Tag: proTip

https://youtu.be/o7T36FPx5x0

This is a special announcement.  We are doing a special webinar on September 4th we’ll try and get it done in a couple of hours in a cram school type of format, where we go over the infinite banking policy. A lot of you guys had a lot of questions and we’re going to be unveiling the new free banking.

E-course have you guys come to that. You guys can get free access to. More details, go to simple passive cashflow.com/banking. And again, that’s on September 4th. We’re going to be starting around 9:00 AM and going to 11:00 AM. Pacific time. The next announcement September 18th, there’s going to be a tech seminar put on by Anderson, September 24th.

 

We’re going to be doing a little get together in Houston, Texas. We’re going to be trying to do another get together in quarter four in Northern Cal and Southern Cal. Full members, the family office, quantum mastermind members get first access to that. As we’re trying to keep it small, more intimate, you guys want to learn more about joining the exclusive inner circle.

 

Go to spool, pass a castle.com/journey. And if you guys want any more details on these full new events, coming up, go to simple passive cashflow.com/events and check out all the future events we have coming.  We’ll see you guys on Saturday for early in the morning, 

 

we’ll teach you guys all about infinite banking

 

now for some of these events, you’re going to need to. Access  past the member site. Go and sign up@simplepassivecashflow.com slash club and sign up for a free account there. There’s a lot of things I can’t really put up there on the internet, on the public site.  We try and restrict and get all the good stuff in that  member portal .

 

 What are you waiting for? Sign up.

 

Announcing my new book coming out next month. If you guys want to help me out with a review, I’d like to get you in advanced copy and the audio book should be an emaLane@simplepassivecashflow.com. 

 

And I appreciate you guys helping me find the book when it comes out. That’s probably the only way I’ll probably make my parents proud of me by having an Amazon bestseller. Cause after all they still wonder what I do these days. If I’m not an engineer,  they think I’m like a real estate agent.

 

 Help me make my friends proud and thanks for supporting 

 

 

 

we’re going to be going  over the infinite banking scheme that you guys have been hearing about profusely from  a lot of podcasts out there, they get like an insurance salesman and they talk about how the wealthy do this. I personally do this.

 

I started with a $50,000 a year policy back in 2017, 18. And now I have a bigger one and a lot of people in the family office group are using these policies.  We want to give, this is a primer really quick presentation. These are the slides we’re going to be going through today. This is going to be a little bit of a high level 20 something slides.

 

If you guys want to go through the company of men on the simple passive cashflow.com/bank, you guys can be to this year as we go through this presentation, but we’re going to be doing a special a couple of hours cram school, . We’re going to be going to this a lot more in detail on September 4th. If you guys are somehow watching this video, after that date, all these videos will be posted@simplepassivecashflow.com slash banking.

 

Or it will be put into the e-course a much more in-depth and curated course, which you guys can go through and learn about this stuff,  📍 but let’s get into it. If you guys haven’t met me before, my name is lane Colwell. I run simple passive cashflow.com. Here’s my bile.

 

The other person helping me present today’s tether for the Kala. Do you want to introduce yourself real quick, Tyler? Sure. Hi,  📍 I’m Tyler . I’m currently residing in Honolulu. Hawaii. I grew up in Hilo, went to university of Washington. Got my degree in  engineering. And then I was an active duty Navy officer about eight and a half years.

 

Transferred out to the civil service. Or I was a project engineer, construction manager, eventually first-line supervisor, and then the chief engineer in the end up in 2001. Retiring from there. And as far as from my real estate experience, I’ve been investing in real estate since 2002, where I bought my first single family home in Jacksonville, Florida.

 

I did house hacking then they didn’t know that term, but that’s basically what I was doing. Auto fuel more over the next few years got overwhelmed, stopped married with kids and put investing on hold until.  2018 or so when I met lane with online, with simple passive cashflow and ever since been so deep into syndications currently have about 24 active syndications going on.

 

And enjoy that. And that’s what allowed me to basically retire as far as for my insurance experience. I got my first policy about three years ago.  I looked at trying to get, understand how that works. So I got licensed  and then eventually started actually writing policies and I’m currently.

 

I’m licensed in many states across the United States. So Tyler he is an investor first and this whole discussion on this infinite banking concept that we’re going to call simple, passive cashflow banking here in the future. I been a lot of it is stemming from, how do we use this liquidity in these insurance policies to do what we do, which is.

 

Totally different than what most life insurance salesman of create and customize this stuff for.  Those guys just don’t get it. They don’t understand how the wealthy used this. These policies basically gets whole life insurance over-funded, but configured in the right way with lower fee structure.  Just making it better for the investor to use for their investing purposes.

 

But, yeah. So where this all came from, I asked Tyler A. Long time ago, Hey, if you’re interested in this stuff, go get a license. And then cut the fees down for me and my friends. And he went and spent what, a couple years  learning  that’s what you get. When you get an engineer to do this stuff, they actually read everything.

 

 Let’s start off here.  I think a lot of people, they go online, they look up whole life, infinite banking and everything that comes up is it’s a scam, right? Dave Ramsey will absolutely, talk really badly about it. But I think the difference here is  we’re not configuring this, like how most people do where they’re configuring it for high death payout and high interest rates.

 

We’re doing the complete opposite work at food bank for higher liquidity instead, so that we can take the money and invest it in, producing assets, such as real estate, or, if you guys still want to do your stocks and mutual funds, you can still do that.

 

So we’re taking the traditional finance method and turning it around. This is typically how.  Normal people do it, they put it in the bank, it deflates and value with inflation and inflation is running rapid. And that kind of makes it even more case to do this.

 

 Tyler wants you to talk to us about some life insurance works.  I think that the main point here is that if you search online, you may hear from some financial advisors that, whole life is a bad investment. Don’t do it. If it, it’s just that it’s not structured correctly.

 

The ultra Walty or wealthy, or even banks, they own tons and tons of life insurance. And the reason for that, it’s a safe, secure assets.  And it’s liquid. So this slide is just basically showing that banks on and hold a lot of assets of their assets in bank owned. Life insurance is basically life insurance that is owned by the bank.

 

So it’s called Bali.  But yeah, if you look at any large bank  on their asset sheets, they have tons of life insurance. 

 

The thing is, they like the pros. This is what they. And effectively what we’re doing here is getting rid of that, man. 

 

 

 

This is the loose framework and  we’re trying to bang from ourselves and that term, it sounds school, right? Like instead of using a bank that the bank is able to leverage our money and go invest. We’re doing this on our own, working directly with the insurance company, which by the way, to me is a lot more secure than any bank FDA.

 

Sure thing out there of insurance companies are some of the largest companies that have the longest track record. When you have a contract with an insurance company, it is very secure.

 

Like a lot of you guys jump into these apartment buildings  and you guys know we never buy a class assets, a class locations because the returns just aren’t there. A lot of times the insurance companies are the ones buying those large class, a assets in the class, eight areas because they are going after capital preservation.

 

lot of times is their cap rates are anything from two to 3%, but they don’t care. Because they want to just preserve and they don’t need to make that high rate of return. They’re in the game of just being secure with people’s money, but not every life insurance carrier is weighted the same.

 

Tyler, I want you to I think everybody has a little bit different definition of what infinite banking is. Depending on the way, people understand things, different things resonate with different folks, but why don’t you take a first crack and what this is, or something never heard of that.

 

I best define infinite banking is it’s really a process in creating, private vault for you to use as your bank and overall it’s a process. The vehicle that it uses is holding. Insurance and its dividend paying whole life insurance is the product of choice that I specifically like from multiple reasons that we’ll go over.

 

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

 

 The way I personally use it, when I had a policy, when I first started to do $50,000 a year, after a couple of years, two, three years, I had at least a hundred thousand dollars of cash value built up in there. And, I always try and keep my liquidity low in my bank.

