myStory Archives - Simple Passive Cashflow

Confession… At What Point Did I Feel Enough Was Enough?

What’s up folks? Now on today’s video podcast, wherever you’re watching this a little bit of a confession. So I guess the story starts off, was talking to one of my buddies and we’re talking about another guy who, we always talk about some of the people that are the next level above us that kind of keep things in perspective and learn what the strategies and the path to follow.

As we’re all on this, road of, leading a private equity front and bringing passive investors along with us like you guys, and. , the story that came up was like, this guy that we’re talking about who was high up there and they just wholesale it commercial property for a $3 million profit and there was no feeling there. When, no feeling there, the guy didn’t really care and he made that confession to my buddy. And we both joked and laughed man, that’s a lot of money, right? To just just show up here in your bank account. And number one, how cool it would be to be there and how messed up it is. But then really started to think to myself and this is what I’m talking about now, which is, at some point, we’re not so far off from that maybe I shouldn’t be putting out this on the internet or out there in the world.

The other day I was investing and the deal cashed out and I got a couple hundred thousand dollars just dropped into my account and I’m like where did this come from? I knew I’m not super oblivious, but it’s hard when you have 80 to a hundred, K one s and different things I’m in and I’m I can remember not too long ago when.

Getting, $20,000, $15,000 from that one deal. I did, meant a lot. And it was, we would celebrate and, it was a big thing. I would actually. Just you’re taking a vacation, you anticipate the buildup prior to that and it’s and then you see it drop in your account.

In this case, I don’t even remember the damn thing was coming and I just came and went and I actually forgot about until, again, me and my buddy were talking about the story and I started to self reflect And I can even think a little bit before that, right? I think a lot of investors, are in these shoes right now where you’re going to your work every day.

And I’m wearing like my, my prisoner wine shirt, , outta respect, because I was there one time too, right? I would save my money and, every month they would go up maybe a few thousand, $5,000 a month, and at the end of the year, I would have enough money for, I, when I first started a turnkey rental, which I don’t know why any credit investor would own those things.

That’s eventually was became, $50,000 minimum to go into a deal and then eventually, was the seed money as earnest money into my larger commercial assets as a general partner. Like that money would build up slowly over time. And this is why today I, I don’t.

Feel that taking lightly, taking money from investors. Cuz I know 50, a hundred thousand dollars for most people, even for a lot of our accredit investors, that’s the lifeblood of one year. That’s the heart, sweat, and tear of 360 something days out of the year where you’re saving money and yeah, you’re buying things here, there creating experiences, but You know that, that money that kind of builds up and, within our family office group, I can reflect having these discussions where, now we’re writing these checks of a hundred, 150,000 into this deal. That deal, it, it seems a little bit like monopoly play money a little bit. And we always talk about how is it.

We knew the value of the dollar, but it’s hard for the kids to pick up on the real value of it. But, I guess that’s another topic to be discussed in the future. But I guess what I’m saying is money when you start to extend on that hockey stick, you start to become really desensitized to it.

And, it makes me a little sad in a bit like, the happiest times for me was when, that deal panned out and we, I got this big lump sum of money and I would, open up a hundred dollars bottle of wine. Maybe today I’ve got a couple of $250 bottles of wine. Like I got the Caymus special re reserve and I’ve got.

Stag sleep Cast 23, which I haven’t drunken those yet. I don’t think I’ve drank more than $300 bottle of wine yet. I have ’em, but at this point, when a deal goes full cycle, that’s what, I just do a hundred dollars bottle. You, it’s my limit. But like I can see I guess wine is a great example of something that.

It builds and builds something that yeah, you pay for value, but at some point you have that diminishing returns concept coming up and it keeps going and going and it is just from a dollar’s perspective, the price of these extravagant things or lifestyle, it keeps going up and up and maybe that’s a great way to run a business of high net worth people buying these high end things.

But like from the user’s perspective, like I don’t get that, like that jolt. I don’t get. Excitement. The buildup, like I said, with this money dropping in my account haphazardly of course I’m gonna take that money and go put it into my infinite banking, and which you’ll see later on this year, our credit investor banking a little bit different.

Life insured mechanism for cash reserves for myself to, backstop the opportunities that I am going through and dealing with these days. The takeaway. Take your money and hide it from yourself so you don’t spend the damn thing. Because even myself, like a person who has good money, values and systems, I gotta hide it from myself too, no different than anybody else or somebody in the beginning levels of personal finance.

That’s another segue there, but I think it’s the point that I’m trying to make here you’re building up this money and the zeros just keep adding and adding. So I totally understood when, in the story where this guy makes this huge windfall and he doesn’t feel it, and how a sad thing it is, and I don’t have an answer yet.

I just wanted to share this kind of predicament or. Speaking first world problem, of course, but this is, I think where the solution is in the future is, finding things that you know, bring you joy. The smaller things that may or may not cost money. . I think you guys maybe get the gist of what I’m talking about, or, appreciate the small things, appreciate the small wins that are on the way, or at least enjoy this journey despite how many zeros or lack of zeros you have, whether it’s your first deal or I think what I’m speaking to are the people who are in multiple deals, and you’re on the rails in terms of this quicker path to financial freedom.

Better deals in alternative assets that don’t go up and down in the economy. The tax benefits, the infinite banking, when you come, all these three strategies together, you’re on this rail, this railroad that tracks that gets you a lot faster. And at that point I tell a lot of people just relax and enjoy the ride.

You’re on cruise control. You’re on the moving escalator. Yeah, you can go a little bit faster, you’re gonna get there in heck, a lot of less time than you. So otherwise, would you previously thought or much more exceeded your expectations?

There was a comment that kind of, this all came about this morning to me and I wanted to just capture this for you guys. Comment came through on investors said pretty high net worth investor said that you. . People think that when you become wealthy, all your problems just go away.

And I do think that’s true in, as we reflect on what I’ve this kind of what transpired, however, let me look at my response here. Yeah. As p Diddy, puff Daddy, however you call it, mace, Harlem World said More money, more problems. Yes. Different problems. And I guess what I’m talking about essentially here is

desensitization, I dunno if I’m saying that word right, but of desensitization of wins and celebrations along with the way, and if that’s the kind of their point system in life, then what a sad thing that Azure net worth grows that you don’t. The jolt or the joy from these types of events along the timeline.

However, if you are still trying to get on this moving escalator, don’t just think more money, more problems as a poo thing. You guys gotta get more money because one thing I know is. Creates more opportunities and allows you to have the freedom again bold, that word freedom to do what you want, with whom you want, et cetera, et cetera.

And ultimately to free you up to maybe you’re doing this, gonna just do the same damn thing you’re doing now, whether it’s playing doctor or maybe as an engineer in a great part of a team, working for great people, doing some cool stuff that allows you to. without having to worry of, being fired or, having to just go somewhere else and take a cut and pay.

Do it not for the money. . And it also buys not $20 crappy wine. And oh, by the way, we are unrolling out the the new private label. So for those you guys who refer friends and family, that’s gonna be a little perk of that it’s actually like a hundred, $140 bottle that we have for those folks.

So it’s not just a piece of garbage wine. I wouldn’t put that out there and put, wouldn’t put the simple passive cash flow name on it, and it’s gonna be branded under the off market.

We’re talking about more money, more problems still buys you freedom, better options to do what you want, with whom you want, et cetera, et cetera. I think that, something I said before is, money isn’t everything.

but it sure makes a life a lot easier, in certain respect. But there is definitely a diminishing return side, and I definitely see that. There’s articles written about the $75,000 a year rule. Who knows what that is? With inflation, it’s probably like $120,000 right now, but, What I see it as more like I see most of the investors out there, it’s like somewhere around 20 to $40,000 of passive income every month is enough.

Which is why I always say if you backwards engineer it, At that point, four to 5 million net worth is that sweet spot number, which we try and guide, get, guide you guys towards. And if you guys need, have any help with that, that’s what our inner circle community, the fum is all about There.

But anyway, that’s the confession today. Now I might get some hate mail here. If you have any strong opinions on this drop us an email or put a comment into the YouTube channel box. I’ll try to answer it. And if you don’t and you think I’m an a-hole and you know this pompous person with W first world problems, then that’s fine too, but I guess the reason why I wanted to bring this up is, like I help a lot of people who where was I was, buying rental properties, getting, your non-accredited investor status, getting to accredited investor status, and of course our big wheelhouse is get, moving you past that.

and, for the people who are still in the trenches, cuz they still talk to some of you guys from time to time, you guys do join the club. We can’t really work with you. I share like the remote rental e-course and resources that I would do at the time and a lot of this is just.

Staying the course and living time. This is not an altcoin kind of thing. This is not like investing in Tesla that goes up and down. And man, what a life to live if you’re doing that, I think there’s more important things to be stressing about over that ticker or playing the Osage, sticking your head in the ground with that.

But that’s another video of course. Like that. What I see from people, they, a lot of you guys out there, you guys are good, hardworking folks out there and you’re on this path. And especially when you implement all these strategies is like, what I see is relax, chill out.

And I get it where the stress comes from. Until you’re there, you’re still running. and it’s totally a admirable, makes total sense, right? Don’t let the turtle behind you catch up to you the, with the turtles and the hair analogy. But if you’re going to, if they’re not racing the turtle, and it’s just a race with yourself and you’re going to get there and be the winner and beat your alternative self.

Who is investing in stocks, bonds, mutual funds, random cryptos that pop up here or. . And you’re gonna get there in a third of the time, then enjoy the things that are happening today. Maybe you have younger kids. I try to be more and more present. I catch myself too, right? Like I, I’m always working and stuff like that.

But, those are, I think those are the things that, the things that really bring you joy where the, the big windfalls. Yeah. We’ll celebrate it. But I’m telling you, you’ll get desensitized to that and you’re just gonna write another check to invest more and it’s just gonna keep going.

That if you take my experience it’s just a kind of a game of diminishing returns. And there’s something else. I haven’t really figured it out yet. I have a feeling what it is. , there, there has to be something out there that kind of just brings you joy and that you are finally allowed to really focus on.

And I think this is where, you have like monks and like people who are very low net worth that are very happy they figured it out. But again, there has to be a nice little sweet spot in here, right? You can be a millionaire and be very conscious and appreciative of the small things. , but having your net worth keep growing.

And I think that’s the why, the reason you guys listen to this channel and at least that’s my goal and that’s what I’m trying to help you guys. Not only grow your financial wellbeing, but also the other softer side of this is, it’s taking more of a holistic approach. But anyway, if you guys like this type of, UY selfie stuff or you have any other comments, let us. And we will see you guys on the next video.

Why Leave Your High Paying W2 Job | Lane Kawaoka as a Guest on W2 Prison Break Show

What’s up folks? On today’s podcast, you’re gonna be hearing a little bit more in depth in my story. I get interviewed a lot and it’s very rare that you get interviewed well, like on this recording that we’re gonna share with you guys so you guys know, there’s a lot of podcasts out there, but, we try to keep things cool and authentic for you guys.

And part of that is, not just sugarcoating the narrative that a lot of people will put out there. With that in mind, if you guys have any questions we probably need to do another, Ask Lane show where we open up the question bag. But if you guys have any more relevant, to what’s gonna going on lately go ahead and email it in at the team@simplepassivecashflow.com

We’ll get it. Show going here in a bit on that. If you haven’t yet go and sign up for the club simplepassivecashflow.com/club. You get access to. All the e-courses that we have for free, The Infinite Banking e-course and then a lot of insider information as well as deal access there. And you can also take a look at all the other past deals we’ve been doing for the handful of years prior to this.

I think maybe we started doing this, maybe 2017 was our first syndication transaction. But yeah I feel like we’re not the new guys anymore, right? I think you can tell who is fake if you make it. It’s one way of doing that is just seeing how many assets they own.

Today we own $1.2 billion of assets under ownership. And I’ll be the first one to tell you, 2019, when we are around that half a billion dollar mark, we were getting our feet under. Since then we’ve expanded the team. I personally am not really in the day to day, nor are the principles and partners not in the day to day as we’ve hired that out to industry professionals.

What does that mean? People who’ve been property managers for a long time and have. This is what they do for a living. And we go on and headhunt the best people and bring them in house to asset manage for us. Very different from, I, I think there’s a lot of people out there that think, it’s the bigger pockets mindset, right?

Somebody who just doesn’t like their day job can be a. Real estate investor. I do believe to some point, but when you start to run thousands of rental properties and accept other people’s money in the terms of the syndications, I think you need to really hire a professional to do something right.

And I just don’t wanna discredit people in the real estate investing, real estate operating asset management industry, You. Yes, you don’t need a college degree to do it, but I think experience in this industry is very valuable, which is why we’ve hired people who are much better than you know myself.

And I’ll just, I’ll call myself out on that. But if you guys want to get more involved with us, join the club. We’ll simplepassivecashflow.com/club. Beyond the lookout as we’re gonna start to put out the. The info pages and the signups for the annual retreat here in Hawaii, January 13th to the 16th.

Make sure you apply and if you are on our investor club list, you can’t just come, you gotta just, you have to book that onboarding call with myself so we can get to know each other. And even if we’re not a good fit, I always try to make it a point to point you guys in the right direction cuz it’s, that’s ultimately what I’ve found that I enjoy doing for some strange reason.

So we open up your balance sheet and we look in. It’s basically a short period of time where you get to ask the questions and send you off on your merry way. For a lot of people it can be life changing and that’s, I personally like to be that person to make that impact for you. So make sure you guys sign up for that after signing up for the club and enjoy the show.

Lane, welcome to the show, my friend. Good to see you. And I look forward to the discussion today. Thanks for coming on. Yeah. Thanks for having me love everybody. Yeah. And before we get into your W2 prison break story, which is an awesome one right now, you’re doing some great things. We’re gonna definitely dive into it.

Just, I, to expand on the intro that I gave your bio kind of gives us some background on you. Take us back to the early days when you got outta college and started working and ultimately what led you to where you are right now? Yeah, I grew up in a household where your chocolate goes to school, studies hard, is a good kid, and invests in your 401k and max that out.

Just work it and grind at a job and work your way up the ladder for several decades. Yeah, I was always, we were always taught to save, like when we went to restaurants, we never bought soft drinks. Those are always costly, we are pretty frugal with our money.

. I was able to save, 80 grand in a couple years working and to buy has to live up in Seattle. And that was that program. I call it the linear path. Cause you just follow it, like your brain dead and just good boys and girls just following that path. And that was me like right outta college.

I was a construction supervisor out there. And a hundred percent travel. And I knew you had to pay your dues. But very early, I was like, this sucks, like this engineering job sucks. Yeah. Another fun thing people like say, oh, it’s good to be outside outdoors.

And not stuck in office. I’m the opposite. I went to the, go to the office every day. So be the same thing. Go to the gym the same time. That was more like me, but , that was how, how I was in my early twenties. And you were in engineering, it sounds like that’s correct. I got a bachelor’s in industrial engineering because I wasn’t smarter enough to get it in computer science, electrical, chemical, and not smart enough to get it in like mechanical or civil for undergraduate.

Yeah. So I went to project management, right? There you go. And you mentioned about you were being taught to save. Hey look, my parents did the same thing too. We were frugal. It’s invest in, I drank the Kool-Aid too. Invest in your 401k and save and get a good job. And. Hopefully you retire when you’re 65 and you’ll have enough money to live for the next 20 or some odd years.

What did you do with that? You saved up the 80 grand. So obviously there was some benefits there, you learned those lessons. What did you said you bought a house with the 80,000. Did you buy a rental property or did you buy your main residence? Yeah, I bought the main resonance first because that’s what everybody says to do.

Get on the escalator of wealth building and oh you’re paying rent and throwing money down the tube, which in my opinion is totally false. I don’t know people get that from, but I blindly followed the dog. One, bought a house live in and, appear this 20 something year old kid is living there all of himself and he’s traveling a hundred percent for work.

So what does a cheapo do? I started to rent it out. And I just lived off the company dime, living in hotels for several years up straight. And I, I tell people it’s not what you make, what your top black income is. It’s more what you save. Now, it’s making close to six figures, but like nothing like how kids are making these days, or I know a lot of your guys are making like two, 300 plus thousand.

A lot of my clients make over 500, 600,000 as doctors. It’s all what you net. And at that time, making a hundred grand, I was able to save sometimes 80, $90,000 a year, just paying taxes, basically. So all that money went to buying more and more rentals after that first one, I got that taste of cash.

So I was like, wow. The tenant’s paying down my mortgage, I’m getting the equity appreciation there. I’m getting cash flow, which I can feel like I can finally spend it, cuz it feels like free money. And then I’m getting the tax benefits and then the appreciation to which I don’t really count on, cuz I don’t believe in gambling on appreciation and be going cash flow. But when you add those four up, you’re making like 20, 30% plus and your returns on your money. And I. Why the heck am I doing this? Eight to 10% nonsense.

Great insight. So it sounds like you had a pretty significant mindset shift early in your W2 career. And that really helped you, understand that, Hey, there’s I can leverage my W2 job, you’re out traveling. You’re not really there. So you just said, Hey, let’s rent this thing and you got a taste of the passive income, and then you started acquiring some more properties. And we talk about that a little. And before I go any further, I know people have heard this before, but we’re not talking about wholesaling and flipping houses to me.

That’s what you do when you’re broke. For many of us with good paying jobs and, are busy managing our, like our day job. So we don’t get fired the stuff on the side. it needs to be passive. So I was buying these what they were called, turnkey rentals. Sometimes folks out, out there, like the flyover states where the numbers work way better.

One of the things we look for even today, when I buy large apartments is like this 1% rent evaluat ratio. So you take the monthly rents divided by the purchase price and it needs to be 1% or higher for the numbers to work for the cash. Why is cashflow important? Obviously you get paid every month and, but in case of a recession, you’re not, out on the code, right?

You can pay your debt surface. We, we don’t really look at like loan, the value. We look at debt surface coverage ratio for some more sophisticated investors out there of debt surface coverage ratio, 1.2, five or greater. Like going into these types of deals, you. It’s typically not gonna be where you live.

Most of my clients live in Washington, California, New York. It ain’t gonna be there. Those are called primary markets. So I was buying in lot of these secondary ter rate markets like Birmingham, Atlanta, Indianapolis, Kansas city, Memphis, little rock, places like that. Not the funnest places to go and visit, but they have these great rent value ratios that allow you to cash flow.

They don’t appreciate as much. No, I don’t really care about that. I don’t care about what cash. So I started to buy all these 20 key rentals and just all my money plowed to just down payments on these things over the next several years. Did you, okay? This is great. This is great stuff. So you’re not living in, you’re not living where you’re investing.

Which I think is a misnomer for a lot of folks who are, working in a job that they want to get out of and maybe create some cash flow. So you did this all virtually, essentially, and maybe touch a little bit more on what you mean by turnkey. Rental. And how active were you in managing these properties that you ended up purchasing in other states?

Yeah. This is actually like a product that people will sell Turkey rentals. If you Google it things will pop up. Guys, providers will pop up and supposedly there’s different layers of turnkey, essentially the idea is house flipper out there will go buy a beat up piece of junk and they’ll fix it up.

They’ll but they’ll put it put like a renter type of standard type of stuff. It won’t be like super pretty, but it’ll be like really durable and good enough, for government work or for, class B and C renters for the most part. So they’ll fix the roof, the flooring appliances, the new page job they’ll fit all the interior stuff.

And. Sometimes these guys will even put a tenant in there for you and manage it for you. I always recommend my folks to get a third party property manager to get this all in place. So you don’t, you buy from somebody else, it’s a great way for like new investors to put on the training wheels as a landlord.

But this is what I did, I bought from 2012 or 2009 was when I bought my first rental . So 2015 is when I stopped by these little rental properties, I got up to 11 of ’em and I think they’re a critical part of wealth building, but if you’re already in a credit investor or million dollar network or greater making more than two 50 a year it’s little rental properties are a pain in the ass and they’re still have some little bit of li legal liability and the debt’s in your personal.

Syndications and private placements might be more of your style. That’s where I switched. So for 2015, with 11 rentals, each rental gives me like a couple hundred bucks, few hundred bucks, a cash flow every month. So you add that up. I was positive cash flow, 3000 bucks, which was BEC a lot of that’s when it’s real, estate’s tax free.

So it was essentially like half my paycheck. I saw the like to financial freedom. Yeah. And I actually saw this very early on and my, my attitude towards work changed pretty drastically in the first, even the first several years doing this where I was I don’t really need to do this too much longer.

Yeah. So you were planning the exit. You were you saw it as you said. Yeah. Yeah. My first job was pretty hard. I worked for a very conservative company where, quality of life is low, but the pay is a little higher. And maybe that was probably a good thing too. Yeah.

Because it cl it heated up the wa falling water and it made me really hate my. And wanna get out even more and more motivation to saving, to put the down payments and more properties. But that was I would say my attitude definitely changed after a while. Like I became apathetic in a way where it’s I don’t have to keep doing this.

Like I make more than you guys at me. It’s start to realize. 95% of people out there. They just are really bad with their money. They can’t save it. They spend more than they make. And, let’s put aside the folks who don’t go to college. Not saying college is really that great at anything, but don’t go to college, don’t get a professional career.

A lot of those people, it’s an income. They just don’t make enough money. If you don’t make 50, 80 grand in this country with a family, you’re not making enough money. Quite frankly. Yeah. That’s a different problem. I don’t know how to fix that. There’s so many websites, debt, consolidation. I don’t know about that, but I was good with my money.

So a lot of folks that I think are listening resonating with this, right? You make six figures, but there’s this kind of money mindset out there. Like Dave Ramsey, C you Orman the saver mentality. What I tell people a lot is that’s good for people who, number one, don’t make that much money. Or number two, maybe you do make a good salary, but you suck at your personal finance.

You can’t really keep a budget. And I would still argue that most people are like this. The people who cross over, like people like myself, right? We save a boatload of our, into 401k, even though we shouldn’t be doing that. And we were on this fast pass to financial independence, need to get rid of the Dave Ramsey, Suzy Orman save, say, save.

And you gotta get into being buy assets with good debt and leverage your debt and in a way, be on the offense. People don’t realize that there’s these two paradigms and the two some people call it the rich dad, poor dad mentality to operating system. I call it the simple passive cash flow.com mentality.

Cause actually tell you guys what to do, buying little rental properties to your network, cuz half a million million, then go into syndications and private placements. After that. But that, that’s what I followed. I followed this journey. Once I got to the accredited status, I started to go into syndications in private placements and I started to dump the low, annoying rental properties.

But the annoying rental properties to me was a way how I learned and it helped me really do due diligence on the larger deals as a passive investor. And Yeah. Yeah. Great share. Can you talk about, and I love the simple passive cash flow.com. That’s your, that’s where you teach people how to do this.

And basically follow this path that you’ve developed, which are gonna get to there’s. So a lot more here, maybe talk about one of your first syndication deals. Cause you did make the leap from single family too, to, to syndications, to mal. Yeah. I already had that mindset of these rental properties are a pain in the butt.

It’s not scalable. Yeah. For if, like I said, I had 11 rentals and maybe a few hun $3,000 and pass the cash flow every month. And it was a bit of a headache because with 11 rentals, just to give some people some insight. I had maybe an eviction or two every year, which are a little annoying.

Of course I have a property manager on all these properties. I’m not some idiot who runs this stuff myself remotely. There’s somebody else that takes 10% of the rents that does all my dirty work for me. Yep. But yeah, to deal with these evictions and these, every quarter, you’re gonna have some big kind of catastrophe.

If you have a love of rentals, it’s if you have 10 sons, one of ’em is gonna go to jail every decade, like that’s just the odds. I’ve never heard that before, but yeah, I guess that makes sense. I don’t have sons, but I just see it on TV and, I just see it out there, see if Felic, some kids gonna go to jail, typically a dude . But yeah I, you see where this is going, and totally I’m like, then I started to join. This is where the big thing aha moment for me was I started to interact with other high network accredit investors.

And these aren’t, super rich people, but they have a million dollar net worth or greater. And a lot of ’em were. Of my pedigree I was an engineer, there are a lot of engineers. There’s a heck, a lot of engineers as investors, doctors, lawyers, dentists, accountants, pharmacists, lot professionals also working their day jobs because it’s a great way to, build up that cash to buy more rentals or go into more deals.

But they’re all their main thing was that they were, you. Dumping their rentals and going into these Archer syndications. And I just saw the writing on the wall. And when you meet people who do what you do and they say I used to do what you do, but now I do this. That’s probably one of the best arguments for me that I at least start to look into these large syndicated projects.

But when I first started saw this stuff, I thought they were like Ponzi schemes. But then I started to get to know the people build relationships. And that’s what this world is. It’s a people game, building relationships, the right operators and building colleagues and peers of other passive investors to know who’s legit in this business.

The trouble is everybody’s got podcasts these days. Everybody’s got books. So it’s really hard to determine who’s legit in this, fake it to your, make it type of world that the general partners live. Which is why I tell everybody and how, like my whole method is like building relationships with other passive investors is why we have a community for this.

And you just basically copy what other passive investors do, that have gotten good returns from people having gotten their money. And this is the essence, like this is the country club deals. This is the virtual country. In a way. And this is the way that a lot of investors invest and we can get into it later, but it really opens up the taxes because now when you’re going into these deals, a lot of these deals do cost segregations, which if some people are rental property owners, you can deduct 1 27 of the value of the home every year and take that as a paper loss.

But with this stuff, you could deduct one third of the property all in the first year. Yeah. Like it could be like a 10 or 20 X that deduction, and now you can implement certain strategies. The typical one for my clients are like, you have a couple, one higher paid person and maybe another lower paid one that we wanna have ’em to stay at home and play with the kids and enjoy life.

Now that person can implement real estate professional status rep status, which is a checkbook on checkbox on your taxes. There’s a few loopholes that jump through, but once you do that, now you can use the passive losses to not only offset all the passive income, that’s the gimme, but use it to offset the ordinary income, which I know a lot of you guys have high w two or 10 99 salaries.

And you can basically, if you can pay whatever taxes you want. At that point. Correct. And as you alluded to earlier, it’s not what you earn. It’s what you get to keep, right? This is right. This is a tremendous way to reduce your tax liability. And even to, to zero in some cases, I’m sure. Yeah.

I don’t pay taxes equally. I have million plus bucks of passive activity losses. To use at my disposal. Yeah, there’s a strategy to it. And unfortunately, a lot of CPAs tax folks don’t really understand this stuff. That’s why, like a lot of this stuff is if there’s one big piece of financial advice, never take financial advice from people who are not financially free themselves.

Like, why would you wanna take financial advice from a CPA? The dude has a job at J B. He works for a paycheck. He hasn’t figured this stuff out. Yeah. Show me your income statement. Show me your net worth. Yeah, i, I don’t income. It’s all what you keep and what you accumulate at the end of the day.

There’s a lot of people with high incomes that aren’t the most sophisticated investors. or money managers. And it’s all net worth to me is what your age is. So when did you great stuff? It’s you’re now in these multi-unit deals and you’re buying a lot of commercial assets if you will.

And you’re up to several thousand units now, but when did you start. Really think about, okay, I’m exiting my W2. yeah, I did this. So know, switching back to the W2 world I did change jobs few times actually. I started to work for the government and , I actually, the job became pretty I actually enjoyed it at that cause I enjoyed the full workers.

I liked the management. I didn’t like what I did one bit, but I mean to me, there’s like a triangle of who do you work for? Who do you work with or your subordinates, and then do you like the work that you’re in? I think if you have two out of three of those, you can be pretty damn happy.

You can’t have one or not. Yeah, I guess what you’re trying to find is something that’s all three, which. Good luck but some of my doctor clients have it, because they, if they happen to be, have a good boss, that’s the hardest one. They work with people and they, they often work with people on their worst day and that could be very enriching.

And then they obviously, they may like their coworkers to have a great team environment. That’s the perfect environment where you can make a full load of money doing that. Most of them work two to three days a week. But they typically do once they find this stuff. But for me it was like just downgrading to like more quality of life, less work responsibilities, but after a while, I went into some bad deals with people as a past investor.

Then I realized that I needed to control the capital stack myself and, that’s why I started to do deals myself. And then my impressions would come in and that was it I felt felt a little irresponsible, like bringing in my constituents that here I am working this W2 full-time job on the side.

Little Iwan still. So I eventually cut the cord on that, but if I wasn’t like a general partner geo operator, Probably, that would’ve been a great, like I could have probably still doing it today. Like I enjoyed the work somewhat. It was cruise. I got to do my investing, passive investing thing on the site, which isn’t that hard.

Yeah. To be a passive investor, maybe takes five hours a month to do it. Yeah. That’s really all it takes. Yeah. Great. Yeah. But that, yeah that’s what. I couldn’t just stayed in that job and just kicked back and cruise, but, I think I quit around like 2018, I think. 18 all right.

So you’ve been here for about a little over 10 years in W2. Yeah. But the w two really helped me, propel our company and, build our organization that, I, and I think for my kids, I’m not a huge fan of college and higher education. But I do think that it gets you in a position to compete and get into a fortune 500 company.

And I’m not a huge fan of fortune 500 companies cuz of bureaucracy and everything, but it helps puts you into a system and you can be on the inside and be a. You can learn how their systems are. And a lot of those systems I implement today, minus all the BS, essentially. It goes without saying congrats on the on the exit there, but talk about your company now, you’ve got this big real estate company.

You’ve got over a billion assets under management, over 8,000 units. Talk about what, talk about your business and maybe a little bit about what, like a typical day looks like for you? What are you doing? Yeah, today it’s changed a lot. In the beginning we were running around.

Doing everything, managing the manager, working with investors. When we went over, I would say 500 million of assets on their management. It became unscalable to do it like that for ourselves. And that was a period where we had to reinvest a lot of our. Profits into other staff with who did our job a lot better than us.

