , 760 $6 million office portfolio. And wall street says it plans to use the net proceeds from the sale to fund the expansion of its multifamily portfolio through acquisitions in the Southeast markets to reduce its leverage by repaying outstanding debt. With office to Southeast apartments, and this is what we’ve warned everybody is, do the whole bed, demic, multifamily apartments was a safe Haven.

It showed a lot of strength and, This is what the smart money is doing. They’re finding sanctuary and , I think it’s a good sign if you’re an apartment fester, but bad news is, people are not dummies or the big smart money or not. You’re going to have increasing more competition.

Similarly Blackstone, another big player, they’re betting $6 billion on shifting the path to suburban home. What they’re doing is they’re buying 17,000 homes and getting into single family home rental market. So they bought out home partners of America, a rental company that owns over 17,000 homes.

According. To this report by Blueboard this what, so basically here’s how I read it. Big hedge fund company, institutional money coming in, they’re wanting a piece of the single family rental market. Some people will say now let’s even harder for people to buy houses and they’re right, I don’t think everybody should be a homeowner.

At least by debt service coverage ratios. I don’t think they should, but this is institution bef it’s hard for an institution to get into this space because you got the whole issue with property management, which is a huge pain in the butt. If you guys own turn key around. As you guys know what that’s all about, , these large companies did this back in shortly, right after the recession.

And they struggled a lot because they weren’t able to work with some of the more hairy properties, but they’re up to it again. These big decisions are made by the guys in the suit, in the ivory tower and from their perspective, it looks like a good deal. But the problem is the implementation, right?

I’m sure there’ll be fine. It’s not like the guys with the suits are the ones doing the hard work anyway. Oh, Adam releases this this cool chart where it tracks the activity of loans, which kind of mimics what’s going on with like overall transactions and real estate. The main takeaway here is.

This breaks down the, he locks the refinances and purchases loans. The Healogics have remained about the same. The purchases are steadily increasing all the way back from 2010, but what’s been really hot is this green bar here, which is representing the refinances, which really started to take off in the end of 2020.

A lot of people, and this is obvious, right? And we’ll, if you think about it, it’s obvious because it’s not obvious to the average person who doesn’t listen to the podcast or this monthly market update that I do every single month, but as people are having their property values rise because of the overall everywhere is hot due to low supply, in my opinion, and not really due to more to match, just cause it’s due to little supply and all this fake money pumped into the system.

People have all this home equity. Then what they’re doing is they’re refinancing their home. They get at the money multi-housing news reports at Fannie Mac, Freddie Mac extends the multi-family for parents program. One last time. They’re looking like it’s going to be up in September 30th. This could always be extended, but I have a gut feeling that this is the final straw at this. Maybe one more. And then the Supreme court keeps the addiction ban in place.

I don’t know. This is just by understanding the whole thing. It doesn’t really matter what really happened. But the whole point is that the eviction moratorium is ending. And it looks like it’s probably going to be the summertime. The band was in place until July 31st, but they kept pushing it back.

And now, the question I read, all the regular people ask on the street is how the heck is the CDC mandating that people can’t get evicted? The heck? Does the freaking center for disease control have jurisdiction over it? We’re not a political show. We just tell you the facts and let’s spend our time and energy and stuff that actually matters, which all right, how’s this going to play out?

People aren’t going to have that protection of this law place. And one could say that there could be some foreclosures coming up. As you put yourself in the shoes of somebody who went in forbearance the middle of last year, as you lost your job, which you have to remember is your. Debt payments are still adding up.

Say your mortgage is a thousand dollars a month. It’s not like you just keep you pay your next month. A thousand dollars. This stuff has been accumulating on you to the point where you might have 6,000, $12,000 of mortgage payments built up. I don’t know what American family has that much money to flop down if they’re in forbearance.

No one could assume that, there’s going to be a glut of. Foreclosures coming through. And here’s where I differ. I think this is where people use it to sell attention and get people to click on like their Twitter feeds and their YouTube channels. Ken Makarov did this, he put all these YouTube videos that the world was ending and then the world did it and can not grow. I was investing in 2015 to 2019. Very much. He lost out on one huge bull run in that period. Now there’s a lot of foreclosures that could, they’re saying potentially could come in and crush the market, is what they say. I personally don’t think it’s going to impact things very much. I think that’s there are a lot of people that are going to go through foreclosure, but I just have a feeling that it’s not going to rock the boat for much, but that’s just my feeling. That’s and I don’t care because this is why I don’t do residential real estate.

. Where the prices are primarily dictated by , how your property performs in terms of net operating income

Arbor releases this breakdown of well who owns single-family home. 70% of the single-family of home stock out there and of two to four units are owned by unsophisticated mom and pop investors or the individuals. Whereas the multi-family apartments, only 10% are owned by mom and pop investors.

And this is why I keep telling people they need to swim upstream because you got to get away from the amateur investor, doing it on the wrong as they work their day job on the side. That’s cool. That’s how I started. And I think that’s what you still have to do when your net worth is under half a million or get out of credit investor.

But I think the point is try to get out of this space. Cause here , it just all kinds of stuff going on in this world where just you have amateurs buying properties. And especially in the last year where they see the stock market dropped due to the pandemic. And now it’s again, amateur hour, people coming into the space of Blackstone or BlackRock, as you mentioned, bought 17,000 homes with $6 billion worth of assets.

But still it’s a drop in the bucket. Only 10% is owned by the institutional managers, or I assume others what that’s captured by. Whereas the institutional managers still own 10%, but hell piece LLCs, I would call these more sophisticated operators and syndications are this lighter green where.

I was called that 60% of that multifamily apartment is owned in that structure. Or again, only 10% is by your amateur hour. Pop on upon fester high end homes sales out for this is a graph done by real red. I think this is obvious, right? Like in the pandemic. Unfortunately, if you are a white collar worker able to work all your life, didn’t really change. Your inconvenience because you aren’t able to go to the football games, basketball games, and travel on your qualifications.

Go to Disneyland. So you got some spending money. What do you do? You improve the house or you go buy a bigger house or you go buy a cool luxury vehicle. That’s why I think that’s why cars are expensive these days and there’s some limitation on the current parts and computer chips supposedly, but I think a lot of people on the upper end maybe call it the top 10% of the United States.

You did pretty well. You got a lot of money, you got all this stimulus money and you didn’t even need it. But probably more importantly, as we kind of work with clients, it’s not really how much you make. It’s how much you spent is the bigger KPI is what I see when I work with people. The fact that you’re stuck at home for a year, not able to go on vacations or blow your money and fun stuff.

You got a lot of money. This kind of makes sense. Unfortunately with the pandemic, like the poor got four and that’s what’s happening with this inflation. If you’re sitting on your cash, you’re going to be a loser with all the inflation. The mid price homes stayed the same, but the affordable homes went up in terms of demand here, little sad.

And then overall, this is just show up days on market, which is an indicator of demand. I’ll be very Frank with everybody. When your friend tells you that they’re buying a home in this market, it’s a freaking sellers market guys. These on market was less than 60 days back in 2013.

And now it’s down to 26 days on high-end properties and 20 days of more affordable housing. It’s a sellers market in any sense of the word. If your friend is buying a house to live in now, an angel loses their weeks and lane cries to sleep. After another person falls victim to the narrative of buy a house that you could make the lenders and real estate agents rich out there, and you tie up your cashflow so you can not invest it, and you’ll be a victim to working for it.

Of you can sense the sarcasm here, but if you want to turn the tide, join our family office, Ohana mastermind, where you get to meet up with other accredited investors. So it’s 45 people. We got about 30, 75 people on there. Now we do by date, these in conference calls, it is a geek squad of financial fanatics in this group where we work through learning syndication deals, what to look for, who to stay away from.

It’s a closed private. And we worked through the tax. Eagle, but I think the most important thing are the soft topics that we go over. As a group, as you start to build relationships with other pure passive accredited investors,

That wraps up the monthly I’m going to be going into what I’ve been up to personally. And if you guys have any live questions, you guys want to type it into the chat. We’ll we’ll try and answer at the end there, but something I’ve been up to the last few weeks, I’ve been a new father and there she is.