 

You never want to have too much cash making nothing,  that’s why the next money is in your infinite banking policy to cash value where it’s making it a nice little tax-free yield that’s the first component of why, we’d like infinite banking so much when the money is in.

 

 I would call this a government in full, but it’s just for some strange reason when it’s life insurance, your yields, there are tax-free.  That’s a place to store my liquidity. And then when I need to go into a dealer too, and  need to drain that liquidity, I have it, but at least it’s not sitting in my normal checking account savings account.

 

Not doing anything.

 

The guaranteed growth. The use of the whole lot. Insurance. It has a guaranteed aspect of it.  Current gross rate of that is 4% that is about to change, but the policies are ranging from three, three, 3%. It’s three and a half percent uncorrelated  not tied to the stock market directly.

 

On some policies you may have the choice and you can be in control of that, of how much funds are correlated. But one of the main benefits for investors that this is not correlated to the stock market  

 

protection.  It is a product. So there is a life, the death benefit portion of it. But in addition to that in states, It varies, but there is also some liability and bankruptcy protection with the cash value or the death benefit over your policy.

 

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

 

And diversifying. So by putting some money into your life insurance policy, you’re shooting at one part of your portfolio, your network. Yeah. And  the liquidity, that’s one of the main appeals for investors where your funds are not tied up. You have access to them.

 

And it, you would have access to it in the forms of policy loans, and that’s what keeps it also tax-free where you have access to the growth and of your policy.  I think a lot of us, myself included  my wife, Tyler’s wife, we all got swindled at some point in our early twenties, maybe early thirties where,  a long lost college.

 

Classmate or high school classmates calls us up for lunch and China’s and stuff us into one of these badly customized, full life policies. Typically the way that they’re structuring it, it’s not built with good liquidity  customization, as you can see this is a lever here. There’s. If you were to imagine there’s different ways, you can customize these different components.

 

 A lot of these guys, they will ratchet up like the growth rate, but that’s not the point, right? The point is we can get much more, better returns outside of these policies. So this is why it’s counterintuitive to a lot of these life insurance agents who just aren’t real estate investors. And, we’re just glazing over the top.

 

A lot of this stuff, a lot of this is in that infoPage@simplepassivecashflow.com slash bank. You guys can get access to the e-course for free there. And then, we’ll be doing that cram school later on where we get to go into this in more depth and ask any particular questions.

 

 I can summarize, I  the purpose of this is basic to really emphasize. That it’s really the design of the policy. That is the most important factor. You could have the same product at the same insurance company and they would perform much differently and that’s all based on the design.

 

Yeah. And this is the classic. Hey, let me just shoot Layne an email ASCO, Hulu, the CPA lower he’s using, or are you guys going to. Mass mutual Penn, whatever, like top AAA rated life insurance company. And let me just go work with them. Whether you work with them or us, like everything is the same except the design.

 

And that’s the critical part of what we’re talking about here.

 

 I can cover this all. There’s two main factors of the policy design.  The two things you must maintain, so instruct to keep it an insurance product, which then reaps the tax benefits of it and the tax treatment. You need to meet some IRS limit. So there is some limits in there and you people may hear the modified endowment contract or the seven pay limit that keeps it an insurance product where it’ll be tax favored.

 

And along with the design maximizing the cash value. So you have the liquidity early to go use and do investments as you choose. And those are the two main levers  in the design that you’re playing around with  and, way back long before there was simple, passive cashflow, a lot of smart people figured out that, with being life insurance, you could have your yields in there grow tax-free.

 

And of course, there’s always people out there that get a little greedy. So that’s where the government started to put these limits in there that you have to have a search and above the actual life insurance,  you don’t get a dollar of life insurance, but stuff like the zillion dollars in there and still make it tax free.

 

People did it, which is smart actually, there’s limits to it today. And this is what we’ll go into more detail  in the e-course and then in the cramps.

 

Yeah. And just that IRS limit that’s based on the insured’s age, gender, and the amount of death benefit there is.  We’re designing it a specific way to minimize fees. The death benefit is needed there in order to be able to max fund it to your targeted amount that you want. And one common question that comes up here.

 

Some people who think that they’re older in their fifties, sixties,  they think that this is going to be more expensive.  And then, guys are typically a little bit more expensive than females for some strange reason.  Really at the end of the day, it really doesn’t matter.

 

Like we’ve compared policies from, 30 year olds  and 50 five-year-old.  It the cost of insurance really doesn’t matter. And why is that? Again, we’re not really doing this for the death. Hey, out again, we’re just, we’re doing this just to call it life insurance and the bare minimum so that we can have this policy book tax-free to be able to stuff cash into it.

 

And that’s, I think where a lot of people, they missed the boat on this. This is, yes, this is, there was a debt payout for it. It is life insurance. But that’s not the purpose. And that is why, the agent, the gender, and, people also say Hey, can we ensure my kids will talk all about that type of stuff?

 

And the e-course in the webinar,  this doesn’t really factor too much into the cost of this.

 

And the the second main limit other than the IRS limit, when designing that we have to be careful of is just the individual policy limits. Each individual company has  some limits. And specifically one of the main ones that they’re starting to limit is the amount of paid up additions, one can put in.

 

So each company has different limits.  For example, one company may have, you can put up  five times the base premium or 10 times the base premium. We just have to design it accordingly for that specific company. And that’s where the flexibility comes into play. That helps decide  which company is best suited.

 

 This is when I was learning this stuff. This stuff gets to be really complicated and it changes all the time. When I was just learning about this, I thought it was pretty simple, this is something that I learned and realize, we need to have somebody that’s under the umbrella of our group.

 

Kind of be on the look out for all , these changes. Coming down the pipeline to keep us out of trouble, but also optimize getting the best policy for our situation.

 

  Where does your payments go? So every year there’s a premium payment. There’s two main places that your money goes. One is to the base premium. So that’s basically to cover the cost of the insurance. That base premium is specifically what we want to drive down as low as possible, because that is a pure expense to you as a client that paid up additions, that’s really a cash.

 

Very little fees on that. , you almost see one for one  cash value increase on any paid up additions that you contributed.  There’s different premium splits. Some people may hear, 50, 50, 30, 70, 10, 90 traditional whole life.  Normally you may,  have seen in the past, that’s really a hundred percent.

 

 Base premium. That’s why it takes 15 to 16 years, maybe for you to break even  on your cash value for the amount of premiums you paid. And we’re able to  modify that so that, you’re breaking even sometimes years, between years three and four, five, usually at the end.  And that’s the use of this premium splits was also introduces a lot of flexibility that you may have throughout the year.

 

 Most of the credit investors over a million dollars net worth, they’ll probably do a policy where they dump a hundred grand in here. Add another couple of zeros onto them. And again, what, the way we’re trying to do it is we’re trying to minimize the amount of base premium. So the paid-up additions can build up our cash value so that we can take this out the next day as a policy loan and stick it into a multitude of different deals that make a much higher yield and sort of the industry secret of life insurances.

 

If you’re a sales. And you’re just worried about your commissions. You try and trick your clients into getting as much base premium, the more life insurance, but that’s the complete opposite that what we’re trying to do here with simple passive cashflow banking. Not that we’re,  we want to maximize the paid-up additions, typically going much better than a 50, 50 premium split.

 

That’s less insurance premiums and fees for us. But that’s better for the client at the end of the day, so they can keep most of that cash value, but that’s typically what’s wrong with most normal, full life insurance. And I think this is why, Dave Ramsey, all these online, Google’s kind of actually demonize this stuff.

 

And I went to if you’re doing like a 50, 50 premium split and a lot of this is going to your base premium, this is where most of the commission certainly calculated.