So some of the key hires other than, investor relations staff and, marketing staff, but the key hires are like, hiring other property managers. But the property managers who did, were in the industry for a decade plus, and they have this insights, it’s just if you came at, and play doctor or computer scientist or computer engineer for a day, you just can’t do it. Like even if you studied up for six months to a couple years, you just can’t do it. And. Here I am, I guess I’m a semi smart dude, right? But I don’t know, like the little nuances that somebody who was, worked at a 30, $40,000 leasing agent job and stepped up to a property manager that maybe started their own property management company.

Those are some valuable insights that kind of, we have as our operations staff now that we’ve engulfed. So we’ve, our role has changed from, doing everything, to just creating the org structure. And that, that was not one of my forte. So we have some C level staff that help us do that.

But these days it’s more like guiding the direction and business development. Cuz that was essentially what got us started was the key relationships and continuing to build key relationships in the future, like with banks and with equity partners and stuff like that. What is the, sorry, go ahead. Oh, I think still.

I have a life coach and he tells me you need to figure out what you really enjoy out of all these random things you’re doing. And for me, it’s interacting with investors, give them that all home. And you’ve been doing it all wrong of 401ks, this bunch of retail investments that just, go out to the clueless and you need to get into like deals where, people and where.

It does well in recessions and then you you implement that, then you get the cost segregations and the depreciation and losses to do different games on your taxes. Then you do a little bit infinite banking, which is like cash value, life insurance at a 90 10 split with 20 10% being insurance.

And those are 1, 2, 3 combos. Like it’s a powerful thing that is very counterintuitive to how normal people do finances or people still in that Dave Ramsey school of thought. It’s a game changer and it allows, people who’ve been working so hard, I’d say our average client, 1.5 million net worth in their early forties with two kids, you change one thing around now, one spouse doesn’t have to work and now they’re, they see the light instead of now they’re 20, 30 years of working.

It’s really five years ahead of ’em. It’s totally transformational within, these individual families and, putting on the events and then meeting other people who have taken the red pill of finance. That’s what I enjoy. Awesome. And you, so you’re putting on some events too. Talk a little bit more about about that.

It sounds like you have events for your clients. Yeah, we’re a kooky bunch, right? Like we are our deep down core is like we’re savers. We delay grad and we get off on that. People come to, we do in Hawaii, like people come to Hawaii, nobody stays at the high end stuff. That’s not good use of, that’s not good value.

They stay in like kind of the more boutiquey, three star, four star hotels. A lot of these guys are very affluent, especially once they start to invest and. It’s lonely, right? All our friends and family are investing in like the 401k or some of the, the more aggressive ones are doing crypto and Bitcoin or worse out coins.

And it’s just here. We are investing in very stable, boring assets. Like I almost call it like investing in blue overalls and machines and hard work. We buy. 1960s and 1990 properties that caters towards the lower middle class, a grungier demographic. It’s not sexy. We slowly and it takes a while, right?

It’s not a get rich quick steam. We go in and we rehab units slowly as 10 minutes, move out takes forever, takes, several years. but in recessions, it performs pretty well. And in good times it outperforms a lot of the good stuff. Yeah. And it’s like this idea of doing this with so many people is crazy too, that like when people, assemble, I’m going out to like LA next week and Arizona, and just to do a little pop up.

Meeting, but when people assemble and they’re like, yeah, I don’t do the 401k because like all the reasons lane said it totally makes sense, but like none of my coworkers, I can’t, they start to become very distanced from most of their coworkers, because none of that stuff, when they actually use their head and get away from the financial dog mouth put on by all the fan guards, alies all these institutions that want you to put your money in that stuff.

Yeah. They’re. It makes no sense, but I still, people are still like, they’re stuck in that spell. But when I come here, I can have great conversations and we disclose what our net worth is, what we’re investing in. And these, we can talk about these alternative investing ideas, talk about deals. It’s just it’s like a cult to the us, right?

You’re around like-minded people and you’re, you’re all it’s always good to be in, in a different room, especially when you don’t like the one that you’re. Yeah, I love what you talk when you, I love what you say about 401ks. And I saw the light on that too. I always knew it, but I just kept feeding it in cuz it became like automatic, I caution anyone to be very leery of putting your money into into a program, whatever what, for lack of a better phrase, where they control, how much you can put in, they control what you can invest in.

And then. Tell you, when you can take it out, they, and then they tell you when you have to take it out. So it’s just very limiting and it’s all completely one sided. And I saw the light on that. I’m sure you have plenty of thoughts on the topic, but, I got completely out of that.

I, yeah. I, over pretty concisely in a, couple minutes I have four big issues with the 401k. Yeah. Please share type of stuff. Like first, like it’s a lot of it has to do with taxes. . When I put my money, a lot of the whole dogma is predicated on you will be, you’ll get older and you’ll Shivel up and die and make less money in the future.

And at that point you’ll be in lower tax bracket. But not me, not most of my investors, they’re gonna be baller in the future in me in that much higher tax bracket than they are today. Yep. Therefore, you should pay your taxes on the damn thing today. Take it out today while you’re in a lower tax bracket.

Number two. Look where this country is going, how are you gonna pay for all these government entitlement programs with raise taxes in the future? So again, pay your taxes now, get it out. Now the next biggest thing is I think the argument for these 401ks that oh, gross tax free.

When you invest in real estate, that has a bunch of paper losses like depreciation, you can write all a bunch of other stuff. It often is tax free anyway, so that point is negated, but here’s the big kicker. I think, we briefly touched upon this, like how most people are playing checkers, putting money in their 401k or Roth IRAs or whatever.

And we play chess, right? We’re manipulating our adjust gross income on our personal tax return based on what our investments are. And when you play this chess game, instead of checkers, I want the depreciation and losses that come from my investments where when you’re investing, you can invest through a self-directed IRA too.

But when you’re investing through one of these type of programs or solo 401k, it’s you don’t get the passive losses, the flow on your personal tax site. It stays locked up in there. Yeah. And that’s the downside to this. It’s more about using the losses on the deals and the investment ties from depreciation, which is just paper loss to clean up your pay less taxes today.

And you lose that ability when you invest in this insulated 401k or solo 401k. So unless, the only good thing it’s. If you’re investing in non-tax advantage type of stuff. What it’s non-tax advantage stuff like, like your crypto things like that, or if you’re a private money lender in, in, in a, in real estate I wouldn’t do that anyway.

Where you just lend money to a house flipper. And there’s no losses you’re getting paid with a 10 99. There’s no tax advantage with that, that’s the stuff you’re supposed to do it in those type of stuff, but I don’t do anything. That’s not tax advantage really. So love it.

Great share great insight. And something more we can learn at simple passive cash flow.com. I’m definitely assuming that. And then you have a podcast as, as well. Talk a little bit about your. Yeah. It’s basically a fall of my journey. I started back in 2016 when I was buying little rental properties and I would just teach people how to buy, turnkey rentals and yeah.

Back then we had a little incubator group and. Now a lot of the information’s for free. And if you’re just in the game of buying little turnkey rental, you can go to simple pass cash, flow.com/turnkey and get the free guide there. But as I became over an credit investor, and like I said, at that time I was going into a lot of larger syndication deals.

I saw the light and for credit is just, it’s a no brainer to go into these syndicated deals. If you could build relationships and build a community around your. Or join a community out there. And that was where it transitioned and it is, that’s my whole thing is I. I know that there’s something else out there and that’s my job is to cut the corners for a lot of folks, right?

If you’re net worth is a million bucks, you shouldn’t Dick around with little rental properties, you just go to the big stuff, the syndicated deals. But for a lot of my investors that are like one to $10 million net worth what’s after, what do you do after, when you’ve got, five, $10 million plus, and you can comfortably live off your four or 5% off of that.

What are like the 50 million, a hundred million dollar families the family is doing, right? Yeah. That’s the kind of stuff that I try and learn these days and I try and bring it down to my folks and just that insight. Cause you wanna just always be improving as a investor and be, become a professional investor.

The trouble is right. Most people are working their day jobs, so they don’t really have the time to, and, but the, and the issue is interacting with the right higher level people, higher level investors, getting access to those rooms, which a lot of people don’t have the time for nor the network.

But that’s been my passion to uncovering this myself. But even, to implement the strategies for one to $10 million net worth people, I. You look at it and it’s not that hard. Like I said, invest in good deals. Use the passive losses on your taxes, tell your CPA what to do or find a new one.

Yeah, infinite banking and it’s pretty simple, but it’s very counterintuitive to what, like they normally tell us right. To do. Extremely. Great chair. Great journey. Love your story. Just before we wrap up, I got a couple of couple questions for you. I wanted to ask one, do you, whether it’s a morning routine or some habits that you’ve adopted, that you could share with the listeners that have really led to your, to success or keep you up, on the path, if you.

Yeah, I think one thing I do well is I execute I’m the person who will write down my list of things to do, but I’ll actually do it. I, and I think that allows you to constantly innovate and constantly improve. I don’t know what that, if you improve one person every day, at the end of the, you’ll be like 20 something times better than what you.

I’m not a huge fan of like boring routines. I don’t wake up and do yoga. I jump on the emails and put out the fires, just like anybody else. I don’t wake up super early, today was a little early for me. I try to wake up around eight. Nice. If I can. Yeah. And I think like my whole advice from that is Hey, do what works for you guys.

Not everybody is the same, but make sure it works for you. And I would say I’m really good at focusing on what the business is. And for a lot of folks listing, it’s like your own personal finances. What are you gonna do with the investments and taxes? Not what you’re doing with your employer.

You’re building somebody else’s dream with that. Build yours first. Even if it you’re like me. You’re working a day job. You’re sleepwalking through it for a decade. That’s to me, that’s the most important thing is get your own stuff. And doesn’t take that much time to learn, to do what’s right.

And to implement it, especially once what you should be doing. But you can sleep sleepwalk through a job. They take, they pay for your time and your head, but they don’t charge you for your heart. So you you always have those sex, those few extra hours a day to put to where you are doing after you play with the kids and you do your family obligations and you’re tired.

Course, too many people spend so much time, like over the news or like focusing on things that don’t matter. What’s the saying? Most people major in minor things. Tony Robbs both. Yeah. Yeah. Great stuff. Get your own stuff. Awesome. Share. Do you believe in, do you have a coach or a mentor, do you believe in that?

Not really. I think when you’re starting out, I think a coach would be good. That’s the role I play for some folks. My inner circle and mastermind group and. But, you gotta pay ’em right. If anybody’s worth it, you gotta pay ’em and the trouble is there’s a lot of fake gurus out there that don’t really do anything.

They just write books and stuff like that and have YouTube channels. That’s why a lot of stuff on my website is free. I hate that fake picture stuff. The guys that teach people and they mostly prey on not your audience, they mostly prey on the guys who don’t have money and are really desperate.

And they sell ’em on hope and fear, but yeah. Yeah. I would say You need to find a model that’s doing this, but if you’re starting out, there’s a lot of YouTube and podcasts to just start to absorb it. And I would say focus on getting a community rather than worshiping the gods and the gurus.

Find other peers on this journey and that’s gonna be the way to get you off the ground. Of course, I’m super cheap. And that’s how I used to do it initially. But then I saw the light in 2015 when I really started to pay, like five figures plus a year on these mastering groups in education.

And that got me connected with the right committee. Then there’s the freebee free loader tire kicker crowd of peer groups. Yeah. So that was a big thing in hindsight, if somebody’s starting out, so much free stuff out. You should be able to dissect, but just know you’re trading time for money in a way, but I’m always just rolling down the road before you interject any kind of type of money into it.

Like once, once you’ve got some, you might have a rental property or in several deals, then I would say it makes sense to phony up. Once you get proof of concept and this whole thing works and then accelerate it with a better community and network after that, that is actually serious. Go ahead. Yeah.

Thanks lane. We’re gonna, we’re gonna give the website again, simple. Passive cash flow.com. Simple passive cash flow.com. It’s been tremendous, haven’t you? I just, I love the insight. I love the way you think. You obviously think a lot differently now than you did when you first started out, so that’s the, you can see the growth there and really appreciate the share.

Anything else you want to share with the listeners before we sign off or that I forgot to. No, I think some people are saying that eventually you’re gonna quit the day job. I think that’s probably the mindset of a lot of folks, but, speaking from myself and a lot of my folks who are like two to 5 million networks who broke through that part of the stratosphere.

Everybody, you gotta do something with your time and you gotta try and figure out what makes you happy. I do think you have to go through a period, like a little air pocket where you don’t do Jack for maybe six months to several years where you just go weightless.

And this concept of financial freedom to me is kinda like you, you need to save enough money to buy enough assets, to create enough passive income, where it exceeds your expenses. So 10, 20 grand per month. And then you put your. And then you go wait less and you gotta go through this vacuum and air bubble where you’re just floating, but until you’re floating and searching for your next main life mission it’s hard to do that, to search when you’re stuck trading time for money.

So I think that’s what I’m uncovering with myself. And some of my clients have to go to that stage. You gotta get your own oxygen mask in the first year, you gotta get the fi and then the next chapter, your life will come. But it’s a lonely world, right? Not many people get to ponder these types of first world, or I know first world problems, but like the upper 1% first world problems, where you’ve searching for autonomy and trying to find some kind of meeting of what the heck you’re here. when your money continues to compound on itself, where it compounds at a rate where it’s quicker than you could spend at a regional rate of course, but like yeah. Not many people are faced for that.

Most people are stuck in a day job just going at training time for money. Yeah. Don’t have to do that. Great final thought. Appreciate the share. And you are spending some time with us today. I know it’s valuable. Everyone, thanks for tuning in as always to make it great.

Pruning your rentals + Outsouring debt with Enrich Author Todd Miller

https://youtu.be/6miTMi4nClw

Now on this podcast, you’re going to be hearing me interview an author that wrote about, enriched about building wealth over time. There were a few things in this interview that I clashed over. Here’s the thing, like a lot of these authors, it’s nothing to take much to write a book these days. I’ve done it. You guys can check it out and on Amazon and it ends up an Amazon bestseller. Thank you to those of you guys who dropped in on it. The title is the Journey to Simple Passive Cashflow and you can check that on Amazon by the way, but, I think the thing that we’re clashing on is, this guy was saying, you should file these properties and pay them all down, which is a very logical strategy for most people.

But again, you never want to be like most people, cause that’s typically maybe not the best way of doing things, And I’ve been trying to distill this down to different thought processes. Is it debt? Is it more loan to value? If you guys didn’t listen to me, some of my rants on this. Loan to value is some arbitrary number. To me, what it comes down to this year, debt, service, coverage ratio, what are your monthly payments to pay the debt service and what is your cash flow?

And if you want to go, how the professionals do, what the banks do when they underwrite our deals, they want to see that 1.25. you’re dead surfaces, a hundred dollars. They want to see $125 of cash flow coming in. So that there’s a bit of a margin there. Now you can artificially create that debt, service coverage higher by putting more down payment on which do you guys know?

That’s not what sophisticated investors do. They put the least amounts to get that cash flow and that returns as high as they can, but keeping that debt, service coverage ratio, right at that optimal point at around like 1.1, 1.25, I think that’s, one could argue that it’s better to be higher, you give up some of those returns.

So that’s where you are as an investor. And personally, I’ve been on this journey where I was big on tertiary markets, Which have higher caps. Now the problem with higher caps and the reason why they’re higher caps is they’re not as staple locations to invest in. I probably was one to say that I’ll never invest in Hawaii or California because of the low caps.

And, they don’t cash flow in cash flow is what you need in a case of recession to hold onto the asset. But yeah. The good thing about those kinds of markets like New York, Chicago, Miami, Hawaii, Seattle, and all of California is that it’s a very stable place, people want to live there and you have to look at both sides of the argument there.

So where I’m thinking as you’re new, as your net worth grows over $5- $10 million. Now you start to get away from the tertiary markets. For sure, it gets to more the secondary and the primary market, probably with the primary markets overall, which is why I probably still won’t invest there at this point in my life.

And my journey is because there’s just so much competition in most areas. There’s so much, dump on sophisticated money in Hawaii, Seattle, LA, Where they’re just people just buying properties, reporting on it too, for legacy that those are the kind of people that push up the pricing. And that’s a second layer to this. No, there’s a few things to be thinking about. And I think this is where, you really need a network and this is all we tell people, Hey, if you’re stuck, if you’re tired of just dealing with people who just don’t understand investing on this level, join the family office, Ohana mastermind group of, or details in that go to simplepassivecashflow.com/journey.

And before we get going into today’s interview with this author, I had a question. It seems like a lot of the investors are worried about interest rates coming up and I think yes, it does really impact the numbers. If you’re a buy, hold and pray type of investor. And I was a buy, hold and pray type of investor from 2009 to 2015, when I was just buying these little single family home turnkeys. if you guys want to go download the analyzer at simplepassivecastle.com/analyzer, you can download the spreadsheet and you play around with the numbers. you change the interest rates from 4.5% to 5% or maybe five and a quarter. And you’ll see that cash flow drop, maybe you’re at $300 and it drops to seventy-five bucks by making that one little move on the spreadsheet, and I think most of our investors understand this sensitivity analysis when interest rates do make these bigger jumps.

But, this is why I’ve personally gravitated towards value-added types of real estate as we all know wealth comes to those who create value and value can be in the form of many things. And, but ultimately the bottom line in real estate, and how much net operating income does a property produce or in the business world, increasing your Vita. Now, when you are increasing. The value add or the, when your value adds a property, increasing rents per se, and you’re increasing that net operating income. It makes the interest rate that holding costs less of an important factor to use in an extreme case, like a house flipper. House flippers don’t care what he’s paying for his debt service; the good ones will, they’ll be able to cherry pick lazy investor money at 8%, maybe 10%.

Beware, If you’re one of those people who take on, lend money to house flippers, and you’re getting 15, 20%, you’re likely going through a middle man who’s selling your basic linear money through an unproven party. That’s why you’re getting paid so much but that’s a side note. I don’t want to invest in private money notes. I don’t invest with people who are less than five, $10 million net worth these days. Just net worth is a level of sophistication, in my opinion, these days for me. That’s just the class of paper that you’re buying, Because when you have those higher rates of return, even if you’re collateralized with the house flipping project, it doesn’t matter. But I digress. So getting back to my point, these house flippers, they really don’t care what they pay for their cost of, 10%, 20%.

It doesn’t matter because they’re buying a property say for 300, you’re putting in a hundred grand in and they’re flipping it 4, 5, 600, maybe even more so that holding cost is, maybe on the scale of 10, 20, $30,000, if in that six month project per se. So that’s an extreme case, And when they’re holding onto a property for one to five years That interest doesn’t really matter. Yes. It piles up. And it’s part of, you can definitely see it in your monthly P and L’s, but if you’re value adding that piece of property, whether that’s a home flip in that house with burst case where their value adding at 200 grand, you can see how that Brittany trumps that holding costs, maybe even a tenfold.

Now, I like the approach of going into stabilized assets where there’s existing cash flow. No light to moderate value add and nothing crazy. definitely I would be on the less on the side of the spectrum of that house flipper, where they’re going after huge amounts of value add, and they could care less about the interest rates, still not to that extreme, but still this my point is that the interest rates don’t really matter as much when you’re doing value. If you don’t trust me, go look at how much money is built up through the routine equity, the net operating income divided by the cap rate in the beginning of the project, and to presume cap net operating income at the end of the project, divided by the prevailing cap rate and the difference of the money made.

And then see how much the debt service compares to that. And I think what you’ll see in most value add projects is the carrying costs of the interest costs. Sure. it’s hurting your monthly P and L and your cash flows, but it is a very small relation to the bigger gain. I would say these days, even with a lot of light value add projects, the majority of the money, let’s just call it two thirds, is coming from the retained equity, build up the value, add pop at the end, as opposed to the cash flow. I think back in the day, maybe like 2015, I was seeing deals like in Memphis, which are tertiary markets that I don’t want to invest in which garbage areas, but they have high cash flow and really not as much value add in a separate project because. The location sucks, let’s just call it that in those cases, you would see deals where maybe half of the returns were coming through cash flow, or maybe a little bit more and the smaller portion.

So a large portion is coming to routine equity through the years. But, I think that’s why some investors who haven’t caught onto this concept, they feel. Okay. These investors are a little capital area. They’re still doing stuff in the face of all these industries. but when you really look at the numbers again, what is the routine equity portion versus the cashflow portion?

You start to realize. Yeah, who cares about paying a little bit more on interest payments because that’s nothing compared to the end goal of, unfortunately you have to wait maybe several years to realize that. For newer investors, lower net worth investors. They may not feel comfortable with it, but as we always tell investors, you need to start acting like an accredited investor and more, which is more of a long term for license credit investors who don’t really care what is happening on a monthly, quarterly, or even annual basis.

They look at things more on a two, three year time horizon or three to five years. So they zoom out. And when you look on that side, when you’re looking from those lens, Now you’re looking at more, they care more about what is their equity, how’s their net growing over time, as opposed to are they getting their monthly cash flow so they can pay the bills because affluent people, wealthy people accredited plus investors, they got their bills.

Take care of, they’ve got that cash flow already. If you’ve got that bass. So their primary concern is, of course, keeping their money, which is why they invest in real estate because it holds its value. And it goes up with the pace of inflation. But they like it because they can add value, and they can realize these huge racks of big gains, but they gotta wait for it. But, I think that’s a difference between, less sophisticated investors who really enjoy getting those monthly paychecks from the rent checks, from their tenants, and all that type of stuff to more of a sophisticated investor who is able to zoom out the little detach, but really compare the two investment strategies on a longer time horizon.

But yeah, I’m pretty confident interest rates will come up a little bit more, but, I think things will subside and that is why we’re taking a little bit of a break. And especially because we’re seeing a lot of newbies getting into real estate and investments and apartments and like the other day I saw like a deal going up for like 120,000 a unit.

And the pitch deck was saying, they’re going to value adding it to you. It’s 200,000. I’m like, dude, that’s not going to happen. And that’s the kind of the stuff that’s happening all the time makes me think, maybe the king of the door has closed, or it’s, just operate what we got.

But then again, like you always got to do something, I think that’s the mistake is to, yeah. Especially coming from new investors who haven’t done Jack or at any point is they’re always looking for that excuse not to do anything. And I think that’s the one thing that inflation has really illustrated to a lot of folks, myself included, that you just can’t stick your money in the bank account, doing nothing.

Now the next level up is putting it into an infinite banking plan, making 5% tax-free. I think that’s better than nothing. And I think as somebody who’s pretty conservative, I think that’s the next great option. If you don’t know what infinite banking is, check out our free. I think it’s like a three hour eCourse at simplepassivecashflow.com/banking. you got to sign up to get access to that e-course but there’s a little info page for you guys to read up on the concept, but, enjoy the show guys. And if you guys have any other questions, please submit it over and we’ll see you next time.

Today, we have the author of Enriched, Todd Miller. We’ll be talking about various topics surrounding wealth, time, money and meaning, but Todd, why don’t you quickly go over your step journey towards financial independence from the beginning.

Hi Lane, sure. Happy to do that. And it’s really a pleasure for me. Be a part of this community and to be here with you this afternoon, by professional background, I am an entertainment executive. I’ve worked for an, in Hollywood for half of my life and my career rocked and I actually did not realize the importance of creating and accelerating financial security.

Until years into the career. When I had successfully reached the proverbial corner office and was miserable and I was handicapped by my financial insecurity. And that’s when I recognized that financial security is foundational and most people think of it as the end point. The ultimate prize for a long and perhaps even punishing me professional path.

And to me, it’s the starting point. And the sooner a professional can accelerate financial security, the more and the quicker and better that one can scaffold a life of meaning and importance and relevance and enrichment, which is ultimately where everyone wants to be. I retired about two years ago and don’t look back.

What is it that you can look back on that kind of pushed you over the edge and pissed you off? Or what was that thing? People always have that thing that they could point to. I think we have to back up and I’ve been obsessed with the work-life equation and how to maximize that equation, really for twenty-five decades.

And I would say that my whole journey with optimizing work in life, that began in my final semester at Columbia business school, when I was flabbergasted, how many of my brilliant classmates seem to be making an incredibly foolish and short-term career decisions based on us, based on the size of a signing bonus.

In other words, choosing company A over company B because company A gives a couple more thousand dollars upfront and that is really puzzling. No, that was widespread behavior at the time. And I thought, can we be bought so easily? Am I missing something in this? And the deeper I progressed in my career with a Hollywood studio, I guess I was fortunate to have a series of events which caused me to be hyper aggressive about getting work and life to work together.

And I quickly figured out the work-life balance thing and my life rocked, my career rocked and everything was going well until my priorities changed. My company also changed. And, I just found that the higher I climbed on the corporate ladder, just the more distant I felt from all the things that attracted me to the business and to the industry and to the role.

I guess for me, the pivotal moment was I was hoping to get fired and to receive a parachute. Yeah. So where did this idea come from? Why did you want to get fired? I was miserable and I no longer enjoyed my work. But yet I was addicted to the paycheck. What was worse? The people or the job work that you did?

I would say it was the culture because of the politics. What exactly? Trying to peel back the onion here, trying to get some emotion and get, not get high level, like where we are. Look the higher you go, really the less exposed you are to the actual business. And I found that I was spending most of my day, every day, on a lot of nonsense internal issues.

Most of it was political issues. Just as such as territorial control. Hey, this is my responsibility, or, differently in Hollywood, there are many ambitious executives, everyone’s trying to grab a piece of the pie from someone else and jump over other people.

And just a lot of the days were spent in corporate in basically survival mode, trying to take down someone else, and just really just trying to score points internally, as opposed to actually advancing the business and looking at the situation that I am describing in a particular Hollywood context.

It’s relatable to many industries in a corporate America, whether it’s Silicon valley or wall street, that at some point in particularly at more senior positions, the political dynamics tend to outweigh and overshadow the real business of the business, and that was what I found myself in, and I found that the company made decisions, not based on meritocracy, but really, because someone shine someone’s shoes.

And I was just, I became disillusioned with that situation, and that led. Increasingly that just led to a disconnect between what I wanted, and the reality of this job, but I couldn’t walk away from the job because I’ve benefited from a very hype high paycheck. And I have mouths to feed, and a family to support, and so the reality of having to grin and bear it, so to speak, that really. It really tended to overshadow everything else. And as much as I had worked on a work-life balance, because I did not have this financial security, I was not in a happy place. And so I was expecting, hoping to be fired and looking forward to the occasion.

A kid looks forward to Christmas. And rather than that, it was business as usual and more of the same, and I And I remember this one, it never rains in Southern California, but on this particular day in Los Angeles, it was a downpour. And I left the studio around 6:00 PM. I got in my car, I’m driving to my hotel.

I called my father and said, I didn’t get fired. And I was just, explosive and that’s really, it’s a very mentally unhealthy place and unhappy place to be in. And after I basically extricate myself from that very toxic situation, I then made accelerating financial security a primary priority.

And I was able to fast track that in a relatively short amount of time, and that changes everything, and so the point I’m trying to make to you and to this audience is that often many professionals subscribe. To the trappings of professionals. So success and career aligning, and it’s often that we don’t recognize the importance of creating financial security as quickly as possible because there’s this solution sometimes correctly, sometimes fall asleep.

That one has the security of a great and well Payne. But tying financial security to job security is a very risky business and particularly so for very successful professionals. And so the biggest insight that I’ve learned is to always, not depend upon, any other organizations.

For my livelihood. So you didn’t get fired. So what kind of transpired, cause eventually you’ve mentioned, you got to FII about five years. How did you make Pasadena. Yeah. So I took, it took several weeks after that, that horrible experience in Los Angeles for me to extricate myself from the company, but I did, I went on sabbatical which was just an incredible experience, and basically reset myself, reset my.

My career, my aspirations, joined another company as chief executive and began a second professional life in a business, in an industry that I truly enjoyed at the time. And so as soon as I was on that second career, I then prioritized building financial security through real estate.

And while all this was transpiring, I was living and working in Hong Kong. Yet I managed to build, house by house, a modest single family, real estate portfolio. In the United States. And, so I took many trips to the U S. Some of these were family trips and many people went to Disneyland while the Millers went to California and we went house hunting.

We left with the souvenir to have a house under contract on business trips to Los Angeles. I wouldn’t leave LA until. Had a house under contract. And so trip by trip year by year, I was able to establish this portfolio of single family homes that really created the foundation for me to achieve FYI and to no longer have to work, in order to.

To support my family, I got more sophisticated as I got along, but certainly the pivotal point was building that property port portfolio by remote control from Hong Kong. How many assets, average rents, average or just price a little bit. Did you do any rehab or anything? No.

So I very much focus on, oh, w let me take a step back. I always believe in focusing on where you want to end up and then working back to the. And generally whether it’s a financial goal, whether it’s a personal goal or a career goal, I think that’s a good process to adapt. And so my objective in building this property portfolio is to build layers and layers of passive cash.

And I w I put a premium on passivity, which means that I want this experience to be as hassle free as possible. And as a result of that, I focused on the ideal demographic that I wanted to rent to. And then I asked myself, what kind of property would appeal to that demographic. And as a result of that thought process, I focus on middle to upper middle class, single family homes.

And, depending upon where you are in the country, that means different things in different places. But I started originally in Southern California and, and I completely outsource everything with respect to the actual running of these homes. Again, my goal is high pacivity and Melissa and over the rents being brought down average.

Yeah. So starting in Southern California, the purchase prices range because I did this over a number of years from $330,000. Ultimately to about $430,000 and the rents associated with that, range from 2200 or so to to currently about 2,600. And so it’s, and I have a number of properties that fall within that range in terms of the cash on cash yield. It has been less spectacular than other parts of the country where I now invest.

But the appreciation on those homes in California, and particularly at the timing of the. That’s been quite good. And so once I purchased a number of homes in California I felt that doing that, building that portfolio in California had run its course. And so I then started building a secondary portfolio in Kentucky.