She wakes up every three hours. She wants to eat and I changed her diaper. Unfortunately I’m not able to run away and say that I have to go to the office tomorrow because I worked for him. I have to wake up. It really sucks for some of you fathers, mothers out there, and you can probably sympathize.

And half of our investors are older. The age of 40, the rest are the, the young bloods, making big salaries for my only advice from you guys, standing here in the middle, looking at both sides is enjoy your life. Your life doesn’t end until you have a kid. Or maybe starts, or we look at it, but your life severely changes good or bad or worse, depending on which side you’re at, but that’s it.

we got her some credit cards, I added her on a few cards to be an authorized user, she can start building her credit. Not that she really needs it in my opinion, but she can start trade lighting and making me some money.

I’ve found ways to give contribution back to the community and here the new content created this month. We had George Newbury, we went through a lot of investors also invested George and the HPE servicing fund which I still do they have audited financials because they have a reggae plus offerings.

And I sat down with George and he went through it because I’ve always wondered okay, you got this like huge document. What the heck is all this stuff? Let’s can you show me what are they? Things are actually important to be on the lookout for. We went through that that was released late June.

We have a couple of videos in the rich uncle channel, which is more geared towards the younger folks. I’ll try and make it shorter, a little more snappy. Because there’s a whole bunch of bad financial advice out there. And I think a lot of folks that come to our community, we’ve drunken that thing for a decade or two, at least.

And it just misled us a little bit. One podcast was syndication tips for LPs. There’s a whole boatload of those LP tips in the syndication eCourse. I highly suggest everybody go buy the thing. It’s a few hundred bucks. But I don’t think you’re going to find anything better out there for, being a good passive investor.

You should find something better. Let me know. I’ll refund you. I’m that confident? The thing that I can guarantee you can’t find anything better in a church of course, or book, hold on. We had the cryptocurrency issues and then. I did , this big video, I was looking for like timeshares, cause I was like, I have a daughter and she’ll probably like Disney.

I started to do the worm thing. I stayed up really late one night and I started to look at like, how are these timeshares work? And my conclusion is don’t buy a time. Share if you really want to, you can buy it aftermarket off some sucker who paid full price. There’s a lot of aftermarket websites that you can do that where it’s totally legit , friends, don’t let friends buy timeshares or buy houses in seller markets like today.

And for those of you guys who like all the soft topics building your legacy family trusts, I would suggest going back to the May 25th podcast. Or I talk about the credit status and what’s on beyond, after you have a few million dollars net worth. Yeah. Giles, they’re selling two trade lines every month now.

Amen. There’s nothing crude, like chain lines are like, you put your authorized users on your credit cards, through a broker and you can make a few hundred bucks easily to get that. It’s a lot easier than a turnkey rental. You don’t need any money. Now, when I need money down, you just need to have a credit card.

That’s a couple of years old. There’s a little risk there. They can cancel your cards. Like I’ll chase it, all my cards. But I think it’s worth the risks, especially if you are a lot of credit cards, like how I do some other significance thing here. So we close El Cortez apartments in Phoenix, Arizona.

That was cool. But the opposite of certainty in your life is uncertainties. So what are the things I’m worried about? The rent increases are going up, that’s a no brainer, and that’s, that’ll probably continue to happen, but at what point will it stop? And what will the demand look like in the next one to three years?

I think for the next several months, maybe even a year, I think there is nothing that I think this is really going to derail. In that short amount of time, but what’s going to happen a year or three years now. And I think this is where you’re needing to have a prudent strategy where you go into things that cashflow so that when things do get tough, you cashflow and you bought onto the asset.

Other things that have been uncertainty from like building or finally getting building on the chase Creek apartments that we started last year. We have we have a opening date, like 20, 21, the website’s up several of the buildings are up here. Some pictures of it. Here’s the area on the left side.

You’re starting to really see it come together. And lastly, a loving connection, some stuck here at home, going prays a little bit less. But I’m really looking forward to when all you guys get to come to Hawaii, Martin Luther king weekend, January, 2022, where we get to do the Hooli five to the fifth big event that we’ve done as a group, a full members are going to get are already to this.

We don’t know how many not full members will be allowed to come. I got to figure that all out, but I have five months. To get it all lined up, get it ready for you guys. But if you guys have been to pass a simple passive cash flow events in the past, I don’t like a lot of people. I think it’s stupid when you get the stage, backlighting all this nonsense.

I want to put the emphasis on the connections with you guys. you guys are. The draw and attraction, right? As opposed to some, another brew on the stage, sell you something that type of nonsense that we see a lot, something that I bought. If you notice the camera is super sharp. Because I bought this 4k camera.

That was kinda my doodad purchase of the month. We’ve got a lot of questions on the Facebook channel join up there. And this is like kind of chatter that happens at the mastermind level or at the family office group where we meet every couple of weeks, it’s not simply

what are the profits? These days? It’s more of a soft subject around Ooh, have you invested with in the past? And a lot of this is just going to come from building organic relationships with one. I have never seen anybody who willing to say, Hey, you and I just met up. You’re cool.

We shared a beer. Let me just give you my whole spreadsheet of boy. And that’s it for the last 10 years that just doesn’t happen. I think people hold it a little bit more closely to the chest. Of course they don’t want to talk bad to anybody if they don’t know you, especially it’s just not good for them, but any questions before we wrap up.

One question here about distributions. , we’re getting paid. I don’t think that there’s a apartment deal that’s not hitting distributions so that is close to the quarter, actually. It was a week ago. It’s July.

Usually takes us about a couple of weeks, at least. To get all the rents to come in and then wrap up the books and then decide. Yeah, I do want to send out this much that much. And that’s how the madness happens for distribution checks. . But if nobody has any other questions, . If you haven’t yet connected with me, please do so if you’re thinking about laying it simple, passive cash flow.com. Want everybody to knock out their onboarding call with join our community lately.

We’ll see you guys next time.

 

 

Sell Your Timeshares NOW

https://youtu.be/I5KDB8qCTe0

What’s the process. If somebody wants to sell their time share, and then we’ll skip over to, I think most of us don’t really want, we want to buy. Timeshares from these distress buyers or sellers, get into that at the end, but what’s the process. If somebody wants to unload it, they want out of it. What they would do is I recommend that everyone first contact your resource, see if they’ll let you out for free.

That does happen on occasion, usually with a higher end brand. So explore that option first, plus, you want to know that you didn’t go and pay someone to get out of it when. You could have gotten out of it for free through the developer. That would be step one. If that’s not the case, then you know, you need to go through a company that can secure a buyer for you.

And I would encourage everyone to be very careful and not pay anyone up front. And I’m sure that your viewers are. You know, certainly a little more savvy than many of the people that have fallen victim to the scams, but in general, don’t pay anyone upfront. If a client comes to us, all we’re going to need is the deed copy of the deed.

If they have it, copy of their IDs, copy of a recent maintenance fee bill, we can then price it out. We use a calculator, so we already have pricing preset for every resort in the world and get them a quote within minutes. And if they want to move forward, we send them an e-sign contract. Open escrow. And it follows a normal real estate process.

So we’re never paid until the close of escrow and we don’t even collect payment. It all goes through the title company. So it’s a very secure transaction and a guaranteed one. If we are not able to secure a buyer on our own, then we’re going to transfer into our own name and turn it into vacation rental.

But it’s a guaranteed quick process. And what our clients are looking at is, Hey, we don’t use this thing. We’re paying for it every year anyway. And then what’s going up at six to 10%. Okay. Or just throwing money away. Let’s basically stop the bleeding.

How Sneaky are Timeshares?

https://youtu.be/aFO0l_rVDy8

And just so that we can pinpoint it because every time people ask me why I’m a real estate investor, I it’s time share. I’m like, dude, that’s not, you’re not an investor. You just got suckered into a deal, but I can never explain. I can’t explain to myself. I just walk up upset and frustrated my understanding it’s because.

When people buy a timeshare, they not only is it expensive. And when you figure out the cost of ownership that you do, like a life cycle cost analysis, it doesn’t start a good deal. But also you get into these nasty arrangements where you have annual maintenance fee, and then you have a termination fee since like negative equity.