 

 This is an extreme example that 10 90 premium split, in some cases, some of the people in the family office group have found that the 70, 30 premium split is actually better. That’s an I actually use,  this is just more of the extreme about that example where you’re still complying with those mech limits.

 

So you’re getting the tax free treatment. But you’re stuffing as much money into the cash value and you’re minimizing your feet on this side.

 

One unique way that someone explained it to me, as far as understanding the premium PUA relationship was relating it to your house. The base premium is like your mortgage. So that’s an expense or a cost that you have to for your house. 

 

 By slowly paying down the principle. So base premiums does add a small amount of cash value. Just like how paint on your mortgage slowly pays down the principal. You can think of your paid up additions as if you were to do a renovation where you spend, $50,000 to renovate the kitchen, that $50,000 spent on the kitchen basically increase the value of your house.

 

Hopefully not almost exactly the same or even more so that’s the home relationship as far as the base premium, paid up additions to mortgage  and our renovation. Again, different ways to understand this and to me personally, and it really took me about a year and a half to really grasp this school.

 

And the differences between typical whole life insurance, configuring it in a way and using it in a way that the wealthy do have for some of you guys use that strategy where you’re taking a hilar out on your mortgage and paying down your mortgage with simple interests versus amateurs interests.

 

It operates in a very similar way. And in fact, when you’re using a whole life overfunded or infinite banking or whatever you want to call it, simple passive caching that. It is superior to using a hilar in my opinion.  And I actually think that’s, this is a lot better than using a 5 29 plan for your kids’ college savings too.

 

 How do you access the cash value within your policy? So that’s in the form of a policy loan  with the low interest rates, there are other ways also of accessing the cash value of basically collateralizing your cash values through a traditional.  That is also an option, but for here specifically how a policy loan.

 

 This is a loan you’re taking through the insurance company.  You’re basically utilizing your cash value that you have in there. You’re usually able to take about 95% of that cash value in the form of a policy loan. Your cash value actually stays there in the account. But your death benefit is collateralized.

 

From the insurance company, they’re basically able to give you the loan because they know at some point.  If you pass away and you don’t pay back the loan, they’ll basically just decrease it from the death benefit of your policy. So whenever you take out a loan there’s an interest charge to it.

 

However there is no payment or set payment plan. You are in control. You can choose to pay it back or not.  Very similarly to a Heela. They’re very similar. And tie it in with the other slide up here. This is the cash value, right? We’re stuffing money into the cash value.

 

And this is what we’re taking the volts out of to put into deals. If you want to buy jet skis, at some point, you can use the money for that. You don’t have to ask the bank or tell the bank what those annoying questions that the hilar  application always has. You’re in control.

 

And, some of the people in the family office group or, going to another bank and collateralizing this cash value policy getting anywhere from both 3% interest rates. And for some of you guys who are good business operators who drive your adjusted gross income very low at the same time, it screwing yourself by not being able to get a loan for a home.

 

This is a great way you buy the home cash. But you dip out of your cash value of your life insurance policy to essentially put debt and, get your leverage up, which is always a good thing. If you can pay your debt service.  That’s just one of the merit of different ways that we’ll go into more detail and we’ll ask individual questions on the webinar next week.

 

But, this is if you’re seeing how the wealthy are doing things, it gives them a lot of options and it’s something that they control that they bank from themselves.

 

And this slide was basically just go over an example. If you were to take on a loan to invest in real estate. You can create some sort of arbitrage use of the cashflow from your investment to also cover your debt service team for the policy loan. And as Leanne mentioned, one of the, one of the big benefits is that the policy loan interest is calculated as simple interest.

 

The cash value continues to grow in your policy, but it’s compounding interests or compounding dividends you’re receiving.

 

A quick policy example. So this is for a 50 year old male.  And when you’re looking at this, the target amount that this individual would want to put in is 50,000 per year. So you’ll see that. And then the breakdown of the, that amount is pretty much a 10 90 split. So the base premium is here.

 

 The 45 45 is what is required annually. And that’s 10 per that’ll cover the base premium. And the about the 44,000 or 45,000 of P Louise is truly unscheduled, or you’re able to stuff that in throughout the year  here shows it where you’re funding it for seven years and you are after that seven years, we’re basically doing what you call a reduced, paid up option.

 

So you’re eliminating any additional premiums needed from there on out. And then you’re just letting the cash value and the dividends girl throughout the year.  On this specific policy, even as of 50 year old, you’re breaking even at around year five. In cash value or between years four and five.

 

 And you from year one you’ll have liquidity or your cash value is about 88% or so of what you’ve contributed. So you still have you lose some of the quality up front and that’s the cost. That’s the main cost of starting these policies. But from then on, it truly feels like a deposit where that 50,000 you’re putting in every year, your policy cash value is growing by larger than 50,000 from year two on.

 

And this is I think this is where people get very confused, right? Because the difficult part of this industry is an insurance agent and ratchet up and take whatever fees they want like a home loan, but worse. So that the way.  Shop this stuff around is to figure out what Tyler is saying.

 

That break even point when dad is, that’s the quick and dirty way of comparing policies and colors always does that for our folks. We always beat them anyway, but  that’s the quick and dirty way of comparing the policies that you have now. Of course, there’s some, different nuances with certain kind of exclusion.

 

That different types of more flexibility of one year being able to pay your rider or the other you’re taking off those types of things that we’ll get to more detailed in the e-course and the webinar, but,  for the most part that’s, if you just ignore one thing from this little webinar

 

A question we also get often is what, the policy loan rates.  The normally most insurance companies for their variable interest rates, it’s based on the moody AAA corporate bond index.  Granted we’re in this super low interest environment. It’s two point something percent, but the company also has their floor, their limits, as far as how low their policy loans will go.

 

Most of them are all at the company policy floors, which is hovering around four and a half or 5% as far as their variable interest rates.  The company declares these rates annually, it becomes effective on your policy anniversary date. It’s that policy anniversary date may be different for everyone yet.

 

The company does declare it annually.  And the good news with it.  If your variable interest rate can increase by more than 0.5% every year. But it can go down. It has no limit on going down, but keep in mind that, the corporate bond index that, that, that doesn’t fluctuate, like what normal interest rates fluctuate.

 

 It is a slow moving number. But there, there is some safeguards in there where you’re not sure. Get blindsided by this large increase in policy loan rates. 

 

We have a lot of FAQ’s that we’ll talk about in the e-course, here’s some of ’em, the difference between the whole life and term life.

 

I’ll talk about, when you use one or the other  we also discussed IUL, no, people always have that question and that’s the way we do, everything is a lot of this is products. But when is the product right for you? I honestly don’t care which one you use.

 

It’s I care when it’s the right one and I’m the person let’s say when you do term, when you do whole life, and the such  we’re going to talk a little bit about.  There’s a lot of rogue insurance companies that have really like loose standards, , it doesn’t make sense when you actually are with a company you want to be with a secure company.

 

We’ll talk more about that small insurance companies for as large insurance companies. Talk a little bit about different ages, who to get the policies on a lot of business owners out there. This is definitely something to think about, getting it on key employees.  This is what all like the big boys, like Walmart.

 

Talk a little bit about taxes. And again, all this is in the e-course  which you guys can get access to@simplepassivecastle.com slash banking. And we’ll talk about this on the webinar. We’ll be going to the cram school format. We go into this stuff that much more to tell us.

 

 Here’s the big picture and the toddlers, you never seen this slide. I made this yesterday.  This is the roadmap here. Step one, put a hundred grand in and not say you got to do that, right?  We help you figure out what’s the comfortable level for you to start.

 

When I first started doing this a few years back, I did that $50,000 a year for six years.  Today I’m doing a much larger one and I always tell people to start off small and probably, makes more sense for the agent to have you do a bigger policy than you’re comfortable with so that you can teach him to collect his commissions.

