Tag: dealAnalysis

What’s up simple passive cash flow? This week’s podcast, we are going to be talking to another coaching call. This guy’s got 1.4 million net worth and he is finally ditching the rentals. Now, I would say most of you guys who are investing with us these days, maybe not the vast majority, but. Little more than 50% of you guys have never owned rental property.

It’s funny over the years that this clientele group that ‘s actually owned rentals, like the guy we’re gonna have on the coaching call today. You guys can also check this out on the YouTube channel and it’s probably one of the better places if you wanna actually look at his personal financial sheet.

And look at that stuff. And as always, if you guys wanna sign up for one of these complimentary coaching calls reach out to the team at team@simplepassivecashflow.com. We can change your name identity. We can make it fun. We can be asking for a friend. We’re all, but like ditching the rentals, I think what most accredited investors come to the conclusion of the hardest thing is who do you trust?

And that’s why we say, come out to you. We’ve probably got maybe a couple more weeks or actually maybe a few more weeks until then Hawaii retreat. The Hui five is closing. We are pretty much filled up with family office Ohana Mastermind folks, as we always try and save like half of the seats for them, which means we do have some seats open for people who are not in our Mastermind inner circle to test drive the group out.

And we liked you guys to come out and check out the group once to see if it’s a good fit for. But after that, no, you gotta join. You gotta join the family office group. But my hope is, you come out, you meet yourself, you ask all the questions you want, and more importantly, you meet some other people.

You have a great time, and maybe you meet some lifelong friends too in the process. A lot of that can be very life changing to meet some other people along the path. Some things that I’m personally working on myself here. I was looking at buying a house. I know it’s crazy. I’ve always been a proponent of renting.

One of my big rules is, you don’t buy a house until your network is two or three times greater than that of the house. So if you’re looking to buy a $1 million house, Don’t do it till your net worth is two male female. Now, you probably think I’m a cold, heartless person, a house is something that is not a good return on investment and you can probably do better elsewhere.

And how else are you gonna get unbroke over a million, million and a half dollars net worth unless you invest in investment properties. And most of us in our group are not born from money. First generation wealth first, first generation to get over a million dollars net worth. I’ll be going into more details in the next week’s podcast.

I’ll be talking about what people do on, looking for these home mortgages and stuff like that for the wealthy. So it’s definitely first world problems, but again, if you haven’t yet, please join our investment club. That’s how you get the invites to our events. You guys can join there and check out all the past deals, including the pet fund, Paying out 12, 13% per year, or that’s a little bit over 1% every single month.

It’s in a debt fund arrangement where it’s a little bit lower risk, lower return, it’s not an equity side. And that’s what the market is giving us at the moment. Interest rates. Being sky high, and I can’t make deals work at the moment. So I don’t know how people are doing things out there.

So that’s, I’m just taking what I can get and that’s why the debt fund is becoming more prevalent as a product for us at this point. So if you guys want more details on that simple pass of cash flow.com/club book a call. I like I, we give out free complimentary calls. I wanna get to know each and every single one of you. Enjoy the show.

What’s up folks today. We have a gentleman Jackson here who’s been in a group. I think we met maybe a couple years ago. Or within the pandemic years. When everybody else was, had some free time on their hands and they could study this stuff, but he’s volunteered kindly to open up his personal financial sheet here.

And his net worth is approximately 1.3 million. We’re gonna get into this bunch of questions and I’m sure all of you guys are too scared to ask. I wouldn’t blame you. This kind of takes some gho to get on the internet or a podcast like this, but we also put all these videos.

We must have a couple dozen of these coaching calls. So Jackson is not the only one and we arrange these by networks. So depending on where you are, it’s just easiest to find, if you’re 1.4, maybe you find this way. You start reading down the page from there, but Jackson, thanks for doing this.

Why don’t you give a quick update on what you do for work and how old you are. And just so people get a little context. Sure. Yeah. My name is Jackson. I am currently 34 years old, married. I have one child, an eight month old baby boy. So that’s fun. Profession wise, I am a registered nurse.

I’ve been doing it for about 10 years now. Graduated in 2013, started off working in the emergency department in LA county. It is a very busy department. Just follow that path, right? Good benefit. Government job, winning that pension, the whole plan is to retire with that pension after 25 years and whatnot, but along the way I did pretty well for myself.

Moved up the ladder, became a charge. Nurse, went into management, got my master’s. Currently I’m a director for my hospital and at this point where I’m at after 10 years, I know that I don’t wanna do this forever. I cannot retire off of this and it’s just not sustainable. So I’m just looking for another avenue as far as passive investing and how to find another sense of financial freedom.

All right. And so Jackson, you’re actually rare. I would say in our group most people are, I would say are a little bit older than you and myself, probably in their mid forties. Other kids are a lot older right now. You’re what I call the BEU triangle of parenthood, where we don’t see too many people.

We’ve got. A bunch of Henrys who are young folks making six figures and, not a care in the world and buying Teslas probably. And there’s stupid Tesla whistles too, with their free money. But not many people have the bandwidth to look to doing something else when you have young kids.

At that point. What does your spouse do for work? What’s the situation bandwidth wise, yeah, kid. We actually met at work in the ER, I worked in adults and she worked in pediatrics, so she’s a registered nurse right now. This past year she’s taking care of our baby at home.

And currently going back to school for her master’s to be a nurse practitioner. Okay. And then, so between the two of you guys who likes their job, the least, that’s a good question. Neither of us want to be. A parent at home solely. So we do wanna work, but probably 50, 50, I think part-time positions for the both of us would be ideal.

Okay. So you guys both make pretty good money and it is maybe too early to really tell. It is probably what I hear from other people, what you guys will find is, you guys will keep doing your thing, but one of you guys will have a crappy boss and then that will probably be the front who takes the rent off first.

But hopefully that happens. Although it likely will, both of you guys make about 15,000 per if you guys were both working, is that kind of where you, yeah, that sounds about right, right now I’m making about 200,000 a year salary wise. If you work full time, she would probably be in the one 50 to 180 range.

Yeah. So together you’re definitely above that. $340,000 of just gross income together, this is correct. That’s if she was to work full time though. So right now, since she’s not really working and just focusing on school I think one of our benefits, especially this year is combined. We’re probably looking at 280 combined cuz I would hold the majority of it. Okay, cool. And I don’t know if you did that on purpose, but yeah, I think that’s good.

The only thing I kind of question is like, unless she really wants to become a nurse practitioner and make more money I don’t think paying the money for grad school and all that stuff is like a good investment, especially when you’re gonna see in probably the next five years, your net worth 1.3, male will probably be like two and a half and although two and a half is not there yet.

Yeah. You’re definitely getting over the hump. It’s at that point, you’re gonna be wondering like, why the hell did I do that thing for two to four years? Spending money to get it right. Not only time. But money too, to pay for that degree. I would say if, I don’t know how far along she is now, but if she doesn’t like it or if she’d rather stay at home with the kids or go back to work and just make a respectable six figure salary.