If you can explain that a little bit, it’s ultimately a timeshare was once sold as an embed. And there was a resell market now because of Airbnb. VRVO the internet consumer confidence in being able to plan a trip short notice and having a condo with accommodation, similar to the timeshares where you have a kitchen and space, there’s just no, you know, resale market for it.

That’s gone. So, what you have is it’s basically a prepayment of vacations and it can be really quality vacations. I actually believe there can be some value in the ownerships. If you use them now, getting back your original upfront investment that’s as you’re speaking. With auto purchases that certainly buying resale would be much more advantageous.

You don’t have that 30 grand or whatever to recoup from the upfront. It can be a good value. I always tell people at our seminars or whatever, don’t feel bad, 10 million homes in America owned timeshares. And, or you bought this because you wanted to spend time with the people that you love and a beautiful place.

Right? If it gave you those good memories, you probably wouldn’t trade those for the money. That being said, it’s really not a good investment because at this point you can jump online, make reservations for anywhere in the world for this weekend and pay less than what the maintenance fee .

Timeshares w/ Alexandra Olson

https://youtu.be/IvBJDK9LB68

Hey , simple passive cashflow listeners. Today, we are going to talk about giving up your time, share, why they’re not the best of investments and what the process is to unload them. And I personally am always looking to take advantage of a distress. Seller, whether it’s an apartment building or I’ve interested in these timeshares to buy, but not from the the first buyer, but the second owner.

I’ll get into this and this kind of goes into the whole hobby lately. I’ve been having buying cars lately I’ve been realizing it’s not the greatest to buy a car new, all this, because of that, you take that big gut punch as you drive it off the lot. But as you, if you pick up a one to two year old car, you ride that decay curve down and then you sell it at some point before the warranties expire or shortly thereafter of you can capture a low cost of ownership.

And it’s very counterintuitive to the course. But as we’ve seen through the first two or 300 podcasts, passive cashflow land things normally are, but yeah. Why don’t you introduce Aleksandra Olson, who is from. The you guys want to check this out on your computer to give up my time, share.com, but welcome Alexandria.

Thank you so much for having me. Yeah. So I’m from give up my timeshare. We help people to get out of their timeshares. And we also, of course always sourcing a buyer for that, seller that is distressed, that wants to get out whose kids don’t want their ownership. yes, we are uniting sellers and buyers.

Some of them are taking over ourself and that’s our business. Friends don’t let friends buy timeshare. That’s a pretty kind of a crummy investment. It’s scabbing how they do things, right? You see them here in Hawaii and every time I go on vacation, you got like people handing out flyers and like trying to trick people into talking to them, especially at Las Vegas, by these timeshares. Let’s go through the process. So young couple, they get that booze loaded, the buying this thing up. How does somebody really end their time share? What’s the process like? First of all, if there is no mortgage on the property so it’s free and clear the maintenance fees are current.

Then it comes down to a matter of finding a new owner. There’ve been a lot of scams that have emerged about trying to help people say, Oh, we were frauded in the purchase or, all these different things. But what it really comes down to is this is deeded ownership. This is real estate. So you do need to find a new buyer just as you can’t walk in the street and declare, I don’t want this home anymore.

The property tax, bill and HOA fees and things are still gonna find you whether or not you’ve declared that to the world. It’s the same with a timeshare. It is a deed and you need to find a new buyer and that’s really the trouble is that the resell market has diminished incredibly in the last five to 10 years, just because of the different travel options that have emerged.

And just so that we can pinpoint it because every time people ask me why do you. I’m a real estate investor. I have a time share. I’m like, dude, that’s not, you’re not an investor. You just got suckered into a deal, but I can never explain. I can’t explain to myself. I just walk up upset and frustrated.

My understanding it’s because when people buy a timeshare, they not only is it an expensive and when you figure out the cost of ownership that you do, like a life cycle cost analysis, it doesn’t start a good deal. But also you get into these nasty arrangements where you have

annual maintenance fee. And then like you have a termination fee since they like negative equity. If you can explain that a little bit. Sure. It’s ultimately a timeshare was once sold as an investment and there was a resell market now because of Airbnb. VRVO the internet. Consumer confidence and being able to plan a trip short notice and having a condo, with accommodation, similar to the timeshares where you have a kitchen and space, there’s just no resale market for it.

That’s gone away. So what you have is it’s basically a prepayment of vacations and it can be really quality vacations. I, I actually believe there can be some value in the ownerships if you use them. Now getting back your original upfront investment that’s, as you’re speaking to them, With auto purchases certainly buying resale would be, much more advantageous.

You don’t have that 30 grand or whatever to recoup from the upfront. It can be a good value. I always tell people at our seminars or whatever, don’t feel bad. 10 million homes in America owned timeshares. And, you bought this because you wanted to spend time with the people that you love and a beautiful place.

And if it gave you those good memories, you probably wouldn’t trade those for the money. That being said, It’s really, not a good investment because at this point, and you can jump online, make reservations for anywhere in the world for this weekend and pay less than what the maintenance fee is.

In most cases. And that’s a bash on timeshares that much, but I got a buddy. See he bought him because it forces him to go on a vacation. If not, they never go on it. And, for. For kind of higher net worth families that are very tightly personality workaholics. It needs stuff like that.

Absolutely. If it ends up being the catalyst to create memories with the people you love. That’s awesome. And that is a great reason to look at owning one. Really, for probably most of your viewers, the maintenance fee annually is nominal, but if it does, force that commitment to doing the trip and knowing, okay, we have a week we’re going to do every year as a family.

Then it comes down to just picking something that’s going to offer the most flexibility and sometimes value. Isn’t the most important thing. But the economics have shifted, like you said, right? Because people can just go on Airbnb VRVO et cetera. Just book it. And it’s not like hotels, they don’t have availability.

Let me show you. You have to pay 600 bucks a night care on Hawaii, but there’s no lack of, I. Right. And, at the same time, like doing so many vacation rentals with timeshares, I definitely see that, if you are willing to understand the system, there’s no learning curve on the internet, that kind of thing.

Actually, most times your owners are older. Rather than young couples, it’s typically retired couples that now want to go and travel. They want to provide trips to their families. It’s not to say that young families don’t buy it, but more commonly the consumer’s kind of a baby boomer type. Just less educated on, what’s a good purchase and they just don’t have lack of information.

They just don’t care. I don’t work the system, so many ownerships that we take over, we’re able to get good value out of, book weeks in Hawaii for the equivalent of about a thousand dollars of costs. You’ve got to know where to click online and have the patience to do that.

What’s the process, somebody wants to sell their timeshare and then we’ll skip over to, I think most of us. Don’t really want, we want to buy timeshares from these distress buyers or sellers get into that at the end, but what’s the process if somebody wants to unload it, so if they want out of it what they would do is I recommend that everyone first contact your resource, see if they’ll let you out for free. That does happen on occasion, usually with, higher end brand so explore that option first, plus, you want to know that, you didn’t go and pay someone to get out of it when you could’ve gotten out of it for free through the developer.

That would be step one. If that’s not the case, then you know, you need to go through a company that can secure a buyer for you. And I would encourage everyone to be very careful and not pay anyone up front. And I’m sure that your viewers are certainly a little more savvy than many of the people that have fallen victim to the scams.

But in general, don’t pay anyone upfront. If a client comes to us, all we’re going to need is the deed. A copy of the deed. If they have it copy of their IDs, copy of a recent maintenance fee bill, we can then price it out. We use a calculator, so we already have pricing preset for every resort in the world.

And get them a quote within minutes, and if they want to move forward, we send them an e-sign contract open escrow and it follows a normal real estate process. So we’re never paid until the close of escrow and we don’t even collect payment. It all goes through the title company. So it’s a very secure transaction and.

A guaranteed one. If we are not able to secure a buyer on our own, then we’re going to transfer it into our own name and turn it into vacation rental. It’s a guaranteed quick process. And what our clients are looking at is, Hey, we don’t use this thing. We’re paying for it every year anyway. And then, it’s going up at six to 10% a year.

We’re just throwing money away. Let’s, basically stop the bleeding . So what’s the normal commission structure like, with real estate. No deals. It’s 6% is usually the commission. And then how does it, what’s the normal range, to keep in mind.