 

That’s not where we’re about here. We want set people up, you stuff a hundred grand in there in this scenario or 10 grand or whatever you want. Step two, you start to establish a banking firm yourself system, and you are able to take a big loan from that cash portion.

 

 We’ll talk more about detailed on the next in the e-courses in the beginning is when it’s,  the cash value loan is going to be the least. You’re going to be able to take the lease out in the middle. But as time goes by year two, year three, you get typically 90% of what you put in and your 4, 5, 6, it’s essentially everything.

 

 Again,  these are front loaded into this stuff, but in the first year, just to using that as an example, as being the worst case scenario, and you’d take that 85 grand on your original hundred grand, we stick it in a deal and you make more money that way. Step three here, you’re leveraging money in two different places.

 

 Step four is once you’ve act, once you’ve invested the money into a deal or you’re producing income there, which is paying back the loan, right? Just if you would have taken the money out of your heat, lock out of your house and invest it in deals and use that money, the payback. Or what a lot of people just simply do is you just take it a little bit extra and put it on the side.

 

So they’d know they can make their debt payments for the next year or two. That’s just more of a mindset security thing. Like Tyler says, there’s a lot of flexibility on paying back these life insurance policies.  We’ll talk about  worst case scenario, which isn’t that bad, not paying back your principal and not paying back your.

 

It’s not the end of the world. It takes a lot for the policies to decay it. Cannibalize itself is the term that we use. And we’ll talk about exactly when that happens. When you’re customizing the amount of your policy, those are the things that you did have in the back of your head to be able to meet your commitments.

 

 And then the step five here, you have your income generating assets paid back the loans of the policy.  Or like they said, just keep that stockpile on the side and just pay it back when you want. That’s what I do. I’ll take a loan out. I’ll go into a deal. I’ll take a loan out and I may not pay it back for six months or a couple of years.

 

I just whenever I get a glut of money or when the deals exit, like we just had a deal exit a little while ago, Tyler was limited in that one. That’s what we did. We take that money. We put it back into those cash. That’s how we use these policies. Really no real motivation to really payback the policy because it’s ours.

 

 Life happens here, a little cone I put here,  so you have unexpected expense loss of job. College savings. Use this cash value as your emergency savings account while let’s making yield, give a nice four or 5%, but it’s making a tax.  In actuality, you could probably argue that to making five, six, 7% potentially, or even 8% for somebody you hide in cupboards is not there.

 

, step six is,  grows over time. And then you start to get a handle how to use this account, right? Like I’ve gotten a handle how to use it. I take it out. I put it into deals when it deals cash out. I put it in here, but then I go into two more deals. In the time being  it becomes a very fluid kind of state and it’s very similar to it.

 

You guys have gotten really accustomed to managing your passive activity losses on your taxes to offsetting your capital, gains it, depreciates recaptures on deal exits, and then a sub seven all this time. You’re enjoying the benefits of asset protection. And at the same time, if we always joke, if I died or toddler died or wives are gonna be,

 

 it’s sad, but they’re going to be set. I always ask what would you do if you had X amount of money? If I die, she just tells me to go play theater again, but yeah, you’re setting them up. And  it, we’re technically not doing this for death payout, but that’s some of the, also the benefits to them.  And Tyler, is there any kind of other he wants to get assisted living benefits.

 

There’s disability, there’s all these types of things that can be put in there too.  Definitely. I think the biggest thing is truly the flexibility  the flexibility of funding, the flexibility of what you can use it for, you are in control.  Personally, this has replaced the five to nine a long-term care plan.

 

All of those other things that I would normally contribute to where it locks in money, or even remember my retirement plan all of these will cover that you’ll be able to contribute. It grows. We’d like to call this the, an asset where you’re doing this in addition to what you were doing already.

 

 You don’t have to choose between a policy or a syndication deal. You do the policy and you do the syndication there layer. So you’re just enhancing what you were going to do. Already, but surely the flexibility if it’s properly designed allows you to choose what you’re going to do with this and allows you to set it up super benefit, your self while you’re living along with legacy planning for your beneficiary.

 

And in the course we’ll outline all the advanced strategy. What people typically will do. They’ll dump in a bunch of money the first year, sometimes based on where your birthday is, what part of the year it is, you can backdate and double this about and get her to the jumpstart on it.

 

And then, these guys are dumping money in there quick, so they can quickly put it into the next deal.  Usually it takes another like a week or two to get this stuff really wrapped.  Get all the banking relationships, direct deposits all set up, once it’s all set up, it’s as simple as calling up that life insurance company or just going into their online portals.

 

And in that direct deposit to your account, then you are off your funds that you signed your PPM and other certifications.  You’re set, you’re making money to places and, that’s where we get to at the end step eight, you stop worrying how to grow your wealth because you’re optimized.

 

What’s the passive cashflow is it’s not that hard. What we outlined here is exactly what the wealthy do, but it’s a little bit of a twist, right? We’re using the same technology, the same product that is full life insurance, where we’re configuring in a very special way that benefits what exactly what we do.

 

If you guys are real estate investors or you invest in other types of deals.  This is your jam guys. This is exactly what you guys need to be doing to augment and make money at both places and get the asset protection. But even if you’re not real estate investing, like Tyler said, for a lot of people, this replaces the 5 29 plan or any long-term type of insurance options, or just a place where you just get cashflow building up.

 

It’s a lot better than in your bank and it’s something that you can try.

 

 But anything else you think I missed out Tyler? No, we’ll go over a lot more in details and answer specific questions during the e-course. Make sure you guys sign up here. If you guys are listening to this video or after 20 20, 1 of just check out this website here, it gets signed up for the free I-Corps.

 

And if you guys have any questions contact information, this was up here earlier.  We always tell people, get educated  and then we can help you guys out, whether it’s taking a look at your current policies or  getting you set up with fresh new ones, get this infinite banking set up for you sooner set up.

 

Thanks for listening guys. And we’ll see you guys next time. 

https://youtu.be/5xtTKIeic-8

Yup. We did a big wine tasting yesterday, man. Try 30 different wines.

Hey, civil past the cashflow listeners today, we are going to be talking about wine. And not going to be talking too much about investing tax, like how we normally do this is our take a break from the hard stuff and get into some fun stuff that I know a lot of you guys are interested in myself.

We did not grow up with wine in our household. Again, a lot of us people in our community are first-generation wealth folks. We’re here building our wealth. But the reason why I brought my buddy aging crew on here from the wine spies is I don’t want to look like an idiot in front of people in the country club.

And I want to get the biggest bang for my buck, as always, we are a value seeking community out there. By the way, if you guys want to join our group, go to simple, pass a cashflow.com/club. You can check out the free eCourse there and all the educational material. Again, it’s simple, passive cashflow.com/club, but but yeah, let’s if you guys want to follow along, go to wine, spies.com poke around aging cruise website there.

But yeah, let’s unpack this for the folks, right? That’s good. We want the biggest bang for our buck. Where do we start? Everyone wants a good deal. And that’s where actually I think once buys comes in handy for somebody like you, that might want to be getting into wine, but doesn’t really know where to start.

The flash sale model lends itself really nicely to somebody that really is just trying to look for new wines that they might not necessarily be familiar with. Because what we do is we put one wine in front of you every single day and not wine because we’re selling just one wine at case. So here’s, today’s deal.

You can see, normally it’s a $79 bottle works on for $39 today. So it’s a 50% off situation, but the deal is that wine on top. Is there a little store section down below. And basically we might just have a few cases left over from a daily deal and that’ll slowly filter through there, but mostly it’s just that one on top.

And if you click on read our detailed review you can see, we have a ton of content every single day for that wine. The whole deal is that tonight and midnight wine will disappear off the site. And a lot of times it sells out even before then. It really is just a short timeframe, but because.