How many houses did you get into California before you moved? So I kept at four. And then and right now they’re doing 80% on the value debt. No I am, I have a toxic relationship to debt. And we can talk about that, but I am all like, Okay. So you’re a hundred percent cash in those types of things.

Yeah, let’s talk about it. Most times out, I like to use as much debt as I can, as much as I cash it all. But yeah, walk me through the thought process. Wouldn’t you be able to take, you had maybe what, a $400,000 five policies. How much equity was there two mil to two in California?

Yeah. So the whole goal, again, you have to think about what the outcome is, what the desired outcome is. And for me, it was important to build financially. And so let’s talk about what that means. Most people think that financial security is a number, a goal, but actually financial security is an emotional state. It’s how you think about money. And for me,

I do not want to have it. Or have any anxieties about, about owing something to a third party. And so part of what enables me to sleep well at night is to know that I have zero down. And that helps me sleep well at night. And that is a personal choice, but I went to business school and I completely understand the financial benefits of leverage, which is why I outsource my leverage.

So I try to harness the benefits of leverage without that being in my book. And so in addition to these single family homes, I also invest in private placements, both equity and debt, as well as some closed end funds and all three of those financial categories, they utilize that. And if I’m doing a PE investment, I would much rather prefer.

That the sponsor gets institutional rates and gets the benefit of debt and have that debt on their books rather than on my books. And so through these private equity, private debt and closed in fund investments, I outsource this level. And so that’s my way of trying to harness some of the benefits of leverage without compromising, ultimately my peace of mind, which ultimately affects my financial security.

Yeah. And I think that’s exactly what a lot of our community does. Most of our credit investors are getting rid of their rental properties, going into private placements, that syndication circles, the key principle. Name what are your thoughts on, another reason why they do that, so they don’t get dead in their own name, but it’s also the liability, because right now, even if it’s an LLC you’re pro everybody knows right where to see you. They can look it up and they know exactly where your equity is and how much you have. What is your thought process on that side? Yeah. Yeah. And so it’s important to basically. Wrap these assets into a couple of protective layers.

And so one would be some kind of corporate entity, and legally that’s hard to puncture, but not impossible. And then on top of that to get some umbrella insurance, at a pretty high level. And so those are the two ways that I’ve been able to do that, to try to insulate myself. Again, going back to that demographic point that I was making, because I focus on middle to upper middle class homes.

That also attracts a certain kind of demographic that hopefully mitigates some potential litigation risk because I would respectfully disagree. That’s why we invest in workforce health. These, it’s not in the state of California, which is the litigation capital of the country, but also a lot of our tenants, they just are not, they just can’t muster a lawsuit.

And a lot of times the lawsuit it’s, whoever can power it and pay most for low legal fees. Yeah. Yeah. So I look, I have great tenants. I’m a good landlord. Most of my tenants have been with me for very long stretches of time. All of my properties are very professionally managed.

The management companies proactively make sure that the properties are in good order, and I invest in the property. And ultimately, and I believe that if you try to conduct yourself in the right way, ultimately that’s the best that you can do. Yeah, no I would agree with that.

But the rental property is just one small part of the portfolio. You mentioned private placements, to what would you say would be the asset allocation X between the direct owners. Too. I like your terminology, the outsource kind of debt or the outsource asset management.

I, so I truly put a premium on passivity and I belong. I believe in relying on professionals who have much more specialized expertise than I have. Whether that be tax professionals or whether that be property management professionals, insurance specialists. And I essentially, after I started building these single families and after massing about a dozen single family homes, I basically hit a threshold where I said, No.

W when I ask myself, do I want to make this bigger? And I could very much make it bigger and I can double the number of doors, direct doors that I have, but I don’t want to create another job. I left a very high paying job. And so Y.

I sold them off. Yeah. Let’s hear it. Why create that? But having said that, I, I like, and maybe it’s my Asian background, where people really. Prize and respect, physical real estate. That’s why I keep the single family homes as part of the portfolio. And I would say that part of the portfolio in terms of my income, because that’s really how I measure things accounts for about 40% of my.

But on top of that, I then layer it with private equity, private debt. And I have a very strong position in fonts, and so overall about two thirds of my portfolio is positioned and weighted toward real estate. But I also do invest in them primarily. Muni bond funds. And that is for liquidity and for diversification, just because so much of my portfolio is otherwise committed through long-term real estate investments, whether that’s private placement or during.

Okay. So the rental properties are just a bit of a tip of the iceberg in a way. I’m assuming, do you ever look to sell any of them or prune the prune, that part of the portfolio a little bit? I do. In fact, I’m in the process of doing, or at least staging one cell now. I am pruning the California properties.

For some of the reasons that you’ve mentioned before, the properties have appreciated extremely well, but they’re just not cash flowing relative to other productive uses for. For that value, like that is contained. And you’ve got a portfolio and Kentucky, as you mentioned, are you thinking about making it more into California properties or different geographic locations?

So I very much believe that one should try to have a little bit of specialization, early on. When I was building my portfolio, I actually thought I’d buy a place in LA. I’ll buy a place in Seattle. And basically, every market of the day, I thought, let me buy a place.

But I realized that’s crazy and for a small retail individual investor, it just doesn’t make sense. I very much believe in creating some modest economies of scale, which is why for direct investments, I focused on those two geographies and on nurturing an ecosystem of trusted experts.

That I can completely lie on and rely on to manage them. And so I am in the process of, and this is a multi-year process of exiting my California exposures. And, I don’t think I’m going to add any more. To Kentucky, because, currently in terms of a diverse diversification perspective, I’m concerned about concentration risk.

And so I’m trying to figure it out. As we speak, what to do, where to basically direct that money. And I haven’t conclusively landed on, on, on that last year. And by remote control because I was locked down in Thailand, I did a 10 31 from California and I bought sight-unseen three investment homes and.

And I did that because I had this reliable network of professionals who I’ve worked with now for a number of years, that they could be the boots on the ground. And that enabled me to do that 10 31 and basically convert one California home into three Kentucky properties, and that’s the way the math works.

So still on the fence of, you’re going to sell some of the California rentals one by one slowly, but you haven’t decided yet if it’s going to go back into more California properties or a different tertiary market or secondary, it definitely will not be recycled into California.

And so ultimately I will Lexic California, any couple markets, you’ve thought. Yeah. So I’m looking at Birmingham. I’m actually looking at DC, which is where I am at the moment. But I am also looking at DSTs at Delaware statute, statutory trust as well as opportunity zones as an alternative to buying direct properties.

And so I am in a diligence process on all those options. Yeah. So this is for folks listening, like DC is definitely a primary market like California, we’re very low rent to value ratios, lower cap rates. For Todd, this is a very different situation, right? His end game scenario is not an immediate growth.

But that’s why you invest for low caps for security and capital preservation in those types of markets. I would say today, if you were going to do that in DC and buy these higher end homes, it wouldn’t be a bad idea to do a cost SEG before 2022, before long, lock in those losses, just bank it on an 82 84 form for now.

But I know it seems like you’re still undecided, whether they’re going to go, the lower Capri type of market or Birmingham, I am. And I have a few months where I have a runway for me to figure this out. Yeah. I’ve got a couple of properties in Birmingham. I’m sure. Love to unload if you’d like to buy.

Yeah. So Birmingham was one of the markets where I originally bought rental properties, but I’m on private placements, syndications that mostly operate at this point. Great. These are like the conversations pruning our portfolios that want to be safe, siphoning it around a little bit, never staying stagnant, but never making wholesale changes.

I, one year I sold two properties in Seattle, bought Knight out of state. That’s a little, wholesale change right there in line change if you hockey fans out there. But these are the, what Todd is doing is very. Prudent and if there are ways to do it right, it’s very good, it’s very incremental.

It’s cautious, it’s defensive, but it works. And again, I think every investor has to ask, do I want to build a business or do I want to build a financial sector? And those are two different things. And depending upon how you answer that will then dictate how you scale and structure your investments.

So again, Todd is the author of Enrich. What are like a couple of big takeaways from the book, just to give people a little teaser to talk. Sure. So Enrich is about creating wealth in time, money and meaning, and because I’ve been obsessed with this work-life equation for a quarter century through my research, I identified three very common and pressing goals, which tend to.

Just Sapp, the life out of life for professionals. And these three core challenges are financial insecurity, time, poverty, and a disconnect in priorities. And so we’ve discussed financial insecurity and how to pay a paycheck. And job security does not create financial security in terms of time poverty. This is a pervasive problem among professionals Ernst and young says that insufficient time accounts for four of the five biggest hurdles that professionals face.

And so the third core challenge is this perpetual disconnect between how professionals wish that they could spend their day versus how they actually spend their day. And there’s this demoralizing gap between what we wish that we could be doing. And you know how we actually live our days. And that explains the deep funk that I was in when I was working at that Hollywood studio.

And I was demoralized when I thought it’s fire, because just how I was spending my days didn’t relate to what was important to me at that time. And so with those three core challenges, what I encouraged. Readers of this book want to create optionality. So that work becomes a choice and not an obligation and to take control of their lives through intentionality, which is, can you give an example?

Of intentionality, right? Yes it’s really about being deliberate and purposeful in how you spend your time. And so a great example is, and what I encourage every listener of this podcast to do is to wake up the most. And ask yourself what will make today a great day, not a good day, not another Wednesday day, but what will make today a great day.

And to consider that question on our personal dimension, on a professional dimension and on a financial domain. And then with deliberateness to go about and to accomplish whatever it is that you identified that will make this day a great day. That’s what it means to live intentionally. And so goals and goal setting and goal achievement.

They all keep, they actually occupy about a third of. And I dive deeply into the science of goal setting and goal achievement, because it’s so important, but it’s especially important at this moment in time to take control, because one of the biggest facets of this pandemic has been a perceived loss of control.

Where events and situations just tend to undermine and supersede everything. And at an individual level, particularly in lockdown, we have a little control. And so at a time when the world seems out of control, it’s mighty important to take control. Where we can in our lives. And that is the power of intentionality.

So maybe just give us some examples of you shoot, you’ve seen people make, because I think people understand so liberally that yeah, I got a great life. How I want it today. This is the ideal. But the problem I think people run into is myself included. At some point we’re just running on autopilot and we just lack the imagination to know what those things are, right?

Like what, there’s a governor on a lot of us. Yes. I call that the default setting and most of us are not aware of that default setting. It sets. Usually around college time when we’re in college and when we’re in college, we’re directed toward careers. And once we start climbing the ladder, we then spend much effort climbing as fast and as high as we can.

Without ever surveying whether or not the ladder leans against the right wall. And part of this default setting is that we implicitly subscribe to a 40 year ultra marathon. To create some degree of financial incision of financial freedom. In other words, we embarked upon our careers in our twenties and we hope to exit if we’re lucky sometime in our sixties.

And then we think we’ll be able to live the life that we wish we could have been living all along. How crazy is that? But that is the default setting for which most people unconsciously operate. And so the first step is to recognize the default setting and to recognize that often the juice doesn’t justify the squeeze and then to reject.

That default setting, but to be able to reject the default city, you’d need to have something aspiring, something inspirational to work too. And that’s where the notion of life planning and goal setting and goal achievement come into play. Let me give you a great example. So I was in my mid twenties, a few years out of business school.

My life was rocking. My career was rocking. I had just paid off all my student loans and I had just spent this amazing three week holiday in Africa with my family. And life, Life was almost perfect. And I was headed back home after this amazing vacation with my family and I was in Dubai at three o’clock in the morning about to board a flight back to the real world.

And I asked myself though, do I just go back to more of the same. Or do I go back with some intention and some purpose because I just felt directionless. And so on a scratch piece of paper on the floor of the airport, I scribbled out very long-term aspirations that I had. And once I got back into the office, a few days later, I really looked at that scratch piece of paper, made a couple edits and those aspirations became the first iteration of a life plan.

And. I’ve enlarged and developed this life planning system over a number of years, but it’s now become my central operating system and the whole process about making the time to understand what you really value. To understand what your priorities are and then to identify what makes an enriched and meaningful life for you just going through that thought process and articulating a few key aspirations that in itself is a very powerful process.

And by the notion of. Laying out what the biggest priorities are in life and then directing your focus toward those priorities. That really is the essence of living intentionally and creating this life of time, money, and meaning, which we all aspire to. What observation there you got out of your noble setting, right?

On occasion, you’re able to get out of your default setting. God gave you that traction to do that little exercise. Yes. But I think more than more importantly until that moment, my goals had been, career. Get rid of all my student debt, and I had kinda, and those were modest goals, but I had knocked them all off.

And without some team larger for me to work toward too, it was that feeling of directionless, NUS. And yes, getting out of my comfort zone was a great catalyst to recognize. But, I think that we all need to know what we’re working toward because to paraphrase Yogi Berra, if you don’t know where you’re going, you just might not get there with the Trisha CAC. Jessica the cat said something similar, right? You don’t know where you’re going. I can’t tell you where you go, where you are. Something like that. Cool. Yeah, folks want to check out the book. Enrich is the title by Todd Miller, website enrich one-on-one dot com. But any parting words, thought, look I think that, we as investors, we as a nation have been through a traumatic experience over the past year and a half.

And the partying concept that I would like to leave for your audience is do we return to normal or do we aspire to something richer and better? And I would encourage everybody to begin to incorporate the practice of intentionality in their daily lives so that we can go as individuals and as a community to a richer and better normal.

Well said yeah. I think most people listening, you guys have already realized that there’s something might be better out there. If not, you wouldn’t have Googled simple passive cashflow, you and haven’t downloaded a podcast. So I think a lot of you guys are heading in the right direction, but keep going on that momentum and pick up Todd’s book Enrich.

Again, like Todd says, you have to find something that pulls you, but you gotta figure out what the heck that is. Do the exercises. I also have you guys go to simplepassivecashflow.com/goals. There’s a little worksheet there that you guys can download. And I think we did this in 2019 and 2020.

I did a video tutorial. You guys can pull that on the website. I will also say that in the book that I include 11 exercises that relate to different aspects of many of the themes that we have discussed, but that really this book Enrich, goal setting goal achieved. Is such an important process to actually fulfill and create the life that we all aspire to.

Everybody. Thanks for listening guys. You only take this stuff so far on podcasts and books. Join the community. Simplepassivecashflow.com/club. See you guys out in real life. One of these days. And if you haven’t yet connected with me, shoot me an email at Lane@simplepassivecashflow.com. Book your onboarding call, and we’ll see you guys next week.

Why You Need to Live Your Life: Lessons From People on Their Deathbed

https://youtu.be/JrO9OEIAwkg

On today’s podcast. We’ll be talking about being on your deathbed. What’s going to happen when you’re gone. maybe get you to think a little bit differently. Now I’m talking to the investor the other day and I corrected them because their whole thinking about investing is buy low, sell high and sure. I guess that’s what most people think of investing in, don’t take more of an active approach or, maybe the 80-20 or the 99% of people out there that buy low sell high.

And this is my big thing. Why I don’t really particularly invest in things like crypto. So Charlie Munger, who is Warren Buffett’s buddy at Berkshire Hathaway, went on a little rant, said, and I’ll say it I’ll quote him, “people who want to get rich quick for doing very little for civilization, investing crypto.”

And I think this is why I keep coming back to value- add real estate, when you’re value adding, it really doesn’t matter when you’re buying a market down, market sideways market. If you have the ability to bump the rents up or lower expenses to increase net operating. You’re creating value and what the real value is, you’re making better living conditions for the tenants who in turn pay more rents, and then you can sell it for a higher price.

And, the trouble with real estate takes a while to get that built up equity, that routine equity out. But it’s one of those business plans that is tried and true. So I was gone talking to this investor and they were talking about their own personal business and they were saying like, maybe I should just exit this thing and take the money and go into crypto.

And kinda my thought was, this is a multi-generational business. And if you’ve taken that business as far as you can, and you can’t value adding in any more to improve the business system or as business operators know where it is, creating the wheel is the cycle of this business money making machine. If you can’t make it better, then maybe you should just go and do something that the average Joe does out there, which is invest in crypto.

And, if you’re somebody who can add value to the system, whether it’s real estate, which is, improving units, making better living conditions for tenants, or you have an operational business where you can, I don’t know, just, thinking of ways, find out, find a better vendor supplier, making management improvement within your staff, things to make it leaner or improve the bottom line by improving income sources of your value adding that business or in the business world, that’s the Bita, as opposed to the operating real estate role. But no real estate is essentially a business. I think it’s one of the easier businesses to run because it’s backed by a hard asset.

Yeah, just put that thought out there. I think the thing with simple passive cashflow it’s coming on to, what’s the purpose of this and that kind of working with a life coach and the mission is simple passive cashflow is to get investors, out of the rat race, introduce these new ideas so they can change lives.

One example would be, like implementing a simple strategy, like real estate professional status and your taxes. Now one spouse can stay at home, check that box and their taxes, and maybe they net, or at the end of the day, because they’re using their passive losses to offset the ordinary income of course consult your tax attorney and all this type of stuff.

And we’ve got a lot of content surrounding taxes at simplepassivecashflow.com/tax. Just to prepare you for today’s broadcast, maybe check out the info page at simplepassivecashflow.com/legacy. To start thinking about, how is this, what are you building towards? You want to invest in things that do value add, overall, why do you have all this money for, I talked to a lot of people that are five, $10 million net worth, and they’re living with a scarcity mindset.

And I talked to some people that make $150,000 and their net worth is shy under a million. And they have very abundant mindsets. I’m just in the lucky position, because I still do these free intro calls, if you guys want to get signed up for the club it’s simplepassivecashflow.com/club it’s my way of seeing where out there and if that’s, to me, as my value adds to the world, I joke around with the staff and I tell them, Hey, I want to have two calls with people everyday. And obviously I want to have good calls with people, not people that just randomly sign up at which we typically filter. But I want to talk to people who’ve been listening to the podcast, thinking about this stuff.

Everything makes sense, right? Passive losses, taking money out your 401k, possibly not buying a house to live in, taking a heloc or at the very least with some of the built up equity that you’ve been having the last few years. And taking that money and going on the offense as opposed, see your money just getting killed by inflation at five, 10%, whatever it is today. you’re going on the offense and creating cash flow and taking part of value, add projects. And it all makes sense, but that’s the role I play as, we talk you through it, we educate you and I think that’s my overall value add to the world as opposed to what we do in business and real estate, which value adding properties.

But to me, my value add is if I can have a 10- 15 minute conversation, it pushes them over the edge. And so hopefully you guys go out there, you can change your own lives and maybe make the world a little bit better place to live in. I think that’s the big takeaway, always try and make the world a little bit better place than you found it.

Hey, simple passive cashflow listeners. We’re not going to talk too much about investing, taxes, legal stuff, infinite banking, which by the way, if you want to learn more, but if you want to check out the free eCourse, you can go to that at simplepassivecashflow.com/banking. But today we take a break from the hard investing stuff and talk a little bit more stuff that is enriching for the soul.

After all, it’s not that hard to get financially free. That’s why we call it simple passive cashflow for a reason. Today we have Jean Key and Daley who is author of the Reflections of a Single Soul. She used to work as a hospice nurse, and she’s going to talk about a lot of the takeaways she has gained from working with people and that lasts a few percent of their life.

For those who don’t know what hospice is. Part where you go, where you’re probably not going to make it back around. So a lot of reflection comes around. And we’ve talked about near-death experiences from a couple of guests prior. This kind of goes along the same line if it’s not your thing.

Cool. See you guys next week, but for some of you guys who are definitely on the road to financial freedom like this slowing down, it’s not all about the hustle bustle. I think you guys will find this podcast enjoyable, but thanks for jumping on Jean. Thank you for inviting me. Yeah. So take us through your role as a hospice nurse, and let’s get going through some of the takeaways that you’ve gleaned from that seemingly unenviable job.

For me, Lane being a hospice nurse was really one of the biggest highlights of my career. I’m a holistic educator and speaker, counselor and therapist. I started my nursing career in 1965. And there were no hospice facilities at all. In fact that word wasn’t even utilized at that time. We were not allowed then to even tell people that they were close to death. I remember days in my early career, we were not allowed to tell people their blood pressure or their temperature. We had to keep imagining us leading them through whatever they were going through.

And I always felt that people should be part of the journey, part of their journey of being ill becoming well or not becoming well. I felt very strongly that I wanted to help people be able to talk about their worries and struggles and fears and come to a place of comfort and peace and acceptance, particularly about their dying process.

And like I said, there were no hospice facilities at the time. So I was very happy to find an organization in Pennsylvania that employed nurses to go into people’s homes and really connect with the patient and the family and the entire situation.

And while people say to me how could you ever be a hospice nurse? That’s so hard. Yes. It was very difficult to see people struggle and go through a dying process and see the family being in such grief. However, I believed that I could provide care for them. That was distinctly different from what was being provided in the hospital. And to help them to come to peace with that, to understand more about themselves and their journey through the dying process and into depth and beyond.

You were working with more folks on the other side of the age range, right? Things like kids, right? They’re not as experienced. They don’t have that perspective as middle aged, older adults. But how did they take it? Are they aware of their fate? They are more aware. I have three stories of hospice in my book that are very transformational.

They are wonderful stories of my three most memorable patients. One of whom is a little girl. She was nine years old. And that story is full of my amazement at her understanding of what was happening to her. She was told she had a brain tumor and she was told that she would not survive. But there were certain things that happened that she survived a longer time than anybody expected for particular reasons. And it’s just a wonderful story. I learned from her.

And children are very perceptive. They know when you’re telling them that. And when she, or any child asked me, am I dying? I looked at that and I would say to them what do you think about that? How do you feel? Do you believe that this is happening to you rather than give them a straight answer?

I wanted to see what they knew, what they understood and it was, it ended up being wonderful conversations. Except for the babies that couldn’t really talk. But they were the children who could speak even the babies in their eyes. I could see there was an enlightenment about.

So it was very rewarding. I cried along with families when these patients died. Yeah, I felt so good. And so did the families that we could all learn from these experiences and help the patient and the family to become much more comfortable, much more understanding, much more hopeful, much more at peace.

So let’s unpack that one story, right? The older kids are a little bit more aware of how the world works. Because they don’t really think much more differently than us actually all yet, they are a lot more transparent, authentic. One would think. Do they go through stages of anger, despair, regret?

Is there such a stage that formerly you see or they teach you or what actually happened? My experience was that by the time hospice was called. These children and I’m thinking of the one in particular, whose name is Diane. These children already have faced in themselves that they are not going to survive this because of nurses coming into their home to help them to become more comfortable.

So the conversation with those children was more like I’m afraid. Can you tell me how not to be afraid? That’s what they would say to me. I’m afraid. I don’t want to leave my parents for example. I’m afraid that they won’t be able to get through when I’m not listening. And so listening to them and their worries and their fears, I found that they had a curiosity about what was happening to them.

And they were not nearly as afraid as some people around them were. And when they expressed fear, they wanted to know what would happen after they died with their parents, be okay with their siblings, be okay, where would they experience after they left this? Or, and they had much more of an understanding just intuitively about the spirit of themselves going on this.

It was more of a as more, not really, he was more of us. Sympathetic things to other people, then they’re more concerned with them. What would happen with them personally then? Yes. Yes. Would you say that maybe you haven’t worked with the older folks, but formally is that kind of the traditionally the case with older people, I’ve worked a lot with older people.

We didn’t have any. That many children in, at that time, this was back in the 1980s. We didn’t have that many children who were given the opportunity to have hospice care because doctors were still very new at all this. They, they just, they mostly wanted to keep believing that this child was going to live through whatever they were dealing with.

And there are still people that believe. That you don’t call hospice until the last minute. And that is somewhat unfortunate because hospice nursing takes care of patients, people, and their families in a way that a hospital nurse can’t possibly do all that. There were special techniques and special pain relievers and special comfort devices and special comfort positions that we all learned could be so helpful to the patient in their own home.

And of course now there are hospice facilities, the older people that I’ve dealt with, many of them were more. Because they felt some of the fears were that they didn’t want to leave things undone. They regretted some things that they did or they regretted things they didn’t do. They worried about that, and they were angry.

There are two stories in my book where of the three stories, two were adults. Both a woman and a man who I write about were very angry, very angry. They actually threw me out. When I came in as a hospice nurse, I didn’t need this. I’m just gonna lay here and die. And the transformations over time in those people were just incredibly amazing.

And I had to write about them. What did they go to or what do they go from anchor? I’m sorry. Where did they transform? Both of them transformed into the first thing was pain relief. So I knew that in order to help them, they had to learn to trust me. So when I promised pain relief from that and got them a little bit, more comfortable than I would be able to.

Instill confidence in them, in me and trust in me as I shared ways that they could spend whatever time they had left on earth nipping. So living in a way that they didn’t even believe was possible. And in the one story this gentleman I, after he trusted me and he, I started to talk to him about this.

What he used to do in his life, what were his loves? What were his hobbies? And he actually ended up in the story to live one more time, doing what he absolutely loved to do with force health. And that just brought him such peace and such joy. It’s still, all these years later, it gets the chills to think about him.

It’s like that there again, right in his home. And if it’s over a period of months the doctors were amazed at his transformation. We talked about his fears, we talked about his regrets and his anger, that this was not at all what he planned, excuse me. He had planned a certain, he was used to a certain protocol.

He was used to a certain team. He was saving all the money for this. To buy a trailer and drive cross country with his wife. And none of that was able to happen now when he was diagnosed with terminal cancer. And so finding out about him, helping him to absolutely Reid himself of some feelings that he was holding onto holding back, I accepted all of that.

All of a sudden. All of his resentments, just giving him space and permission to talk about all of that was helpful to him. And then there, it led to us being able to help him live his last dream, which was beautiful. So let’s unpack the regrets. Cause I think everybody’s has heard people’s biggest thing on their deathbed is.

I regret it. I like to hear maybe a story or two on this, but, I think a lot of sales people would like to use this or regret that if you don’t buy the $40,000 program, you always regret doing it. I think the way I’d like to angle it from our kind of community. A lot of us are hardworking.

We spend time on growing business, investing, and being frugal. But regret is not like there’s a reason why you do it. There’s a reason why you can’t live it up today, but you’re seeing it. What are some examples of just to paint a picture for people, real life examples.

I did have a client one time. Actually I had his wife and this was when I was doing my holistic counseling full time. And because I do a lot of things in my holistic work. And there was a gentleman who was always worried about not having enough money, although he had plenty of money and because he was so focused on making this money and keeping this money and worrying about not having enough.

Making more and he would watch the ticker tape across his television, go by with all the numbers of what was happening in the stock market that he was actually missing out on a lot of this life that would have brought him joy. So one of the things that I felt was important for him to know, and for anyone to know somebody, myself, Is that, although that may be the focus, it’s like time and money, freedom.

So when you have money that frees up your time to things, and it’s important to do what you love, do what you love. And as you do what you love, you’re opening up your heart and your soul and your spirit to the abundance that is in the universe as. To live life more fully and because people at the end of their life regret in my experience, regret not doing things they would love to have done on this vacation or spent more time with their grandchildren or spent more time doing simplistic things with their spouse.

That even though they had money, which is important in this world, there’s another part of them, the spiritual part of them, the animation of them through this life, where they need to balance out their life with also what they would love to do and do it. So that was most of the regrets that people had, any changes that, you’ve any personal changes that you’ve done, seeing this transpire multiple times, you’ve changed, made a change in your life personally.

Yes, I have. First of all, I feel whatever worries that I had, my life changed dramatically. I was out on my own. Doing something that nobody in my family believed in at the time I was supposed to be the leader. I was the oldest of six children. I was supposed to be the leader of a convention.

And I instead knew as a young nurse, that there was more, there was just more to life than the rituals that I had grown up with, worrying about money and worrying about time and that I had to get things done. I always had lists that I’d stay up until one o’clock in the morning and cross off these lists of things to do.

And so when I made this transition in. Following my heart and my soul and what was leading me to find out more and more about life and the purpose. Why was I actually here? And I learned meditation and I learned how to open myself up to knowing that there are many ways of being who you are, regardless of whether people agree with you or not, or whether people understand or not.

And I took that. It was a series of events that happened to me, much of which was illness. Every time I didn’t follow my path, that was inside of me to follow, I would become sick and I started paying attention to that. And so the more I followed it, my own path and my own inspirations that I felt were very divinely sourced.

I would have success and I would be grateful for every single thing in my life. That’s a big part of moving through a light to be grateful for everything. And I was focusing more on what I had and what I could contribute. That’s another big piece of it to contribute to others, to give up yourself honestly, and sincerely and.

I’ve overcome many things. And I’ve always called upon the spiritual soul part of me to know like many times I was lost, I was alone. I was lost. I was in places that could have been very dangerous for me. And I just utilized all my resources that I had learned to know and trust that I was safe and I got through.

I’ve had many experiences that would be considered metaphysical beyond the physical angelic types of experiences and my own near death experience, where my fear of anything has really diminished. And I feel supported. I feel supported by the power in the universe that breeds us. I feel as though When I determine what it is that is right for me and best for me, the ways and means of yours, it just does.

And it’s that I feel much more at peace with myself now at this age. Not afraid of dying. I really feel like I should live till I’m 150 at least to do everything I want to do still. So what does your somebody say life is about balancing, doing what you want, but also achieving what you want to, how do you, what is your best advice for balancing those? My best advice is to look at what I feel are the four quadrants of your life. So there’s health and wellbeing as one quadrant. There’s another quadrant, love and relationships. There’s a third quadrant vocation. What are you actually doing to contribute, to work, to share?

And then there’s the time and money freedom. So I look at those four quadrants of my life and I encourage anyone else to look at support brought buttons and their life. And what are your discontents in each of those quadrants? And what are your longings in each of those quadrants? And how can you think about how you would love that quadrant or several quadrants to look in your life and start taking action?