 

 

Are you asking, what do we charge? Two, three to five years of maintenance fees is a good rule of thumb. The exception, there are some outliers to that which would be resorts that have very high transfer fees or require prepayment of two or three years of maintenance fees. Something like that.

I do have a webinar on our website that explains why we have to charge in the first place, all the scams to watch out for, if you’re just starting to explore how to get out of a timeshare and really covers the entire process. Yeah. What’s one of the better ones. The less nasty wants to get up and what are like the worst.

Okay. Probably the simplest would be a straightforward deeded week what’s happened over the last 10 years in the industry is a lot of resorts have moved to a, trust-based like it’s a real estate trust where they now, upgrade all the inventory into that trust. And it’s.

It’s points that the client is using collateralized by, this real estate trust. Those are a little more difficult because it’s basically a membership and you have to have the resort approval before you can transfer your title. So I am always like that, I think. Yeah. Disney your diamonds, your Wyndham’s, the big players.

And I prefer to deal with. Straight deeded, old legacy properties where someone owns week 42 and unit 10 that’s, always the quickest and easiest transaction that being said we’re familiar with and pride ourselves on being the best in the world at, getting through the process with whatever property it is.

That’s, how we’ve built. Our whole business model is around not getting paid until we’ve completed the transaction. And it has, of course encouraged us to be the best at getting it done. I’m not too familiar with timeshares. Normally they cost, what about 50 grand in cash in the beginning?

You can’t finance it, right? Average is about 20,000, you can finance usually at about 18%., and then they’re putting in 20 grand, the maintenance fees are about how much for a year is very typical. Okay. So for me to dump my 20 grand timeshare that I might have access to what, five, 10 days out of the year or something, correct?

Yeah. Typically seven days a year is what that will get you. I would have to pay maybe five grand to dump it and then get the 20 grand back or be a little bit more. There will be no getting the 20 grand back. And that’s the hard pill to swallow is that this is not an investment that, has any return other than in memories.

So if you used it had some good times great. But whether or not you use it, you’re paying for it forever. And there is no one on the other side, that’s going to pay for this repeat at this point. Okay. So what if I want to buy one of these things? How much could I buy one of those four? There are thousands of timeshares online for free?

Is that available on your guys’ website? Or how would I get for this? Yeah. This is actually never really come up in this kind of a setting. We don’t advertise it in that way. We do actually use like a shared Google sheet that will list all of the available bums on. So I guess the thing would be if someone had interests that was, listening to this, or, I can certainly send you.

Thanks for that. And we have seen, over the last few years, some nice portfolios be sold or, taken over by larger vacation rental companies. And if you want to work at, you can do well. You can make 10, 20% above the maintenance fees on these ownerships and sometimes much more.

It’s just a matter of, a lot of times, our owners don’t want to become an expert on vacation rental to deal with their one week a year. Now, if you’re doing like we do where you have a whole bunch of them and you’re making a business out of it. Yeah. Of course you can do well. And we are happy to give them away if there’s interest.

Our business model is, to get paid for getting someone out of it. We don’t worry about trying to money, reselling them. If I wanted to stock something here in Hawaii, just use an example like that, that somebody had previously paid 20 grand for maybe paying five grand a year. How much would I have to pay to acquire something like that for myself?

Oh, for free actually paying rather than the buyer in these transactions. And that’s what can be, a little confused. It’s so unusual, right? There’s not many things where you pay to sell it. And it could be like, not want to have it makes me not want to have it now. It’s like a, it’s like a monkey on your shoulder that you get for free.

And now you have that monkey. There are certain ones that, can be a good value. And if you’re going to use them great, we get a lot of Hawaii inventory. It’s a specific week, in a specific unit, if you’re going to go and use it, to pay 800, a thousand dollars for a week in a condo on the beach in Hawaii is amazing.

I don’t know. It’s just that these folks might live in Nebraska and aren’t wanting to fly far because of COVID now. And they’re looking at, Hey, we didn’t go the last couple of years anyway. And we paid, let’s just dump the thing. Yeah, I’ll definitely get on that list and I’ll be stocking it a little bit.

Cause I’m like one of those people that I need that motivation to actually spend money. If not, I just keep it in my bank or so it might be good for folks like myself with our listeners. Sure. To make a commitment, to doing something, With your loved ones at a specific time of year that you can plan around.

If that’s something that is of interest, we’re happy to, give you any of the ownerships that our clients are trying to unload. Anything else that you think listeners would be interested or you get very commonly asked on this topic that you think need mess. Probably, the biggest thing that I always want to communicate is to be very careful.

Unfortunately, the timeshare industry is not very regulated. Especially on the exit side of the industry, getting people out there are almost no regulations. And so there are a lot of scams, any kind of situation where you’re, bringing money to a transaction. Having to pay up front. If it’s not a legitimate title company, just stay away from it.

There are unfortunately a lot of bad players in this space. And I would just caution anyone to, do a little background research, look someone up on BBB, make sure they don’t have attorney general complaints because there’s very few out there that don’t. Yeah anybody can get on BBB.

I’m on there. I have an a plus rating, but just joking. But yeah, if you guys want our reach out to Alexandria, you can go to give up my timeshare.com. Yes. Any other, that’s probably the best way to get ahold of you guys the best way or a quick Google search, Alexandra timeshare, I’ll pop up, watch our webinars that will give you a lot of background information.

Feel free to reach out. If you are wanting to, have access to what properties are we in loading right now, we can definitely hook you up if you want to step in as a buyer. Or if you have one that you want to get out of then definitely start with watching the webinar and reaching out.

And I’d love to chat with you about it. Hey guys. So if Hey, no shame. If you bought a time share, we all make mistakes in the past. Luckily you can unload this monkey off your shoulder to somebody else be a, this means, if you guys have any friends or family members that need this information, feel free to pass this along a little hint, hint in there for you.

But Hey, if you get rid of that $5,000 a year payment, right? That’s a rental property of four years, or if it’s another syndication deal I think once you realize that there’s this alternative investing world out there, you start to look around the house in the points and the couches money all around.

You start to look to really deploy that money and you got a lot of dead Basie equity or Astro going out the door, one of these timeshares and you do the math, right? If you’re investing, making 10, 20% returns on your buddy with a tax advantage basis, Who cares about a $500 hotel timeshare that you get access to five times a year.

You could probably go like baller status and the Maltese for a thousand dollars a night, right? With the cash that you have in cash is King cash gives you freedom. Timeshares. You’re just stuck in that arrangement, but thanks for listening guys. Make sure you join the investor clubs and we’ll pass the cashflow.com/club.

All right. We’re back guys. Now it’s time for a little real talk with Alexandria as my personal questions here, which I use my podcast to ask my selfishly questions. All so if I’m thinking about buying like a Lonnie, just use that as the example, which is the Disney berserk here at Walker.

I got to pay the annual maintenance fees, which is like five grand a year for something like that once. Oh no, probably about 1200, a hundred while. So 12 pay 1200. And that gives me access to the property for how many nights a year you think, it will depend on this time of year, what week it is, what size unit, but around, a thousand to $1,200 for a week, pretty much anywhere in the world.

Okay. And of course I live here in Hawaii, so it’s the same season every freaking day out of the year. And I live here. So that would be ideal. So maybe I’m just trying to get a price for a day in my head, so is that five days? I find with doing the vacation rentals, we end up averaging around 80 to a hundred a night for what our cost is to make a reservation.

Okay. But this Alani thing is really exp, to stay there is like $600 I could think is a complete rip off. I’d never do that, but that’s what they charge. So that’s $1,200. Basis, they can charge $50,000 up front for a week at a place like Aillani because, then it’s all about the, Oh over the next seven to 10 years, you’re going to break even, on, because you’re only paying a thousand a year and, so you’re saying if I pay like my maintenance fee of a couple of grand, for that one, maybe. I would be able to stay there for five nights or something like that. So an average night of 200 bucks. Yes. It would be unusual in timeshare to ever even average paying $200 a night for somewhere.

Okay. That I can do. Cause I have to take these quarterly break out to do like personal goals and stuff like that and family stuff. This would actually work to that, yeah. And if know when you’re going to be doing those breaks, for the planner, for someone who’s organized plans ahead and schedules and is fine planning a year out, two years out, time’s just going to work very well for, that’s just not how people plan travel typically anymore.