We are basically putting all our ships at one bet for one day, we’d have to make sure that we’re putting the best possible wine out there we can. We’re probably selecting of any wines that we get. Maybe one in one in 20, even one in 30 wines that we’re taking a look at is the one that we picked.

We have to feel very strongly about any given wine. It’s a really great place for someone that’s a newbie. But it hasn’t taken too arrogant too much wine in the past because you can just trust our pallets that we’re putting the wine in front of you that we think is good.

And then over time, once you start drinking, you’ll start to figure out, Oh, okay. Maybe I’m a big fruity Zinfandel kind of guy, or, you know what I really more just lean to the more rustic style Italian wines. This is a super Tuscan wine, for example. We’ve got some imports and we’ve got some domestics and just a great place to start.

And then if you do know about wine, we have some of the best wines in the world routinely featured on our site for truly the lowest price. You can find it in the entire world. It’s like a Groupon and living social model, you guys are in the backend negotiating with these wineries.

Break that down for us. Like how does the game played, right? That is exactly it. And we were actually one of the very first flash sale wine e-comm sites. There was wine woot and us at the very beginning, we’ve actually been around since 2007. There’s been a lot of people come and go in the intervening years and it’s been a really interesting space, but one is buys going strong, still.

It really does help to have been around for that long because it is exactly as you described, we are on the backend negotiating with a wide variety of producers distributors. The way it really does work is. We can buy directly from the producer. And in some cases actually often we are doing that and sometimes we’ll work directly a distributor and then typically this is an import, for example.

So this would be, I’ve been coming to us through a particular distributor, trying to get into a little bit of our own imports this year, which is really exciting for us. And doing some, we’re going straight to the source organizing the actual transportation and importation. So that’s a big departure for us and I’m pretty exciting, but really the way it works is, we’ve got a Rolodex of literally thousands of different vendors and there’s always some sort of reason.

Why somebody is looking to move a particular wine. A lot of times what happens is that you might be a little bit long on a certain vintage. Unlike a lot of products, which, doesn’t matter when you manufacture it, It’s the same. It’s essentially the same widget.

If you’ve got like an iPhone 12 doesn’t matter what active iPhone twelves it is. It’s an iPhone 12. If you have a 2016, the new Begley it’s Ghana, that wine is super specific. It is a unique product in that way. So when you get to the 2017 vintage It’s not as simple as, Oh, we ran out of the 2016.

We’ll just swap that out for the 2017 for you best to start all over with an entirely new skew. So there’s a whole machine in place for every single wine company sell this particular wine product. When you get to the end of a particular. Vintage of a wine. A lot of times, it’s actually a hard on the side to push that out through this entire network.

And so a lot of times very helpful for any producer or distributor. If they’ve got relatively small quantity of a particular wine left just to quickly push it out. Companies like wine spies are really helpful for them for that reason. And in a single day we can move a couple of pallets of wine and that’s, what’s really helpful.

And instead of just that last painful part, selling a few cases here or there.

I think this is what makes people like excited about this stuff is like they’re bargain hunters or deal hunters. So it’s no different than us buying an apartment complex. It was really wrong with the apartment, but the seller is a little distressed.

Thing here. And I think what a lot of folks out there I don’t know what it is. Like my wife’s out there like shopping at TJ Maxx. I think it’s just like the bargain hunting, or just finding a deal, whether it’s wine apartments, single family homes, some note. Yeah, that’s the chase. And the other thing that’s tough about wine is, you get what you pay for.

This is an $80 bottle and it definitely drinks like an $80 bottle. And so the fact that you’re able to get that wine at $40, if you’ve got the kind of habit where you’re drinking $80 bottles on a Wednesday night it’s pretty nice. If you can have that same level of quality for half the price, and I don’t blame anyone for wanting to find the best deal on that particular wine, if you’ve got a serious wine habit if you’re used to buying.

1290 $9 a bottle of Cabernet at Safeway. There’s nothing wrong with that, but you probably is. You’re probably not, it’s not as big a deal for you if it’s a couple bucks off, but if you’re seriously buying $50 Pinot noirs from Oregon once a week, then it’s nice to be able to find a good deal and wine prices.

Are you talk about that? Just. Energy about arguing hunting. There’s definitely that sense with wine then, because it’s this very unique product. That’s 2016. Peskin. You can go. There’s a site called wine searcher, which a lot of people that are into drinking wine use and there, it basically indexes all of the sales everywhere for a particular wine.

And so one of the main things that we make sure that we do is we’re at least beating the very lowest price on wine searcher for any given wine. And that’s not easy to do so people can feel pretty confident that we’re actually delivering a deal. So that’s collected Kelley blue book value for, yeah. It really is.

That’s perfectly putting it. Yeah. And it’s all about finding the deal. I just bought a car, but like I’m always, now I’m kinda like looking for another car. It’s not like I really want, I want the car I want it like a Ford Raptor, which is like this really? Yeah. I love the Raptor. That’s actually,

The one I want. Yeah. No, not yet. I, but for me it’s more fun to just negotiate for it. Like they have it out there on the lot for 75,000. I know it’s worth more 66,000. I’m just watching ’em I drive by, I, I kinda called them and I go, is it still there? You don’t have stuff, but it’s more the chase like trolling the dealership in a way slightly.

I actually go the opposite, which is your way is better. I ended up just like, all right, I really want this Corvette right now. I go by the Corvette and then it seems like I spend more time afterwards Googling prices, Encore, bets, so I can get buyer’s remorse for having spent too much money. Yeah. But that’s, it’s fun right.

At the end of the day. It was fun to you. Some people play video games, this is what would be you and I do. We do have a lot of fun doing it. Like I said, we get one, probably one out of 3,120 wines that we paste. We actually sell on the site. So that means we have to taste a lot of wines. So that’s a pretty fun part of the job.

Usually the team meets at once per week and we taste through all the wines. I was yesterday, so we ran the gauntlet. And actually we got some really good wines yesterday. Sometimes it’s pretty obvious, which the choices are. And sometimes we actually, we really have to, we’re like, Oh God, because one of the things that happens is we’ve got our whole calendar of deals since we do want it.

We’ve got about two months now. So sometimes it’s tough. You really, we really, after. Decide what we want to cancel in order to fit something else in that, that other one that we had to give up sometimes really good too. But it’s great because it really is survival of the fittest and it shows on the site we get, we have a lot of crazy good deals that,

people that know their wines can certainly appreciate. And then people that don’t, it’s just a really easy way to get into it and just take a shot on me when his wines, and actually we provide so much detail and you can see every single day, how much copy you write for every sale. And that’s really where the, the challenges.

Yeah. It has that trader Joe’s feel, oh, yeah. I can see what you’re saying. We’re actually working on a whole site redesign right now. It’s going to be bad-ass it’s going to come out probably for early August. Hope you pay those a wine tasters via salary instead of hourly, because time’s not a wasted when you’re being wasted, right?

Yeah. I mean our whole team, We definitely have a lot of fun doing what we do. So it’s a work hard play hard mentality around here, for sure. The tasting pays are not what you call the most productive days, but they’re the funniest days for chair he building. Exactly. Oh yeah.

We get some good solid team-building and at least, yeah. You guys are the experts with this. Like I hear too big. Tips, right from suppose the wine snobs, which everybody calls them, silver wine, stumped, everybody. I’m an audio file. What do you have Apple air, right? You’re not an audio file or whatever they call it.

Not a know it’s, the people will say Hey, find something that you like in your palette, doesn’t matter how expensive it is. And you got guys who are more like, if there’s the numbers, right this 96, 97 point thing. Yeah. What is your opinion on like, all right. I don’t know what I’m looking at.