Toward that. So for example, I would, I was afraid when I wrote my book, I was afraid that it’s making my soul so vulnerable and I had fears who would want to buy this book and I’ve got nothing but positive feedback, which showed me that I did the right thing for me. And so that has brought me some that.

I’m following. And I encourage people to really look at those quadrants of their life, to me, time and money, freedom go together. Because when I have the freedom to do what I appear to do and love to do the money will come. And then that frees me up to Look for people who I can depend on and rely on to take care of the money that I’ve invested.

Even if I think I don’t have the money for something that I want to pursue. If it’s really in my heart and my soul to pursue it, I know I will be able to do it. And I believe in trust because that’s the dream and I’m going to take action steps to make that dream come true. As long as I am serving.

And I am honest with myself and I am looking at the other quadrants in my life and where can I balance? We are really spiritual beings having a human experience. The human experience is temporary. And yet, we each have gifts. We each have gifts to give the world and you are giving a gift flame by helping people to know.

How to be successful in their money in time, freedom quadrant, and probably all the other projects as well. That’s why I want to hang out with rich people. No, I’m joking. That’s absurd. Okay. Chill out guys. This is a free podcast. Yeah, but yeah I think of it the same way, like the, I call it the stool. You said it in a different way. That’s a little bit different, but yeah. Physical fitness, money, fitness, spiritual, which I think maybe partly with vocation and then the last one is relationships.

Yeah. So the same thing, but I think yours was more. Vocational was giving back, right where it, in my opinion, like less people getting their own money and time straight in a way they can’t move on to the next quadrant. I just don’t. I haven’t, it’s very rare. I see that happen. People need to put their own oxygen mask on before they start given that’s right.

So you can’t give from an empty well, and that’s why self care and self nurturing. Is so important. I had to learn that because as a nurse, I was continually getting out to others as the oldest child at six, and my family was continuing giving out and I still do except now I had, I learned over many years.

I had to nurture and take care of myself so that I could keep full enough to give to other people. And that includes money. And that includes time. And that includes sharing and effort and it includes physical fitness and it includes enough rest and sleep. It includes all of those. Parts of ourselves that we can feel really great.

It’s important to feel great. And in order to do that, I believe that we need to really get honest with ourselves. Look within, listen to that still small voice within that will always lead and guide you in the right way. And then you pay attention to things that open up. I’ve had areas open up in my life that I never could have known were available to me.

Unless I followed that inner voice and that includes money. That includes time. That includes health. I had a reason for coming back from my very put down experience. I didn’t understand it at the time. It took 12 years for me to actually know what it was and I’ve lived well beyond that time now.

It’s just for me to share with others right now and tell them that, look at yourself as a very special human being. Each of us has talents and gifts, and each of us is unique in many ways. And so utilizing those talents and gifts and intelligence and. Resources are actually going to free you up from regrets at the end of this temporary life.

And you’re going to say, wow, I really did everything that I was here to do, everything that I knew to do, everything that I’ve beeped and doing and being so taking care of yourself in all ways is really important. I don’t have that problem. I take care of myself way too much. I think I do think that’s a big thing for a lot of people.

They kinda, they need to go for a massage to spend some money on themselves, have a day or half an hour, if that and then just to summarize too, you also mentioned earlier about the concept of not regret. And then you also mentioned. Earlier, stop worrying. What do people think about you?

What do you like at 14? Like I think most people in their fifties and sixties, they stopped having body issues. Self-esteem issues that worry other people think about nothing says you can’t get there in your twenties or thirties or teach your teens this now that’s I say it.

I have. I’m not saying I’m perfect. I still probably think what people think about me, but you just live a happier life and it just gives no, F’s what people think at some point, if they’re not people, aren’t your jam, then they don’t need to hang out with you. Financial freedom allows you to do what you want, which will be one with the tribe that you want.

That’s true. I think that the happiest people in my experience are the people that are loving what they do and they’re sharing and they’re giving and they’re receiving knowledge that’s important to receive from others. I feel like as long as we’re here alive, we can learn and I am way beyond my 60s.

And I feel very vital way beyond. And I feel like I have a lot to offer my grandchildren or all in various stages in college. And I feel when someone is truly happy with themselves and doing what they’re here to do, being there. And loving their life. It shows an energy around them.

The aura, it shows in their eyes, it shows in their smile. It shows in the way they treat themselves and others. We didn’t want to freak everybody out today. You get, make sure you guys pick up Jean’s book Jean Keegan, daily reflections of a seasoned soul in check that on Amazon. One quote that I heard recently that we’ve posted in the Facebook group that some people commented on was an image of Steve Jobs.

Kind of looks like Skeletor is like the last leg of his life. And here in the sky, it’s just he probably could afford whatever he imagined, but at the end of his life, unfortunately, his health wasn’t there. And so he wasn’t able to enjoy the fruits of a long life.

And then I don’t know who said this quote, but it stuck with me and that quote was. You know the difference between somebody with a thousand dreams and one, and only one dream is health. So we’re all gonna die. We’re all gonna get old, something’s going to happen. So we might as well just enjoy what we got now.

But life is more fun when you have money, in my opinion. So do what it takes to get financially free now. Any last parting words. I would like to say that each of us wrote this down. My next takeaway, I think right now, is that each of us is on a personal journey of the soul of three members, our true divine nature, and to live in this world from that authentic place of inherent power.

From the place of your authentic self, you can create positive healing, transformative, loving energies that benefit yourself and the world. The journey’s path is so worth every single step to discover your core, essence of truth and live from that place of fullness, peace, freedom, joy, and love. Love being the most powerful of all and enjoy your money.

To share as you wish with yourself, anyone else for Borealis one of these days, but yeah, if you guys like this kind of topic matter, check out simplepassivecashflow.com/happy. I wrote an article out there that I think you guys would also enjoy. And we will see you guys next time. Thank you very much.

How to Add “Play” in Your Life

https://youtu.be/0u0loel4Quw

Hey simple, passive cash flow listeners. We are taking a break from the regular hard investing tax, legal podcasts, topic matter and talking a little bit about something that enriches all your guys’ souls out there. Something that I’ve been attuned to since starting the podcast actually, and getting into a lot of personal development is this aspect of play in your life.

You can’t pedal to the metal balls to the wall, type A personality all the time. If not, you’ll burnout and you have to infuse play into your day.

Today we have Mike Montague from playful humans.com. Going to be talking about how we can infuse this into our life without getting too crazy here but thanks for jumping on Mike.

Yeah. It’s so great to be here and I’m glad you said without getting too crazy, because there are some people in the play space. I’m not going to know any names, but they like the crazy bow ties and like the gags. And there are, they’re wearing balloons on their head or whatever, and they go a little too nuts.

That’s not me personally. I feel like I relate to your audience. A lot, because I’m a professional, I’m a professional sales trainer. I try to take myself seriously. And how I got here was I was trying to do the Tim Ferriss thing and just over optimize and measure and be super productive and watch my time management and analyze everything and collect that.

And I just found that it didn’t work for me. It works to a certain extent, but like you said, it’s really easy to get burned out and go, wait, why am I doing all this? Why am I trying to come up with all of this extra cash flow? What am I using it for? Am I just putting another comma in the bank account?

Or am I going to spend it someday? Yeah, what am I doing it all for? And that’s really what, where I landed on play from an adult rational perspective. Like I’m not telling you to quit your job and go be a hippie. And, to, or the Western United States on a motorcycle or something like, I want you to be productive.

And I found that play actually does. But all of the research shows that people that play that are happier, they’re more engaged with their life perform better. They make more money, they lose weight, they have more sex. Like it’s ridiculous. All the positive benefits of it. Yeah. Thanks for saying that. I’m glad to hear that because there are a lot of botch podcasts that I do as they look for this more, the minority of the podcasts are these more alternative topic matters, I think would enrich other, high-performing high net worth investors out there, and I’ve had really bad ones for they’re like all these woo stuff.

Yeah. And personally, I think a lot of this resonates with a lot of my investors. Like I’m more of a realist. I believe in personal development, but I’m not going to look at myself in the mirror and tell myself like a bunch of botches. Repeat it. Good enough. Yeah. Damn. And people like me, I don’t do that type of stuff.

I’m not saying it doesn’t work. Just doesn’t work for me. I don’t believe in fairytales, Easter buddies and stuff like that. But going back to your origin. Were you always naturally able to put in this play aspect or was it, what were your early career days, your personal. That’s a great question. I think I have always been in this playful persona so when I was in school, I happened to be really gifted at computers.

I was designing websites in high school, which isn’t very impressive now, but in the late nineties, there weren’t that many people that could do it. I made a lot of money. I had a lot of fun designing websites, but I was like, I don’t want to be a nerd. Like I don’t want to sit in a room by myself behind a computer all day.

Like I want to be cool. I want to be a DJ and be on the radio and stuff. And I have more play in my life. So after college, I did my own radio station, on the top 40 station in Kansas city here, I was Romeo on mix 93.3. And had a blast with that, but I found a couple of things happened.

Number one. Sitting in a room by yourself, by a computer all day. You tell a funny joke and nobody’s there to laugh. They’re listening in their car, their home office somewhere else. And also it pays a quarter of what computer programmers make. And so I was having a lot of fun.

I wasn’t feeling successful because I didn’t feel like I was growing or being a professional or getting the intellectual side of things.

And so I switched and I went in the opposite direction. I became a sales trainer. My dad works for a Sandler training as well, but I work for the international team now and I do sales training for companies like Uber and Thermo Fisher scientific and all kinds of large corporations and make really great money.

And I still get to do my entertainment thing. Get on a microphone. Whenever you’re doing stuff for other people, it starts wearing on you. You have to perform and work inside of that culture. And I’m not having as much fun. I was overworking, working long hours and also building a lot of stuff there.

I wrote a book and just overcharged that way. So about three years ago, I decided to reset and I was like, you know what? I need to find a foot in both worlds. I want to be a professional corporate speaker that also does entertainment and empowers people to find play. I found, at least for me in my life, when I balanced the creativity, the unknown and the the playfulness of life with the data science and the certainty and the hard work and, saving money and stuff that’s really when I’m fully engaged, that’s when I’m living my best life as I have one foot in both worlds.

Like I said, I’m not going to go. Crazy. Just, full of hippie playfulness, live on a commune and dance and sing all day. That’s not my thing, but I also can’t go full on programming data, measuring this, checking my Fitbit and doing a Pomodoros every hour . Were some mistakes that people normally make. If I really feel like I’m going to teach playfulness, I can’t do it like the seven steps to playfulness. Here’s what you do to check off the list because play and fun is something that is a little bit more spontaneous than that.

It needs some ruined space in your life. So what I like to tell people if you were already a genius at play. And in your life, you have had genius levels of creativity. You just lost it about the time you hit puberty and people started caring about other people’s opinions and you had to do things to be productive and teachers at school beat it out of.

Yeah. Fun looks like for you, and it’s different for everybody. I have a quiz on the website. If you want to go check that out, it’s a good place to start. Playful humans.com/quiz. There’s 10 different playful personality types. You might be an athlete. You might be a creator. You might like board games or video games, or you might like exploring and hiking, or you might.

Solving puzzles. There’s lots of different things. There’s even a playful personality type where you like producing parties and putting on events for other people. So producing things like this podcast and stuff is fun, but I don’t think you need to overthink it. And I don’t think you need to analyze it.

What I found was with most driven type A personality people it’s they need to put it on their schedule and they need to see that it’s that important. That if you don’t take an hour to play a day, you’re going to be less productive the next day that you’re going to burn out. It’s unsustainable. It’s like sleep and nutrition and everything else.

We look at play as one of those four things you need at least on a regular basis. If not every single day. I try to do all four of these everyday, but at least every week, I need to spend some time playing. I need to spend some time performing, using my abilities to produce to the best of my ability.

I need to hit pause a few times. So I do like mindfulness and meditation. I don’t think it’s the only answer, but you have to pause and rest and sleep. The other one, people miss a lot though is practice. You need to take some time to learn and get better at what you do in order to perform better the next day.

Professional athletes don’t just go play, live football games every single day. They spend some time practicing. And then on Sundays they perform at their best. And I think if we, as driven professionals, think about those things, we put play, practice, pause, and performance into our days. It really creates a sustainable level of energy in our life.

I think you’ve mentioned one thing. In the beginning of that, where you said it’s like people get to puberty and they start to feel that they’re being judged by other people. I think to me, that is what blocks most people from even doing any of this stuff in the first place. So again, I would just say, screw other people, stop worrying.

What other people think because gracious, you guys aren’t children anymore. You guys are adults out there. You think about old people, right? One thing you hear, like a lot of old people say is stop caring what other people think about you and just actually start living. Now, maybe people would get upset with me cause everybody gets offended these days.

But if you’re in your thirties, forties, fifties, you’re probably still worrying what people are thinking about you. And I’m just telling people to begin with the end in mind, just like cashflow, right? Create your cash flow streams today. Instead of doing the appreciation, accumulate theory at the end, in 30, 40 years, not going to care about Jack or what these people are thinking about you.

And if you’re, if you have a lot of cash flow, you’re gonna have a lot of options. You’re probably gonna lose these people behind. Anyway, it’s all the same. I don’t really talk to anybody I used to have a vehicle worker with these days. Heavens no. If you’re not on the path to financial freedom, you don’t work out.

We’re probably not going to hang out. I don’t think there’s anything wrong with that. I think you got to find your tribe, right? Find people that do value those things. And the same thing goes with play, right? Maybe your spouse or the people that you hang out with don’t like doing karaoke or they don’t like running and playing sports outside or whatever.

We’ll find people that do. There are enough humans out there that you can find somebody that does geek out on the same thing that you geek out. I love it. Everything that you said you’re right. Kids don’t have a filter. They don’t care about the last people, anything authentically themselves at five years old.

And I love what you said about older people too. Run out of blanks to give, I don’t know if you curse on this podcast or not, they don’t care anymore. They’re like I don’t have any to give. I don’t care what you think I’m doing my thing. And I don’t think again, that means you have to go full on crazy.

What that means to me is I need to carve out some time in my day to do something that I love, because even when you’re saving all this extra cash flow or you’re planning for retirement, you might not make it to retirement. If you’re saving all of your recreation for the last 20 years of your life, you might not have the physical ability to enjoy it.

Or you might not even make it there. So how can we spread that into our whole life so that we’re taking out some time and it doesn’t have to be a ton, but an hour a day to build a Lego or, do a drawing there’s adult coloring books and adult Lego kits and great puzzles or online games or any sort of activity, go ride a bike or play a sport, or find something fun to do.

That’s just going to recharge this just for you that it’s not for anybody also who cares what they think. They don’t even need to see it. Before I left Seattle, I was working at a day job. We would go and play Frisbee every Tuesdays and Thursdays for an hour, which ended up being an hour after lunch.

And I’ll be honest, those couple of years. That was probably the only thing I remember about daily life. That’s the best part of it, right? Yeah. And, but it was important because we planned it. It was on the schedule every Tuesday and Thursdays. What are some other ideas or things that people do, does it have to be a hobby?

How can you schedule? What about some smaller ideas from micro play sessions? Yeah, I think that’s true too. A lot of people don’t know that over 60% of CEOs take play breaks during their day, they might be playing a video game on their phone or listening to music that they like, like they just need to step away and tune out and it recharges your creative energy and stuff too.

So it doesn’t have to be complicated. I love what you said. I think those are great tips. If you join a bowling league or a sports league of whatever you want to play, a dark night or something with your friends, all of that is going to hold you accountable to actually doing it. And you can block out that time easily.

If you don’t have that time. I think it’s about finding those micro moments for yourself. I think you want to give yourself probably at least 20 minutes to decompress and step away from what you’re doing, just to get your brain into that right mindset. But I would say up to an hour. Find out whatever that thing is for you.

If you love to make things with your hand, take a woodcarving class or look at videos online, or if you like to, use your brain to solve puzzles, go do escape rooms, or find interesting Sudoku puzzles online or whatever it happens to be. It doesn’t need to be. Crazy fun, like new year’s Eve level fun.

That’s not play. It’s just an engaging challenge where you’re using your whole mind, your whole body, you get into that flow state and you’re doing it just for you because you chose to not because anybody else told you, you had to, or you’re getting paid to do. I think that’s the key, right?

The concentration factor is off. Like it’s not something for productivity, like editing podcasts or maybe sudoku puzzles falls in that category that you could do it as play, but it may not be like a CrossFit workout. Because it’s very focused. I don’t know if you enjoy it and you’re choosing to do it right.

But if you’re doing CrossFit. Your spouse told you needed to lose weight or because you feel like you have to or something, or you’re getting paid to teach the class. That’s different because it’s the external, because it’s on the board and dammit, you have to do it.

Play is specifically freely chosen. And that’s what makes it fulfilling to you because we need moments in our day. We all have obligations. You mentioned, changing diapers, we’ve got to pay taxes, we’ve got to hit the bills. We’ve got to do all kinds of stuff for client work and other things.

But I think that’s part of it. The beauty part of passive cash flow, right? If it gives you that time back don’t waste it, don’t waste it watching Netflix and not engaging in tuning out of your life, do something that you’re going to remember, make a memory, do something that you choose. So that’s my big one too, about television.

It’s not that watching NFL football doesn’t matter. They’re playing. You’re not, you’re watching passively, right? If you go play football, throw the ball around with your friends that counts. Now you’re engaged in your life and you’re connecting with other people in your environment. Another idea I had is like podcasts, right?

People will listen to podcasts, not for pleasure, but for content and focus and a side note. Guys, if you guys are listening to the civil facet Castro, any podcasts for more than a year, Stop listening, please just join our community. Like this is just a marketing thing to get you to sign up for our community.

I’ll be honest, right? It’s the same old stuff over and over again in Mark, in podcast land, you don’t get, we don’t get nearly into the good stuff. It’s the juicy stuff. That’s all behind closed doors. And I like it, and I say that because it’s going to do something fun. Stop, like trying to fill your head with a bunch of the same old garbage over and over again.

Like when was the last time you listened to a song? Talking to the very minority of people out there. That’s oh, I’m not gonna listen to the radio because they said no, listen to the radio. You’re supposed to be in your automobile university. It’s just to listen to podcasts, filling your head with good stuff.

Yep. I’m that way. I’m definitely that way. I listen to podcasts when I run. And when I look at it, I love learning. But it does. At some point it’s become a job and it’s oh, I’m subscribed to these five podcasts. I have to listen to it by Friday. Or I feel like I’m not caught up. I didn’t get my thing in and podcasts keep getting longer and stuff and things.

So I’ve already shouted out Tim Ferriss, clearly I’m a fan, like a three hour show from him and Joe Rogan, that’s six hours of your life where you’re not engaged in doing it. I don’t really listen to podcasts these days.

If you’re consuming media and you’re doomed to scrolling on your phone, maybe both at the same time, you’re passively living your life. And we want it the other way. We want passive income and we want to be fully engaged, actively in and enjoying it. Boring investments, but fun life.

Consciously choosing. I love that. Any other like quick tips or ideas to consciously infuse the play into your daily life for a weekly basis? Man, I think it really is about the choice that you said. I think people know how to do it, but if you need a role model, look at kids. When you look at a five-year-old or a ten-year-old, they know how to play, they have genius levels of creativity.

They will inspire you. You just got to go in and join the fund at that point. And then from there, I think you have to think about when you lost that play and why you lost. We all think that kids should go outside and play more, that they need to get more exercise. The NFL has a play 60 campaign and encourages kids to play outside for 60 minutes.

At what age is that? Not a good idea. Just because you graduate college, you shouldn’t move your body for 60 minutes a day anymore. You shouldn’t enjoy your life. You shouldn’t play with your friends or go outside. No, that’s your whole life at 20, at 30, at 40, at 50. At 80 or a hundred, it’s still probably important for you to get up an hour a day and play right.

Move your body, engage your mind to stave off Alzheimer’s and it builds muscle builds, creativity and brain connections. This is something that is vital to human success and survival. We just. Got distracted by other things in capitalism along the way. And there’s nothing wrong with it. It just shouldn’t be the only thing I don’t believe in here.

Yeah, once you get your contact information out there, as people want to check out the quiz, You bet the quizzes@playfulhumans.com/quiz. It’s playful humans on all the social media channels. And that’s the name of the podcast as well. Since you’re a podcast listener, go check it out again.

Lane said, you don’t have to listen to all of them. Don’t make it a job, but go find something that’s fun for you. For me. It’s interviewing people and getting to know cool people on how they did it. Like famous magicians in America’s got talent or mind readers or people that do like sword swallowing and juggling and all kinds of crazy different things.

Like how do they make a career out of that? They’re making six figures, loving their life, traveling the world and having fun. And they’re just juggling or telling jokes for a living. That, to me, is really interesting and how they’re doing that. So that’s what I dive into. Thanks guys for listening. You got a little bit different, but again, I think the action item for everybody is go out and schedule fun.

Maybe hopefully every day, but just micro sessions here. They’re figuring out what that is for you. And the, probably what you guys are gonna run into is, your peer group is a bunch of boring people that want to still fit in the box. But look, life’s short guys, get out there and. That’s like you’re going to die tomorrow in a way.

Invest for the long-term of course, probably gonna live a long time. Be those deals, infinite bank policies. Get life insurance too. If you’re maybe your peer group, you need to change your peer group up. If they’re not people who want to live the kind of life that you are, get some new friends.

I’ve got a joke in there. No, I think you’re going to be surprised that your friends are needed as much as you do that. If you ask them to go throw the ball in the park or go to karaoke night or an escape room or something, do a game show or play a board game night, they love it.

We’ve all been cooped up, man. We all need to get out of the house and play. So if they don’t you’re right. Yeah. You have a problem. If people discourage that. Man more often than not. They’re just going to be happy that you invited them. Yeah. Just tell them you’re like a therapist told you to do it, and if they laugh at you think get rid of one, not a joke in there, but half serious.

But thanks guys. We’ll see you guys next time.

What Success Means to Lane Kawaoka

https://youtu.be/_AC98wQC-hE

Hey simple, passive cash flow listeners. Today, you’re going to be hearing a pretty good interview that somebody had done on me and just, something that’s been going on in my life is looking for purpose, financially free so early, like many of you, you start to ask the question.

After when is enough and putting your job, that’s always a big problem. It’s probably the next topic we’re going to be talking about in our family office, Ohana mastermind group. But you guys can learn more about at simplepassivecashflow.com/journey, but no, once you’ve pulled anchor, burned the boats and you’ve gone FI, you’re living off your passive cash flow streams. And things are coming easy, right? Time is more valuable than money. At that point, you just start to spend money on time and you start to ask what is the meaning to all of this? From one perspective you got Maslow’s hierarchy of needs.

Trying to get whatever’s at the top of that, which is typically growth or helping back to other people’s, but really what is it that’s making you happy? And I’ve been working, and hired a life coach. We’re working on this every single week. And I’m hoping to bring a lot of the lessons that I’m seeing and getting from myself to you guys, especially to my inner circle out there.

I’m definitely not going to turn this podcast into a guru kind of Uber boogie type of podcast. We talk about mindset all the time. But it’s definitely gonna be interjected there. And from what I see, if you know where you’re going, you can do the straight line to get there, as opposed to, I feel like I’ve taken a very Securitas road to get here, even though it’s been maybe about a 10, 15 year journey, for example, I probably wouldn’t have bought as many single family homes.

Maybe we just bought a handful and then went off to the syndications and private placements quicker. And maybe who knows where I would be today. But, this is really like the next level, right? What is simple, passive cash flow supposed to do? It’s mostly get people financially free to get what they want, get the design, the lifestyle that they want, and this is where it finally comes in this piece where, you know, fulfillment, what is happening, what is in the happiest different for everybody, everybody has a little bit of a narrative kind of what we’re unpacking, going through these sessions, which is like therapy, but a little bit more of a mission standpoint. I see myself as a little bit of Robin Hood here where stealing from the rich gives to the poor, but instead of icy stealing from like the big wall street company.

Which kind of duped everybody into putting your money blindly into this type of stuff where you’re going to have to work for 30, 40 years where I’ve seen and proven myself that you can get there five to 10 years or less by prudently investing in cash flowing value add type of projects. Now what they also thought, the Robin hood, and as you also go sideways because it’s not like giving money to the poor.

The poor are, what I see though, are the victims of this is you, the working shrinking middle-class, the people who are making a hundred, few hundred thousand dollars a year. You are still living paycheck to paycheck and you’re paying the most taxes out of everybody. It’s not the wealthy, it’s not the people who have already gone to the tax page at simplepassivecashflow.com/tax, and read up there and already, churning, passive activity, losses, doing rep status that’s what the wealthy do, but that’s not the you, the middle-class are doing. And it’s also not the poor people who are paying their fair share of the taxes, it’s you out there. And that’s why, to me, the way I’ve put things in my head is, I’m Robin hood taking money off wall street, putting it into main street type of projects.

And in the process, you guys pay less tax. And get financial wellbeing because unfortunately the way that the whole system is engineered, it’s engineered to keep all you guys working because you guys happen to be the most contributors to society, GDP. You guys are the ones drilling teeth, doing surgeries, building bridges, pushing a whole lot of important paper around, we need to keep you guys working. Or not me not, I’m not saying that I’m trying to keep you guys working, but the society’s needs you to keep working, to empower the rest of humanity for. Now you might want to call that some kind of conspiracy theory or maybe call me Robin Hood, but that’s just something I’m unpacking for myself as the narrative.

And everybody needs to find their own narrative out there. We’ll talk about this in future podcasts, but today’s podcast is surrounding a lot of this philosophy stuff, which has been interesting to me. And so hopefully you guys will get some value out of it. If you haven’t yet joined investor clubs that’s simplepassivecashflow.com/club and once you’ve done that, we hook you guys up with a feed complementary strategy call of 15 minutes. And yeah. Hope to reach out, to talk to you guys soon and enjoy the show.

Hi, thanks for joining us today on the success podcast. I’m your host Phil Portman. Joining me today is Lane, owner of 7,500 rental properties with over a billion dollars in assets@simplepassivecashflow.com. Thank you for joining us today, Lane. Hey, thanks for having me aloha everybody. So let’s start off with the title of the podcast is success is so what does success mean to you?

Success to me is being able to have enough money. So money is a big thing for a lot of our folks. It’s not everything, but it should make your life a lot easier, give you options, what does it allow you to do to me? It gives you the freedom to do what you want, where you want with whom you want.

No. So you don’t have to interact with people that you don’t like, or people at work that give you problems. You work on your own terms and you get to tackle the hard problems in life, but what do you do after you’re financially free? What do you do after you’re done trading your time for.

And do you have things that you pursue now that you do have the financial freedom to do so that you wouldn’t have been able to and in a normal traditional job? Yeah. Today it’s a little different than most folks, right? We just keep picking up apartment buildings after buildings, because I’m here to create generational wealth for myself and my family.

And, on the side product of doing, the website and the podcast is that we teach people how to get financially free, doing this and just dispelling a lot of the stuff that misled misleads, a lot of hardworking professionals out there, myself. And go to school, study hard, get a good job, invest in your 401k, buy a house to live in, pay down your debt, all that type of stuff that the Susie Orman, Dave Ramsey advice doesn’t necessarily apply to once you become financially responsible and get to financial freedom. I love what you’re talking about there, because I think a lot of people have this mindset.

You know that they’re going to enjoy success later on in life. They’re going to enjoy it and retire, and this idea that we can save for our future and invest, and that we’ll be comfortable with just the money that we’ve squirreled away and saved is not true, more and more Americans are having to live below their means in retirement.

Then. And so what you help people do is break that generational mindset and create wealth. Is that correct? Correct. I think we live in an engineered society where everybody’s taught to put their money into the stock market, wall street, marketable securities, or what I call retail products.

And I say it’s retail because these big washy companies are making a boat load off of your back out there. I got started early with this real estate, graduated college in 2007, with an engineering degree, went to work as a construction supervisor, which isn’t the greatest of jobs in terms of quality of life.

And I followed this path of going buy a house to live in because that’s what everybody told me to do. Got off the beaten path by renting it out. And then I realized I’ll make it like 20, 30% plus returns on my money. Why doesn’t everybody do this? I’m going to just rinse, wash, repeat this and that.

But then, I discovered, yeah. There’s a whole bunch of other passive real estate investors doing the same thing and being able to retire within five to 10 years, do it. And the thing is it’s really not that hard and the secrets that the wealthy do that I cannot teach people today.

It’s not how to reach out to the average person. It’s just buried by all the financial dogma that you know, our parents teach us and that’s proliferated through the workforce culture, the cubicle culture.

Absolutely. Can you tell us a little bit about your story, your background, how you got into building this empire today and then what did your friends and family think about this?

Were they pretty supportive along the way? Yeah. My parents don’t really know what I do today. I just told them I’m a real estate agent and they just a little bit upset me. I’m not an engineer and I wasted all their college and stuff like. But, that’s parents for yearly spines. I walked this linear path, I call it right. Go to school, study hard, get a good job growing up. I grew up in a family where we were taught to be very frugal with our money. We don’t go to restaurants. We don’t eat any soft drinks. But you gotta pay for that stuff, drink some water, no frills type of stuff.

That allowed me to save up my money and pretty well from my day job and I made almost six figures starting out. So I was able to save a big chunk of that, to eventually go buy a house to live in, like I said, and I started to rent it out. And that’s where I got a taste of cash flow, right?

When you put a tenant in one of your properties, you get a property management company to deal with all your headaches, to deal with all the repairs. And then you just focus on your highest and best use. So for a lot of my clients, High-paid doctors, lawyers, engineers, entrepreneurs, our highest and best use is not screwing around with little rental properties, but to save our money to go buy more rental properties.

And eventually when you become more of an accredited investor, get out of rental properties because of the liability and headaches and go to more sustainable passive investments, such as syndications and private placements as an LP. But yeah, that was my claim that my family saved my money pretty well.