And that’s where, there’s been this imbalance where about 80% of timeshare owners want out of their ownership. Yeah. And for you guys, listen, this is where it’s important to like the imbalance, right? So many people in California, Hawaii, Seattle, New York, they all think the buy their house.

This is why I see do the complete opposite. The imbalance. There’s so many desperate landlords out there that would love to rent their house for two to three grand to somebody like you guys. That’s where you guys make money on the Delta, just like in this circumstance. Cool. I’ll I’m going to try this out and, maybe update you guys on a future show.

Overcome What Others Do In Real Estate

Now, another trick that folks like did you in this business inflating other income or non rental revenue, such as trash filet, additional storage fees, reserved parking or covered parking in Texas. That’s a big one for those late hailstorms money for vending machines, money from laundry machines or any type of service that may or may not be tested by the current clientele.

This has been a way to sneak deals past even the most astute, passive investors. We have understanding of underwriting, just put stuff into other income category because most people don’t look there. .

Secret to Solving Your Student Loan Problem

https://youtu.be/BiKYFYkHGFg

It’s case let’s dig into this, like this common one, someone comes to me and they’re like, yep. This is stomach who doesn’t listen to podcasts, not simple, passive cashflow. They’re not investing. They’re just investing in their normal retail investments, mutual funds. And they’re like, oh, like, look at I did.

I consolidated all my loans through the company or whatnot. And it’s a lower interest rates. It’s a lower payment. How is that not a, uh, a losing situation? What are the negatives of just going down, just blindly going to these websites, you see them all the time, right? Lowering your interest rate and lowering your monthly payments.

What is the, the side that we’re not seeing here? And one of the first things I look at is if refinance makes sense for you, and if it does, it’s a simple solution. You don’t have to deal with all the federal regulations and programs and paperwork, or hire somebody like me to help with that. You just pay it like a traditional loan because I refinance with a sofa or Laurel road or common bond or whatever those companies they’ll call a student loan.

The product is a student loan, but really personal loan. That’s all it is. And at whatever terms they give you. So you’re going to forfeit all of your federal regulations and protections you’re going to, and the safety net that they provide, you’re going to forfeit the flexibility that federal repayment has.

Once you agree to those terms, unless you are able to refinance it in better terms later. You’re stuck with them as long as it is at that company. I would say a majority of the time, the payment does not lower when you refinance. So even if you lower the interest rate that does not ensure that your payments can be lower.

In fact, the payment usually goes up because typically lenders will tell you, I will give you a 3.0% fixed rate on a seven year term. If you are on a 25 year term before that are an income driven plan, the more typical the student loans, especially after federal consolidation. Your payment’s going to go way up, despite the fact that you get a lower interest rate, the Jan, my understanding.

How to Get Rid of Student Loan

Before we dig into this more, my full philosophy on people come to me. Should I pay off my student debt? Yeah, you shouldn’t write it. You should invest. That’s why, if we’re living the simple passive cashflow thing, so we can make returns at 10, 20, possibly 30% in a turnkey rental, and go look at the rate of return.

You can make it simple, passive cashflow.com/returns or break down a simple, just turnkey rental, how you’re making money. Four ways mortgage paid down, tax benefits, appreciation of property, which I guess you could say that’s getting low. And then of course cashflow, okay. We’re going to pay off the debt as slow as we can.

So to optimize our liquidity going through our investments, but how do we do this smart with these other strategies? Yeah. Cashflow is the hidden gem in the income driven and forgiveness programs. A lot of people don’t significantly pay attention to if you refinance your loan, let’s say you have $500,000 in debt at 7%.

And if you refinance that loan, you’re looking at a five or $6,000 a month payment. Even if your interest rate is cut in half, that’s going to eat up a lot of your cord that are, want to afford it. You have family. What other obligations do you have? What’s your cost of living? You live in San Francisco or in rural Alabama.

All factor into decision-making, but the cashflow is huge. You can use that for other financial objectives, especially like with my dentist who usually don’t work for nonprofits, massive debt all the way up to him.

How to Pay Your Student Loan: The Strategy

https://youtu.be/nkwc_fx-hY8

What are those techniques? If you can. I know you mentioned there were like for real, I’m finna go through them one by one. And there are basically four major repayments solutions. There’s private student loan refinance with a private lender where basically forfeit all your federal program benefits and you refinance it, hopefully a better interest rate.

Otherwise it doesn’t make sense doing it, but of course it’s like, you may have a higher payment because it’s a shorter term. Typically lenders will offer you a lower interest rate, but they’ll on the condition that you can afford. The payment that will create a seven or 10 or 12 or 15 year term instead of the 25 year term, sometimes associated with student loans.

And there’s also, if you work for nonprofit, of course, public service loan forgiveness is its own juggernaut is very nuanced and complicated and understanding how. Program works and whether it’s worth pursuing and its reliability, those are all issues that come up. That would be the second one. The third thing would be to, if you don’t qualify for the nonprofit forgiveness, you public service loan forgiveness for government income driven plans, which are either 20 or 25 years long.

All the way through to the end until you received the forgiveness there, or another solution would be the fourth option would be payment targeting or unorthodox method of putting some of the loans at a zero payment and accelerating your payments on higher rate loans, that type of thing, or making your student loan repayment work around your other debt or other financial obligations.

There can sometimes be a mixture, uh, several different of those strategies at once, but refinance public service, loan, forgiveness, income driven plans, and. Payment targeting are the four major solutions and then how to incorporate that into your own financial objectives. And of course the more complicated.

 

And then of course, for a lot of us that work time is more valuable than money. You guys do all the paperwork.

Jan Miller – Paying off Student Loans

Today’s podcasts are going to be talking about paying off student debt and give you a little bit insight if for a lot of you guys are, have that stupid debt or more importantly, I guess if you got kids that you want to send to college, one of these days now colleges and everything, but I think a lot of us are parents.

I’m a parent myself, want to give our kids a leg up in that category. Been a dad here for about a couple of weeks. You don’t quite see the bags under my eyes . We’re past the first three-day period where we uh, yeah. Punched in the face and you realize you’re not going to sleep for awhile.

But now two weeks in, I know what to expect and it’s kinda like losing the first game of the playoffs and a know how things are gonna work. That’s where we are at today, but things are good. Things are good here.

For those you guys have young kids or expectant, new mothers or fathers, check out the infoPage@simplepassivecashflow.com slash baby got a lot of parenting advice. Shouldn’t you focus? And got a little shopping list there. You probably don’t need all that stuff in that shopping less. We were fortunate enough to get a lot of hand-me-downs for a lot of things from other people barely bought any clothes since everybody dumped their old baby clothes on us.

The only things we had to buy were, I could probably count on one hand, Chris. All these baby carriers, know what this stuff is for quite honesty, we don’t have to buy a lot of this stuff and our strategy is the buy it use.

Most parents are freaked out and they don’t want to buy you stuff, but, I do it where it makes sense. And I like to go to a north shore. See what the cool baby things are, then check it out at Facebook marketplace or Craig’s as well. I stay away from Craigslist these days.

Cause they’re a bunch of weirdos on there. I like to be able to vet the people that I’m buying from. But yeah, we bought one of those snooze cribs from Facebook marketplace magically rocks your kid to sleep with an app. It also, you strap up and there’s a steep on their face.

And then I got one of those that pneumonia and not one of those fancy baby strollers that makes you look really cool on Facebook marketplace for like half price. Other than that, yeah. We got very fortunate that a lot of cook gave us a lot of this stuff as my kid squirms in my arms here.

But, think two weeks into it to this and fun or see. It gives you another why you’re filling up all this passive cashflow, and really start to build that legacy right after all. It’s not that hard to get financially independent, look that passive cashflow, most of our clients do it in a decade or less, the bigger ideas of what do you do after that.

And how you build that, see, and I think that’s where the next chapter is full passive tasks. It’s going to be a headache. It stays as we’ve been having a lot of conversations about this and our after hours of our family office, a Honda mastermind breakout groups where, this is where a lot of the conversations go a lot more of these soft topics that how to simply just pay off your student loans or where to get the best rates on the Heliox.