I would say pull out now. Unless you like it, but that’s true. That’s my thoughts. And then, and that clashes with what most people will say, most people will say, yeah, you have to get more because you’re going to be working for 20, 30 years. And then it obviously makes sense, to go from 150,000 a year to, I think they get paid 2 53 something.

And right. I think the master’s worked well for me because I got my master’s in leadership administration and nursing. So that helped me propel at least, get a stepping stone into the director position. So it was the cost benefit that worked out for me. I think for her as a nurse practitioner you get a transition into telehealth.

You could work from home a little bit more flexibility where as a registered nurse, although there’s different fields along with it most of it involves things like patient care hands on works. So I think with the nurse practitioner, it’s just a little bit more flexibility, especially now with this day and age of healthcare where telehealth is really on the rise.

Yeah. I buy that. I like that plan. And so like for you just so I understand when I talk to other people, so for you, like your, the masters was a way for you to get out of the field right. In a way, like actually teaching real people and getting yeah. Okay. I see that in many others, like a lot of our other investors, engineers.

Pharmacists, that’s the same trajectory they get off of the front line as I call it. And into the air condition. You guys are all air conditioned, but yeah, it’s kinda like the construction, it’s nice. It’s nice. When you need that higher level to degree to get out of the construction management in the field role to get a cushy job and just pushing numbers all day long, different quality of life, more freedom.

Yeah. Exactly. But for me in that paper pushing job, I don’t like it. So yeah. Ideally I would wanna do something else, but on a part-time basis, less hours and really just have my passive investments pave the way and help with that. Yeah. And I think that’s something maybe to think about in the future, because at least what I hear from you guys, health professionals, you guys like to interact with people because, you can see the benefit, where, I thinks true. That’s why a lot of engineers don’t like our jobs because we. See people and by you going into that upper level management in the healthcare, you lose that and you become sad, like all the engineers, so yeah. You lose the comradery for sure. I think as nurses, we do we share a lot of interesting stories and experiences.

So yeah, you’re right. That is a key factor to some of our satisfactions in the profession. Yeah, but you got, you’ll have options here in maybe five years or so. So let’s get into the numbers just to sum it up for folks who are listening on the podcast. And we do put this on the YouTube channel.

And then, like I said, if you join the club simple, pass cash, flow.com/club, you will get access to the simple page with all these videos on here, which you can watch all the videos, but net worth 1.3. If we look at the upper left hand corner here nothing really stands out pretty standard.

You guys. Your home and you guys are California, right? Yeah. Correct. Los Angeles. Yeah. So probably what, like a million, 1.2 million house, you guys owe 450, 8,000 on it. So we can talk about that. I think next but you guys are paid off half of it, which is, come to our events, Jackson and people okay.

Might be a little shamed by that, but that’s cool. We’re all learning. okay. Salary and wages. Like I said you’re the only one working right now. But understandable you get the kids. What I really look at is this net cash flow so I don’t know, really have any data on this.

I just use my own, judgment, but. Based on our community where your salary is, your salary should be higher. Because you only have one spouse working. I think you’re, you could be doing a little bit better, but, because you’re only fighting with one arm, basically saving 60 grand a year where you’re at is reasonable, and I guess that’s, maybe we circle back to that point at the end, right? What if your spouse cut bait on the whole nursing thing and just made a hundred grand a year. Now this pops up from 60 grand to 150 grand a year, and now you’re really moving, but we can talk about that at the end, if you want to notate that down.

Okay. Yeah, I was pretty conservative about it. I didn’t include my wife’s potential income. Also budgeted like 12,000 a year for travel expending, expenses. Vacations and things like that. That’s a part of our savings, but I just wanted to budget that out. So the net cash flow is really coming from me.

That’s what I plan to invest, which is not very much, and this is something freshly I’ve been going through too. Like you and I are still in our thirties coming out of our twenties. We’re super cheap. Any vacation over five grand is big. Yep. But then yeah. Yeah. You come to our event, you talk to the dudes in their forties with four, two kids, family.

They’ll tell you, they don’t go anywhere. That’s less than 10, 20 GS. You wow. That’s for one vacation. Okay. So something happens there. I don’t know, man. I just know when you go past that certain age or your family threshold, it’s just like stuff happens and things just cost three X, four X, then what you thought it was.

I like to be there someday, maybe in the next five years. Probably and then, you’ve got, so let’s break it down. Where is your deployable equity? So of the 1.3 million, I’m seeing half a million in your home equity in your house. So where is the other 800 grand or so those already locked up in investment properties.

I have 12 properties now, 17 doors, total. Most of them are single family and duplexes. So those equities, the 20% down payment and whatnot, those are pretty locked up. Okay. Okay. And then the real equity that I have right now is the Osborn road, the duplex on road, number two. That’s the one that I was telling you.

I was working on opening up a HeLOCK for it. Okay. Okay. So there’s 800 grand. Just here. I see you have some stock stuff too. Where did that go? Oh yes. I have a index. That’s my 401k. Okay. Did loan out 50,000 from it to put in a syndication deal but I have about 200, 150 left minus loan. Okay.

So like maybe 10 or 15, 20% of your net worth is in paper assets, the rest alternatives. Yeah. That’s how you do it, man. Everybody asks how much real estate should I get? It’s there’s no rule, but yeah. How much as it, it takes. Yeah. As much as it takes. And I suspect once your net worth goes over, five, 10 million, you, maybe you go back to this type of stuff, this stuff can get tiring.

And maybe talk to, so you acquired all this stuff in 20, 20, 20, 21. maybe for the folks. Yeah, I started, yeah. Tell us the story. Like some of the folks have never owned rental properties since. Okay. Yeah. I started my invest, my real estate investing two years ago at the start of the pandemic. Why did I even look into real estate in the first place is because I was a w two worker.

I remember Trump passed the tax cut jobs act. We couldn’t write off a lot. We weren’t getting any more tax refunds. And I was wondering why this didn’t make any sense. I read rich dad, poor dad, like a lot of the investors did, and we said, oh, you need to do some businesses, invest in real estate, something along the lines with tax benefits.

So long story short COVID happened. This was when I first met you in your podcast. I remember you were talking about syndications at the time, and you said if your net worth wasn’t less than wasn’t more than a million, then go find yourself investment property. And that’s where I was at right worth.

Maybe. 400 K at the time went through turnkey companies and they just kept, I did a cash out refi, actually cash out refi from my primary home used that debt to just continue to buy turnkey investment property 100 to $150,000 ranges, 20% down and just kept on expanding from there. And yeah, at this point I have 17 doors and force indication deals.