How do I pick a good one? How do I go about doing this? Yeah, it is really hard and it tastes is so subjective. It is difficult to try to boil it down into a hundred point scale. And obviously the a hundred point scale has been highly debated for decades. Now. I think ultimately it’s still very valuable for people because that.

Once you start getting into the high nineties, especially like that 98 point Dow. And especially if you start seeing that it’s got high scores from three different publications. So there you go. That’s the wine spectator to candor and Venus each giving you a 98 point score. You can be completely confident at the very least.

Even if it’s not to your taste, that is a well-made wine, there’s no flaws. And it’s in balance. So there, there are a couple things that are objective rather than subjective when it comes to wine like is it oxidized? , does it have some sort of, acetone issue, there’s all kinds of different flaws that can be in a wine that just make better characteristic of poor wine making.

At the very least when you start to see the high scores, it doesn’t have any of those problems and that’s helpful at the very least. There is something to be said about the particular. The particular place that those scores are coming from. So some reviewers tend to give out a little bit more freely high scores than others.

There’s not that many scoring publications that you have to care about. So you can pretty quickly learn, what a 93 means from this place versus this other place. If you are a more numbers minded person, you can pretty quickly start to, cut through the BS and see where those scores are actually in value.

That being said, Yes, I use it on wine searcher and you can, this is what I like. Great. See the price over time. And then, yeah, exactly. Wine searcher is invaluable resource for anybody. And what’s so cool about it is you can pop on there really quickly and, see what people are paying for.

It can usually see all the scores. It depends on how popular and common the wine is. Thousands, probably email payments port in the world. So there’s a ton of information on it on here. But then it’ll actually link to all of the individual sellers. You have any Cron offers you can see. Sometimes there’ll be some stuff on here, like some random retailer in the middle of Kentucky.

And if you actually, call them, don’t even add the wine. It’s not, we’re not trying to beat those kinds of offers, but we’re definitely trying to beat, all the real offers that are out there and we do a good job doing it. And I actually really appreciate that. Transparency.

You guys are listening to this on the podcast or playing around with us on the YouTube version. If you guys want to go to the YouTube channel or go to simple passive castro.com/wine, and we’ll keep this stuff. For you guys to refer to, but we were, we’re poking around wine spies.com and wines stash, searcher.com a cool site, but one mistake I’ve made, I’ve bought some wine off eBay.

I think it was like oxidize or fake. I’m guessing I still drank it anyway, man, if you can drink it, it’s all good lately. I just been buying it from Costco. Just I don’t buy like fake wine because I heard that was a thing out there. But any comments on a math method? The fake wine thing, there’s really not that much money and making fake wine unless it’s a highly sought after.

Why, and that’s worth trying to counterfeit in the first place. Really there’s a lot less actual wine fraught out there than it is to be concerned about, unless you’re a very serious wine collector to spending big bucks on wine and it really matters. And then there really is wine brought out there.

There’s a big push, especially in the fine wine space. And I’m, we’re talking like, $200 bottles plus. To have a lot more consistency with any counterfeiting measures just in terms of. Buying wines that you know, are probably going to be a good deal. I think it’s true.

Costco is the biggest wine retailer in the country right now. It’s not more wine than anybody. You’re not, you’re certainly not alone at Costco my family actually comes from a wine producing family, so I can tell you on the other side of that, Costco has some serious buying power and they do what they do for everything else.

And that’s just squeeze the producer to get the lowest possible price. Yeah, there’s definitely some good deals to be had there too. I think the challenge is necessarily the selection. I do have a great selection, but you’re not going to get random, smaller lots. That kind of gets back to what we were talking to in the beginning, which was, when you’ve got only a couple hundred cases of a given wine left, As just straight up, not enough for Costco.

Costco needs to have truly massive volumes in order to even be in their system in the first place. You’re going to be missing out on a lot of smaller producers that have some random model. I like this, like Caymus Cabernet, Sauvignon. You, what are you talking about? That’s a nice water.

I know because it’s very popular, and that’s the phrase Caymus was for closers, but you. Do you guys have a brand like that? That’s more of a one that a Costco will go after and drive it down to 80 bucks, right? This kind of gets into the behind the scene stuff that you were talking about.

Most of the really big name brands are represented by distributors. And depending on the, especially those. Ultra recognizable names that everybody knows the Robert meant values in the world. There’s a lot more kind of sensitivity around the price point that it gets put out there as there’s a lot more push to make sure that whatever it’s getting on the store shelves is very close across the board.

There’s actually specific laws that govern now what a distributor technically has to make an offer available at a given price. Same to any retailer. It actually makes it quite challenging. But that’s the selling price that they’re willing to offer it to the retailer at, depending on the retailer’s model of how much margin they need to make on there, they can offer it for whatever they can offer it.

Our whole model is trying to have a higher volume on a given day. And we really do try to take very. Very slim margin and pass on maximum savings to the customer because, that’s what we’re trying to do. We’re trying to offer a great deal every day, but you guys aren’t necessarily going to have the staples, like the Caymus, the pump jacks.

I don’t know that many, like those more recognizable names that are always going to be on the wine menu at the local. The short answer is we’ve got the access to those wines. We can’t give the kind of crazy eye-popping discounts on those that we can for other wines.

They’re typically not on there, but it’s not to say that we don’t. We just, we did a Mondavi Toca loan a couple of months ago. We didn’t open it’s one this year, so yeah they’re definitely out there. It’s just again it’s harder to offer the discounts that people are used to seeing on the wine spies on those kinds of wines.

Yeah. And this is how like sick, I am like, I would rather have like the reason why I stick with this Caymus, cause I know it’s good. I would rather have a wine where I know I got true 50% off than half the best wine because that’s where I get the most enjoyment out of. If I like this type of like darker cab, what are ones that on your guys’ like your website, you would suggest, and that’s the thing. We call it out too in the marketing copy that we put together every day and let what kind of was your into, Hey, you love these kinds of crazy fruit bombs. Scroll down a little bit. I want to see that go. Rocky is probably Becca Rashi.

We do the Cabernet of that recently. That was a little bit along the lines that you’re talking about. Kina Noah, that’s a peanut, but we also, we featured a cabinet that day from them at a lot of Jones that Jones families, these labels like. I can’t even say the thing, like it’s fresh. I don’t know. But like to me, it’s man, like it’s just overwhelming, and that’s why I retreat back to what’s comfortable and the Caymus. I don’t blame you at all. I actually, to be perfectly honest with you, that’s exactly how I feel about it. So the imports, it’s a totally different world and people typically are, being with them if that’s what they’re picking up.

We have a streamline knowledgeable wine buyer, he’s agent and that guy, he’s a pro and he can tell you every single vineyard in Bordeaux, he knows exactly where it is, the famous vineyard that it’s next to and why it’s a good deal. I can’t pretend to have that level of knowledge.

I’m stick usually with the domestic, for that reason also. But. And even someone like me who has the good fortune of pasting all of these different wines on a daily basis almost, and learning a great deal about him from super knowledgeable people. It’s a bottomless well of information.

You’re never going to get to the bottom of it. So unless you’re the type of person that. Drinks at Brunello for the first time. You’re like, Oh, what is this? I love this. This is totally different than anything I ever drank. I want to drink more of it. And you start getting into it then. Yeah. I’m the same way as you, when I see an Italian label, and I’m unfamiliar with, even the classification systems that doc DOCG.

The IGT, I just throw up my hands and say here someone just pour some good wine in my glass. So cool. Yeah. Or you take it to your friends and say, this is damn good, man. Yeah, exactly. Or you just trust the wine spies, to help serve up some fingers. And we try to tell you, if we think that this is going to be a good one, if you’re in this kind of thing, that’s right. So I did my control F and I looked up cab and I found these two. So that Joan selections. Awesome. And here’s, a really good example of an actual, wine country connection. We’re right here in Santa Rosa, California actually just bought a warehouse in Petaluma and our moving our offices and warehouse

to the new location. We’re really excited to be a new resident of Petaluma, but we’re right in the center of wine country. And it really helped for things like this. This was just a completely back channel situation where we were able to get the hook up on, on a small producer and Pomerantz rivers Brown probably be most famous Napa winemaker right now.