For example.

But yeah, just wanted to let you guys know I’m alive and well. Babies. Well, Mom as well, and check out those baby tips@simplepasacastle.com slash baby. And enjoy the podcasts.

Hello, simple passive cashflow listeners. Today, we are going to talk about student loan, forgiveness programs, how do you pay off your student loans? The best way a lot of us unfortunately, or fortunately went to college for way too long and saddled with all this student loan debt. Now I am I was born in the 1980s and I was lucky enough to have a good job and I paid mines all off personally.

But some of the kids out there, man, I feel sorry for you guys. Cause it’s a Hutch several hundred thousand dollars, at least, especially a lot of dentists guys and doctor guys out there. So this podcast is going to be for you. We have a young Miller who is a student loan consultant and we’re going to be talking all about student loan.

Tips and tricks. How do you pay it off? What’s the best way, Yon once you give us some background on how you got started doing all this. Yeah, sure. I actually started working directly for several different loan servicers back in 1997. I worked for Nelnet and fed loan servicing, and also worked on the private side for discover financial and Citibank

and saw the student loan world from every point of view on, I worked in 11 different departments during that time. My career eventually went into the brokerage industry as an investment advisor at Morgan Stanley and financial planner and advisor there. But all the while helping people on the side with student loans, everybody, I knew Mike dentist might.

Brother-in-law whoever they all had student loan debt. And so I would help and eventually started helping people on a more professional level. While I was working at Morgan Stanley, not for Morgan Stanley, but on the side. And eventually the demand got so big that I retired from work and Stanley in 2010.

And made it my sole focus. I’ve been an advocate for borrowers for student loans since for the last 20, some 22, 23 years. And I’ve been at a professional capacity doing as my sole focus since 2010. And yeah, I’ve just been helping borrowers manage it, using my financial background, understanding and conjunction with the student loan expertise and knowledge of how the system works.

Both from an administrative level all the way up through the regulatory level, as well as just the practical level of how to apply that to your student loan repayment. That’s what I’ve been doing for the last decade. A little bit of backstory here. Why are we talking about this subject?

I was asking you guys in the community. If you guys want to join our Facebook group, let me know. And we’ll add you to that private group, what are the problems you guys are facing out there as high paid professionals, looking to invest your money?

And this definitely came up as one of them. I always asked you guys, who are you working with right out there. That’s the power of our community. And if you want to join the group, go to simple passive cashflow.com/club. Or if you want to join the inner circle, that’s what the incubator and the mastermind are for.

Your name came up beyond I got to admit a couple other guys names came up too, but I didn’t want to work with them because they wouldn’t return my phone call. I want to talk to the principal, right? Like I don’t, there’s a lot of people who do this, if you Google it, there’s a lot of people that spend a lot of paid advertising on this stuff and have very pretty websites.

Not saying that yours isn’t good, look, this is just my brand. So this is simple passive cashflow brand. I always go off of value, right? Like I’m not going to go to a CPA that charges me 10 30 grand that do my taxes. That’s ridiculous. Nor am I going to go to like H and R block or do it on triple taxes for goodness sake.

I’m looking for value and think Yon fits this this category here of somebody who. Offers a very good service and charges a fair price for it. Why don’t you let’s go over like a typical client? Cause I think. And the one we were talking about earlier and what is it exactly that you do with them?

Again, if you’re going to hire me in to justify my fees, I’m going to need to provide a pretty significant return on investment. Of course. So as result and because of my background, majority of my clients are professionals who have six figure debt. What’s your debt rises about one and 200,000 so forth. Every decision you make impact your total cost of that repayment by huge factors, tens and tens, if not hundreds of thousands of dollars between the two. When that happens to make sure that you get the best, repayment experience you often will reach out to a borrower, reach out to an expert

and again, one of the ways that I run my businesses, I’m looking out for the borrower. So I’m going to design a plan or repayment strategy. That’s best for them. Not best for. The actual loan, servicer or lender. When you see advertisements for sofa they’re gonna obviously want you to refinance that loan, but a majority of the time, that’s not the best option for the borrower, just because you can get a lower interest rate.

Doesn’t mean it’s the best solution for you. And we need to evaluate all of those solutions. And make sure they make sense with your financial objectives. My job is to look at all of the variables , what are those techniques, if we can, I know you mentioned there were like three of them.

You can go through them one by one. There are basically four major repayment solutions there’s private student loan refinance with a private lender. We’re basically forfeit all your federal program benefits and you refinance at hopefully a better interest rate. Otherwise it doesn’t make sense doing it, but of course you may have a higher payment because it’s a shorter term.

Typically lenders will offer you a lower interest rate, but they’ll on the condition that you can afford the payment. That will create a seven or 10 or 12 or 15 year term instead of the 20 year terms sometimes associated with student loans. And there’s also if you work for non-profit of course public service loan forgiveness is its own juggernaut is very nuanced and complicated and understanding how that program works and whether it’s worth pursuing and its reliability.

Those are all issues that come up. That would be the second one. The third thing would be to, if you don’t qualify for the nonprofit forgiveness, you public service loan, forgiveness, or government agency work then you can also in some circumstances that make sense to do the income driven plans, which are either 20 or 25 years long, all the way through to the end until you received the forgiveness there.

Or another solution would be the fourth option would be. Payment targeting or unorthodox method putting some of the loans at a zero payment and accelerating your payments on higher rate loans that type of thing, or making your student loan or payment work around your other debt or other financial obligations.

There can sometimes be a mixture of several different of those strategies at once, but refinance public service, loan, forgiveness, income driven plans, and. Payment targeting are the four major solutions. And then how to incorporate that into your own financial objectives. That’s of course the more complicated.

And then of course, for a lot of us that work time is more valuable than money. You guys do all the paperwork and just tell me where to send, help with execution. It’s not just, Hey, and this is what I found early on doing this for 23 years. Now I can tell you how to do it. And about half the people I talked to.

especially physicians, where they all they educate themselves on how it works. So they have an understanding they talked to all the other residents and they have an idea of how to enroll in the program and so forth. They don’t need help with that. And then you just need the finer details worked out, and then they can do it on their own, the other half of the time.

It’s just too much of a mess for them to deal with and they want to hire somebody to help them. Not only. No what to do, but the execution, how to do it and help doing it so I can prepare and submit all the paperwork for them. So that the only thing they need to do are make payments and I’ll take care of everything else.

And they’ll always be able to contact me and talk with me if they need to. It depends on where you are, what your needs are, a lot of people would prefer to have hand-holding through the whole process. Before we dig into this more, my full philosophy on, people come to me, should I pay off my student debt?

Yeah, you shouldn’t right. You should invest. That’s why, if we’re living the simple, passive cashflow thing, so we can make returns at 10, 20, possibly 30% in a turnkey rental. Go look at the rate of return. You can make it simple, passive cashflow.com/returns. Or I break down a simple, just turnkey rental, how you’re making money, four ways, mortgage paid down, tax benefits, appreciation of property, which, I guess you could say that’s getting lucky and then of course cashflow,

okay, we’re going to pay off the debt as slow as we can. So to optimize our liquidity going through our investments, but how do we do this smart with these other strategies? , cashflow is the hidden gem in the income driven and forgiveness programs, that a lot of people don’t significantly pay attention to. If you refinance your loan, let’s say you have $500,000 in debt at 7%. And if you refinance that loan, you’re looking at a five or $6,000 a month payment. Even if your interest rate is cut in half that’s gonna eat up a lot of your cash flow each month.

You may not even be able to afford that or want to afford it. Do you have family? What other obligations do you have? What’s your cost of living? You live in San Francisco or in rural Alabama, these. All factor in the decision making, but the cash flow is huge. You can use that for other financial objectives, especially like with my dentist who usually don’t work for nonprofits, massive debt all the way up to a million dollars in debt.

And they’ll tell me, Jan, if I can Lord this payment, I can use the extra cash flow to build my business mill practices and expand my business so that my return of investment might double every month, in that circumstance, which. For extreme certain situations.

It doesn’t make sense to accelerate a payment on an 8% loan or refinance it and save a little bit of interest when you can benefit so much from investing that extra cash flow. Those are all considerations for sure.