Wait so when we first connected net worth 400,000, how did it go up? Like almost a million in two or three years inflation. We had all these properties went up like 40, 50 K some of ’em a hundred thousand just in equity. So that’s what boosted to my net worth, yeah.

Cause you rolled that 20, 20, 20, 21 wave and then you also saved, I’m sure you saved two to $300,000 just from your saving. And your stocks went up a little bit. Yeah. Now you have too much money and now you gotta get rid of these things, these properties. Yeah. But that’s the thing, it’s all on paper, right?

Like now we’ve gotta go through here and sell all this stuff. Talk to me about what’s going on here this 50%, like you bought it with a buddy or yep. With a buddy. When I first started off, I did the first cash out refi took about 300,000 and it afforded me for investment properties out of state in Missouri, Ohio, Texas.

And then my buddy, who’s also reregister nurse similar mindset he wanted to get in on the deal. So I said, all right let’s go 50, 50 down payments. We’ll split everything 50 50. And that, that way I have 10 right now I have 10 conventional loans under my name. It was a way for me to, it benefited me because we are able to.

Put some of those loans under his name, so we can expand more and scale up at the time, when listening to the podcasts and stuff like that, like people talked about owning, 40 properties, 60 properties, but yeah at some point it gets a little bit too much especially with vacancies and evictions and the cost to turn over a tenant.

It, it does eat way at the cash flow. So on paper, it looks like amazing. I, I’m a millionaire on paper, but nowhere near where I wanna be. Yeah. I’m looking down your list here. It looks pretty higher end properties. Maybe they did inflate the prices a little bit, but you’re probably like B class.

Definitely not C-Class properties. So you probably do have a little, yeah. B class tenant profile here. What did, so you are buying this as a buddy, like you got the loans in all your. What was the deal? We split it. So I’ll get one property, put it under my name and then he’ll get the other property, put it under his name and we’ll just go vice versa.

Okay. Geez, you guys are quite tight to the hip now. yeah. yeah. He’s my business partner. He’s he’s my, a good buddy. He’s my best friend. Yeah. So what does he say? Have I talked to this dude? No, not yet. Okay. Now what I would do is I would sell all this stuff at a little discount to him and have him deal with this nonsense.

Okay. And just keep the note in your name. Cuz I mean you bought, you haven’t ran this stuff for very long. Like how many evictions have you had? Only three. And that all happened in 2020. Two only happened this year after the moratorium was lifted. So only three. Okay. I would say out of three evictions, one of ’em is gonna usually be.

Kind of a gut punch, like five grand, 10 grand, like a big trasher property. That’s been my, run rate. So you’re due for a while. Yeah. Yo, it, it happened the one on number four. The property that, so the 50% is with the partner and the one on top is what I own by myself.

And yeah, that one on tech I’m going to, I just finished the eviction. It cost me about 15 grand to fix just to renovate everything, change out the carpets fix the ACS mold and just, yeah. Whole ship bank, 15,000 down the drain. Yeah. Okay. I’ll just, experience share here. Like I had about the same amount of properties and what I did is I put ’em up on that I’m not gonna say the name, but there’s a website out there with a lot of turnkey homes.

And the great thing is that their buyers are really unsophisticated and. So they just, you can just, you can, it’s a great place for you to sell it. Okay. So you can just put it up there with the tenant, with it. Tenant did. So that way you don’t okay. Lose you don’t lose the cash flow and then that way you’re okay.

You’re in a great position cuz you don’t have to, you’re not desperate to sell it. So what I would do it, if it, your partner wasn’t involved right. Is I would throw all up on there for a slightly higher price, maybe 5% over what you think you should get or what they they’re gonna try and like arm wrestle you down.

So they can get their broker fees. Of course. Yeah. That way, they just sell off naturally, cuz there’s a sucker born every day that wants to buy turnkey rentals every day and have ’em just naturally sell off. But like when one of these go vacant, that’s your opportunity to put in 10, 15, 20 grand and rehab it and then sell it, like this and for example, the Caroline.

market value. 1 35. These are retail, right? Like you’re, you’ve got like full price. You’ve got like crap amenities in here, right? Like tenant grade stuff right now. It ain’t gonna sell for this much. Okay. That’s the hard thing about evaluating and it’s all beat up right now cuz you have tenants in there.

So it’s gonna be least 10 grand of repairs. But the idea is if this went vacant, then you fixed it up. You put whatever it takes and then it’s still a good market to sell. So it’ll sell quickly, but you take it off of that, investor website and you go, you find a local broker to sell it retail.

And then, you it’s real estate. You’ll probably get lucky and you’ll find like a a sucker retail buyer who loves your property because you use the right granite countertops in there. Okay. I’m actually meeting with the agent tomorrow. The one on terrace. In Columbus up top of number three.

Yeah. That’s the first one since it’s mine. Solely I wanna sell that one off. Okay. Okay. But do the, don’t you, don’t the thing is you don’t wanna take the tenant out of there. Okay. Yeah. If your agent can guarantee that this thing is gonna sell in two months or less fine, but we’re already talking like September, by the time you get this thing on the market, it’s Halloween and you don’t wanna be selling during that time of the year.

Okay. Especially where we are in the calendar month. But even if it was like March right now, we’re coming into the peak transaction period, I would still put it on the investor website, let it ride there and then just see what you get. And then that way you can be a little bit, you’re still getting great cash flow from this stuff in your.

But however you wanna do it, your agent’s gonna try and trick you to sell it with him. And it could, that’s the right hard thing is you gotta, it sits and he’s gonna wanna get the tenant out of there. And then you’re gonna cut your cash flow stream. That’s the situation you don’t want to be in?

What I would do is I would go into that meeting and say, either I get like some kind of guarantee that this guy’s gonna sell this property with X amount now. Okay. Or just create the relationship now so that when I do have this thing on the website for three to six months, and there’s no action and it goes vacant, then I can pass it off to him.

And he is going to manage my rehab for me. Do you have a contractor to do all this, like your property manager, the managers facilitate the contracting. Okay. So that’s another thing like you’re when you buy to these turnkey providers, you gotta be careful of sometimes the fine. that they’re gonna be, they’re get like first crack at selling your property so they can pick up the easy three to 6% commission.

Oh, okay. So make, before you start talking to other people, figure out if they got you at that. Okay. Typically those property managers are like the crappiest retail brokers. You don’t want to use them, but you may be stuck with them. Okay. Yeah. That makes sense. Okay. Yeah. I have my meeting tomorrow, so that’s good advice.

Yeah. If you have a good relationship with your property manager, you can probably have ’em waive that because they get it, and especially if, you refer them business, sure. They want you to be happy, but I would say that’s how the property management companies actually make their money.

It’s a total grind managing these properties from you. Like you don’t pay enough, I think. Oh yeah. Yeah. Eight, eight to 10% of. You’re talking like a hundred dollars per door, so yeah. For these days. Yeah. They, it’s a tough job, difficult tenants too. So what happened with me? I don’t know what’s gonna happen with you is I, so I did that and seven of my rentals sold in the first year, I think that was like 2017.