From 2007 to 2015, I had 11 rentals and then I started to buy apartment complexes over 7,500 rental properties today. I believe there are over 40 apartments across the country. We invest for cash flow. I’m pretty passionate about it, obviously. Cause I’ve quit my day job and no longer work at that life where I’m trading time for money.

So these properties that you purchase and maintain they’re all over the country, then they’re not centralized. How do you run that as a business? Do you do a lot of traveling? I don’t right now. I have a young kid. Try to stay at home with the pandemic and everything.

We hire professional property management to be at the properties of, this is why we focus on a hundred unit properties and above, when you have about 60 units and above, you can justify having a full time person at the leasing office at all times, but where you really get good economies of scales up over a hundred, when you can get a, support them with a couple of handyman to knock out HVACs or plumbing repairs, for some people who are rental property owners, they know you get killed with those third party plumbing repairs.

For us, we take care of that stuff in the palace, right? So the guy will before his first smoke break of the day with knockout, those types of repairs, so that’s what our business plan is, and they’re scattered throughout the country, but like more clustered red states where they’re more economically driven, better landlord friendly laws.

We like Phoenix Texas, Houston, Dallas, and Huntsville, Alabama. It’s our major market we like to focus on. And how’d you decide on those markets? Real estate, it’s not rocket science. It doesn’t take a genius to do this type of stuff. You don’t need a bunch of PhDs, data analytics, you follow where the population growth is going. And the rent increases per year, which is very gatherable data. You could probably Google this at home and we focus on and ingrain ourselves in those markets and I’ll build back management teams, build broker teams. Just dig in and pick those several markets.

Other good markets out there like Florida, the Carolinas, Georgia, the general consensus is that Sunbelt states are where it’s at in terms of population growth. And of course you want to be in the red states. Like I said, as the lab, part of that there’s maybe five or six states that I would pick over the rest of the time.

So you said as this doesn’t require rocket science, anybody can research these areas and that sort of thing. What’s holding people back? We know more millionaires are made through real estate than any other method that’s holding people back from getting into this. Yeah. You know what? I think it’s hard.

Deals and it makes it incredibly easy for investors to get involved with that. You gotta start from the bottom, right? I had money to invest, right? So most people in this world, or this country are really bad with their money. They spend more money than they make, and they don’t make as much money either.

That’s part of the problem for a lot of those folks. I can’t help. That was just not the situation where I was, but there’s also a lot of people. Definitely my minority people of this country, like maybe the top one to 5% were good with their money and they make good money and are able to save 30,000 plus a year.

Most of my clients save 50, a hundred thousand dollars a year to put two investments. It seems like a lot, but it’s not massive amounts of money. But that’s enough, if you put away that for five to 10 years, you get your net worth over a million dollars you’re you can go F I pretty quickly doing that.

Investing in real estate, investing in little rental properties are a little bit more difficult. That was where I started my podcast, teaching people how to buy little remote rental properties. Most people live in California. You don’t want to invest anywhere near your home. Because the rent to value ratio doesn’t make sense.

We look for this one little metric called the rent to value ratio 1% or higher. So you take the monthly market rent price. So like a thousand dollars a month, and you are divided by the purchase price. A hundred thousand dollars, we’re looking for something that’s about 1% or higher. Your average place in California in the ghetto is $400,000.

You’ll read that off for 2,000 to buy 400 grand that’s half a percent. That’s not going to work. That’s the one. All right. We need that 1%. And that’s pop that’s the basic tech behind our investments, man. Like we make a, we pay the debt service, pay insurance taxes, repairs pay the property manager to do our dirty work for us.

Put some money aside for big CapEx stuff that they could see to happen, and you cash it. There’s some Delta in the air and you have cash flow and you use that cashflow to add to your annual savings and you buy more properties. Very simple formula.

Great. So somebody wanted to get set up with your program. What does that journey look like? Coming on board with you? Yeah, a lot of the stuff is going to be free on the website. Think of this world, the real estate world. There’s a lot of just fake people out there just trying to swindle, break people out of money. Again, my program’s not for broke people.

And I have a big problem with these guys, they have these seminars or they like to teach people how to increase the credit limit on their credit cards. They can purchase the 20,000, 40,000 program and that kind of thing. Yeah. But I get it right. Like they’re trying to focus on broke people who like you sell them to folk, most of my clients are the people who passive real estate is for you’ve had the money already. So it’s a different game, different psychology too. But, we just help people get started. Just investing in that first remote rental property. People are looking to do that. I would say go to simplepassivecashflow.com/turnkey, if you’re more of an accredited investor, that’s where we specialize in, in, the more higher net worth, both building strategies.

And when your net worth goes over a million dollars. Sure. You’re investing in syndication deals, et cetera. There’s a whole curriculum or sort around that, but from what my experience is more about taxes and infinite banking, like the nice thing about real estate. I don’t really particularly like real estate, but real estate is the one thing out there that gives you the tax benefit.

That allows you. If you play our cards right, implementing a real estate professional status strategy on your taxes, you can drive your income down to zero. So people want to check out my tax returns. They can go to simplepassivecashflow.com/tax. I don’t pay, I haven’t paid taxes for the last couple of years, because all my real estate investments drive my income down to zero. I mean that this is what the wealthy do. That’s incredible. Fantastic. Yeah. So somebody comes and reaches out to you. Let’s say we have credit investors on there. Your program is helping them get started or you’re a partner with them along the way.

They’re on their own. Everybody’s on their own, right? This is not nothing where I hold your hand. And the information is out there, right? The podcast is free. A lot of the information on the website, different blog articles are free. I would say, just get started with that. Folks listening out there’s really no excuse not to get financially free.

It’s just the problem is there’s just a lot of bad information out there or information out there for other people at different paradigms. One of the teachings we talk a lot about is it may not make sense to buy your own primary residence. To me, I think it makes sense for most people because a primary residence is forced to piggyback, but you may not need, you may be financially responsible enough to not eat this force piggy bank, and you should get on the offense and invest your money instead of just merely going up with the pace of inflation in your house.

Kind of an out there idea, different clashes with normal conventional thinking. To me, I don’t think you should buy your primary residence unless your net worth is two or three times greater than what that house costs. Even if you’re going to finance the house, you should finance the house so you can use the money elsewhere and invest. Those are things that I’ve learned.

I just got lucky doing this in 2015, when I got to 11 rental properties, And I was hot stuff at that time. In my late twenties, I started to join different masterminds and got around other high net worth accredited investors other doctors, lawyers, engineers, 10, 20 years down the road of me.

And I was like, whoa, they’re not investing in their 401k’s doing that type of nonsense. So these qualified retirement plans. Yeah. They’re not paying down their debt, they’re going into more good debt where their cash flow numbers keep going up and up, they’re doing infinite banking. They’re not paying taxes, not paying too much taxes legally.

These are the things that the wealthy do that, unfortunately folks like my parents just, they just never were tuned to. Whether they thought it was a scam or, it’s a lot of, this is just your network. Your network is your net worth and learning the tactics of the wealthy.

Yeah and he brought a great point. I think learning those techniques from somebody who has done it is incredibly important. And a lot of people talk about the importance of a mentor. And the first question is, did you have a mentor along the way that led you to where you are and then is that really what people can expect from you as part of your program?

Did I have a mentor? Not really. To me, if somebody is really that rich and what the hell are they going to spend your time with though, to you? But we live in an age where you have YouTube videos, you have content, you get like live podcasts. Like that’s the way you get it for free.

If somebody is really worth that much at a hearty, hourly rate, with that experience, You’re not going to spend that with you, man, but that’s where you have to take, follow the breadcrumbs and take action with those things. And that’s what I’ve done, right?

I don’t really want to take on mentees, right? Like I want to put it out there for free for you to get started. And if you can’t get started, that’s on you, man. Everything is out there. This stuff is not that hard. It’s very implemented. Sure it clashes with your mindset in the beginning, there are the people along the road.

So what I focus on is building the community, right? I run a family office ohana mastermind is what I call it for people going from $1 million to $10 million net worth. Typically the term family office is for a hundred million dollar families and above. Where they hire a very smart individual street, smart individual to manage their finances and affairs.

You’re not a hundred million dollar net worth, you can’t afford that. So my opinion and the way I’ve pieced it together is through a network of other high net worth investors and just working together, swamp in best practices. So that’s the community that I’ve created using my podcast as a lightning rod for high net worth investors.

Like we always say you hear real estate investing. You should go to the local real estate club or the free online sites. But I would highly suggest not doing that. If you have a net worth of a million dollars or more, because that’s just a bunch of broke guys going out to do that type of stuff.

They hear real estate’s a great way to get rich. There’s really nothing that a high net worth investor can vote for. And find their tribe. And that’s why I created the family office group and not the other on the other end, you can’t go to the country club because that’s just a bunch of trust fund kids and people who got lucky with some C-level jobs and they invest differently.

Absolutely. Yeah. So you’re the other guy, the guy with the high net worth that is looking for guidance to invest this money differently. What type of skill sets should an individual like this have, approaching this because you have an engineering background, I got to think there’s certain skill sets that you’ve possessed, that have helped you along the way with, some of the organization and the structure that you have with your business.

But then you also seem to have a little bit of a rebellious attitude as well, to challenge the norm. Are these correct assumptions about you as well? Yeah, there’s a book out there for tendencies, I think like a rich group and one of the tendencies is a questioner. I do believe that is a very common trait within our community.

We’re definitely not the upholder types who like, when you’re driving home at 2:00 AM in the morning, I don’t know why you can drive home at 2:00 AM in the morning, you stop at every stop. We don’t do that. We looked around, we questioned, why is the stop side here? We disregard that stop sign, right?

That’s just the ad. Or like, why do we have to put up money? It’s this 401k TSP is a social security thing, and that’s where it happens. Like the question starts to ask another question and it starts to unwind this whole dog, financial planning, et cetera. And many of us have peaked by the other curtain of the wizard of Oz of finance and realize that there’s this red pill way of doing your money, investing in alternative assets where, you’re getting off the beaten path, but then you mentioned skill sets.

So to get off the beaten path where you’re investing in all these wall street types of products, mutual funds, where it’s consistent. What’s consistently getting screwed right? By all the hidden fees, et cetera, where a lot of times these big firms are taking almost half of your money every year. And how else are they paying for these high pay salaries and big buildings, right?

They’re not doing it for free because they like you, they’re digging it for profit. And that’s why they created the 401k and et cetera. They’ve got in cahoots with the government to get at the common man’s. But I digress. They’re pretty passionate about this stuff. Like that’s where, like the average guy can come back and get off the beaten path, get all that cafeteria garbage.

But to do that, you’re going to need people around you, cause there are shysters, and you won’t get off the beaten path. There are people that don’t do what we do. And they just are just internet shysters as they fake it till they make it. They don’t have any assets under management ditches, they are just a guy with a green screen.

That’s real estate. Brown, blue pants. Nice headshot. That’s all it is. And that’s why I say like and for myself included, right? To get off the beaten path and go onto the world of alternative investments, you need to find a tribe around you that also does this. However, it’s incredibly hard to find these types of people, because when I first started I was investing out of state, never saw my properties.

I thought it was crazy. My friends thought it was crazy. So you said, I don’t really talk about it. That was until I found there were lots of people doing the stuff quietly. It’s X-Men like, Hey, you’re X-men it’s the same thing. So you, when you finally meet these people, it’s whoa, I’m not crazy anymore.

And then things really get moving. Like I said, I started buying little rental properties. Oh nine to 2015 and I moved like a turtle. That’s part of wealth building too. Like it’s just slow in the big. But until I met other people doing this building synergies and found out where to invest more protocol to stay away from that was when my networks started to skyrocket.

Absolutely. Some of the skillsets you talked about were obviously challenging the norm, but one of the things I’ve noticed from a lot of successful entrepreneurs is almost an arrogant level of confidence. Because you’re going in new directions that other people haven’t gone before, and you’re challenging the norm and you’re forging your own way.

And you’re making mistakes and you’re learning things, but they’re all decisions that are based on your back. Have you encountered some mistakes that you’ve made along the way and would you mind sharing any of them with us and how’d you get through them and what’d you learn from them?

Yeah, I’m glad you asked that. I am cocky in this respect because we don’t really make that many mistakes. Cause we’re not really doing a hire in the Skype business plan out there. We’re buying properties that have cash flow, they want just in case there’s some hiccup in the Cod. And like we’ve been through bad times, like the pandemic.

I didn’t know what was going to happen. I didn’t know if people were going to pay the rent, but you know what the hell it is like, especially when we focus on lower class, lower middle-class America, right? Rents between $700 to $1,400, we don’t go to the high end luxury stuff. We don’t go into the low end stuff.

We stay in middle-class America, where the glut of the population is. Or in fact, there’s a huge demand for good quality of housing, which. Great. We’re not no slumlords either. And people need a place to live. And when you underwrite the deals to be Bulletproof, and a lot of times in our properties, we don’t lose money unless the property goes under 50, 60% occupancy, that’s not going to happen.

When you buy in good areas and good properties, especially in emerging markets, that’s just not going to happen. That happens. Like we’re talking like a zombie apocalypse, maybe, but we’ve been through that. We’ve read that the storm, we like, we’re not flipping houses, we’re not wholesaling houses.

This is not an exciting type of way of investing. It’s very boring, very boring. When we rehab units, we don’t put in maybe like $5,000 of rehab to bump up the rent a couple hundred bucks. New floor, new appliances, new paint job, that’s it. From the grand scheme of things, that’s why I can be pretty safe, pretty confidently.

Like we haven’t made too many mistakes cause we don’t really get up in front of her skis too much. But when I’ve invested, yeah, I’ve invested with some bad people in the past. Got my money too. A couple of times, and that contributes to that, that’s why you build your network again.

You never know about people until you have somebody on the inside that can attest. Yeah. I invested with Bob’s legit. He gave me my money back. Not like just a Ponzi scheme type of thing, but yeah, here are the P and L’s, here are the monthly reports on this property. You can actually go there and see it, touch it.

And you build relationships with other accredited investors, just like yourself and that way it’s unbiased sources. You do it that way. And going back to your skill sets this is the difference between more of this type of investing, as opposed to when you’re starting out. You’re starting out. You’re doing all this like pain in the blood stuff, like talking to brokers. Lender top managers, handyman, you’re doing everything, which, eh, I think it’s somewhat transferable, but like in this world, it’s more like you’re losing other peer colleagues, passive investors.

It’s very different for some people who are not friendly with others, like it’s impossible. But, I think most people, and especially in my group, or, once you become an accredited investor, you are on the road to financial freedom, or you are financially free. People are pretty friendly, especially for people also, when they recognize they are also on that same journey that they were wanting.

People like to give back and help out. After all there’s no competition, like big passive investors. There’s not Ooh, you’re going to take the deal. No, man. There’s a lot of deals out there, especially when you invest in syndication. So it’s not like there’s a super limited supply. People like to help out each other.

Because they know they are also gonna get back information and relationships. For me, it’s more about relationships these days, because if I don’t have people to hang out with during my lunch hour, all my other ex colleagues and friends are stuck at work, oh, you’re going to enjoy this stuff. People understand us right too. Like we do all these weird financial stuff. A lot of it was just social too.

You bring up a good point. I think a lot of people have. This idea that successful people have compromised values or they’re hard-nosed taken advantage of people and that sort of thing. And most of the people that I know that are successful are actually fairly generous people who, when you have your time freed up, you can give back to others and you have a weight lifted off your shoulders when you don’t have the burden of financial stress. Like we can dig into that little bit.

Cause you know, these days, like when I interact with people, what I’m trying to do is do I want to have this person in my social circle long-term or at least give them a tryout for the second tryout? What I’m trying to determine is this a giver or a taker? I think there’s a book that I read.

It’s not to say that you’re a bad person, right? If you’re a taker person, a lot of people, especially even high net worth people, can be at a stage in life where they’re looking out for themselves and looking for search information to help their investing. They want to know who to stay away from.

They want to know who invests with those types of things. And I get it, you need to put your money somewhere so you can get financially free, but at some point, Turn the corner. And, I think everybody needs to go out and make their money and invest it and get financially free.

And I call that, putting your own oxygen mask on right in the plane. They say, before you help your kid or the elderly, put your oxygen mask first, if, so we don’t, you don’t pass out, become part of the problem. And that’s where you go from the abundance mindset, the scarcity mindset.

Or a scarcity mindset, that abundance mindset. And if you’re in a scarcity mindset, now it’s not to say you’re a bad person, right? That’s just maybe the stage you are not in life or age that has nothing to do with it. To me, it’s more where you are in terms of net worth or your buddy, your money mindset of, like to me, I got over. I went from that stage where I had my oxygen mask on pretty early, like I got lucky and I started investing in my early twenties. I started to get to a point where I had a bunch of cash flow rolling in and my net worth was not high yet by any means. Maybe half a million dollars, I think this started to happen.

But, I started to realize, yeah, I’m not going to be working at this stupid day job is engineering job. I don’t like it. Mid forties, maybe even by 40. I didn’t know at that time, I didn’t know, but I knew like the paradigm of working 20 years plus was just not going to, it’s just not needed for me.

And it’s numbers, I had numbers to back this up. So I went off on this kind of tangent and I think this is the part that like, everybody needs to go through this. Like epiphany where, and it takes a while. Like it took me. That’s up to my own horn, but like I took me pretty it was pretty quick for me to get to this transition where, I’m like, all right, both at work.

And my boss gives me a hard time. F-you man, I’m going to be outta here soon. I don’t need to be here. I can enjoy myself a little bit, take things a little lightly. And then I start to realize, all right. And when I’m like 35 at the time, I’ll be financially free and I do whatever I want.

And then I may be able to like role play on my head, what that feels like, I’m the travel take pictures of my food, put it on Instagram, all the stupid stuff. They, I get it. I wanted to do it at one time and many people want me to do it today. It’s a phase. But after a while, in my little simulation way ahead, it gets lame and boring. I don’t know. People who are drivers need challenges, solve puzzles. Part of me too calls me like a big ego guy, but I want impact too. I like, I wanna leave something or see something when I’m 50 or 60 and say, yeah, I did that.

That was, yeah. So for me, yeah. So for me, that was where the podcast was. Started to come in. I started in 2016, like a lot of my friends were asking me like how are you buying this property in Birmingham. You didn’t visit it, man. And I tell them, and many people are entrepreneurs here.

We tell our friends about entrepreneurship and nobody listens. So you guys understand that. And it frustrated me. So it was like, damn it. I’m just going to record this stupid thing, for all you suckers all my friends. Other people started listening to it and then a year later I got those emails saying Hey man like you didn’t seem that smart.

I did it. And yeah, thanks man. I bought a rental property and then, and that was where I got more, I was like, I got positive feedback. I was like, oh shit, man, I’m making a difference here. And then I became an accredited investor. Private placement since indication is the storyline changed for buying little rentals to bigger deals, but the audience kind of grew and grew.

And then, I was making this big impact or so I thought, that’s all, it really matters what you think. But then I saw it as my calling and, you’re put on this earth for one thing, like it’d be silly for me to go to habitat for humanity builds analysis, that this is where I get the most leverage and society. Yeah, you can make the biggest difference. So I think, and that kind of coincided with that whole simulation, my hand, I was like, what the hell am I going to do when I’m 40? It’s just all, your life doesn’t start until you’ve stopped trading time for dollars.

Or sometimes I have to go in, like I work from home too. You’re saying I see my family. Too much. Like I gotta get out of here. Sometimes I go in and like a little excursion, I gotta go pick something up, and I see all that, driving through town and I see all the people walk into the bus and I was there at one time.

It’s just a little drone going through your life, in the matrix, sleeping. You’re not doing anything. And yeah, you’ve had little moments here, there, but essentially you’re there to trade time for money to build somebody else’s dream. And I get, I’m not going to belittle people for thinking that’s a meager existence, blah, blah, blah.

I get it. Like me, not many people out there in the world get to a point in their life where they go financially free, FI. Weightless. When weightlessness is like your investments make more money than you do, and your spouse does any, even if you got your kid working alongside you too, and you can’t even spend it all. And that, that the thing just compounds and compounds, that’s what weightlessness is. So we call it escape velocity that typically takes most of the clients five to 10 years to get there. Once they start working with us. But at that point they’re going, and they’re building that family legacy.

And the hardest part is, teaching the kids how to not be nincompoops, but that’s another topic for another day. Like at this point it’s all about you’re out of this paradigm that most people are when they have to trick themselves into liking their passion, which is their work, like I see through that these days. And not again, not that the little people who think that way, but there’s a lot of people out there that are getting to this weightlessness mode and they need to go through the simulation and live it. Maybe some people might take them a decade of kind of just floating there, but then there’s always something else.

And that’s where your life kind of starts. You stop trading your time for money. Okay. And I think a lot of people actually realize this, I think during the pan. Because the pandemic through everyone, through this wrench in everyone’s plans, and all of a sudden these people are working from home or they’re at home and they’re getting compensated and they’re realizing suddenly they’re pulled out of that matrix.

That thing that they were stuck doing, and they’re going, oh my God, what have I been doing the last 20 years or whatever? Yeah, I’ve been just doing this thing. I’ve always been trained to do it. My parents were always trained to do what their parents were trained to do, and it’s nonsense and people are giving up things in their life because they would rather not, have the Starbucks or have a nice car or go do these other things, vacations and stuff.

Then spend another day stock working and living a life that they. That they don’t want to live, and that’s why a lot of these jobs are having trouble recruiting people because they don’t want to go back to it. Yeah. They’re like, screw you at the job market the way it is. It’s lighter for the worker.

But the other sad part of that is most people just freaking stayed up until 2:00 AM watching YouTube videos. Because they don’t have to commute earlier in the morning. Like it’s your time. You can use it however you want, but they’re very similar. A lot of people in my world go to college, right?

It’s like maybe going to college for the first time away from your family, parents rules. It’s like the world is your oyster, for many people that is the last time you get that moment. And you get just your college syllabus sitting and you’re screwed, you have all these responsibilities that you go right into a job, but that is what it feels like to go financially free when you actually quit your job.

And you’re what the heck do I, do we have a guy he’s quitting, he’s working for me. Full-time, he’s quitting his engineering job and he’s asking me like next week, what do you want me to do on a holiday on this? I’m like, I’ll do it. I don’t even know what holidays are right.

All the time, but it’s just, okay, it’s coming in on Tuesday. I might do it, I dunno, man. You fill up your time, I followed this thing called entrepreneur operating system dos. And there’s this term called rocks. You work on projects or rocks.

And I’m like, I don’t know, uncle pick a rock and work on it, and I don’t know when you’re off time, go work on your own personal rocks. That’s, that was my guidance. I get it right. Like I was there not too long ago where you have to report. The only time sometimes you can get away is when you have a doctor’s appointment, you get out and go through a little bit of personal stuff on the side there too.

But other than that, you go right back into the matrix, back to your spot here. And I get it. For me leaving the corporate structure and safety. It’s almost like driving without your seatbelt on. It doesn’t feel right. And I remember telling employees and I was telling my wife, like what I’m doing today.

Oh, I was doing this and I did this. And I’m like trying to prove that I was doing stuff during the day and nobody cared what I was doing. And then over time you start realizing that. I have to clock in. I don’t have to approve what I’m doing on a day. It, none of that stuff matters, right?

Yeah. It’s very liberating and it kinda makes you like, damn. And I operated like that for so long. It’s like a different topic, but it’s people who stopped caring, what other people think about themselves because they had that epiphany that people are more concerned about their own than worry about yours. Nobody cares after a while. So it’s a very liberating, very similar epiphany. Absolutely. But so like my big aha moment I went to a Tony Robbins thing and he’s always on he’s kinda like he has this thing, like the six needs, I think like com operates very similar to Maslow’s hierarchy of needs.

I don’t know the bottom. You’ve got basic stuff. I can’t remember. You just need the basic yeah. Like you want to have comfort stability. You want to be loved by other people, but on the top, part of the more aspirational things that you get. That self accusation, stuff like that. Yeah.

Yeah. And, giving back and contributing is a big one. And you look at all the very high network people who were doing other philanthropy things, it’s always a give back, but in their own certain way. And the other thing is significance to that. Want to have, give it back in your own way on your terms.

So that was where, to me, I was like, I think I was in my early thirties and I was kinda like, all right, I still have a Ferrari. I still do. Things like that. And the big house, I haven’t gotten totally off the deep end. I still have those types of needs.

And I have my own idea of what is the right lifestyle, but I kinda know that it’s going to get old. And I kinda latched onto this idea because like simple passive cashflow had already gotten pretty good momentum at that point. I get, if it was just a pie in the sky idea, like how everybody, all the other 3000 participants in that state.

Had just an idea. Everybody’s got an idea, but I had an idea that actually had traction and was somewhat, making money. Like we had this concept of ikigai right? Where you’re something you enjoy doing. You’re good at it. Kind of God given talent and the deck, there’s a need in society.

There’s obviously a need. There’s so many hard working professionals out there. Just misled by all this like crap out there. Financial planners, all this. And then, I couldn’t monetize it, that thing too, right? Like it’s incredibly valuable to collect all these types of people into one place, high net worth accredited investors into one place.

And to do these kinds of bigger projects. To me, it was like ikigai on steroids, that was where you always want to find that direction, head into direction. And that’s, I guess what life is maybe, sure. Every, if you’re not heading into the direction, there’s really no point to this whole thing.

Fantastic. Thank you for your time today. Tell us about how people get a hold of you. Yeah, they can check out the podcast. Simple, passive cashflow.com is the URL and then simple passive cashflow, passive real estate investing on iTunes, Google play, et cetera. Thank you for your time, Lane.

Coaching Call – Accredited Investor/Pilot | Military Retirement | Infinite Banking

https://youtu.be/MZ1DgLlqugE

Now, today’s podcast. We’re going to be doing a coaching call with an accredited investor. These guys seem to always, really like these because everybody we’re all the same at the table. All good savers work hard. Pay too much taxes and I want to get financial freedom safer and easier. If you guys want to sign up for the next one and kind of put yourself out there, we can make a fake name for you.

We don’t have to use your profile picture video. Go ahead and join our club@simplepassivecashflow.com/club complete the quick one minute form. So we know you’re a real person out there because we’d like to know who’s out there on the other end. And reach out, send the team an email at team@simplepassivecashflow.com and volunteer yourself.

And at least we’ll send you the personal financial sheet worksheet so you can outline your entire personal financial world on that sheet. Before we get going, I just want to thank everybody for buying the book, leaving a review, my book, The Journey to Simple Passive Cashflow on Amazon, or becoming an Amazon bestseller.

First week it came out, thank you all for going there and grabbing it. If you haven’t yet, please check it out. Please leave a nice review and I’ll finally make my parents proud that they know that they raised the author since they don’t know what the heck I do these days, that I’m not engineering things anymore.

But anyway, if you just for you podcast listeners, if you guys want to get a free electronic copy. Or better yet I sat down and I read the entire freaking book and I did it in every chapter and I interjected some extra things in there for you guys to serve a special edition. If you want to get that, it’s free at simplepassivecashflow.com/book. If you have any friends, feel free to share the link to it’s a podcast exclusive. Thanks again, join the club and here’s the show.

Hey, simple passive cashflow listeners. Today. We have another coaching call with an accredited investor, Nick, who is going to be talking a lot about a lot of things. Maybe taking money out of his retirement account. We’ll start digging into it. If you guys haven’t checked out, the website has a lot of resources on there for free.

Turnkey buyers syndication investors and I think one thing that’s going to be pertinent today is, are probably gonna be talking about retirement funds and what to do with that. Maybe it’s not even an option for you. Check out the info page at simplepassivecashflow.com/QRP for all my thoughts and ideas regarding that subject.

Hey Nick, Thanks for jumping on. Why don’t you give people a little bit of context for yourself as a kind of scroll down your personal financial sheet. If those are listening to the podcast, you can check this out on the YouTube channel too. Hey Lane. Thanks for having me on. A little bit about myself.

I’m a straight W2 worker. I’m an airline pilot. But also part-time, I’m in the military and international guard. So I’m making most of my money, just the hard way trading time for money. So a little bit about myself, my family married, I’ve got three young kids. So that’s taken a lot of my time and trying to figure out how I can realize my investing goals and plans for retirement while not completely ignoring her nor my kids.

It’s a pretty big factor for me. And when I’m trying to figure out what to do next for my investments. Tell us a little bit about the military. Like what’s your path out of that? I think there’s a lot of military investing podcasts out there at platforms, a lot of those are for the enlisted dudes.

The guys whose network is under a hundred, $200,000, but you move the officer route in your definitely years outside of the military. Maybe talk about the path and where you came today because you also have a civilian job too. Yeah. So I’m a little bit different so my dad was enlisted.

I actually did a direct commission to become an air force pilot. And so I spent 12 years in the active duty air force. Just flying around the world and traveling, living all over the mainland and in Hawaii spent a lot of time overseas and in Germany, in Afghanistan.

So I was able to build up a little bit of my net worth just because I was on the road a lot of my pay was Tax-free which is nice. And that’s one of the big advantages that our military has. It’s a way for the government to limit the retirement pay that we receive.

So they classify some of our benefits, and that we get paid as a housing allowance or. A cost of living allowance or allowance for sustenance. Essentially what that does, is it classifies a good chunk? Sometimes when we live in high cost of living areas, sometimes that costs our pay is maybe 40% tax-free, which is huge.

It really lowers our AGI. But the reason why they do that is because when they pay us our retirement they pay us a percentage based on our base pay. And they don’t want to pay certain people or hire certain service members higher amounts just because they live in a high cost of living area such as California or Hawaii and so on.

So I built and I just visited. Just as an officer through 12 years of active duty. And then I realized that I was just working way too much. And the air national guard was a way for me to continue my service to not, I’m gonna say throw away, but to lose all my years of active duty service but keep them and keep building on them to build toward 20 years and qualify for a military retirement.