That’s why started this podcast.

There’s so much bad financial advice out there. Pay down your debts. It depends, right? If you’re bad at your handling your money, just spend it like a bozo then yeah. You should go pay off your debts. But if you’re a responsible person, I think most people that are listening to podcasts educating themselves.

So you fall on the other side of the coin on this and, check out my article about that. It’s simple, passive cashflow.com/debt. But yeah, I, to me, the best strategy is pay down the student loans or your mortgages as slow as possible because it’s a pretty low interest rate and invest the money otherwise basically interest rate arbitration, right?

Just what the banks do. They lend out at this rate and they go invest it in this much and they make money on the spread. It’s not, you’re responsible, your grandma, your grandpa, your mom, your dad probably thought otherwise, but amen. If you want to get what other people don’t, you got to do different things, right?

Yeah. And even the psychology of the borrower comes into play. Some people can’t psychologically watch their balance grow. When they’re paying less than the amount of interest screw in each month and they’ll send me Jan, I know what you’re saying. I’ll save hundreds of thousands.

I’m doing the income driven plans or what have you. I just can’t watch grow. Okay. That’s fine. As long as you’re making an informed decision, but that’s a part of it. And again, every situation is a snowflake. I always tell people, if you hear a one size fits all solution, it’s wrong.

Everybody’s needs a very, a detailed assessment especially when you have six figure plus debt to determine what’s the best solution for you. Do you qualify for the program? That doesn’t necessarily mean you should do it. That has to be looked into. And add onto that, like even like investing in rental properties or syndications, for some of these younger dentists, like I tell them you’re an entrepreneur, your liquidity and money.

Certainly shouldn’t be going into paying off your student loans and maybe it shouldn’t even be going to investments, but putting that money into marketing or into improving your operation as a dentist practice is probably your highest and best use. And it always comes back to it. What’s your highest and best use for your time and also your money or liquidity in this case.

Let’s dig into this, like this common one. Someone comes to me and they’re like, this is stomach who doesn’t listen to podcasts, not simple, passive cashflow. They’re not investing. They’re just investing in their normal retail investments, mutual funds. And they’re like, oh I like look at, I did.

I reconsolidate all my loans through a sofa company or whatnot. And it’s a lower interest rates. It’s a lower payment. How was that? Not a losing situation. What are the negatives of just of going down, just blindly going to these websites, you see them all the time and just lowering your interest rate and lowering your monthly payments.

What is the side that we’re not seeing here? One of the first things I look at is if refinance makes sense for you and if it does, it’s a simple solution. You don’t have to deal with all the federal records and programs and paperwork or hire somebody like me to help with that.

You just pay it later a traditional loan because I refinance so fire and Laurel road or common bond or whatever those companies They’ll call a student loan. The product is a student loan, but really it’s just a loan. You’ll a bank. It’s just a personal loan. That’s all it is. And at whatever terms they give you.

So you’re going to forfeit all of your federal regulations and protections. You’re going to, and the safety net that they provide you’re going to forfeit the flexibility that federal repayment has once you agree to those terms and unless you are able to refinance it and in a better terms later, You’re stuck with them as long as it is at that company.

I would say a majority of the time, the payment does not lower when you refinance. So even if you lower the interest rate that does not ensure that your payment’s going to be lower. In fact, the payment usually goes up because typically lenders will tell you we’ll give you a 3.0% fixed rate on a seven year term.

If you are on a 25 year term before that, or an income driven plan more typical to student loans, especially after federal consolidation then your payment’s going to go way up, despite the fact that you get a lower interest rate. Jan my understanding of student loans is, it’s a government loan and you’re switching over to more of a privacy of private loan where you don’t have those government protections. But I thought that. It’s, everybody talks about how the forgiveness of student loans is not permissible, right?

Like a mortgage is, but what are some of those protections, if it not for that, what protections somebody giving up by, making a deal with one of the private lenders, like in this case? With federal student loans, they cancel upon death. Immediately after loans. So if it’s a federal loan that’s a given a hundred percent of the time.

If you’re looking at a private loan that might not necessarily be the case. So the devil’s in the details, right? These guys might be signing on a lower interest rate and a lower payment. Which is the same tricks that the car lenders use, but they may be signing up their kids and grandchildren or whatever to pay this debt off eventually.

Yeah. There’s a little bit of a risk there. And then of course the, flexibility. What if there’s no guarantees? What if, for example, a crazy pandemic comes along. And causes you to lose your job and your income goes way down. If you have a private loan, you’re going to be very limited on what you can do to lower that payment with a federal loan it’s going to be easy you’re going to get built up first, just like those you guys would Fannie Mae Freddie Mac loans, and you think you’re all clever by getting these portfolio loans.

That is a huge safety net. I have, for example, I have a physician client who have for over a decade and she was in a car accident and she could no longer operate. So now she’s a teacher at a university and her income has went down. From, three or $400,000 a year to $80,000 a year.

That changes her financial outlook and her strategy for repayment on her large student loan debt completely because her loans are still in the federal system. She had several options and manageable ones. But the private loans are not necessarily, you may have to pay or default in the story and you may have to do harsh things like negotiate settlements after you’ve defaulted and no one wants to do that.

Those are protections, a lot of my clients, they have like several hundred thousand dollars in their infinite banking or they might have, nice parents with deep pockets, like they’re good. So they might as well do it and get the lower rate and. They’re good, right?

It’s in a way self-insuring themselves. . Yeah, exactly. If you’ve got the deep pockets and like I’ll tell my ER docs and I’m just using to say I have so many doctors as clients, ER, docs usually work for contracting groups or physicians or hospitalist groups, and they don’t directly work for the hospital as a result.

They don’t qualify for public service loan forgiveness. Typically they’ll have. Three years of residency, and then I’ll jump right in as an attending. And they’ll have usually their income is maybe 300, two 5,300 and their debt is 250 to 300. In which case refinance makes more sense for them because the income driven plans wouldn’t really lower the payment that much anyways.

And they might as well just accelerate the payment and paid off. They can afford it. So when your debt to income is strong, Then refinance is more often a solution, but if you’re upside down, which is Mary common, 80% of the people call me or don’t call us, they have problems, that’s right. Exactly.

I’m like the mechanic for expensive cars, and they come in with a problem and usually they owe more than they make. And because of that the refinances, not as It’s greatest solution for them in most cases. In my search for this doing a little studying on this topic, I don’t have any student loans personally.

But just doing some research. I found what this, I don’t know if this is a scam or whatnot, but like some guys are like, they found the company to create an LLC for them. That is set up as a nonprofit. So they can pay themselves via this nonprofit so they can qualify for the tenure student forgiveness thing.

Have you heard of this thing? What’s your thoughts? Yeah. And I’ve been asked over the years, Jan, I don’t work for a nonprofit. What if I own my own nonprofit or I create a nonprofit. And technically as long as it’s structured so that you are an employee of that nonprofit. Then you do that will technically qualify.

It’s interesting because not enough people have been eligible for forgiveness yet for to see how the auditing process works with those specific borrowers. But technically it is possible. It’s a risk though, right? I think so. I always tell people, if you’re gonna do it anyways.

Sure. You might as well shoot for the forgiveness, but if you’re going to open a nonprofit. Just so you can get the forgiveness, then that’s risky because you’re opening yourself up there’s some gray areas in the regulations there in regards to owning your own. Non-profit.

It could cause problems when you actually applied for the forgiveness when they audited. And I seen like the set, one of these things up, it’s not cheap. Definitely not something I personally recommend, if you’re going to if you’re going to do it anyways.

Sure. But if you’re doing it just for the student loan forgiveness, then it’s probably not as good. It’s just an example. There’s so much random stuff out there in terms of the financial world. And yet it makes sense. We’re always looking for the loopholes, to me, the intention is not there.

That’s why I’m like, yeah, that’s a black hat tactic. I agree. Are there any other techniques that you would think that people should know about that maybe they wouldn’t have known otherwise that you’ve been using for some of your clients? I think that one of the biggest things is understanding.

A very complicated subject whether or not to file separately or jointly to exclude the spouse’s income, whether you need to do that how your spouse, if you get married, it’s going to impact the program is a very complicated program because if your spouse has a significant income and doesn’t have any student loan debt than , their income is going to increase your payment dramatically.