So tax wise, I had like quarter million dollars of capital gains, but okay. I had, invested in syndication deals prior to which that’s how I had all the passive losses offset, those capital gains. So people are listening to this. I don’t know why the heck you would ever want to do a 10 31 exchange unless you’re like you’re capital gains is like over two to $3 million.

That’s really the only reason why, I don’t know why anybody I know why they promote it so much. So they, the 10 31 custodians can make a thousand bucks or whatever , but like it’s a really bad strategy if you’re investing in syndications deals and you’re, you. You’re smart about how you manage your passive activity losses.

I guess Jackson, did you see, did you check up your 85, 82 form prior to this? Yeah. I have about 40,000 of passive activity. And then just this year alone, I know I can probably, it’s probably gonna be a hundred grand that I can unlock. That’s just, just sitting there for right now.

Okay. From like your, on your 2021 K one S then yep. And then not even including what did you do in 2022 syndication wise, 2022? I joined three syndication. One of ’em was with you the sanctuary on Broadway, but in 50,000 into there and some storage units and another multi-family apartment, they’re all about 50,000 each.

Okay. You had, prior to this year, you had 140 grand of passive. Is you invested another one 50 in twenty, twenty two. Let’s just call it, two 50 I think is what you should have. You should easily be able to easily absorb, three or four of these sales. Okay. But any questions on that?

How that kind of works? No. And then if I was to sell it, I could reinvest that into another syndication and that will also more, you get more, you’re seeing more depre. Okay. Yeah. Yeah. I figured so. And then it’s, the concept is you’re in an airplane and the noses is going up, but like just gotta make sure you don’t have no passive activity losses cuz after a while the people who are in dozens of deals, they start to get 300, $400,000 of passive losses and it becomes this kind of back room, joking area where everybody hasn’t paid taxes and like half.

A decade, or more Uhhuh . And now you see why, cause you keep right. Keep loading and getting more passive activity losses. And, I’m sure at some point you pay the Piper, but the whole point is delaying the tax bill for long periods of time. Over a decade I think would be pretty easy.

But but E even if so let’s just say one worst case scenario is you put it on the website and you just get, you’re like, crap, I put it for too low and eight of ’em sell, right? Oh, you have $350,000 of capital gains capture, your income isn’t that high.

And that’s, I guess that’s a bad thing, but a good thing is, if your income right now is 200, you could take a hundred grand additional capital gains in 20 22, 20 23. And. You wouldn’t really jump up too much. That’s not the end of the world. . And I say that because a lot of investors, it gets so freaked out about if I don’t have any passive losses, the world is gonna end.

No, your AGI will just go up a little bit more. And in your case, you’re around 200 and it’ll go to two 50 still, no big deal. You gotta, take it on the chin and move on, and just pay the taxes. Yeah. Yeah. Okay. And it’s not that much taxes. But yeah, it’s, that, and it, I think if you do it like that, it’ll naturally like you’ll exit out these things.

And that way you’re not gonna have, you’ll be flush with all this money to quickly invest. And who knows? This year’s already looking like it’s gonna be a slow year. For deals, right? I’m sure that who knows what 20, 23 is. I don’t know if you could adequately there’s always deals out there, right?

If you’re well, networked, there’s always deals out there. I don’t think that’s gonna be a problem, but you don’t, I’m sure like, God, like your yourself, you don’t wanna hold too much cash. Like quarter million thousand dollars of money is, burning a hole in your pocket.

You for a guy like yourself may actually spend it on something stupid, yeah. Like a Tesla I’ve been looking at Tesla. Yeah. Or a lot of Tesla whistles, but but yeah, that’s the nice thing about doing it like this, cuz they, random randomly it’ll just sell it NICES I guess.

But yeah, I, so I sold my, I sold seven of mines in 2017 and then two of ’em, two or three of ’em the next year. and then, and one a year after, something like that. That’s how it happened for me. Okay. The problem with those kinds of websites is it’s like a bidding system and you always get these stupid mobile offers that just totally waste your time.

That’s the frustrating thing about it, but, and you’re gonna get a lot of that, cuz you’re not a motivated seller right, too. Correct? Yeah. Yeah. Yeah. Cause they’re still, these properties are still cash flowing and I’m not in, in any hurry at this point. One of the things that’s like keeping me wanting to keep the properties is that I’m raising rents, like 20% on all of ’em.

So the cash flow, just multiplied naturally. Yeah. Yeah. Okay. Someone like you, I can tell this to most people put your earmuffs on. Yeah. We call this simple passive cash flow. And cash flow is great. But cash flow never created legacy wealth. It’s you selling these properties for 35 grand more profit than you thought how much months of extra $300 a month is that, let me do the math, extra $3,000.

That’s $3,000 a year divided by 35,000 or no, 35,000 divided by if one of these properties sold for 30 th $35,000 more than you thought it was. 30 years of extra, $3,000 a month. That is that’s 11, 12 years, Uhhuh. Yeah. Yeah. Uhhuh, like who cares about cash flow again, other people, this thing, forget I said that.

You’re seeing what I’m saying, right? Yes, Uhhuh. This is, I think what separate. Passive investors who work their day jobs from business owners, right? Who sell their businesses for four, five, 10 million wax like that. That’s what separates people who are in first class or eventually fly first class all the time, like yourself, to people who buy out the plane.

That’s the difference. But let’s get you to 10, $20,000 of passive income first, but that to point what it is like, that’s the sign of what is really like a sea wealth is like the big wax of cash. Like the syndication deal, you put a hundred grand in you, maybe you get this 60 grand, a hundred grand back at served increments.

That’s the big whack of cash. And after a while, maybe you’re seeing this extra $2,000 every quarter, that’s not changing your life one bit, even $2,000 a month that doesn’t change your life one bit. no, I’m still working. So yeah, you’re right. It doesn’t, it’s not a game changer.

Yeah. So same thought process. Like again, we use that to trick you to buy the rental properties initially, but don’t let yeah. Your rents are going up incrementally, then therefore you’re operating income should be going up, but that’s on how these assets are traded. And , that’s the good thing about selling these properties on unsophisticated investor base they’re idiots.

So they’ll buy on for rents. So you’re gonna be the beneficiary of the unsophisticated buyer. Yeah. That makes that makes a lot of sense that you said that. Cause I even have colleagues that, they want to get in on investing and they want to go into buying a investment property. That’s their goal.

And in back of my mind, it’s there’s a lot of risk to it. If you really wanna jump in this game, you need to go full force cuz one, two rentals. You put yourself at risk financially. Yeah. Yeah. To get ’em started. That’s the big thing, you’re becoming, taking that next step as an investor, obviously.