So I made that change at the 12 year point. Joined the airlines because it offered a much better quality of life. It’s a pretty common path for military pilots. When they see the light, they see this job that offers half the month off or more for a lot more pay and a lot less headache because you don’t have to deal with the bureaucracy and management in the airlines.

So a lot of guys in my shoes make that jump. But they still stay in like reserve status, or international guard. I hate to sound like a commercial, but it’s nice for guardsmen. We can jump back in, do our service once a month and two weeks a year and still keep accumulating points towards retirement.

And then in my situation, it’s nice that when there’s an economic downturn in my civilian job, Might not be doing well. It might be threatening for a Lowe’s or, and other industries might be layoffs. Having the military as a fallback is nice because I can work full time.

And in certain situations when there’s opportunities available and can replace my income, if I get, if I take a hit on the civilian side, I’ve heard that the big perk of doing that is like, The military will pay for your kid’s college or something like that too? Or is that, is there something like that for sure?

Yeah. It’s called the post 9/11 GI bill. And you have to do, I want to say six years of service or something like that in the military. And they’ll give four years of college for you or when you can give it to your spouse, you can give it to your kids. You can spread it.

Between multiple kids. That’s what I’ve done. And it’s, if you’re doing in-state, it’s really nice in-state school. If you’re doing a private institution, it’s huge because they’re, they cover the entire amount if you’re going to NYU or something like that, but they can offer, they can cover a big chunk, but they also cover a housing allowance basically a classified and the, you get the same rate as a.

Staff Sergeant a mid man enlisted Amber would get a housing allowance while you’re going to school. So in high cost of living areas like the West coast, you can really squeeze out a lot of benefit from the GI bill. So it’s definitely something that a lot of guys sign up for, at least on the endless side to get that free college.

Is that kind of what makes up, like why you still stay in it? Cause it’s kinda mind numbing work, right? Yeah. I mean it’s so the carrot at the end is probably the easy answer. Yeah, I want that 20 year retirement because it’s a pension guaranteed by the US government.

And if I am certain, if you do 20 years of active service all at once you can start collecting immediately. So some of my active duty friends can start collecting maybe at 38 and then they can start a whole new career while they’re receiving a multi thousand dollar pension every month. But there’s a lot of yeah.

In satisfaction in inservice and doing something for the country and doing something for the community. And in my case, being in the air national guard, if there’s a disaster and natural disaster or something like that, the international guard is, who gets called first. And then, a lot of times, when something bad happens in your community, you want to help out and you want to do something.

If you’re a cop, if you’re a policeman or a fireman, you’re going to be on the front lines and helping out. But a lot of people, they don’t have a way to contribute rather than donate to the red cross. If you’re an air national guard, the national guard, army national guard, you’re gonna be called up, almost guaranteed.

And you’re going to be doing something to help the community, to alleviate the pain and suffering that’s going on. So I think that has a lot to do with it. I get an opportunity to leave to help out my unit and help out fellow airmen and there’s a lot of gratification that comes with that that I don’t get in the civilian job where if I’m flying my airline, I just show up. And it’s like driving the bus where I just go and enjoy my time off and go work out, eat good food at informed places, there’s not much. So it was just the balance, trying to, not, have a lot of gratification from your employment, but not get burned out and, want to pull your hair out cause you’re coming out crazy from the pace of the work demands.

I think you got to get that you got two jobs and if one goes down, you’re diversified both ways. So let’s dig into the numbers here, your net worth brought a million bucks, essentially an accredited investor salary and wages about 15,000 a month. W what does your spouse do? Which is that, or is that primarily you. Yeah, that’s all for me. My wife used to work a little bit when she could but due to COVID, she’s not really, she’s not doing anything.

I would like her to work at some point, but my kids are, my youngest is three. They’re just a handful trying to chase them all around with all their activities. There’s not a lot of free time. For her and my job’s pretty demanding, so it’s nice that my wife can just stay home and take care of the household and make sure that the ship is running right.

And everyone’s on time to where they need to be considered. Go ahead. Which is actually like an ideal strategy for if you ever wanted to do real estate professional status too. But what is her capacity for earning? What if she were to go back to a full-time day job? Where was she? She’s been out of the workforce for a long time.

So it would be hard for her to jump in and make a large salary. And then that’s why we just focused on it. Me as the breadwinner, they, and she’ll just not just, but it’s a huge job at home to take care of the kids, but who had a division of labor, as you would say it for now while the kids are young when the kids are in school, when they’re all in school, we’ve talked about looking at.

Maybe doing real estate professional status, trying to figure out if we can pick up some rental property to manage and to realize the unlock, all those passive losses. But I think we’re still a couple of years down that route. And I just don’t, I don’t think I could make quite enough money to make it work worth the squeeze.

As far as annual income, I think I will, in a couple years. So the timing might just work out where I’ll be in a couple of years, I’ll be in a high enough tax bracket where I can use real estate professional status. And then my wife might have the time and bandwidth to take on some of that work outside the home.

Yeah. So let’s unpack that for folks. Nick’s kinda got a good handle on the as, as soon as he says that, his spouse doesn’t stay at home, doesn’t make as much money as him, which is, I dunno, I see path half. I see. Sometimes it’s two doctors and it’s Oh goodness, like neither you’d need to just go to work.

Or you make so much that you guys just have to go to work. But in these situations it’s a little lopsided. You start thinking, Hey, maybe one of you guys can be a real estate professional. Of course they’re going to need a, you can’t have a full-time job. You’ve got to have 750 hours of active participation and there’s some fine print in there. Obviously, what that allows you to do is take your passive activity losses that you get via bonus depreciation from some of these larger deals and offset that ordinary income category.

But as Nick is keen to acknowledge they make about a hundred and, under 200 grand a year AGI wise, it really is. As we say in Hawaii, it’s Poho. It doesn’t make too much sense unless their AGI was maybe a little higher over 300, $350,000. Cause that’s when you really get that savings tax savings by bringing that lower.

Bringing your AGI lower, but right now, they don’t pay too much taxes. They’re not in the danger zone or the red zone for taxes. So it is an art form, and these tax brackets changed throughout the years. And I guess, Nick, how would your income go up? You would increase the civilian islet.

Yeah, it’s essentially another point on my taxes with the military. We have the FCRA service Service members, civil relief act or something like that. I can’t remember what it stands for a CRA, but it allows military members to retain their state of residence that they had before or their permanent, what they plan to have as a state of residence.

Independent of whatever, wherever they’re working on, full-time active duty with porters, which I’m on right now. There’s a couple of States out there that don’t charge state income tax. So it’s a nice advantage for military members to obtain Residency in one of those States and not have to pay state income tax.

So I got that benefit there, but talking about the pers perspective increase in pay, but do with the S the airline industry. For pilots, we just get paid on a negotiated scale or whatever the union MDC can get from the company. And so we know what we’re going to get paid based on what plane that we fly and what the position, whether we’re in the captain or first officer seat.

And if we just assume normal growth of the industry and. Those pilots have to retire at age 65. It’s mandated by the FAA, the government. There’s going to be movement ahead of me. And we’re also, I didn’t bring it up. Sorry that we are. Seat position and airplane that we fly in is determined by our seniority, which is strictly by date of hire.

And we move up in seniority as people at the top retire or get medically disqualified or leave for whatever reason. And so I can project, in a couple years I should be able to be. Move up to a captain seat, captain position and where my pay PayScale will increase dramatically.

Because it’s like that, essentially that first officer makes like half of what the captain makes. Not exactly, but just, for round numbers, it’s like that or lives at stake, essentially, right? Yeah. Bigger claims more lives. So let me, before I forget you mentioned the, I think the thing where you can go so on military orders, I think it also applies to civilians working for the government overseas.

We actually have another guy in the family office, a Honda mastermind that you’re also a part of sh remind me to connect you guys, but. I think that’s what they do. And they’ve made their residents to be in Washington or something like that is what they conveniently selected. Washington has no state tax.

Yeah, you guys should probably put your guys’ heads together on that. I don’t know where you would want to live either Florida or Washington, those are the one of the ideal States I would think. But yeah, I know a lot of people that are Washington residents for sure. Yeah, I don’t work for the government, but yeah.

Yeah. Something, yeah. Remind me again. I’ll make that connection for you. A lot of cool stuff in the film that people are doing, or you might have to buy a house up there, just buy a crappy house. I think that’s what they did, but it’s worth it right to shelter. The state taxes. Yeah, whatever we can do and not pay taxes the legal way.

I’m all for it. Yeah. So if your income does double, that’ll put you in over $330,000 AGI. So then that would definitely bring the real estate professional status into play potentially. Living in Hawaii, maybe do a short term rental, something that’s fun. Start to get, I just planted the seeds now because a lot of this takes years to really implement.

Especially, if you’re doing like a short-term rental, you guys aren’t going to do it right away and you’re not going to do it. It’s gotta be your spouse’s project. So maybe start thinking of the fun idea, having a rental property now that you guys actively manage could be fun. They would like it.

And I think maybe it shows the kids like, look, people are paying us to live here. It’s like the feedback loop is a lot better than. Boring rentals or syndication deals where you get paid on a quarterly roll up. They don’t really, kids don’t understand that type of stuff but they understand when that Ching sound comes on the app, that’s money in the bank in a week.

So just some thoughts there and then living expenses. Is this what people and kids spend a month? It was, yeah. It adds up on all the kids’ activities and they need stuff. And he, new shoes are really growing. I feel like you buy it, you buy something and next month it doesn’t fit them anymore.

Yeah. What do you guys pay for rent? Like our housing for it 4,000 which is kinda high, but here we get a lot of benefits. Yeah. And you guys, I want to highlight you guys’ rent, right? These are the guys doing it the right way. Tell us a little bit like how you did that before we met. I think, yeah.

I, and I had this discussion a lot with my friends who they know I live in a nice area close to. Close to the ocean. I’m paying for having that quality of life the way I see it. And they questioned Oh, why don’t you buy Y like you’re throwing so much money away and rent, and then I just respond, Hey, do the numbers like, look at what.

You know how much you’re paying in your mortgage and, including maintenance, CapEx includes all the utilities. I’ll include all the little things they have to pay for if you’re paying for yard, service, bug service, that just everything. And the time you have to also count for the time that you have to spend, if something breaks that you gotta deal with finding a contractor or fixing it yourself.

And I do the math all the time and try to compare it like, okay, I can buy a place and spend all this money, or I can rent. And because where I live, everybody wants to own, and we’re willing to pay for and pay the astronomical prices. The rents are cheap because there’s a lot of people that have these houses and sometimes they just buy them to lock up capital I’m guessing and, they’re fine with just making the appreciation in the long run.

They don’t care if they’re losing money on it. The rents are pretty low. To live in the same house, same area and own, I think I would have to pay, comparing all expenses, I would have to pay thousands of dollars more per month.

And so I just, it’s just not to mention the quarter million dollar down payment. That you got to lock down. Yeah. Just last year I had a fridge that went out and an oven, a range that went out and there in Kobe, you couldn’t find them. I went to the appliance store, one of the appliance stores to see what they had because our landlord let us pick out the replacement and they had two in stock and they were like that.

The high end, 4,000 or not 4,000 early things, but $2,500 model ones. And you’re just like, man, this is nuts. But I didn’t have to deal with it. I was like, Hey, this is all I see. And, let me know what you find. And they’re probably like, don’t Sue me, Nick, you don’t have a refrigerator. That’s exactly what it is, right? People. For, from them, from the lay person, what kind of idiot? Rents? People like you and me, right? That’s why we get such a good deal on it. And then the quarter quantifies the quarter million dollars sitting there as debt equity.

But it’s not a, but it’s not hard, it’s not, I’m not saying I’m going to rent forever. If it flips and it’s Cheaper to own then I’m going to go buy a house, tomorrow I don’t, I’m not tied to, I’m not married to a certain strategy, rent or own I’ll do whatever makes more sense.

What will save me money in the long run, and then maybe at some point I’ll decide, I want some stability. I don’t want to, I don’t want to move in, because my landlords. Decide to sell or whatever I made, maybe I’ll buy, but hopefully I’ll be in a much better position where I won’t care about making as much money anymore.

Yeah. I think you get to that. You just get used to it. And you enjoy the freedom. If your landlord makes you move well, you just pay a couple thousand dollars to get Island movers to move your stuff for you. And you go on a little vacation, come back and here you’re in a brand new place that you don’t have to upkeep again.

But I’ve thought about that. When do you, when the heck do you buy, right? I don’t know, maybe in Hawaii, how the quality of houses, don’t really, there’s a big gap between $1.5 million and below and something a lot bigger and nicer. I’m more of that delayed gratification type of guy.

And just, if I’m gonna buy a house, I’m gonna buy something like 400. Formula and above do something like that. And as a means to just lock up the equity, once I max out my infinite banking thing, but that’s a while from now, I think, definitely. I’m not a good, hard and fast rule guy, but I think people shouldn’t buy their house until their net worth is really into a few million dollars.

Which is crazy, right? Because most of your neighbors, their net worth is barely a quarter million, but they own 1.1, $1.5 million houses within what they’re doing out there. Yeah. I also think people’s needs change too. What you want might be different 10 years from now, right? More people live in your house right here.

Exactly. And maybe you want to send them to school somewhere else or get them into another school district. You have the ability to move around, maybe have to, something I’ve thought about. I was like, why not have houses that you rent one near their school? One? I don’t know. Just, these are the ideas that you have when you think outside the box, you’re going to have to spend all your time commuting.

It’s especially with a short-term rental option where you can make the house, do something for you and while you’re not in it. There you go. Buy that house in Honolulu that you live in and then work it out on the weekend. They don’t guarantee a middle run out guarantee. Yeah. And then you can justify having somebody clean the house for you two times a week with you with that, your house cleaner.

That’s actually not a bad idea. Looks crazy. A lot of crazy families, but all right, so let’s dig in so I’m going to go into your liquidity and kind of the goal of this exercise is like, all right, what, where are we going to invest first? Or what you’ve already been investing in syndication deals, but where’s the next money coming from?

This is the deployment plan. Maybe take, you’ve probably got a good idea. What was your plan of attack here? You got about 180 in liquidity. Some, a lot of checking most in the cryptos stable coin accounts. You’ve got some. Retirement plans, Roth IRAs 401ks five 29 is about 370 in there. But yeah, so if one or two deals come up, where are you going to take the money from?

What’s your plan? So the easy way is just take it out of the, some of the checking. Some I haven’t checked in. Obviously I have to keep some of it just for living expenses. What is your what’s your how much do you want to keep in the checking just as your emergency fund?

Probably about 25,000, just to cover, cause I’m not worried about not having money. It’s more, I just don’t want to, I got everything automated, so I don’t want to check the balance because they just. Cool too much money. Yeah. Yeah. Yeah, it’s very common, right?

We all got this stuff automated. So when it messes up, it’s a huge freaking train wreck. And not now you’ve got five, like NSF fees piling up and you don’t know who to call first to ask for forgiveness. Yeah, I get you. Yeah. Most, I don’t know what your guys’ credit card bills are, but. I have a lot of business expenses.

So mine sometimes can be like 20 grand or more a month, but I’m all I play the points game. Ops and I haven’t done it in a little while, but I’ll sign up for credit cards and get the bonus offer and rack up 50 to a hundred thousand points for airline miles or whatever, and then turn the next card.

I just don’t have any time to do it right now, but I’ve done that before, but not now, but I’ve gotten to the point now where if I buy anything, I want to use a credit card because I want to get the points because it’s free money. I know I’m going to pay down all the balances every month.

And I get so much protection from the credit card issuer as far as extended warranties and the charged record section in case I get ripped off. So I try not to use cash for anything. The 2%, at least the double cash cards or I use the American express one’s for 2% and then the 5% swans for gas groceries, those categories.

Yeah, you’re like a lot of us in our group. We kinda, it’s fun in a way. It is a little bit of a waste of time. I’m sure you probably draw the line at the manufacturer spend level, right? You’re not buying $10,000 of mint quarters, sending it to your account, walking it over to the bank of Hawaii and depositing it.

Or I used to do that. Okay. That makes sense. We used to buy, I used to buy like the special edition dollar coins from the US mint and then I’d have $10,000. $1 coins in my house. I’m like, okay, I got to use this. So I’ll go to Home Depot and I’ll buy you know how every time you go to Home Depot, I used to be a homeowner, but so every time I’d go, it’d be a hundred dollars.

And I use the self-checkout cause I don’t want to wait in line for the cashier. So I scan my things and then I get to pay and I’m literally putting one coin in at a time. Into the machine. I’ve got like this sack of coins and the people behind me think I’m crazy. And then, what are you buying?

I’m really quarters. Yeah. And the receipt counts every coin as a separate line item. So I get this long, like Walgreens, a CVS kind of receipt at the end. I don’t play those games anymore. Yeah. But no, it’s very common. I think a lot of us in the foam, we did. Craft like that in our twenties, maybe early thirties for the late bloomers.

Sometimes I still do that stuff, but yeah, definitely draw the line at, like a lot of the kids these days, they do the manufacturer spin or are they the last one? I heard that they’ll buy a really expensive laptop, like a five, $6,000 laptop from Apple. They’ll pay a hundred bucks with a debit card and then they’ll use the same, like they’re using a.

Visa debit card. They’re using visa credit cards to pay the manufacturer. So the, so it’s like a split tenor purchase. And then the next day and the return, the laptop would put it on that a hundred dollars debit card. I think that’s a little unethical in my opinion. I don’t know.

But that’s just what people do, that’s I don’t know. Yeah, you got all the time in the world. If only if you’re single and you have no kids, you could just do that all day long. You’d be at the mall, buying yourself all of the free Java juices and. That type of doing that type of stuff all day long, all day.

But yeah, I would agree, maybe drain the stout to 20, if you can. And then you’re planning. How long have you been doing like the stable coin and then the crypto investing? So you’ve got 30 grand and the stable coin and a hundred grand and more like Bitcoin Ethereum, the mainstays. Yeah. And I, it was at an accident because my plan was put it on to a stable point and maybe dabble just like 10, 20 grand in Bitcoin, just, just is more as play money, not as a serious investment, but then I saw that the, some of the exchanges I was trying to use were charging a lot of fees for the stable coin because obviously they want to get, they want to get paid. And then I realized, Oh, I can buy Bitcoin. Instead it and not have to pay the fees and then I can just exchange it to trade it for a stable coin.

I did that. I started doing that last month, bought Bitcoin and Ethereum and then it took off and I’m like, Oh man. Now how much did you put in there originally? Oh, I want to say I want to say Maybe like Haiti or something like that. So it’s gone up 10, 20 grand.

Like I can’t, I don’t remember exactly. When I started, I stopped trying to watch it. Yeah.It’s just kinda crazy. It’s fun but it’s not a good long-term strategy. I don’t think I’ll just keep some and just cause it’s fun just to speculate, but.

I’m not going to buy any more. I want to try it. I think I want to try to move some of it out into a real estate syndication, or maybe move it into a stable coin. I don’t know. It’s just hard, right? Because there’s so much hype and on those cryptocurrencies, everybody’s excited, I think.

And it’s going to go to the moon and I think it’s a nice time now. Not that it’s like that. It’s definitely past the early stages, but the nice thing I think is that the institutions have signed off on it and they’re involved. So that brings another layer of stability to this whole thing. But my thing is keep it between one and 10%, 1% of your lower net worth 10%, if you’re higher net worth or above.

I think that’s my goal post personally. Maybe I’d play around with 1% at this point. But it takes bandwidth to learn it and. That’s what we’re talking about in our group, right? It’s, you don’t need to know anything, a father, which is dangerous too.

I do. Th the speculative coins they’re no, they’re the rational part of my brain tells me it’s just dumb, right? There’s nothing back in it. It’s not like real estate where real estate actually can be cash flow and asset but the stable coin, I a little bit, because the Eagles are so good.

At one point I was getting 12% on my stable point, which is a dollar peg cryptocurrency and that’s, and it’s super liquid. I can just sell it whenever I want. So it’s just a man. It’s hard. There’s a little bit of risk there in that. I don’t know if the exchange could get hacked or whatever.

And they still have insurance too. It’s all new and uncharted territory I think. Yeah. During the block five one, I think they give me like 8.6% on the stable coin, but you’re doing the other one then. Was it? Yeah. Celsius is at one point it was paying 12 for the stable point.

Now it’s around 10 and a half. Nexo pays pretty well also for their stable coin interest. I don’t know how they do it, but I probably should understand a little bit. Yeah. My understanding of Blockfi is probably the most secure of ’em right there. More the most. Financially like solvent when they’re there, they have insurance more than the others.

To me, I was like I don’t know about this stuff. I’m just going to go with the biggest one. I don’t care about making 10, 12% as opposed to 8.6 is good enough. As long as they don’t lose the whole damn thing. Yeah. That’s why I stayed with that one. So Let’s say a deal comes up 50 grand.

Are you taking it from here? Or where are you taking it from? Or this retirement fund? So I would meet, I kinda think that the Mark, I don’t know, the market scares me. Yeah. More than the crypto. Okay. Yeah. So I’ve got a 401k That I want to pull money from. It’s the government ‘s called TSP thrift savings plan.

And I don’t like how I don’t. Their performance is not, has not been as good as my civilian 401k and my IRA, which has just been in a target retirement fidelity fund. And so I would like to pull money out of my TSP 401k account. But, some things considering it’s a Roth account.

So a majority of the balance should already have its taxes paid. So I’ll just have to pay the taxes on the gains. But I’m going to have to pay a 10% penalty over the entire amount. Did you do the care act thing last year? I maximized that and I did that for my wife too. And so I was a huge benefit.

I’m glad you mentioned that there was. It was like a get out of jail free card. I hope they do something like that again, this year. I think they will. I hear more stimulus plans coming and I’m sure they’ll stuff that in there somewhere, then it’s getting confusing for the average person to understand it at this point.

There’s multiple of those. Get out of free jail cards. I think that’s the government never, it never makes things simple. So this TSP is Roth, then you’ve already paid the taxes on it. So this is where there’s really no path. There’s an art form. What I’ll normally say to people is like investor liquidity, except you’re investing in freaking crypto, which defies gravity.

But then I, at that point, I usually listen to what you said. I feel I get a sense of fear for this stuff. I agree with you, take this stuff out, right? Just if nothing, for quality of life and peace of mind, because I would agree with you. I think all these stocks and I mean their all time highs, just basically because of four or $5 trillion pumped into the system this last year.

The thing is, if I’m going to pay the taxes on it, I’m probably going to be in a higher tax bracket, in a couple of years. So take my medicine. Now. It won’t be as bad as later. Just something I’m thinking about. And I think because as we said earlier, your income is going to go up aggressively in the next three to five years, I would.

The plan I would recommend for you is to take as much out to get right up to that higher tax bracket. I think it’s about $330,000. AGI is the magic number. I think you want to shoot for it every single year. So that means leaking out. Maybe you’re at one 50 now, so that’s 180 every year.

Yeah. I don’t know if that’s the meth, that’s the perfect number, but that’s the idea of post tax money or if your tax, bill stacks, the one, the non Roth stuff, right? Yeah. Yeah. So I think that’s, so this is your 401k stuff, like 170 grand. So you should knock that out next year, Ben, right?

Yeah. Understanding it right. Yeah. I’d like to and a lot of my pay right now is not taxed on my W2 job. There’s a little bit more space there. And also, yeah, you got a lot of investible funds, so maybe the real plan I would suggest is like a plan on leaking this one 70 out in two years.

Okay. So go or maybe 50 in three years. There’s really? No. Cause you can take, if you get in trouble and, or not really in trouble, but if there’s like the after, do you have to deal three deals coming on in a row, just take it out of the Roth or you already paid the taxes on it, but have this, you’re on the three, four year plan to take this out.

And then this is being your get out of jail card or not bill bail you out in case there’s a lot of deal flow. But what are you doing? You’re doing that like an infinite banking thing. I think you should do that, man. Yeah, I’ve got some quotes and I’m trying to figure out how much I want to put as far as for the writer to do the additions.

But the way it was explained to me is that I should try to get a big policy now, and then I don’t want to put in the max that’s okay. As long as I’m putting in the minimum for the, of course the insurance salesman is going to say that. Yeah. I would like to, I’m learning a lot. Yeah. More about it.

And I’m still trying to figure out the strategy. I get it, like you have this cash value in there and then you want to buy a car and you just pull it out and you have a lot of benefits. Like you can not have you can self-insure and I have, comprehensive inclusion insurance and, get your insurance rates down.

And then for deals, I can just. But 50 grand into my cash policy and then take the 50 grand now as a loan and invest in a deal and then just have that money out and we recapitalize it. But yeah, I don’t know. I definitely am. Think it’s something I want to do. I just, I’m just trying to figure out a day-to-day strategy on using it.

I would disagree with this insurance salesman and I would say the first one you want to do is a little smaller. So you can understand the field for this thing and then size up to the one that you want to do maybe a year or a few years later. And just layered on top of the current one there, the reason why the salesman wants to do it is because most Americans are lazy and once they do something, they’re likely not going to do something again, as they continue to binge on Netflix and whatnot. So that’s why the insurance sells my hair. They want to get paid. So they want to load you up with the biggest thing right off the bat.

I think for you personally you have a lot of liquidity lying around, I don’t know how you, how quickly you want to deploy this into deals where you’re at, you’ve already had some deals. Maybe plan on deploying, one a quarter at most, maybe. I dunno, but. Nothing crazy. So like you’re at a good, good, a good steady state you’ve been investing for about a year now and to alternative assets. So what I mean. I’m kind, kinda like the fortune teller here Hey, tell me a little bit about yourself before I read your Palm or I like real estate.

I like being in real estate. I want to be as good as I can. How much were you thinking about putting into your life? The infinite banking every year for the five or six years. I was thinking something like 40 grand a year. I’m just throwing it out there, but it’s not really paced on anything other than I can just, I know I can hit that.

I can hit that number without it. I like that number. So here’s one, one general rule. What I’ll do is I’ll take this net cash flow, which you’re making, you’re able to put away 80 grand a year and I get one third of that. Or I come up with that real just trust me. But one third of that is like 30 grand, right?

Yeah. That’s I would say that’s the low end for you, but because you have a lot of liquidity lying around here and you already telling me, you want to take this out and you have 180 here, I would push that a little higher. So I like how your initial. Guests were 40 grand higher than that. 30 grand.

But maybe if you want to go that cool. Like I said, you can always size up and put another one on top of that. I think at the bare minimum through 30 or 40 a year. Okay. But I think I don’t know. Maybe we just do 50, just do a round number. If you want to do it, you could do a hundred, I think, but I would rather you guys size into this stuff and get us.

Get a feel for this thing. Because there are downsides of it. The downside is it’s heavy fees at the beginning, right? So for the lower net worth guys with no liquidity who are listening, don’t do this. You’re not like Nick, but I don’t know. Maybe munch on that. Yeah. The other thing I was considering is the guaranteed return of 4%, that was going to go away at some point.

Because rates have been so low for a long time motivating me to get a policy now, but I guess it would take a while to make that change. Yeah, I don’t understand. I don’t. I hear you guys talking about that to me. That’s just kind of noise because you’re not doing it for the rate of return anyway, where there goes down to two from four, I don’t care.

You don’t care, like all this other money, other places, right? This is just a place to start. Yeah. If that rate goes down, wouldn’t the rates of borrowing it. Go down to. One would assume. Yeah, you’re right. You’re right. It doesn’t matter. It’s the way I’m looking at it, but I dunno, don’t let it, I think you should do this thing, but don’t let that’s just more sales tactics to create urgency is what I see.

Yeah. Yeah. Everybody’s got to get theirs. Yeah. Yeah. No nobody does anything unless there’s some sense of urgency, even smart people, you got to trick them to do the right thing, but yeah, I would do it. I don’t know. Yeah, like the 40 grand, I think you’re good with that. I really think if you wanted to wholeheartedly trust me, I would say, just do a hundred and you’re gonna take the money right back out and invest in any way.

But if you just wanted to set it and forget it, we’ll go with 30, 40 a year. Yeah, cause what you’ll do is you’ll drain out your liquidity and you’ll place it right back to where it was essentially, because there’s going to be a couple years, at least where you’re going to be really fat with money and you’re.

And another reason why I’m saying that higher number, like a hundred grand a year your income is going to be greatly increasing too, which is why I think you can be more aggressive with it. But yeah, get that done man, in the next six months. I’m pretty close. Like I did the medical exam and just knocked that out. And so I think I’m just to wait for the underwriter to do their thing and then they’ll come back to me with paperwork.

But yeah, the only other thing, if you’ve got any other topics, the only other thing like me personally, and not saying that you should do this. But I think that’s why you have people around you that understand the stuff that you can have, these types of conversations, whether you and ICI or agree I will, if it were me, I would feel uncomfortable with it.

And a theory. Bitcoin or non-stable coin. That’s a lot of money there. What I would be doing is I would be sliding half of this and to a stable coin. And then I don’t know, that’s a big number. That’s 10% of your net worth into something new where you could like the news. If you lost half of it, that’d be 50 grand. You would feel like crap. That’s just how I quantify it in my head. I want to know what’s the magic number where like you lost 25 grand in this maybe.

And you’re like I’m going to go to the beach and not worry about it. So if that’s the case, then head your number down and your position down. I don’t know. I wouldn’t feel comfortable with this amount, but you can do what you want. You’re also going this, what? This will probably double and you’ll just rub it in my face and buy me dinner one day and say, don’t worry.

There’s a. 10,000 more dinners that I could buy you because I didn’t listen to what you said, crypto devil in the next six months. But that’s just how I would do it. I don’t know. Yeah. And your religion at this point, the way people believe in leaving cryptocurrency replacing the dollar or replacing not the dollar.