It might even just qualify you for the program, but if your spouse has student loan debt and you can prorate the payment the other thing is if you need to exclude your spouse’s income, but your spouse has an escort or something like that, where they have huge expense write-offs that could be very costly to file separately.

Which is sometimes necessary to exclude this as income. And then add into the fact, what do you live in a common property state? , all these things make a massive difference in Filing your taxes and how much the forgiveness program is going to benefit you and whether or not you should pursue it.

If you are married or you planning on getting married in the middle of one of the income driven or forgiveness programs, definitely find out all the nuances of how that works and how it’s going to apply to you. And probably again, you want to talk to somebody like me to help you sort that out because it’s complicated, but that’s the first thing.

That I would say you want it to take into consideration, you’re opening up a can of worms. Cause then I would say probably like at least a lot of people in my mastermind group, the dentists, the doctors that were just one single income, we’re using that spouse to qualify for a real estate professional status.

We can use passive losses to offset active income. Yeah, worms there, it is a can of worms. I always tell people that. I should charge married couples five times as much as I can charge individuals because I don’t, but I should, because their situation’s always more complicated, especially when situations like that arise.

And you got one situation where one spouse is qualifies for public service, loan, forgiveness, and the other doesn’t. So how do you file then whichever creates the largest payment or the most forgiveness, or, you’re always want to look at total costs over time. It’s, everything’s gotta be evaluated, gotta crunch the numbers to really determine what the best solution is.

And that’s I’m growing up. I used to be super cheap and try and do everything myself and trying to learn everything myself. And now all I do is I build up a network and I ask other people who’ve done this before. Who the heck did they work with? And then that’s how I find guys like yourself.

Here’s a perfect example. As we were talking earlier, my wife’s a teacher and she’s been working like 10 years. So I was like, Googling the Publix or forgiveness thing. I don’t think she has that much loans. It’d be like 10 or 20 grand. Something, definitely could pay it off, but I want to do it smart, but it’s man, what a pain?

I got all these forms. I got to learn about it. It’s like government stuff. Can you figure out how, like far to stay apart from each other when you wear a mask when you don’t? I dunno. It’s just so good to using and I’m getting to a point where I’m like, all right, timer’s more valuable than money pay the man, get it done.

Don’t screw around. My days of just trying to do this all by myself are over. And I think if you’re listening out there and you’re making under a hundred grand a year, Your net worth is under a quarter million. Cool. That’s what these podcasts are for. Everything’s on my website for free.

Go ahead and learn it all by herself. But that’s why people sign up for the group coaching, or services like this, because time is more valuable than money. What is your highest and best use for a lot of my guys, it’s like it’s doing an extra surgery on the weekend, picking up extra shifts.

That’s screwing around with some Burr by rent, rehab, nonsense that thought of the kids talk about all the time. I’m glad I found you because I don’t want to do that paperwork. And if I can spend 500 bucks to just get it done that’s what I’m going to do. Yeah. No, I don’t. I don’t blame you.

, you mentioned before, there’s a lot of resources out there, but. There’s a lot of debt relief agencies, which were more like call centers. Yeah. And they’re really good at that called content marketing internet nonsense. Really just write bogus articles just to get the SEO, the search engine optimization, right?

. They’re not student loan experts. I have to tell you. They have a business model and a lot of them want a slang unit income-driven plans or, they’re not really looking out for what’s best for you individually. They’re looking to sell a model on how they can lower your payment or what have you.

And I always tell people, if you’re betting student loan experts to get help, number one, have they worked in the industry? Number two, do they have a actual, real financial credentials? And number three, when you talk with them, you can always tell when somebody knows. What the heck they’re talking about, are they trying to sell you on something, or is it more like a meeting you’re having with the financial planner accountant what it should more resemble somebody who’s has your best interest in mind and is not trying to sell you products, , I don’t sell people insurance or try and get people into an annuity. That’s your long lost college friend as far. Exactly. These are, another piece of advice I can give people who are looking for help is you can tell when you talk to the person, if they know what the heck they’re talking about, and they have your best interest in mind, not their own.

Like a lot of internet influencers, bloggers, podcasts, they all have the affiliate links to these loan consolidator things. You don’t know who to trust. And that’s why I always tell people, build your own network. Of other people you trust organically, not influencers, not people with podcast, land or blogs.

And then find the right consultants to work with and pay the consultant. On an hourly basis or where they don’t really have a skin in the game again, that’s the whole problem with the financial planners, right? They’re just here to sell you stuff.

They don’t know what they’re doing. That’s why I have a job. That’s exactly what I’d say about student loans. Same thing you just said. The reason I have a job is because of the loan servicers. Are poorly trained and the reps would frankly rather be on Instagram than talking to you about your student loans and you can’t talk to a bank, they don’t know anything about it.

Your school knows how to get you into debt. They don’t know how to get you out. They don’t really, they understand less than they realize, especially financial aid. They’re just clerks. Financial planners don’t know anything about student loans or they’ve had a diet Coke version of training of it, but they are not real experts on it.

It leaves us niche open for me that just developed itself where. I already had the background and I just put it into use to help people. What about you help people on the back end once they get into student debt. What about like people with young kids or they’re going to go away to college soon, getting the most student loans, any advice there?

It happens too, because even though my speciality is in student loan repayment, a lot of my clients are families and they’ll have kids 15 to 25 years old, and some of them are in debt. Some of them are going to college and some of them haven’t gone yet and they’ll have options to take out parent loans or the child needs to take out private loans.

That needs to be evaluated, when you’re taking out student loans, for example should I take out federal private? What are you going to school for? How much money do you expect to make when you’re finished with school? These things need to be taken in consideration. If you’re going to be a social worker take out federal loans.

You’re probably going to qualify for the forgiveness, and you’re also not gonna make that much money. So I promise you that private loan payment’s going to hurt when you enter into repayment after school on the flip side, if you only need a little bit of debt temporarily, you can get a better interest rate and plan on paying it off.

Anyways then, private loans can make sense, but if you need parent loans, there are circumstances for that, but that actually makes more sense than other things, those things it’s hard to give a general answer to that, those things do need to be evaluated. Yeah. So if any of the listeners out there, you have any best practices, let me know.

Or, if they work with anybody. This is how we build the community with the right people, not with big conglomerates who are really good at internet marketing, but guys like Jan , he geeks out on this stuff and he’s made a nice business out of it. I’m sure you enjoy doing this.

Just like how these travel hackers love which credit cards to get it’s collecting points, how you redeem the points, it’s cool. . How I built simple passive cashflow initially. Yeah. You’re passionate about it. Mainly because people have so much anxiety about it.

I often refer to myself as a student, one therapist because people call freaking out about their student loans and at the end of the call, they always feel so much better about their options and it’s a nice feeling and it’s great. And I feel like I wanted to be very few people on the planet who truly understands.

The micro and the macro picture surrounding student loans and how to apply it individually. I think it’s a rare niche that I fell into like I said I love it. Reach out to Jan and tell them you guys came from simple, passive cashflow. You want to get your contact information or website information out there for people to reach out.

Yeah. Sure. The best way to to find me is just to go to student-lone-consultant.com, which is my website. If you Google student loan consultant, I’ll be one of the top organic search results, Miller student loan consulting. Once you’re on my website, you can click to schedule an appointment.

And then I will contact you at the appointment time and I have tons of availability and the best way to get started as always with the initial consultation. From there, we can evaluate to see in what ways I can help you, in what ways you can help yourself with the loans. And I’ll be booking mind’s here to hopefully pay off that loan that my wife has.

Yeah. I already have some thoughts about that. I’ll save it for our call, just from what I’ve heard you say about it, all right. Everybody will thanks for listening. Please share this with your friends really helps us grow the show more. And if you guys are interested in the mastermind or.

Go to simple passive cashflow.com/journey. And if you’re looking to pick up the first few rental properties, remote investing, if you’re non-accredited investors, that’s what the incubators for simple, passive cashflow.com/incubator. And if you haven’t chatted before, feel free to book a call. It was looking to get to know each other a little bit better.

I ocular guys. Bye.