Here’s a situation where we’ve got a wine made by TRB. It’s just that it’s really hard to get your hands across on, let alone for, any amount off. 35% offers a crazy good deal on this particular one.

So we, sometimes we work with the distributors and the boys and play a ball. And sometimes, you’re not going to find this particular wine anywhere else. So the TRB Thomas river Brown, that’s like the Caymus family or there was it like the grapes from the Jones family. He’s the actual wine maker that made that wine.

So a lot of times, especially with these superstar winemaker talents, it’s like hiring a director for your film. You can pay big money to get the big names or David get Guetta as a producer for a song. Yeah, exactly. Thank you. That’s much better. Don’t through Jack. You had Channing Tatum produce most shows, right?

They don’t do anything. It depends. So for, I spent 10 years on the production side. The crazy thing about wine is it really is made by the seller workers. I started as a cellar rat. And the 99% of the actual making of the wine making the winemaker gives you a work order and you go actually work on the wine.

But having gotten that work order and being told what to do, you would know. So you’d be surprised at how much direct impact a kind of visiting winemaker will have. Coming in tasting the wines in the barrel as they developed deciding, Oh, this needs this should be put in this much Oak.

We needed to do this blend on this. This needs this adjustment. If they can do that, tasting a panel of wines in an afternoon and just verbally telling, whoever the production winemaker is. This is what you need to do. And then getting back on his fricking jet leaving that is actually an impactful way to put their touch on it.

And the wine will be better for it. That skill of wine making is knowing, Oh, this needs 3% now back in, it’ll be so much better, okay. Did they tell you why? Rats, don’t talk to Thomas, don’t look them in the eye. Don’t look him in the eyes. Look down. Yeah. Do not address him when he let only let Barry talk to him.

Honestly some of these guys absolutely have aura of mystique around them that I would have definitely went out as a 19 year old seller at scrubbing barrel. Bungs I would have. Not really the guts to say, Hey, what’s that dominance? Yeah, that’s cool.

But it’s legit, right? Some of these guys? What they touch turns to gold? A hundred percent, man. That’s what I was trying to say is, it really is amazing how you don’t necessarily have to be there all day, quote, like working on the wine and. The wine will be so much better for that having been involved with the project.

And also you start to see, Oh, like the hallmarks of a particular wine maker. Oh, that’s wine. It’s so smooth. Well balanced, whatever it is. You’ll start to see that through their lines. Oh, this actually is like a GRB joint, yeah. So that people are gonna kinda think I’m actually know my stuff here, but they’re the Caymus folks.

I don’t know what the dude’s name is. Is it Caymus? I don’t know. I don’t care, but I think the dude went over to and he made the conundrum. Oh yeah. That’s a good jam for 20 bucks. Yeah, absolutely. And that’s it there again, people ask that’s a lot of times what happens if people aren’t super successful on a given project.

Usually they’ll sell it in and start a new thing. And a lot of times that’s successful too. Here’s Wagner. Yeah. He’s the kind of guy to where it’s like, where everything you touch is going to turn to gold, that’s also partly the business side because.

There’s, the distribution is so crucial and you’ve got a whole network across the country, and then the distributors are set up consolidated these days and they’ve got such great relationships and they know if they put the Wagner name on it, they’re going to be able to push it out. If you start a new brand, Naomi and Rachel need a location sold for a bunch of money, but he knows pretty much ahead of time that no matter what he’s gonna do, his new project is going to get a ton of press for you at time, Inc.

But more importantly, you’re going to see it over night on grocery store shelves and trying to build that momentum as a small producer, without those kinds of connections or interest from the distributors. It’s almost impossible. Yeah, they can put like McDonald’s coffee, but that’s, that’s so in our world, like we do a lot of apartments indications and there’s a lot of fund managers.

It’s the same thing. Once somebody has that track record, you have the sponsor creep and the product may not be as good, but. It also reminds me of like in the startup world. And this is why I don’t like startups. I was looking at it for quite a while, but it’s just not very good. Most of the deals suck and never make any money.

And I just don’t. I want to, I’m not happy with a batting average percent success rate, but a lot of it like the ploy. This is the dark side of startups is like the Starbucks will just pay some dude who has a long track record to just sit on their board. And now it looks like, cause social proof, this is what’s happening with a lot of these like blockchain cryptos, or now there’s like now there’s like cloud advisor on the cardboard.

A lot of these crowdfunding websites, they actually like. Some people will pay to get on their board so they can look like they’re part of the board and it helps the company website look like they have legit people. It’s totally messed up. And I’m wondering is the financial world as corrupt as these wine makers or maybe in the wine world, things are still good.

It’s not as corrupt as a financial world. Oh, no, it’s real crazy. And it’s all about relationships and if anything, it’s a super small world. It’s just really incestuous and yeah, it’s hard to break into for sure. But I think there are what we’re going to say. Oh what are like maybe top few off the top of your head?

They’re like Thomas river Brown that’s a good one, right? What are a few others? Wagner, which is the Caymus. Hi Heidi, Barrett’s green Eagle. But these in particular, I think are superstar winemakers that have really risen based on their merits and proved that they can make really good wines consistently.

I don’t necessarily think that’s the seedy underbelly of the industry so much. It’s really just even the biggest wine company in the world is Gallo. I mean they’re right here, but guess what? They’re actually an extremely well-run sophisticated operation that has great training takes care of their employees and they do really good job.

I wouldn’t begrudge them their success at all. , in terms of The challenging behind the scene seem deals. It comes down a lot more like where the wine actually goes, especially for really coveted small, lots of wines, I’m sure you’ve heard like a term allocation.

Oh, you have your allocation of a particular wine. That’s really where it starts to get. Who do you know, who are you in good standing with right now? Who’s but did you kiss recently in order to get, your hands on that good that everyone really wants?

So that part of it, it’s tough. I think if you want to talk about the startup side, I think wine spies is pretty interesting and that. The founder of the company Jason Sieber, whose agent red, by the way, we’re revealing his code name because he’s actually spending most of his time on his new venture Kayla life, which is a mass company which is a pretty cool success story.

But wine spies has been around since I was seven. And like I said, and it really was bootstrapped from the ground up and we’ve just been persistent at it. And it’s a story of. Cause simple passive cashflow agent red was the type of person who worked in the business for, years, then worked on the business for years and now is in a position where he’s able to pursue the next project while he’s got a great team of people working for him.

And he doesn’t have to spend nearly any time in the business these days at all. I think it’s just a story where , it can take real time to build a stable business model that just runs itself. And we are in huge growth mode right now. But before I came on board three years ago, he had built a pretty consistent machine that was just stable and was able to bring home, a good living.

And it really only took a couple of people helping them out to make that all work. I think that’s a great point. You brought up there. Would, it kinda reminds me of when I was looking at a lot of these startups, there was one in particular. I don’t want to call them out of the sea.

Of course, if you guys are in the family office, a Honda mastermind, which you can learn more about simple passive cashflow.com/journey, we know we. We take the filter off, right? Because this is the freebie podcast we’re talking about here, but there is this operator out there and, I’m trying to look what to invest and they did.

Let’s just say they did farm stuff. And I look on their roster of owners and operators and I’m like which guy here? You all live in New York, the heck, do you guys know about farming? Which guy actually worked the fricking fields. They have this one guy on the bottom that it’s like a small car.