The dollar too, but I guess a more logical one would be gold as a store of wealth. I’m coming around a little bit. I don’t fully believe in it, but I definitely use it. It was a haphazard way to invest that money. It wasn’t, I didn’t intentionally go into that big on it. Yeah. Yeah. What would you do if these are your currents and vacation holdings, if this was like triple right.

What would you do at that point? And would you just throw more into that or, I think that’s what you need to think where this is going. This is all, everything. Is an interim solution. So we get to the end game, but the end game never gets there because then ideally these deals should cash out and give you more money at that point.

But this it’s just, but then I think that at that point you get more and more ballsy with the stuff like once your net worth goes to $3 million, I think then this amount of money is appropriate right there. Like I said, For the guys who are in the lower net, net worth spectrum, I think a smaller position in crypto is appropriate, but as your net worth increases, yeah.

If you want to go to 5%, 10%, I think that I’m just thinking of him from a theoretical perspective, right? Like you want something very volatile, high risk, high reward. It greatly increases as your net worth increases. I think. As a percentage, it’s just, I would look at it, but then again, you don’t get broke if you don’t take some chances

It’s hard. I fully believe both sides of the coin. Half of me thinks man, that is stupid to be having all that money in Bitcoin. It’s not real. It’s real, but it’s not based. It’s not, it. It’s not cash flowing. No assets. It’s just soft, pure speculation. I just look at the game. Look at how people believe in it.

Like they think it’s like the second coming of Christ. Yeah. This is a conversation I had multiple times last year when we’re doing that Chase Creek development deal, where I was like you guys who don’t have a good job, like if back then people were worried about their day jobs, right?

Especially the oil and gas guys. And I was like, if you have to worry about where your money is coming from, maybe this isn’t the deal to go into, maybe you’re looking for more of a cash flow deal, but then if they’re, they’re. But then I was like, how else are you going to get above, accredited status and beyond.

And if you don’t take some chances now, so I don’t know if those are two ends of the spectrum, make your own decision. Good luck. I definitely think you got to, you have to make some calculations. Risks and figure out where we’re willing to accept it. Cause if you go set no risks, it’s I dunno, you think about the guys who are scared to put money into anything and they have it all in their savings account, getting 0.5% high interest savings.

It’s wow that’s the worst thing that you could do. That’s just so you get nowhere with that. But then before you buy crypto and it’s completely opposite of the spectrum no. What I think is wrong, there’s only one rule that’s certain here is to use the analogy of say we were like gambling in Vegas.

We need to have a certain set point on where to take the overflow of profits to at some point, because if we keep playing the game in the Las Vegas casino, we’re going to lose. That’s how the odds are paid. Now, maybe crypto isn’t the same type of game, but I think it’s prudent to like, maybe if this doubled.

The next six months, you have a pre plan to take some of that overflow into real hard assets. I think that’s the prudent thing to do. Like at least you set the terms, so you don’t get money drunk with all these returns. Cause in a way that might be what is happening here. You had a little nice 20% return, but that’s nothing like a lot of these kids have 10, 20, 30 X on their money.

Right now. But this stuff. Yeah, I, and I liked the strategy of having a diversification plan where certain assets, investment categories, you’re only going to have X amount of percent. And so crypto for me was 5% and I went way over that accidentally. And I, yeah I definitely see a lot of value in trying to.

Push that back down closer to 5% that might net worth and not go over more than over that. Because then I won’t cry at night if I use it. All right, you’re now you’re the, you’re up. You’re up on the house, but make sure you don’t lose, yeah. Cool. Yeah. We’ll wrap this up here.

If you guys like these, we have all these YouTube channels. And if you guys sign up for the club there’s also a page with all these in order of networks. So you guys can see, find where you are in terms of net worth and start listing from there on and see what else is ahead of you guys.

Thanks Nick for putting yourself out there. I think a lot of people got some value out of this. If not, they’re just going to invest in crypto because they saw one guy do it. No, don’t do that. Don’t do that on my account, please. Financial advice. We’re here to get your own profession.

All right. Thanks guys. Okay. Thank you.

Goals, Takeaways, and Politics with Rick Blangiardi

https://youtu.be/ZldFM4_u854

What’s up folks on today’s podcast, you’re going to be hearing of an interview I did with Rick Blangiardi who is currently the mayor of Honolulu here in Hawaii. Now, the reason why I’m having him on the podcast is to me when I was interviewing him , it really made me think like this guy is like in his eighties, but there is some kind of fiery passion that still propels him forward to keep doing what he’s doing. Most people, I think they get the financial freedom or most people in our group very unlike most people out there in the world get to financial freedom pretty quickly.

Most people want five to seven years, especially if they’re already an accredited investor. We get them up to $3- $4 million net worth. At that point, they’ve reached an end game. Most of us are frugal, right? So they have enough and they they can probably live out the remainder of their days with a pretty healthy wine budget, and travel budget to do what they want.

Now, but what do you do after that? There’s a handful of folks that I’ve come across that they’ve gotten to that net worth scale, and they really want to take it to that next. Ticket to the eight figures, $10 million plus net worth. The reason behind that is just a little bit higher level of wine budget, but they also want to make an impact and money is an amplifier of what you want to be doing, or they want to have some sort of legacy.

Or again, the word impact. So Rick Blangiardi is obviously somebody kind of personifies this. And when you listen to this interview, I want you to really pay attention to, why does he do what he’s doing? It’s not for the money. It might be because of ego.

It might be because of impact, but you know what? I think this heart is in the right place and when listen to this these are the kinds of the people that I like to surround myself with, right? Not the people who just work to their 62 and quit because that was supposedly their retirement age. But the people ran through the finish line, even though they didn’t need to keep working, but they’re operating at such a high level, a high impact, and they’re making a change.

Might not be your thing, but I think once you get to yourself to a point where you’re a few million dollars net worth, I think a lot of these higher portions of the masses hierarchy of needs become something that a lot of people think about at least something I’m thinking about personally, these days too.

One of the big goals. If you guys haven’t checked out the mission, simplepassivecashflow.com/mission is to help folks like yourself to get out of the rat race by implementing, investing in good deals that cashflow . Secondly, do the right tax and legal strategies that the wealthy do that’s very different than what average people do, and also implement infinite banking as the third step. Three very simple things that I’ve found and develop the network around and build systems.

And so we have all the, e-courses go to the website, check those out. A lot of this is in a firm, very consolidated, curated curriculum. And it’s not that hard to get people to that point. This is something to think about once you get to that point, that’s going to become more of a apparent.

For now, you guys don’t care potentially, but a lot of people that listen to this podcast have very high net worth, and that’s why we have these types of interviews. At these special topics, but there’s something else that you guys want to hear in the future. Let me know, I always look for feedback, email team@simplepassivecashflow.com.

Check out the website too, we’re gonna revamping it this year, simplepassivecashflow.com.

This is Lane Kawaoka . You probably recognize our guests here and you’re probably thinking, what the heck are we doing interviewing Rick Blangiardi . But here he is, we’re not going to really go into too much of the issues that are currently going on.

Like we do on the simple passive cashflow podcast. We get to know the people and, whenever I’m going into deals, working with partners, we never know what’s going to happen in the future. And therefore I want to know the context of the person. We’re going get to know Rick a little bit better and yeah, thanks for coming on Rick, really appreciate it.

Welcome Lane.

I know this is a little wild card and your schedule here, but yeah, let’s see what we can do to make the most of it and I think we’re reaching up a bunch of folks like myself, who typically don’t vote and don’t care.

That’s even new to me, to be honest with you, when you say something like that, because I’ve not been a career politician I find it interesting generationally where people are at and honestly, your generation, I would think would be the most active more because there’s so much at stake.

But I find that interesting, I don’t know where the I don’t care comes from, but, because, I would tell you in my short time now making this decision, lot to be said for who’s in power and who has positions of authority. It sounds so. I don’t know. I’m not that power monger, but you know what I’m saying? When you have the authority, you can make things happen. There’s a lot of responsibility with that as well.

Let’s dive right into here and this is that Han solo moment question that made you think of star wars. So those of you guys who haven’t heard of this question before, it’s, Han solo and his buddy Chewbacca from star wars cruising the galaxy as low light smugglers.

I think cross paths, Luke and Leia and they went off on a little adventure. You probably have a few of these, but we call it bridges. I was watching another podcast with coach K and JJ Redick from duke and coach K calls these bridges, but take us to one of earlier bridges and just give us a little context of yourself.

Okay. Yeah. And there have been several of my life. I’ve thought about that. In fact when I’ve come to those crossroads, just to, and I’ll come to your question. I learned a long time ago. I don’t even know who the source is for the attribution, but it was said to me once before, and it was moments, the purpose of all education.

Is to do the things that we’re supposed to do at the time that we have to do them, whether or not we want to do them. That’s about overcoming that inertia that is coming to that crossroads and realizing, okay, I need to make a decision here. And how much do I have in front of me to make the decision that I know I should do?

And how much am I going to yield to the pushback, if you will. Okay. Because that’s the defining people ultimately become it’s those moments in time when you are willing to pivot or not pivot and, and then there you go. So I think probably the most profound one that happened to me early on, it had been several significant ones quite honestly, was when my decision to leave college football coaching.

Because I was 30 years old, had a master’s degree. I was associate head football coach at the University of Hawaii. I was a defensive coordinator. I had a guy like Dom Capers on my staff, went on to NFL fame, having been a head coach and a few other really good coaches. We were winning in those days.

Everything was right about that picture was a low aspiration from the time that I realized when I went to college, what I thought I wanted to do because the game was self, had such an impact on me. And I was doing really well with that. I was coaching all during my twenties and the only thing was wrong was, I came out of a blue collar family.

I was the first to go to college. Everybody had expectations that would do that, so I could make more money than they were earning in factories. And my father was a machinist and hardworking people but I got into a business. Everything was right about it, except it didn’t pay any money.

So in 1977, I had good position in coaching was successful coaching and I was making $15,000 a year and Larry Price, the head coach was making $25,000 a year. In fact, after Larry left, which was subsequent to my leaving, they brought in Dick Tomey at $35,000 a year. I mentioned that because Nick rollovers has just left for $15 million a year.

So maybe 40 years later, maybe if I had been able to stay there with it would have been one thing. But that aside that was a major decision for me because at 30 years old I pivoted to reinvent myself in order to stay in Hawaii and I take a mail-in coaching job. My then wife was mother of my three children, ultimately, really grown to dislike the demands of coaching.

I had very idealistic notions in those days about not only keeping my marriage intact, but also about fatherhood and what to do and coaching was very demanding. So I took a job that I really knew nothing about to sell television time and on the com that CCF tells them time said to me, Rick, if you want to work hard in this business in three years, you can make $50,000 a year.

Working hard at the age of 30 and the life I was living, wasn’t even an issue. I thought, wow, it’s the first time in all those years, even when I got out of grad school, anybody talked to me about making what seemed to be serious money at the time, and I felt a real deep compulsion to go for it. So that was probably and I have no regrets.

I’ve got a 43 year old son who’s done really well for himself and a 40 year old son has done well, it’s 35 year old daughter and my kids. But that changed my life changed my destiny.

So at the age of 35, you made that pivot. So you are a little older to start your professional career at that point, right?

Yeah. I spent my entire twenties coaching football, but here’s the deal that was a professional career. That’s what I wanted to do just to college football. Unlike today, the top 100 coaches at division one schools all make $2 million or more a year in those years. We just did it for the love of the game.

And it wasn’t all that long ago. It was four decades ago, a little bit more than that, but the bottom line is I thought that was my profession. It was everything about it was professional. So there a lot of work and everything else, it just didn’t pay anything it’s invading money. Yeah, that’s a big transition moving from one track and then going back to the bottom and another.

Yeah, Lane little did I know though that so much of what I learned. You know look, I don’t know how much you know about belief systems, but most experts will tell you, you lock them in pretty much in your twenties.

And I locked in a lot of my belief systems that were rooted in sports team, sports coaching, a lot of other things that I learned along the way. And as it turned out, even though I got into a business, I knew nothing about, I found out that a lot of that would be the foundation for me going forward on how I would lead.

They say a lot of folks in military positions, high stress positions in their twenties translate well into a long career. Would you say it was more like just grit that you had developed or if you were.

I think grit is important. I think you have to have determination. People that I’ve known them to succeed, look, you can get lucky in, in the financial markets. There’s no question and we’ve all seen that, but I don’t denigrate anybody’s success.

But the path that I’ve chosen required a lot of grit, a lot of determination and it never stopped. So I will tell you I’ve been a guy who’s been in one setting after another turnaround failing companies and that’s not some magic potion. That’s a lot of hard work and determination to succeed.

So hard work and determination, you jumped on that highway for the next decade or so.

Look I jumped on that early on. I don’t know, usually talk about myself, but in this kind of podcast, look, I went from being a grad assistant to associate fellowship coach. In five years, I went from knowing nothing about television.

And five years later, I replaced the guy that hired me and in seven years I became a general manager and then I never look back and I’ve had title after title. I’ve been president of two national broadcast companies. I’ve run major market television stations, and I can talk a lot more about it. I’ve worked at CBS in New York, but I came home 18 years ago and did some things that nobody thought were even possible starting first and foremost, we’re taking over KHNL and KGMB.

Two failing stations, the financials were there, same ownership, never one guy before ever did that turn both of those around very quickly, both in revenue performances, rating success. We make KHNL that on Fox affiliate in the country, not once, but twice after 16 straight quarters of ownership of a downward spiral went on to stay with KGMB, took it to 2007.

Sold at eight claim broke everybody. Brought everybody to their knees. The week before Christmas, 2008, we made this decision to try to build what ultimately became Hawaii news now out of a broken economy, pending FCC and DOJ approval. We merged three television stations together. We understood mobile technology and we created a 21st century multimedia company.

Okay. So I will tell you that my whole life has been about that. It’s been about starting at a bottom of working through or inheriting things that weren’t working and making them work. Before I came back, I was president of a company of Telemundo called Telemundo. Second lives of Spanish language network owned by very sophisticated players.

Sony was one and Liberty media was another new to private equity groups. They had just bought it for $500 million SAR niche in the marketplace in Hispanic broadcast, saw the trends understood what Latinos meant for in economic terms. Invested heavily lost a hundred million the first year and their very first year fired the two people brought myself and a guy named Jim McNamara and was the CEO. He stayed in Miami. I stayed in LA.

I lived on airplanes for 45 weeks a year, and we sold that at that puppy for 2.7 billion, three years later and we would have sold it for three and a half billion. Jeff ML was on record because we sold it to NBC of saying that was one of the things that came out of 9/11 was they saved nearly a billion dollars in the acquisition of Telemundo and that’s because they had private equity guys who wanted to sell and they put a deal on the table that couldn’t refuse, even though it was discounted, I’ve been involved in those kinds of things Lane, okay.

So my life and I, when I tell you I was living on planes 45 weeks building a company that’s based in LA. We had a big operation up in the Northern bay area. I have three stations, one of which we bought on my watch in Dallas, big market, just a transaction for that alone was a couple hundred million dollars was complicated plus Houston, San Antonio, Miami. I was in out of all the time where our headquarters were.

So I don’t want toPuerto Rico as our largest operation. Our second largest operation was in New York city and then Chicago, Denver. We were buying Phoenix when I left. And then when the deal was on, I was traveling post 9/11 commercially, not privately. I would wake up in Miami, work in Chicago, sleep in Houston.

Now I’m just telling you that because that’s the kind of seasoning I’ve had through my life. I came home after all of that, at that point at 25 years in the business, quite honestly, it wasn’t about the job. I came back to it because I made a decision, which is something I learned my next pivot point in my forties about alignment.

After going through some pretty toxic experiences. And I decided for me, it was on a macro basis. My alignment was where I wanted to wake up in the morning. And Hawaii had been my touchstone. I told the press where I came back in 2002. I told them that. I said, I moved to the mainland in 89. I never left Hawaii, which was true.

Not only that come back every year, but let me offer this insight. When I first left here, I went to Seattle, brought my three kids with me to run KING-TV. One of the most prestigious jobs in America and they recruited me. I had been working for them for a couple of years. They could have hired anybody.

So they offered me the job on my 43rd birthday. I was in Wyoming. I was doing a football game with Jim Lee and I got this up. If they said we’ve made it this year, they called me up to wish me happy birthday. They called me up. They told me he made a decision when I moved my family and I really didn’t want to move out of Hawaii at that point.

I really didn’t. I’ve been here since ’71. My kids were born here. They loved it here. I was doing well and television. I was proud by that point I transitioned over to KHNL and now we’re doing all youth sports. We’re making a real contribution to the community. I was doing a lot of public speaking. I was enjoying just a sense of being a real integral part of this place through sports, which was my interesting enough in my origins of my coming here in 1965 as a player, to be living like that, it all felt good.

But in that spirit of challenge there was in that crossroads, like I said, I knew all roads led to that. I had to do something. This is my second big pivot point that I really didn’t want to do, but I knew that I had to do it and I answered the bell to do that. So I didn’t know they were going to sell the company.

He brought me to turn it around three years later. We did. They sold it. Next thing I know I’m in CBS, New York, but during those three years, I’m in Seattle. Everybody always referred to me as the guy from Hawaii. It always felt good that when I went to New York, it’s a variety of this big article about, I was a guy from Seattle, but I’m not the guy from Seattle, guy from Hawaii, with this Boston accent, but I knew where my roots were, so it’s been like that.

Okay. It’s not been an easy road. It’s been really a hard road. So that’s why you bring up the subject of grit. I take a lot of pride in that. And as you get to talk about that, but nothing has ever come easy. Nobody’s ever handed me anything. Okay. Anything.

There I also hear undertone. Nothings can go your way. They sold the station. They had to be very big out. You were in that shuffle.

They bring it out. They have you report to a suite at the Four Seasons, this was in Seattle, and it was speculated that all of us would be out and see our manager. They said, Rick, there’s nothing personal. We just bought this company for million, billion dollars and we have our guy and we wish you well, here’s the HR people we’ll see you later.

It wasn’t even like getting fired. It was just part of the transition. But that led me to CBS in New York. I was at a decision then do I stay at and go? I get out of broadcast. I just left Hawaii, went up to Seattle. I spent three years in Seattle, turning that puppy around. I still have a handwritten note from the CEO.

We brought that station back from a death spiral. That’s why they hired me because they had done an employee survey and they realized they had a house of cards and they knew because it was company was founded by a woman named Dorothy Bullet and she had passed away and the previous year now it was time to look at the asset and an old board of directors.

She was 96 that she was recognized one of the top 100 women of the 20th century. She was legendary. She was 56 years old when she started television, the Northwest legendary person. Anyway, I can go off and tell you stories like that, but all of those things were these Han solo moments.

I’m going through space, if you will and life is happening and I’m trying to be as good and as aggressive as I possibly can. Not really know. Nobody offered me anything to guarantee and then just dealing with stuff. So in that regard Lane, it wasn’t too later in my late forties, I was down in Australia.

We had just sold the company. I was president of a national broadcast company, 9 TV, 27 radio and I had partners was a two year deal, was supposed to be a five-year deal. Thank God, it was only two year deal. Most toxic experience of my life. These were bad guys. I got aligned with bad guys. I’m down in Australia and I’m trying to purge if you will.

And I’m thinking about what I’m going to do next that brought a bunch of books at the time. Bill Gates wrote a book called the Road Ahead, and this is pre don’t. Think about all this happened. This was in the nineties. Think about all this already 30 years ago, they were all that’s happened since then.

And it was a real prophetic publication. He was talking about the movie, The Graduate and he referenced it in the context that it was a great movie. You’re probably too young to remember Dustin Hoffman and it was a word in there. It was an experience in there which, how Holbrook is advising this young man.

And he tells me the word is plastics Benjamin, became such a colloquial expression from this one movie line about plastics, like what you want to do with your life going to plastics. And Gates was saying in the book, if they wrote, if they redid that movie today, The word would be communications.

He was talking about that. He said, it would be that’s the word. And I was in one of those sorta youngian moments, maybe a little bit like this and thinking, gee, what did I just learn? I just went through two years of a really toxic experience with people. I’m not gonna mention anybody’s name or flat out evil.

These guys are bad guys. I couldn’t wait to get away from them and the sale of the company allowed me to do that. I’d never been in that experience before. And I thought to myself, you know what alignment I slipped into that. I let them buy me into that job. Not going to do that anymore. I’m going to pick my alignments from this point forward because I was evaluating my life at that point and think of what worked, what didn’t work and why.

When I got out of sync was what, because of the wrong alignments. And ever since that I’ve been very selfish. So I tell you my decision to come back to white post the self Telemundo, which was influenced also in my life experiences of 9/11. 9/11 impacted me in a big way. My dad died that year, but it also impacted me.

I was up close to that, but it also just resonated with me about life, a lot of circumstances. And so I was single, my kids were grown and I could make a decision for myself and so I chose my alignment was I wanted to come back and live here. I wanted to come back here and serve this place where all the experiences I had gained over those 13 years in broadcast, in my career.

And I came back to a fertile setting of having KHNL and KGMB. It was really about this place. It was really about coming back to Hawaii, which is important because that decision on that premise 18 years ago was the exact thing that hit me a year ago. When I made this decision to run from there.

It makes me think of a couple of things. When people invest a lot of money in these real estate or whatever they’re investing in, you’d get a point ’til you’re financially free. Really the freedom is doing what you want, where you want with more importantly, who you want and also when you want. Also there, you came back home and, a big issue.

That’s a lot of people realize is a lot of the pious talent leaves Hawaii, and the brain drain. They go to the mainland for how much higher paid jobs. When I came back home, I had to take a 30% pay cut. I’m like, how can anybody survive in Hawaii? But you’re obviously in a position where you could and make an impact. Take us back to the opportunity that was presented to you to come back. What did you think at the time of the impact that you could make.

Full disclosure: 25 years in the business, I just led that life that I told you, turning Telemundo around I’d run major market stations while I was on the mailer, including working at the network, I was in a lot of cities, whatever. I decided that, that was not a sustainable model because I felt like I was not connected to anything even though we were having some big success and all of that stuff that happens in that kind of mode.

But I actually wanted to come back and be athletic director through University of Hawaii. That was the year that Evan Debelle announced that he will start off with you. Your shooter said he was going to retire. 2002. So anyway, we sold Telemundo. We made the announcement come on October 11th, one month to the day, 2001, I’m going to be safe.

And then I was given the mandate as president of the company to get the deal closed. By the end of 2002 and every day earlier, it would be a creative to GE. So there was a lot of pressure and because they’re requiring partner that’s who owned NBC at that time. So that’s where I was living on airplanes and doing the things I was telling you, which is like crazy life.

And I was a lot, it was my cup runneth over, I got my fill of conference rooms and all the other things you can get through. So I wanted to come back. I thought, okay, this is a great thing. She is retiring and Dobell is the president of University of Hawaii and he’s making these noises about, he’s going to bring in, this great athletic director.

You saying all the things that really spoke to me. In fact, I was hearing from everybody in town, Rick, he’s talking about you. They wanted a business guy with media background who had connections to Hawaii, all this stuff. And I’m thinking, that’s me, he’s talking to me. . I couldn’t even get a cup of coffee with this guy.

He already knew they were going to hire him and Frazier. So I backed into the job because again, it wasn’t about the money or even the positions, everybody that I left at that time, given the success we had. But I was absolutely crazy to leave the fast lane. Okay. Because I gained a lot of recognition was on front cover of magazines and crap like that.

I could have stayed on the mainland that came back to my wanting the alignment of my wanting to live here. I could be cavalier about Manessa bills to pay and you know what? You could make some money, but let me tell you the first time you see the government take half of it.

It’s pretty eyeopening. The numbers look a lot different. Okay. And the one on the short of it is I came back because I wanted to make a difference in this community. And I really felt that circumstance was not the one that I initially wanted. I wanted to be D.A.D. at the University of Hawaii and I thought back to my roots, but I’d learned enough about television.

And this was enough of a challenge because you have precedent of nature. The fact that the businesses were failing under his ownership, I did it for that. I did to come back and try to apply everything and anything I knew about improving local television. Now I started in 1977 KGMB was the dominant station.

But, I can tell you those years, we used to be a one week delay programming or whatever and technically there wasn’t that kind of investment. I can remember early on once I started understanding the business, people always say things like how come local TV so junk will go the main road so much better.

That kind of thing from that in this last go around, I’m not just going all the awards we won and everything I can say Hawaii news now is one of the most did we go. Yeah, I wish statewide television market. And one of the more highly regarded broadcast entities.

Greg bought us a year ago, they had a hundred stations. They bought 63 Raycom. We merged into a publicly traded company of 163 stations. And Hawaii is now what right to the top of that. To me, that is a contribution to Hawaii. Just like in 84, we started doing youth sports as a contributions of Hawaii.

That was a vision that we understood that Hawaii sports. They went from the Northern tip of Kauai to the Southern tip of the Hawaii island and everywhere in between. I understood the feeling of the pride of that and what’s what we began to do on a pretty good basis. So I came back to serve at that point.

Serve a place that I had loved that I always felt strongly connected to. And that began, I didn’t know what was going to win. I didn’t know what was going to happen going forward and I’d never had a crystal ball. For me, it’s never been about trying to predict the future. It’s about how you create this over the course of 18 years.

There was one thing after another. We created some great success, so it’d be here in the broadcast business. But beyond that for the people, I heard I’m a media today. Make a comment about making profits for mainland company. For me, it was first and foremost, always about the people creating a great place to work.

Hawaii news now is the only media company, the voted best places to work five years in a row, I didn’t do it in the last year because we went through a sale. I waited five years before I tested that. And it has to be voted on by 80% of your employees and quite honestly, in news organization people are pretty cynical.

They don’t drink the Kool-Aid. Yet, we were, by our employees, they loved working there and I brought back a number of people Lane. I brought back the Lane Kawaokas. I that’s why I brought back and we got to give you a bunch of them that I hired, who were succeeding on the mainland created something they could felt they could take their career and bring it back here, even to the extent that I wasn’t able to pay them quite what they were making it on the mainland, but they prefer to be home with family and actualizing their careers.

I can give you a bunch of names there, but I’m really proud of that and they’ve all evolved. To me it was that even, and I have to be careful there because I’ve had some really great union endorsements, my folks be certified. They voted out the union that doesn’t even happen on this now because of belief in management.

So we’ve made a great place to work in which we inspired people to do their best. And I used to joke I’d say the same thing to you, as I’ve gotten older, everybody looks at. Even though you’ve already sure. I don’t know much about you have accomplished a great deal, your best is in front of you, but you need to be in a situation where it’s not just you alone doing that necessarily.

You’re going to need, at least in people who work in organizational settings, but in the kind of dynamics I was in with people who wanted to belong to an organization, cause that’s face it, in news or even sales or whatever marketing, that’s the setting. That’s the kinds of people who come into it. We made it a great place to work, but I always challenged everybody to say your best is still in front of you.

And the way we did that was I pushed innovation all the time on new ideas, more than I did improvement was just a basic expectation. We’re going to get better. We have metrics, but no, where are the new ideas? What are we doing? It’s different and better. And so people, when you talk about making work fun, get off in that kind of stuff.

And the, the log of yesterday were in there and crime created tomorrow. So right from the beginning, when we’re stepping, it’s almost, it’s interesting it was 10 years ago, because at that point, I said, we’re in the first year of the second decade, just 2012, we started October 26th 2009, when the first year, the second decade of the 24th century.

And look, what’s going on in broadcast media. And what are we going to do about? And we jumped all over mobile technology, we really on the studio, I’m on a podcast. Again, we understood all that stuff and we made it happen. It was a contribution to why was precisely why I came home. The success is that earlier on the KHNL and KGMB and those recognitions, that was all one thing. This was a significant change in the trajectory of local media in Hawaii and we’re able to accomplish that.

If you can illustrate the differences between the Telemundo years and the Hawaii years, it seemed like in the Hawaiian years you had more of like an impact where the Telemundo years you’re more of within the operations.

I got hired initially with eight stations. Three of them were negative EBITDA. Three years later, we had 11 stations. We tripled the EBITDA, the whole company. We made strategic acquisitions and all the way that we created a presence on a national landscape. When I started the consumer buying index was $80 billion in Hispanic market.

When I left three years later, it was 650 billion. What a trajectory to hit a trillion dollars. This was a high stakes game and it had that hit that trajectory. It hit that point a couple of years after I left. This was understanding the moment in time and how to capitalize on it but that was just a lot of personnel work.

To be honest with you Lane, that was a lot of people picking, I had to put general managers in place and provide the right kind of leader. In a tough place, because first of all, the Hispanic market had one big giant gorilla. This company called Univision and they were very territorial and they made it very clear as soon as we began to make some inroads.

If you leave here to go work at Telemundo, you’ll never come back here. They drew some hard lines in the sand. And so I found myself hiring general managers, like what I’ve been for a lot of years had 10 of them. They were great. think eight of them had never been GMs and just picking people who understood what was at stake, who had capabilities and skill sets and whatever.

So that was different. But that’s been the same here. When I came back. Let me tell you a story. So KGMB and KHNL were both owned by the same company MS communication. And I knew Jeff’s mine and my days from Seattle because he owned the Seattle Mariners and I was trying to work at GLL for 5% equity of his club.

I’d buy a second television station and paid with broadcast rights provided he gave us the equity. I could never make that deal happen, but I got to know. Okay. So I come back and I look at Jeff. He’s a big radio guy in KHON that 16 straight quarters of downward ratings and revenue.

16 quarters, less, less, less. In that process, they’d bought KGMB through the acquisition of we enterprises had not invested heavily in it and it was really downtrodden. They had that for two years, they had two stations in Hawaii. They’ve been operating on a temporary grant from the FCC that allowed them to maintain a duopoly, even though the FCC, one of them ultimately to divest because it was a rule violation, but nonetheless, they had it and they basically said, what do we do?