But , this is what you’re transitioning more to a credit investor mindset where you’re looking at things, not on a monthly basis or a quarterly basis. But on one year at the shortest, but more like 3, 4, 5 year time horizons. I was looking at a deal the other day on it’s like a crazy land deal, but it’s gonna take 10 years to come out of the oven and actually make money or put, potential to be sold personally.

I’m not there yet. I’m not willing to wait 6, 7, 8, 9, 10 years for anything. So 10 years, no money until you actually sell the property. That’s where you get your returns. Yeah. But I would like. Eight X, 20 X my money. Oh yeah. Okay. But I understand intuitively if you maybe find me in 10 years, I’d be all about that type of stuff.

. But at this point in time, I have the self awareness to, to say even though it’s good for me in the long term, that’s not what I’m looking for now. So you’re in the middle too, right? Yeah. The deals, because I’m taking on debt to invest in syndications. I need to see some kind of preferred return to at least offset any interest that I have to pay.

Another question too is, since I’m looking more into these type of deals, like how do you really know who’s a good operator? Like how do you know they’re gonna come correct and perform and have a full turnaround in that five to seven year? That’s expected, everybody’s a internet marketer these days, right?

Every. A silly podcast, especially after 2018, 2018, everybody’s got a book it’s just a, it’s a fake it till you make it game. And I’ve been around a lot of these types of, like ecosystems, where they teach people how to do this stuff. They slap the gurus face on the website and they pay the guru 20 grand and the guru hasn’t done shit either.

It’s, this is why I stopped going to a lot of these real estate conferences, cuz they’re all fake. Anyway, like the guy speaking on the stage, hasn’t gotten done Jack and I’m fooled. I have to ask some of my inner circle partners on do you know this person? So what I tell folks is at the end of the day, it’s all your network is your net worth, right?

Like why recreate the wheel on your own? Like how I did, I’ve invested with some bad partners and even as LP, right? Like I’ve lost money. You don’t know until you get into bed with people, but, or you expand your network and just follow your, your peers, your close, inner circle into, follow them into the end zone, have them tackle for you.

There’s two ways. Okay. And that’s why, we have over 90 people now in our family office, inner circle group, it’s a pay to play group. Yeah. But that’ll naturally happen from a group like ours. But it’s more than that, I think that naturally happens. It’ll come through in a conversation, but the people there, they’re more about building relationships with the edge, each other, who’s gonna hang out there in vacations or, hang out. People traveled, like that’s really more important because you’re seen already in five years, you just, all you gotta do is make 10%, or 8% you can probably put your money back in the stock market.

Like you don’t really need. These alternative investments, right? You’ve got that penetration. If you’ve got past that point of no return, 2 million to 3 million net worth, but the currency that you’re gonna want is the social relationships. So that’s my pitch for the family office group. If people are interested more, they go to support pass cash, flow.com/journey.

But to me that’s really I don’t think you’ve come to any of the events. Like we allow people to test drive it once and get a, a look at the people, cuz at least myself personally, like prior to 2016, I was, just doing what you were doing, although myself and until I found myself in a room with all these other crazy accredited investors, buying properties site unseen or doing syndication deals, I thought I was completely crazy.

And that’s what you need to, at least for once, to have the conversations, we can talk about this next, the HeLOCK thing. The, most people think taking on five, 6% on your HeLOCK is crazy. You like, like you said you said you need right now where your mindset is, you need to have a pre to cover it.

Yeah. But I wanna tell you the pre means Jack, the pre is not guaranteed preferred rate turns really means nothing in my opinion. But it’s just, you have to have faith that, or know via your network that somebody you’re working with is proven and gonna do what they say they’re gonna do. Or even in bad times, the assets still beats that certain rate.

But to this is something that, we can talk in theory on this call, but until you meet other people and, build relationships with them that are doing the same thing that went over this intellectual hump, it is, it’s just not gonna. It’s not gonna happen. I guess then you won’t find other things to invest in and and that’s the hard thing, right?

You are your five people you hang out with most. If you don’t have at least a couple other credit investors in that fi that five people, you’re not gonna go anywhere, you’re just gonna stay where they are. But that’s my big thing. And I think it goes beyond so like at the Hawaii retreat we have, we always gonna have like half of the people who are inner circle people, and then the other half are the people kind of test driving the organization.

They’re the ones coming in and, they, it they mix immaturely in my opinion. Like they come in and ask, who’s your lawyer, who’s your CPA. Oh, it B yeah. These people stealing money, what’s happening. And I get it. That’s the normal tendency for most people that do.

And it’s probably what you’re gonna do. , but what I’ll say is look what the more experienced investors are doing, right? They’re chilling, they’re meeting other people. They’re getting to know them personally. They’re not talking about money investments yet. , that happens privately at other times.

More naturally, right? But I think for most investors who’ve never met anybody. Who’s crazy enough to take money out of their home equity and put it into something that might make double or triple that, it’s new for most people. . we, I think that’s important to see that happen.

Firstly but for some reassurance, like that is what the mastermind people are doing. Like they’re taking out their HeLOCK at 7% interest rate and investing that in syndications. Yeah. This is the number one most common question. Cause the way you guys think about it. And I thought about, I thought it this way at one time, we were all taught to be good kids and pay off our debts, right? Yeah. So you have a hundred thousand dollars loan and you’re paying 5%. So what is that? $5,000 a year. Yeah. Probably for you, it’s more like double that right. 200 grand, 10 grand of interest payments per year. So that’s, let’s call it a thousand bucks a month.

That probably freaks you out a little bit. Like I got this a thousand dollars. It’s almost like a big car payment, but the way to think about it and it takes a while to get there is if with high confidence that you’re gonna make the Delta on that, you’re gonna be making at least 10%, maybe in 15, 20%, who knows.

Then it’s just a matter of. and you just had to eat that cost. And that’s where we look at, like the sum don’t look at the monthly payments, look at the sum. How long is it gonna take for you to get traction in these investments? If things go bad, maybe a couple of years like 20,000 bucks and that’s not that much money for the doomsday snare that you have to feed so what’s the normal solution.

Just take out 220 grand dude and just keep 20 grand on the side. Yeah. And then going back to the interest rate thing, that’s all it is. And I think you understand that, but logically, right? If you’re making, if you’re making 15% in your investments and those investments are also helping you save taxes too.

Which is also important to quantify, but let’s just look at it strictly from an interest rate or return perspective. If as long as your Helo is less than that with a. Minor safety buffer should be fine. Yeah. And, but it’s hard, right? I mean you’re well, what’s hard is cuz I haven’t seen a deal go full circle yet.

Like I’m invested se four deals, but I haven’t seen like the real returns where I could speak upon it with confidence, not like the single family homes where I said, yeah, I, I see rental increases. I see the market increases and I’ve experienced it so I can talk with confidence with it. Syndications is relatively new, but it’s more attractive.