I was like, is this guy a principal of a company? Or is this a consultant? And then like, that to me, when I’m looking at a deal, I want to know who the operators are. And I want to know what gives them the competitive advantage. For you guys, it’s the dude that made the company, he actually knows a thing or two about making wine.

You got to go figure, right? There’s just not another like internet company out there. Startup company, a bunch of kids who went to MIT or Berkeley took entrepreneurial, got an MBA. And now starting some random company where they don’t even like wine. They haven’t known anything about it. Yeah. Obviously it pays to have the real deal and we’ve got, so I’m from producer side and I know I’ve actually made wine myself.

Our wine buyer, he’s got 30 years of experience and I think really that there’s no shortcut there at all. So having, a very knowledgeable person, it’s the Rolodex, but also know what you’re looking at. You knowing how to read those crazy Italian labels, This absolutely crucial skillset.

We’ve got, our marketing hot shot who write some great copy that sells. And and then we’ve got an awesome team too. Behind the scenes, making it all happen. And obviously all of that is crucial, , , we don’t have any empty suits here.

And I think one of the things that helps. It’s just the company culture. Because we’re all working hard and working in it and have a ton of fun every day. And I’m just one of the things I’m most proud of the businesses we get a lot done, , we really do each other and there’s our elder does that relate to each other as human beings.

And I don’t think you’re going to find that if you’re having to report to that guy in New York who doesn’t know the thing about farming, like you say. Yeah. So you guys can check out their company, wine, spies.com. So you guys register and it’s like a daily deal a day or something like that.

Yeah. And if you’d sign up for an email list, we shoot you an email at first thing in the morning, just like letting you know what . The wine is bad day. , we’ll sell out sometimes as early in the morning and we’ve got a lot of people that genuinely just enjoy reading the emails.

I know everyone’s email box is so full and it’s hard to believe, but we’re, we will put a lot of work into the write-ups every day and pick there’s some actual, pretty fun and interesting ones. So people that are even passing into wine, they like to check it out just to see what’s out there. Now, this is more so serving for the whole white, out of our group, maybe 10% of the people live in Hawaii.

Most of the people are in the us mainland, but selfishly asking, because this is my podcast, like I’m screwed, right? Like it’s just going to hurt. There’s no shortcuts, man. I’ve got to tell you, we ship enough volume that we have access to the tier one. Hop rates for our costs on shipping and our shipping a case of wine to Hawaii costs us $110.

There’s just no way around that, , that makes it a big challenge for anybody on the islands to get that. I’m better off just going to Glasgow or going to the local. If you’re in Hawaii or the community, what it really depends on is the price point of the wines that you’re getting.

If you’re buying, if you’re buying a hundred dollars bottles, that one spice is bringing to you for 70% off and it’s 30 bucks, I’m just 12. Okay. It’s starting to make a little bit more sense. When you factor in that cost of chipping in for mainland United States, we’ve got free shipping on 12 bottles, but what we’d do is this cool locker system where , you can add one bottle at a time.

To your locker. So you don’t have to check out with 12 bottles. You can check out with just one bottle is deal and build builder case up over time. And you can have up to two lockers open at any given time and then ship them at your convenience. And that’s actually nice because no matter where you’re at, you have to sign for your wine purchase since it’s alcohol.

So people really like consolidating those shipments into one shipment. Yeah, no, that’s cool. When I travel up and do deals, I usually like to get a group of investors together. Yeah. Can you bring that? So you can set your locker up and just have it waiting and then whenever you want, we can ship it.

But I got to guess 12 bottles. Yeah. That’s the deal. It sounds daunting at first, once you start looking at all the awesome lines we offer, you’ll be like, damn it. I filled up the locker again. Yeah. So I can get 24 going at one time. Yeah. Oh, this is cool.

Yeah. And then actually technically more because you can, after you decide to have a locker chip, you can set the ship date up to a couple of weeks away, and then that clears up your locker. Okay. There’s a little bit hacking stuff you can normally when we do these investor meetings, it’s usually all a credit investors and it’s, I like smaller events.

So everybody gets to know each other better. 12 bottles is a lot, maybe a few, some of them home with it. No, I want it, but I can still pay to just ship onesy, twosies. Yeah. And also what you can do is you can fill up your locker and then you can just have a, if it’s less than 12, you can just pay to have that shift at any time.

Yeah. Yeah. And depending on where you’re shipping it, it’s not that expensive. I think California, it’s 20 bucks to ship six bottles Oh, that’s nothing. Yeah. And that’s what I like. It’s like the time savings, get, maybe some people love to go to a total food and wine and peruse the aisles, but for some people it’s like a waste of time.

They’d rather do Amazon. I really do think that the wine aisle is just one of the worst and hardest ways to try to pick what your, what line you want. There’s the all you’re limited to is the information that’s on the label right there. That’s, you can just go Google while you’re in the store, but, I don’t really think it’s a great experience.

And the fact is that you talk about the politics, earlier that is really where things get the most the most weird, I’m serious. They have, whether they’re called shelf schematics, where, the distributors are the ones that create the layout for where all the bottles are supposed to go at the various Heights and what bottles are going to be there in the first place.

And that’s where the real politics can come in is what on the grocery store shelf in the first place. So there’s a ton of stuff that you’re not going to find there that you can find almost blind. And that’s why wine online has been huge for a long time, even though. It’s hard to get to your house.

It’s still been big because the selection just so much better than when you can find at the store. Yeah. Can I ship this thing to California and haul this thing back? Like a wine meal back to Hawaii or, all of that. It’s interesting. Yeah. Good. Okay. Willing to do those types of strange things, but any other insider tips or tools?

I got one for folks I use that, that we know app. It’s cool when you buy a bottle and you’re drinking it, you can take a picture of it collecting Pokemon. Yeah, totally. That’s super helpful. The main thing that I would say if you’re just trying to learn about wine is just remember it’s super simple.

It’s just when you’re drinking the wine, just try to remember what it is. You’re drinking. So just like when you’re taking a setback. I like this. Just look at the label and just be like, okay, this is from this wine from here. And just try your best. You remember that because over time, and I don’t care about the geeky stuff, you just about what you like.

And don’t like, but the only way to really learn over time. Oh, I like have term particular appellation in Napa. I tend to like Rutherford calves. You only remember that if you did spend the time looking at it. And then also. Give a shout out to a new browser extension that we’re partnering with called CIC it’s sip PD.

And they’re working really hard. They’re probably one of the best efforts I’ve seen for our kind of recommendation engine. And so at the Chrome browser extension, you can install and they they basically can, they rate us given wine and then try to match it to your case profile.

And as it, as you use it over time, it gets to know your preferences better. And what they’re trying to do is they’re also trying to. Create overlays onto other retail partners sites. So that they’re your match, your percentage match, how likely are appears on those other sites to exempt. The team seems really smart and put together.

So I think I’m certainly wishing them the best of luck. We’re excited for the partnerships up over time. I think you’ll see the useful minutes of that grow and. And that might end up be a pretty cool way to figure out a line of products across the internet. What you like, what you don’t. Yup.

And a wine’s better with other people. So if you guys are, haven’t reached out to us shimmy emailed lane at civil passive cashflow, join our group and don’t just be a lurker on the podcasts. Get to know our community, a lot of good people here. Auto wine drinkers and whiskey drinkers, a lot of beer drinkers too.

Thanks. A lot of peoples that just are into the whole physical optimization, just water and cold pressed juices too. A lot of those guys, also all spirit spies is coming down the pike. So one of these days probably get some good bourbon on there also. Yeah, until then just straight diet of Johnny Walker blue for you guys.

All right. All right. Wine spies.com is the website. And if you guys want to watch this again, and as we add more content to this little fun sub topic on simple passive cashflow.com/wine, tell your friends and we’ll see you guys next time. On bye.