Especially being a passive, very passive route versus the owning your own property. Yeah. But the owning your own property there just getting off of the Zillow, house up numbers, then it’s just. That’s all fake numbers anyway. And you have to actually sell it and go through some friction costs of rehabbing.

It and the commissions to get your true walk away number. But that’s, I think that’s, what’s hard for folks like in this commercial world, like there’s no Zillow on like our $40 million property. We’re not gonna tell you how much that thing is worth. We don’t know. That’s you get an appraisal or you get a real bid on somebody wanting to buy it.

That’s your price. But I think you, you have to just, out of those four deals, you’re in, I’m sure like out of, one of the four, something will happen in the next couple years right now it’s a standstill, right? Like it’s just not a transacting time. Cuz interest rates are a little bit spike now.

I think if the interest rates didn’t go up, I’m sure like one of the four for you would’ve cashed out or refinanced the next year. And then you’ll see. 30 grand just dump at least dump into your account. And then you’re scratching your head and it’s this is awesome.

Yeah. Yeah. This is awesome. Yeah. But like also that was my milk money or that’s, that was my interest payments for my 200,000 HeLOCK for, three, four years, and then now it’s that whole idea of now you’re playing with house money. Okay. And I, or you can talk to other people, build real relationships with friendships, if you call it and four, four of them can tell you this and you just have to trust them via proxy.

But yeah like I think this is the same thing with, I dunno if you’re doing infinite banking, but we have the same thing that happens in our mastermind group. Like guys will get a big infinite banking policy and they’re it’s same thing. If interest rates are the same, right?

Like four, 5%, although it’s. Tax deductible, but so is your HeLOCK should be tax deductible. But they’re like the same exact thing. Just change out the world’s HeLOCK for my infinite banking policy loan for myself, then they’re think, thinking, are you guys paying off your interest or are you paying monthly or you guys even paying off your loans?

And then I don’t even have to say it in that group. Like people will already automatically chime in, or we got like a private discord group too. No, man, don’t worry about it, dude. It’s just like the whole I HeLOCK thing. And then people, oh, okay. Same thing. Got it. Essentially, you’re just playing the same game as the banks, right?

The banks they lend their money out at, higher rate and then they , it’s the same thing. It’s just rate arbitrage takes a little while it takes liquidity for you to get the traction going. But you’ll get traction at some point. So that was my. Thought one of my questions regarding the HeLOCK is, should I pull out the money, invest it and then pay it down.

With the idea of once it’s paid down earlier than the five years to just redeploy again and again, could use it as a for savings. I would pull the Helo. I would get monetize all the money out of the Helo because the PLOS can get pulled at any point. And that’s why the helos aren’t ideal, there are a great way for people to get started and, you used it to get started, right? But I would say once you get proof of concept, either move into, move your equity into an infinite banking policy where they can’t pull that stuff from you and you own it, and the rates are better and you also get the life insurance component and the asset protection.

There’s just so many reasons more why the banking is better. Put it into there. So you’re just shifting your equity over. Or, but I think the problem there is now you’re like, oh, now I’ve created this large gap in my home equity debt. I have this payment. Yeah. But if you have the money in your infinite banking, you could just pay it off.

Do you really have it? Or did you just, create another hole for yourself? That’s displaced another gap. yeah. That’s cause the infinite baking, I just, I could just withdraw. I could just withdraw if I really needed it. Yeah. If you really needed to, if your grandma, great grandma got reborn and was, you were totally ashamed for having debt.

Yeah. You could just replace it. Okay. Yeah. That makes sense. I didn’t think of it that way, but yeah, that makes a lot of sense. Yeah. I get it, like you have this other payment and you think you have to pay it off. I tell people don’t worry about it. It sounds irresponsible.

If you have the money. Then, do you really need to pay it off? And this is the whole concept of other people’s money, right? If I, and in here, this is like where it clashes with some people’s really old school mentality. Some people either it’s an Asian thing or like an older generation thing.

They say at some point I want to pay down my debt, but from a money theory perspective, why, if you’re making positive cash flow and it’s growing at the end of the day, like you’re loan, the value, your debt amount really means nothing. I don’t know why people really look at it too much. It’s more about debt, surface coverage ratio and your liquidity.

When things go bad, it doesn’t matter how much equity you have. They you’re gonna shut down your loans and you’re gonna be frozen. It all matters how much liquidity you have. Yeah, right? Yeah. Yeah. Cause it’s all your equity’s all on paper. Yeah. I, this kind of was made very evident to me.

Like we have a one very affluent partner and he’s doing, he’s harvesting all this equity monetizing getting in his bank. He don’t care about the debt. No, the loan of value on his assets. He don’t care because he knows just like the last several recessions, when things get hard, you, they freeze your lines, you can’t get money out of it.

And they still want you to pay your debt service. . But if you have this boatload of liquidity somewhere, you can always keep feeding that. And it’s just a matter of time before things normalize. Again, you get out of there, but here the people have a false sense of security, right? They’re trying to pay off their properties.

What they do. You got 50% paid off or 80% or a hundred. In tough times, nobody, the banks don’t care. You’re you really should never get to a hundred percent, but you’re still gonna have a payment. don’t care. All they care you care about is liquidity and how much you can feed that.

So if you had 20 grand extra and things got really bad, that could feed your payments for two years. Yeah. That exactly does that. That should make you feel pretty confident, right? Yeah. I mean it’s a long time. I’m sure I can find another 10 grand if needed to take it another year. No big deal.

Yeah. That’s a different mindset shift. Sure. Different. It makes, yeah, it makes a lot of sense. Yeah. Most times people focus more on the percent of loan, the value but what it really is the liquidity and then how much cash flow positive. Of or debt service coverage ratio, which is a byproduct of how much cash flow you have or lack thereof.

Okay.

But in a nutshell, I don’t know, I do it, I don’t have a house, but I see a lot of other people doing it. Yeah. Yeah. But, and I did have one more question. So at this point, is it better to invest in like multiple syndications? Just weave it out, a bunch of 50,000 to a hundred thousand dollars deals or really focus on like the bigger projects or whatnot?

I think, I’ll just tell you what most people do. I’m not necess necessarily signing off on the strategy per safety. Sure. What most people will do is they’ll spread it around quite a bit, go with the minimums or, Of a hundred grand, if you’re over a couple million , get to a point where you’re pretty diversified, same theory as your rental properties.

Like you said, I think both of us would agree that one, the five properties is not enough diversification. If one goes bad, it’s gonna be sad, a little bit. Yeah. Be a downer for a few months, but right now you’re at, over a dozen or so if one goes down, you’re oh, that was a bummer.

Anyway. So same thing. Yeah. Think about it like that. Everybody’s a little bit different, maybe a dozen syndications, just try and race up there. Okay. There. And I think maybe you’re doing this too, but another like big beginner mistake is people will diversify into too many operators and too many asset classes.

That’s the, okay. That’s the normal tendency, it’s you’re unleashed in the Las Vegas buffet and you just get everything right. Just Chinese foods, pot stickers, pizza, pasta, seafood, you just go a little bit. You kind of people tend to spread themselves a little thin.

Yeah. Getting the trailer parks and multi-family storage units. Yeah. Yeah. Like this joker came up with my LinkedIn feed. That must be great. Yeah. Uhhuh. But that’s, everybody does it, I guess that’s, what’s cool about that is naturally you get experience and you parlay that into interacting with people.

And really my group is the only group that’s like that the rest of it’s just a bunch of like broke guys, trying to be general partners who are trying to fake it to the naked. Like they don’t have money. Interacting with those types of people is a waste of. , but like by actually coming in and saying, oh, I have a I’m in six indication deals, that’s some street cred.

Right there. And maybe one of ’em is not good doing good. And that’s more street cred too. Or that brings value into relationships. Or at least Jackson knows who not to invest with. But yeah, I think that, that’s, that, that kind of makes sense or, no, it does.

Absolutely. Absolutely. Yeah. OB obviously the more advanced people in our family office group, it comes, it came up a few times where, you know, some of the more experienced people, what they review is reveal is they went down that initial beginner state of a lot of deals, a lot of operator, a lot of asset classes.

And then once they see the deals turnover, or they, they just build certain affinities to certain. To people or, asset classes or whatever, and then they start to consolidate it down, maybe a factor of two. So if they’re, in a, in I guess the other thing that’s happening too at the same time is like, most people will test with a certain smaller portion of their net worth.

And then when it works, then you unleash the beast. Maybe you’re investing 300 grand initially, but if it, if you know it’s working, I know you’re gonna start to unload all this stuff. That’s a million, that’s and yeah that’s the plan. That’s what I have in my mind right now is what I have to do next is really just trade off the single family homes for syndication deals.

Take off something more passive and just let it ride. I’m don’t wanna give you advice, man, but of course, Understood. Maybe the direction you’re heading is, you get into a dozen deals at, the minimums and then you get, go through this first round of who do you like, who actually says what they’re gonna do?

Hopefully nobody steers your money. And then from there you decide, all right, I like this half better. And I’m gonna, do double the amount, a hundred, $150,000 minimums or two, quarter million or whatever. Okay. And you start to do that. And then but the other, that kind of makes you shrink your amount of your choices, but I would still, the other thing that I would think about is, and it’s good to like space out these investments too, right?

If I always thought if you have 24 deals, that’s always a nice number. I think I’m in like 80 or a hundred, it’s a little bit too much, but that’s this kind of what I do. And I’ve got staff to help too, for the. book. Not really bookkeeping, but just that one time a year, when I get a shit ton of K ones back, you have a hundred deals as a LP LP G P oh, okay.

Mean, there’s a check boxes on the K ones, but they’re never right. Like everything on the K ones never. I don’t know why have people that freak out? They freak out because they only have one or four K one S but those K one S are never. And I think I’ve talked to CPAs about it and the CPAs are just like the only important thing is like box four, or I don’t like the deductions one in your gain.

That’s the only important stuff. Okay. But I’m not giving you tax advice here. Of course. Of course, course, the, that’s why, if you have a you’re in most of these deals last five years, right? Yeah. On average. So if you’re going into a deal, a quarter, four times five, If that’s 20 deals.

So that’s why I rounded up to a couple dozen now. That’s I, the ideal, model, nobody ever hits that myself included, but that, I think that’s a good model maybe to be shooting for. So that, if we’ll do this in the retreat I got all ideas, imagine your perfect day. I’ll send everybody out to the beach and then, what does your day look like? Are you working or maybe you’re not right. Maybe you’re just doing the nurse thing a couple days out of the week, the other three days. , you’re just checking your inbox or connecting with other people socially, but you’re you try and find one deal a quarter, right?

Yeah. And then a deal exits early and crap. I have to redeploy it. I gotta, yeah, I gotta invest it now. Uhhuh. Yeah. But it’s not that hard. And that’s why if you have a good network, Okay. To be a passive professional investor, really shouldn’t take much more than like a handful of hours a month if you’re doing it right.

And you have a good network. And that’s what the vision looks like. Couple dozen deals. If you don’t have any hobbies, maybe three dozen deals, , I personally have a lot and cuz I like it. I’ve always been, some people and I don’t know what you play like fantasy football, fantasy basketball.

Are you the kind of the guy who makes a good silly in transactions? No, I let it right. I do one transaction a week and just let it, yeah, just maybe just fix the lineup. So yeah. We all have that one friend who just like, leads the league in transactions. They, yeah, they think that’s an award or something like that, but , some people like they like that, they like to, this is becomes fun for them.

Wow. So there is no normal. Okay. Sounds good. Also, if I was to keep some of these rentals let’s say down the line, I increased my net worth. I was able to go part-time for my nursing job. What’s the possibilities of be qualifying as a real estate professional. I don’t, I think that’s a complete opposite way.

You want to go? Okay. Just saying I’m going out of like almost a hundred people in our family office group, I would say only maybe half a dozen, like less than 10% of people have a handful full of rentals and the whole thought process. Can you tell me a good freaking reason why you would wanna own rentals if your network was certainly past where you are now?

Because you don’t, you’re not doing value. Add any of. No, you’re just a sitting duck floating around in the water. You’re not doing anything. The market goes good. You make a lot of money. If it doesn’t, easy come easy, go. have the liability of your property managers, stealing money from you, which to me happens a high prop, maybe a few percent of the time, most time people don’t even know about it, that they’re getting robbed.

You have the legal liability and then the debt zero name, which I don’t know. It doesn’t matter, but some people worry about that stuff and it makes getting home loans a real pain. I mean it, the only reason to do it is if you’re trying to go for rep status.

So let’s talk about that, right? Let’s fast forward a few years, where do you think your adjusted gross income is going to be? And let me preface it saying well, What if you guys had, this passive cash flow coming in from all these deals, you redeployed this 500 grand and now it’s making $5,000 a month.

So now your passive income is eight, five plus five, see what I’m saying? Like my income, our income will be less. Exactly. Exactly. And this is what I also saying, like, why is your spouse going and getting young masters? We talked about the reasons. But this is that phenomenon where like the more passive income you have, the less ordinary income you’re gonna need to make. So yeah. Right now rep status would be great. But at some point you start to shut off the engines and you start to make less ordinary income. So that rep status really only makes sense.

When you go past this red line three 40 and above, in most cases it’s not worth the brain damage. So yeah, I guess like, where do you think five years from now? Where do you think your adjusted gross? Your ordinary income is gonna be not including probably, yeah, probably a hundred myself. My spouse.

So 200, 200 each. What 200 total. Yeah. You’re not paying any taxes, man. Like you have no reason to do rep status, okay. Okay. Yeah. That makes a lot of sense. Yeah. Thank you for getting that out of my mind, cuz yeah. You listen to these podcasts and they’re all like, this is the, bonus depreciation.

All the benefits, so yeah. That’s why you gotta get off the, if you listen, been listening to podcast for more than like a year and a half, stop listening to podcast, read some books or interact with real people. Cause podcasts are just marketing tools. In my podcast, it’s the same shit.

Over and over again. Like we just, yeah. It’s the same stuff. Yeah. We just go over the surface. And that’s why you do these coaching calls cuz like I get bored and it is fun, deep diving into this, the 50th minute in right. Most times it’s just the surface stuff and people always ask oh we should have guests and but the guests are just gonna tell us the same old stuff and then, but they’re not gonna tell you the reason why not to do it too, which is my job.

Yeah, that’s true. Cuz you normally, the guests will just bounce around the different people’s podcasts and yeah. Reiterate the same thing on the education point, at least, reassures that I’m doing the right thing. But yeah, you’re right. It’s usually it’s pretty redundant.

Yeah. And this is where this is what makes this personal finance, right? Every situation, a little different. But again, this is like more like you gotta find other. To do this and that’s more sustainable way. And to get on the front edge of these strategies. But yeah, you’re heading enough to the, you, you’re that’s the way you wanna hand, right?

Less ordinary income, more passive income. So you can use the passive losses to drive the passive income down to nothing over this time you’re adjusting your ordinary income will go down and your AGI will go down. You’re burning leaner as we call it. I would say so I think maybe something for your family to think about is which way do you want to hit it?

Cuz there’s a few arch types here and I’ve seen this in our family office group. So this is when you guys are, she makes the big bucks, right? Like you option one is you make a lot, you burn a lot in taxes. this would be, if we go back to your personal financial sheet here, you guys get a much higher, bigger house.

You trip, you quadruple your vacation budget. And this is the idea of Hey we like our jobs. We make a lot. And yeah, we have, two kids and we don’t, we see often enough because maybe one of us works at home, but for us it just makes sense for us to just make a lot and spend a lot and yeah.

Pay a lot of taxes in that time. But they know, I think like the thing that I like is I’ve given them the confidence that they don’t need to be doing that for more than a decade. The other opposite of that is you guys kinda like we’re talking here and maybe that’s where you’re naturally guiding towards is like you guys working less, going down to, to, you’re making the efficient amount of income to pay the least amount of tax.

Yeah. Yeah, you don’t get to live large and vacations, but time is more important to you, whereas not your kids aren’t important on the other one, a lot of times the mindset or the justification as well. Our kids are in elementary school high school. It’s not like we can just take ’em out and to go to Disneyland or go and trip to Hawaii.

There’s only a few times a year. And we when we do, we take ’em out and we burn a lot of money. Because we make a lot, but that’s they feel like they maximize their time with the kids. So I would say for you guys, that would be the two bookends, and I guess there’s some in between, but you have to find, yeah, I think I would do both.

I think once you graduate, We’ll probably just try to make as much as possible, enjoy that living. But I’m giving it like a 10 year horizon where the passive income is really gonna drive the way and that’s when we’re gonna work less and spend more time with each other in our families. That’s the ideal vision.

Yeah. Until one of you guys dies, I hate to be morbid, but it happens, right? Yeah. But that’s, I think that’s where you are, it’s cool to talk to some of the older folks and then get their hindsight cuz there’s this concept of 18 summers, you only have 18 summers with your kid.

You’re probably you. And so some of these guys are at the end and they have three or four left and they’re shot. I wish I wouldn’t have done what you did. And so it ultimately comes down to choices. But like most people living the normal paradigm.

they just can’t, their choice sucks. It’s either for 30 years or 35 years both suck. Yeah. Yeah. No thanks. Yeah, but I’d say that’s where it’s gonna come down to at some point. And that’s why the network is important. So you have those types of conversations.

But either way, you got some time, right? And I think you’re ahead of the curve on most people. Just look where your net worth went from like 400, a few years ago to over 1.3, like I said, you’ll probably be around two, two and a half and four or five years at that point, you could probably pull the pin.

And then how old is your kid now? Eight months. Oh, perfect. I felt like a young kid to me. I don’t know. I’m not talking from experience, but to me, I don’t think they remember. These days, so perfect. You, yeah, you burn both ends of the candle now for another four or five years.

And when they’re four or five years old, then you can engage and do nothing. The memories that’s the thing you have, what people you are living the dream that people want most people, they wake up in their 41 42 and they have a 1.5 million in their 401k. And then they have to go through this three to five year journey to get to real passive income.

By that time, their eight year old child is now 14. It’s too late. It’s too freaking late. Yeah, it’s too late. I don’t know about building a relationship, but it’s too late to teach this stuff to the kids. I think at that time, past that point.

But hopefully when people listen, they don’t get sad and don’t wanna play Christmas, Carol and people. but, yeah, another piece is how am I gonna engage my son to teach him this stuff? And it’s tough. Yeah. I don’t know, man. I think if you engage in our community we’ll figure that out.

I I think it’s just time, right? If you’re not my family, like our parents were just working forever. Correct. Yeah. There was no interaction. There was no sharing of experiences. No it’s grind and to brag about, what you’ve done and how much you’ve achieved. Yeah. With so little, but apparently you’re going, when your kid’s five, you’re not gonna deal with Jack and you’re just gonna bother them all day long.

Certainly there’s gonna be some kind of knowledge transfer in that. Yeah. There you go. Yeah. But if not, that’s what the community is for. That’s where you send them up to auntie’s house or uncle’s house. So not let. It is from you, but some somebody else or yeah, the rich dad. Yeah. Or the rich uncle, right?

The rich uncle. There you go. . Yeah, but yeah, the close things out here. Any other last thoughts or questions? No. Oh no, thank you for your time. This is really enlightening and I appreciate everything you do and the education that you’re putting out. Yeah.

Keep up the good work. Like I said I was first introduced to you, two years ago. And, after reading your book recently, like it really resonated with us, we’re going through the same experiences. Yeah. I’m glad to see that I am going through that right path and I appreciate the guidance.

Yeah. Yeah. It’s just numbers here. I think that’s where most of the people who are good with their money and save it typically have to rein them back and save well, you can spend your money more, you can spend your time. more on like life instead of working so hard. So I think that’s the byproduct of this.

But yeah, thanks for doing this Jackson and for other folks listening if you guys are interested in doing this sign up for the club and then shoot a team at simple passive cash flow.com and email, and maybe we can set you up on one of these. We can change your name. We can make a name for you. We can, we don’t have to use your video if you’re scared. Thanks for listening to everybody.