In KGMB, it should be a perspective. When I walked out in 1984 to go start what was then Kiko, which became KHNL who were doing just under 20 million a year. When I walked in 2002, she was doing under 10 million a year. So you can imagine from 84 to 2002 less than $10 million gross what I walked into.

In Hawaii over that course of time and that’s how broken the place was. I asked to be with the management team of both. They had never done it. There would, there was like resentment, KGMB and the original building over in Cape, on Kapiolani Boulevard in a P koi street was all this brand new glitzy K Joanne.

And it was like bad blood because broadcasters compete against each other. And it was like the haves and have nots so there’s a lot of bitterness. So I wanted to look at the manager. So I asked all the advantages to come day one before any of them in the station had a meeting in the conference room with the elite talent to Hilton Hawaiian village.

I told them to bring their number twos and number threes if they had it. I wanted everybody to bring whoever was, it was in charge of stuff. So sure enough about 35 or so I never really counted the exact number showed up and attention to the room was palpable. You could feel it.

And I walked in and I pretty much laid out, what it was about. I want to tell them. Yeah, cause here’s the deal, the night before I’m watching Leslie Wilcox and run Mizutani on television. I’m sitting in a hotel room and I’m watching him and they said goodbye that day they fired their general manager and they started speculating about me.

Rick Blangiardi has come back to Hawaii he’s going to run two stations at the same time. I’ve seen that a hotel listening to them speculate about my arrival. Okay. Meanwhile, I’ve got this meeting set up the very next morning for all the managers and they’re like shaking their heads and I’ve known one Alyssa this is impossible.

This can’t happen, what’s going on here, and they had people crying over the guy, they just fired and stuff, it was like, so I go in that room and I tell them pretty much, this is the way it’s gonna be. I just want to make it really clear to you that, I am come back home to retire.

Some of you may think that because it was a lot of stuff, talked about the press just coming off of incredible success. But I came back home because of my love and passion for this place and to make a difference. So let’s do think I’m going to give you a railroad to talk today about, you got to run harder, jump higher, there’s a new sheriff in town. That’s not the case.

I’m here to serve notice on what I believe and that is the reason why the stations will not be performing is it’s lacked the leadership. I’m going to challenge all of you. I’m going to tell you right now, the people who are most at risk of a men, a woman in this room, because that’s what I’m going to look at first.

If we expect to inspire performance, I want to look at who’s leading. Okay, because I don’t know how any of you got your jobs. I don’t know that these stations are both dysfunctional. They’ve been dysfunctional for quite some time. So all I can do without casting aspersions on anybody is simply tell you to me, that’s a leadership challenge.

So my first job is not about, but as I am everybody else, it’s going to be to evaluate you and whether or not you should be in that job, show me what you have. I want to see it up close in person. I’m going to get to know you. I want to watch what you do. I want to see how people respond to you. So it was with that understanding that I had a leadership challenge on my hands predetermined.

They barely but predicated on poor performance. Okay. But at the same time, there’ll be fair and I just started to tell you, probably at the end of the year, there were five people left from that group. Some of the people that we changed were internal promotions, a number of them, good people.

Yeah, that just speaks to how important leadership is. Who’s leading in the decision about who’s leading is really important and that can make a huge difference. And that quite honestly is why I chose to run for mayor made that decision in a title of my life. When I could have said, I just had a hell of a career, what am I doing?

And I’ve told people repeatedly, I made this with my heart. Maybe that’s the wrong place to point to, but it certainly wasn’t what my brain, I was driven by this as a referendum for leadership because of what’s at stake and this was pre Covid. So I made that decision based on love of place, not very much different than the decision I made in 2002, 18 years ago to come back here and make a contribution to Hawaii.

For the standpoint of where TV was at, what these properties or for that matter when I took over a broken television station in 1984, and what we then did with that with UHC sports. Now, we certainly. For that matter, even when I go to KGMB, all the things we did or the years of when I came over here, I announced I was running for mayor at the old stadium park.

And the reason why he did it cause I’m really a sentimental guy, because that was the place in 1965 that I first saw the pride of Hawaiians, local people. That’s the first time I saw it, it’s also the same setting was the first time I learned how to fight for Hawaii. I wanted to announce my mayoral candidacy in that setting because it brought me all the way back to Hawaii in a very different time in 1965.

But my life experiences over the course of that time and what I’ve tried to do here, we’ve all been to the good. And now this last chapter, this again was pre COVID, which as I said earlier, is going to redefine my entire time as mayor. But this was all about that, this was all about making a difference in a place you live, feeling connected to it.

And then quite honestly, who’s going to help run this place. I’ve made it clear to everybody that I’m not doing this alone. I’m asking for responsibility and the accountability, but I’ve said repeatedly, I’m going to try to bring in the best minds. I can possibly get people who are smart thinkers, smart doers, and who also want to be held accountable because we’re in a time right now that we’ve never seen before.

This is the most difficult setting any mayor has ever walked into it and I’ve been told that daily by a lot of people, I realize what’s at stake. It’s not just because it just functioned with heart and the mayor and what’s happening with the rail or for that matter. Anything else that you want to say, we’ve got a lot of issues here.

If you were to categorize, when you made that decision to go for a mayor, was it more of a you’re compelled by your optimistic? What kind of impact you’re able to make with the position? Or was it more, you’re frustrated at what’s happening out there? And if so, what specifically frustrating you?

That’s good question Lane, it was probably neither in a sense. This was not really ego-driven and quite honestly, when you make a decision of this consequence, it really is a certain amount of trepidation. But you feel you’re being drawn to it. There’s a sense of responsibility. That you almost can’t deny. You don’t want to turn your back on it.

Like I said earlier with silver referendum for leadership. So if I live here and I say, I love it here. I love its people. I love where I’ve been in. My life has been here. Then you come to a moment in time like that. That’s never just one thing you feel compelled to be. I could have turned my back on it easily.

For some reason, I was up there with people whispering in my ear, Rick, you got to do this well, what more do you have left to in television? You got a lot of gas in your tank. We need you to do this and so since that time that’s been gratifying because look, when we announced, I had no idea how I was going to do.

I don’t even know how many people are going to run. At one point we had 15 people running for mayor. We had three experienced politicians running. There was a lot of unknowns and uncertainties here with no guarantees, but now I find myself not only having one of the primary, but as you may or may not be aware, decidedly ahead, tuition today is election day in the polls who do everything we possibly can to make sure that we meet that.

And then some and so I have a sense of destiny about this Lane. I really do all roads have led to this and all I can possibly do from this point forward and getting elected is to apply everything in my life that I’ve learned, my love of this , place, the people that I know, you look in the challenge of all the unknowns.

I’ve said repeatedly, this is going to take collaboration at the state level. It’s going to take collaboration with the federal government, and it’s going to take collaboration with the private sector in ways that perhaps have even happened before from the standpoint of the mayor of the city and county of Honolulu.

And I intend to do all of that c ause we’re going to need a lot of help and a lot of things we’re going to go right back to what I talked to you really about innovation. We need some new ideas. There is nothing about the situation I’m walking into that says perpetuate the status quo, nothing. Now, if we see things that are working really well, I don’t have that kind of ego.

Like I’m not that person, that’s one of the things that really helped facilitate turnarounds. You don’t walk in there, which is such a classic mistake. When you take over in your number one job and feel like, okay, I’m here. It’s my signature. We have to reinvent something. No, I want to look for everything that we’re doing well and capitalize on that and stopped the things that we’re not doing well and figure out how we can do it better. That’s how you operate in turn arounds.

When you jump into the position, what is something that based on your experience? So with your skillsets and what you’ve learned throughout the years what specifically made you for this position or speaking on any issue out there that you’re a big guy exactly for that issue?

You asked me earlier about grit, for some reason I’m wired the way I’m wired my whole life. I’ve just been like that. I think it’s also a really, I really do. I’m an old team guy rooted in team. I love building teams, people around me. Watching people thrive and being a facilitator in that.

I’m looking at this job as daunting Lane, as it feels right now, given the circumstances and believe me, there’s good reasons to say that it’s a very exciting opportunity right now. Leadership is situational. There’s some real silver linings in this. I’ve talked openly about it and we’re going to try to see the best we can do.

I think the landscape is fertile right now for us to do some things that maybe hit a four year. In the group for the sake of a greater good, the challenges is significant and so I’m just drawn to that kind of thing. Why do people climb things like Mount Everest?

I’m gonna go through all this stuff with crazy things people do. It just something in you and I’ve been in just go this is in me to do.

We’ll wrap up here with the Tony Robbins question, break down a couple of things for us. First, what is the some kind of a secret or hack or any kind of ritual that you do that led to you being a high performer, high output? Basically a science achievement. And secondly, what is your secret or hack for the art of fulfillment? What keeps you motivated? What keeps you going?

Well, I’ve never taken myself too seriously going to be really candid. I would tell you I’ve been blessed, I think with a certain sense of humility and recognizing my own limitations and always trying to work over that, I learned this. You’re going to crack up since you brought up Tony Robbins. Let me bring up Barbara Walters. I’m watching, this is years ago. Barbara Walters is doing a 25th anniversary show every year for 25 years.

Once a year, she interviewed four people. They were the world’s most famous people from Kings to movie stars, celebrities, athletes, business tycoons and so now it’s in a 25th and then doing a special anniversary show and she’s being questioned about, okay, 25 years have gone and you’ve had the privilege of interviewing 100 of the world’s most fascinating, successful, not successful I’m less said that, people like that, what were the common denominators?

You saw you saw them up close in person. She said, I remember at the time I was getting dressed in a hotel room, she said, tell ya. It was two things that really popped out. One, they understood their work and they took it more seriously. But secondly, they didn’t take themselves very seriously. They understood who they were. They’re human foibles if you will. I look at my life like that. I know the impact that can have and what I do professionally, but I also understand I’m an imperfect person in many ways.

What is your secret or hack for the art of fulfillment or any other kinda mindset tricks that you use to keep yourself going?

I think you have to stay positive, from a leadership standpoint, you have to be positive. You have to understand that when you’re a leader, you have to have broad shoulders. I’m being tested right now and this negative campaign stuff that’s going on. If they’re broad shoulders and I think people look at that and look for you to fulfill that expectation. So consistency is really important, having integrity.

Appreciate your time Rick. If people want to learn more about your campaign, you want to talk your website for folks.

We have a website and everybody around me laughs all the time. It’s RickBlangiardiformayor.com. I always have to think about it cause sometimes they say friends or it’s RickBlangiardiformayor.com. I’ve enjoyed this. I know we didn’t go through all your questions, but I thank you for allowing me the opportunity too. I think because all of this was designed, I think in some ways to showcase a little bit of how I tick inside and so I chose to articulate it that way. And thank you for allowing me to do that.

Yeah. We never know what’s going to happen. People ask once you get into a deal what are you going to do when this happens? Or that happens? We don’t know if that’s going to happen. So let’s just talk about, where we are between the two years right now. Thanks for listening everybody. We’ll see you guys next time.

Stress Busters for High Achievers with Trish Ahjel Roberts

https://youtu.be/ci5tyW239w0

This week’s podcast, we’re going to be talking about some stress busters for a lot of you, higher achievers out there. Most people that are listening are in the investor database here make multiple six figures and really grinded on both ends in terms of making a lot of money and saving it, being good stewards of money and wealth.

A lot of people here bare minimum saving 30 to $50,000, some able to save multiple six figures after , all their personal expenses and we still do the on free onboarding calls for a lot of you guys and just being nothing really surprised me anymore. I’ve talked to people who make $500,000 and spend three, $400,000 every year.

A lot of it usually has to do with private school or those types of expenses, but I’m not huge on the saving your way to financial well-being, although that is a part of it in the beginning, if you can be a good investor and then get yourself into the right deals, get yourself into the passive investing world.

So you can use the passive losses to lower your passive income. That’s the way you’re really gonna make movements, especially as accredited investor and getting your net worth beyond the million dollars. So before we get to that podcast, I just wanted to talk about a couple of things that an investor emailed me the other day, and I thought it pertained to a lot of what you guys were, questions we’ve had lately that have come up.

The question was, ” what do you think about, the inflation? Obviously it’s pushing prices up and then the result of that is interest rates also going up. And my response to that is, I try and keep things very simple. As investors, we are making money off of the Delta between the cap rates and the interest rates and cap rates typically trade up and they go down at the same, they’re correlated with each other and there’s always a consistent Delta between not sometimes that Delta squeeze this.

And that’s not good for us, but typically it returns back to that healthy Delta where we applied. Good leverage or hitting good debt service coverage ratios pay for the debt. But that is how we’re making money with that Delta and we leverage that of course.

The things that impact the interest rates in a date is loan proceeds and this is how much money the banks ultimately give us at the end of the day. Two things that move and impacts loan proceeds: Number one, interest changes, which is a little bit lower impact and that was the primary concern of this investor. The second is the improving net operating income, which is higher impact.

Or in other words, if you’re going through and you’re rehabbing the property, six months to a year, you’re improving that and operating either by increasing the rents, which is improving the income or decreasing expenses, which is typically rare, right? Normally we’re trying to make it a better product for customers.

Therefore the income goes up and the expenses stayed the same or gradually increased too. But those are the two things that really move the needle and I’m downplaying the whole interest rate things because when you’re doing value add you’re increase in net operating income that drastically improves your loan proceeds how much money you’re able to create and thus take out of the loan.

Even in an environment where interest rates are going up and up, I don’t anticipate interest rates going up more than half a percent full percent in the next year or two. I’ve just seen it happen so many times where , the fed says they’re going to raise interest rates and it’s like, all right six months went by and nothing happened and then it finally gets going and it just moves at a turtle’s pace.

Let’s think what happens when the interest rates go up. The reason why the fed moves to bump up the rates is because the economies is doing well. As investors, you’re literally leverage 4- to- 1, but I would argue, leverage even more that if when the economy goes up, the rents are going to go up much, much higher than what the interest rates are in relation and what the economy is doing.

That makes sense for those of you don’t know, or, basically what it means is you have an apartment that rents for 700 bucks and if you can bump that thing up 200 bucks, the interest rates, the economy is taking a long and that is huge value.

If I just do the net operating income increase on that $200 bump and rents times 12, that’s an increase of $2400 a year and at a five cap, that’s almost 50 grand right there just for that one unit, just for rehabbing that one property, one unit in the complex.

Imagine if you do this for multiple units, and multiple months in a row, right? You’re talking about millions of dollars of value ad creation. And it really doesn’t matter what the interest rate change was. It’s very barely moves, and I understand that what people are thinking interests are going to go up, but the larger impact.

Again, it’s net operating income getting more solidified. Even if the rates go up half a percent, which isn’t going to happen for a very long time and the second example here If net operating income improves $500 a month or $6,000 a year, this is just again like same calculation I did at a five cap, which you divide it by 0.05 is the math.

You’ve created $120,000 of value every single month. That 120 grand pays for a lot of interest rate bumps up. We are getting greedy in a way it’s why don’t you take it?

It’s a sure thing. If you delay during your refinance but if you’re increasing the value of the building in that case, $120,000, you can see why it is a cavalier way of doing things from one point of view. But it’s the smart business way to be doing things because if something were to happen in the economy, you could be able to refinance pretty quickly and get out.

But if you’re making $120,000 every year, just by simply rehabbing a unit or two, then it just makes sense to stay in the game while the game is hot. And I don’t want to equate this to a craps table in Las Vegas because that’s not how it works. It’s it’s like a crap’s table where you can’t lose the money that you already made in a way, because you’ve created that value and you get out before that seven comes out.

Again, every month that goes by, you’re continued to upgrade units, and this is , how you’re making money in this business.

Another analogy that I’ve used is, if you guys like that high seas crab fishing, Alaskan fishermen. It’s like you’re raking in the big catches, right? The storms coming in at some point. Yeah. You got to seek refuge before that hurricane gets too rough. When that point is, you should have captain that kinda knows when it is to pull anchor and a skit back into base. But until then, if you’re raking in the big catches, you keep going. And part of this mindset is interest rates are not really concerned to us because most people have this false sense of intimate doom that interest rates are going to increase.

Now, again, like I said, early, it’s probably will increase, but slower and impact isn’t much when you compare it to the embolic push the value of the property is, maybe we bumped it a million, $2 million in that time. The issue with longer-term agency debts is even though a lot of people like them and they seem conservative is that they come with these big prepayment penalties, which is the dark side of those long-term agency loans.

And I personally would rather not get into it until I absolutely have to enforce to get into or before the storm comes in a way. And I’d like to get my capital back out. And that’s the idea of getting my capital back off the table. So say we, things do bad happen at that point, I’ve taken my original capital.

I’ve playing with house money at that point. But if you guys have any questions on that, we’ll be doing a section on this or another Saturday cram school. Come to simplepassivecashflow.com/syndication. Read the free syndication guide there and join the database at simplepassivecashflow.com/club we’ll be doing more educational events throughout the year.

And what we talk about these types of things. I think once you start to understand the numbers, you start to realize how really robust this type of investing is, especially when you’re going after cashflow first. Whether you’re buying a single family home turnkey, what’s the worst that can happen, right?

Like the economy goes the other way. You lose money in that turnkey rental but at least you’re cash flowing. Your debts first coverage ratios are strong. You continue to cashflow and you still make money. You’re still paying down your equity just have to wait for the market to come back different store with value, add real estate, right in value, add real estate.

It’s the best of both worlds. You can make money in a bad economy but also power yourself through a bad economy with the value add as we’ve stated early, but anyway, here’s a podcast stress free busters for high achievers. Last thing I want to just mention is that time of the year, I know in Seattle it was dark all the time. Sometimes it got to me. So maybe check on your compadres out there, see if everybody’s good. You never know people are dealing on with out there. And we’ll see you guys out there.

Hey, simple passive cashflow listeners. Today, we are going to be talking to Trish Ahjel Roberts from mindblowinghappiness. com. Now we’re not going to be talking about, as much taxes or investing concepts today. Today, we’re taking a little bit of a break from the hard topics that we normally talk about on the podcast.

And talk a little bit about in a little bit more happier, a little less, some stress busters for executives here. But if you guys haven’t please join our private club at simplepassivecashflow.com/club. You get all the goodies there. In addition, you get the intro HUI e-course for free there, but a welcome to Trish. Maybe let’s talk about a little bit of your background, how you came to a trading, mind blowing happiness.com.

Yes, thanks for having me Lane. It’s a pleasure to be here. And so I started my business about a year and a half ago. I had worked as a financial advisor for about 12 years out here in Atlanta.

So it’s always funny when I tell people that I’m a self-actualization coach with a background in corporate sales, finance, Buddhism, and yoga. It’s a little bit of a mix.

When you mentioned you worked as a financial advisor for quite some time once you get out of that line of work?

It was interesting cause I worked with a lot of high net worth clients and it was surprising to me that I found many times they were very stressed and very unhappy to be quite honest. So as I was studying Buddhism and yoga in the background, I decided to go ahead and take that to the forefront.

So now I teach executives as well as all kinds of people, how to live a happier, more joyful and more fulfilled life. So I know today we were going to talk about some stress busters for executives because whether you’re executive or entrepreneur, you’re under so much pressure, especially coming out of this pandemic.

So not just to generate revenue for your business, but also to balance family life with business and be there for your employees and for your investors. It’s just a lot of pressure coming from all different sides.

You have a list of six here that we were going to talk through. What’s the first stress buster for busy professionals?

So the first one is really tapping into some of your hobbies. A lot of times we may have hobbies that we like or hobbies that we used to like. It’s always great to think back to your childhood. Cause sometimes you can find some nice little nuggets there that maybe you haven’t thought about for awhile and most things, because we’ve all been trapped in doors for awhile are available online.

So I know there is for me, I like to write there’s some writing classes that you can access online. There’s a group century arts that I like out of Canada that does adult writing classes. There are poetry, open mic nights that you can find. Sometimes I go onto meetup.com or event bright. So there’s some neat things that you can find that you normally wouldn’t think of even a virtual painting. Tap into some of your hobbies and maybe something that’s a little bit less traditional to find a nice way to relieve stress.

Yeah. I think people always have their primary thing. For me, it’s at my computer going through deals or creating stuff, but basically you’re always trying to find some kind of hobby that’s totally different.

Maybe it’s not definitely not productive, but maybe playing pool or. Pottery or something like that. Whatever that is for you and not strategic, cause when I was in corporate, I played a lot of golf. I was never good at it, but I played it because it was a thing to do to make those business connections, but doing something that’s not strategic, just completely for enjoyment is a great way to relieve stress.

And what do you do when you have a client? That’s like cherish. I dunno. Like I’ve tried it all and nothing really gets me going, like it might just something wrong with me or what are some tips there?

One of the most powerful tools that I use with clients and also in my workshops, it sounds really corny, but it’s journaling because a lot of times we don’t ask ourselves the powerful questions that we need to ask to know what we really want.

So if I have a client who really says, I don’t like anything, I only like to work. I know that when you were like, five you didn’t only like to work. There had to be other things that you liked. So going through some sort of powerful questions to take you back to a place where you can remember what brought you joy is a good technique.

I do have a book that I like besides my own books that I could mention to your clients. There is a book called Live in Wonder by Eric Saperston, which has excellent journaling prompts for that type of thing.

All right. What’s next on the list here.

So next on the list is exercise and everybody knows that we need exercise just to maintain our physical bodies and feel healthy. But during the pandemic, a lot of us got really sedentary, and started wondering why. You know why we can’t sleep or why we don’t feel good. So companies like Peloton have made a ton of money and been hugely successful offering virtual options for people at home, but there are lots of other options for virtual exercise.

So some of the ones that I like of course is orange theory, which is one of my favorites. They offer at home fitness as well, but. There are also lots of local mom and pop businesses who could use our support as well, but who also offer very specified yoga. So you can have virtual, private yoga sessions where you actually say exactly what you’re working with as far as your stress levels, or if there’s any limitations on your body and you can set up a one-on-one session.

That’s convenient for you. And I recommend that if you go to a yoga studio that you really want a studio that knows how to teach, not just traditional yoga postures, but also breathing exercises, which we call pranayama and meditation guided meditation. I would also encourage your listeners to ask for yin, Y I N, or restorative yoga, because those are all really excellent.

To help reduce stress. Cause stress is the biggest contributor to disease. And when you are really focused, like your listeners are, then you don’t have time to be sick. You’ve got things to do. So yeah.

Another thing there that I try within thrills of pandemic was like somebody said, Oh, try meditation and I’ve tried it a gazillion times. So I gave it another goal. But this time I found out there’s these ad hoc. Zoom meditation like Romans where people will join a just random people will join at different slots of the day. You’ve just Google, like zoom meditation or virtual meditation. There’s these groups that will meet up and sometimes there’s discussion and it’s a little bit weird, but I don’t know. It might be your thing. That’s the whole thing here is try different things, see what works for you.

Yeah. And meditation is actually an interesting one because anything else is a whole spectrum and there’s all different styles. Some I think are fabulous. Some are not my favorite. So usually the ones that I recommend are going to be more guided, cause sometimes you can go into meditation and you’re just listening to silence for 10 minutes. And if you’re like me, I’m thinking about like my grocery list and my laundry list, so you want something more specific. If you go on I can give you a few, but if you go on my website, mindblowing happiness.com under resources, it will lead you to some of my guided meditations, but I also like cadabra.org, which is a Buddhist organization. I also Chopra, Deepak Chopra has some wonderful offerings as well. So there’s a lot of tools available for good guided meditations.

Yeah. We need tools. Cause if not, I’ll just make myself crazy and talk to myself when I meditate.

Everybody does the same thing. It’s not only you. Yeah, I’m just not like a hipster who has no job, that it can just hear his mind like that.

It takes practice. That’s the thing, the first time anybody tries it, our minds are very busy. I like to think of it as like the dog with the frisbee. If you’ve ever had a dog, you throw the Frisbee, the dog will chase it, you throw it again and they’ll chase it. And our mind is like that.

So whether it’s on the web, you click a button, it takes you someplace else. You start reading something else. Your phone rings, you look at that. Something beeps like we’re constantly going from thing to thing. So being able to slow that down, it takes practice. Yeah, it doesn’t happen the first time I’ve used one of those like headbands that kind of like monitors, like the waves of your brain and tells you how many times a monkey comes in your brain.

I never liked that thing. It took forever to calibrate it. I wasn’t a big fan. I have never heard of that. It sounds pretty high tech. Yeah. It’s, I had to figure what it’s called. But it’s maybe like sooner. Do something like that, but it goes over your head cost a couple hundred bucks. I thought it was working.

And then I got this thing that like straps on my lobe of my ear, but I thought it was a little bit less invasive that you didn’t have to really calibrate and that was the annoying thing about the other one. But yeah, what’s so what’s after meditation, what’s the next go-to.

So that was exercise and we wandered into meditation, but the next one is doing charitable work. And again, I would preface all of these by saying, if it’s not bringing you joy, don’t do it. Cause it won’t really stress. So if it’s sitting on the board of a charity and that’s going to be more stressful than that’s not the option for you, but if you want to relieve stress, doing something.

That you enjoy helping others naturally produces, serotonin in our bodies. I had been doing virtual online tutoring for adults who are learning to read. So again, you can reach out to a local charity that you are really interested in and find out what virtual options they have. They pretty much are all accustomed at this point to providing virtual volunteering options.

And it’s just a great way to make yourself feel good if you have the time. And if you don’t let that one stress you out. Yeah. I can go go two ways on this. I talked to a lot of people in our group and quite frankly, for them to go build a house with habitat for humanity, despite how great that is, it’s a waste of their Their talents, it’s not their highest and best use. We have a lot of like very highly capable and highly connected people in our group on the other end, right? Like maybe better to build a house, get some exercise then, and to get out of your normal thing. You’re high leverage kind of position.

You can look at it both ways, right? You can. Do a charity exercise that is very different than what you’re normally doing, or you can leverage your skills and talents in like a rotary, for example. Yeah. I think in this example, though, if you’re looking to reduce stress, I really want you to give yourself a break from being a high achiever all the time.

So sometimes it could mean just delivering groceries or. We were talking more about virtual ones like the online tutoring, but whatever it is, it could be very simple, human human to human connection. And not necessarily always using those higher level strategic skills that we’re accustomed to.

Yeah. I’ll be honest and maybe people think I’m a jerk for this, but I don’t volunteer at habitat for humanity or the food bank. I don’t think that’s a good use of my time. For as much time I have on earth personally, I get off on helping people with these initial strategy calls that if you guys haven’t booked yours, I’d like to get to know you a bit better.

And I enjoy it. I really get off on it. Like how we can, like how I can in 15 minutes really move people’s mentality or just, Hey here’s we’re going to tower and take money out of the 401k. Slowly. So we don’t have to pay too much taxes or here’s why we know high net worth folks.

Aren’t doing the strategy and doing this instead. I found my residents frequency and the residents frequency is what I call like your Sonicare toothbrush, vibrating at that perfect frequency with high speed, low drag. I think that’s, I think you have to figure out what that thing is. What’s you’re put on this earth to do what nobody can do quite like you.

Or maybe you’re not that great of it. Maybe what you do a little bit better than the average, right? If not, I don’t know. This just keep bringing out ideas, I don’t think you’re a jerk for a smell. So I don’t like habitat for humanity either or necessarily food base. So I think whatever, whatever it is should be something that you enjoy.

And the example that you gave where you enjoyed doing those consultations. It’s still perfectly. It’s still perfect. It’s like when I do like my 30 minute coaching consults, it’s kinda the same thing, cause I don’t charge for them. But in that period of time, you can offer something that you are uniquely qualified to offer.

Yeah. When my, my my mom and my wife were teachers and one thing that menial tasks they made us do was cut the damn paper towels and half it’s to make it stretch further. Oh, and then nothing upsets me more than just doing that. Your activity, like I get more stressed doing something like that.

I get handsy. So I always, yeah, I always refuse. I’m not going to help out with school stuff, but maybe that’s why having a kid, I need to learn a lesson. I need to change some diapers and come and get used to it. But what’s that, what’s the next what’s the next stress Buster we got. So the next stress Buster is getting connected with affinity groups, which is basically just like-minded individuals.

So it could be based on whether a mom or a dad whether it’s a student, it could be your ethnic background. It could be a women’s group or men’s group LGBTQ whatever you identify with. So it’s just a great way to get away from, maybe being in A larger group where maybe you’re not as connected as easily with everybody involved and finding a little safe space.

So it could be, mom’s night out virtual or in person or girl’s night out or whatever it is, but just a way to kick back with people who you identify with. And that’s if I were to break that down, it’s, you’ve got some kind of rapport, similarity to kind of stuff. Make things go, but then is another, is it just as much you don’t know these people, if it doesn’t work out, doesn’t matter.

You’ve got that freedom to that too. And then there’s also Business organizations, of course, there’s a national association of female executives or national black MBA association, or some of them are organized by professional groups like out here in Atlanta. I belong to a, like a professional club called the gathering spot.

So they have a lot of different groups within that group. So yeah. Whether it’s a separate kind of group or one, that’s a subset of a larger organization, even the corporations that people already work for. If they’re not entrepreneurs have those kind of Affinity groups as well. And they may call them different things.

They don’t always call them affinity, but you know them when you see them. Cause they’re the groups where you look for people who, you feel like you connect with it. Yeah. So you guys have mentioned, some of you guys are in like Tessa clubs. It’s just totally you guys all or don’t own Tesla, then you have nothing else in common, but just another reason to have a potluck, and then some, a lot of guys and gals would go into the mom’s new mommies, new daddy’s groups. And then I think a lot of people, lot of our people in our group work are guys. So the other guys will be like the baseball coaches, for the kids. And I think the feedback that I hear is you meet people, you got to be there anyway for your kid, but like you get to meet people and it’s totally not non-judgemental, it’s just like totally.

Like what they do from you in their day-to-day professional life is so different and you don’t talk about that stuff, it just allows you to feel a little bit more understood before you even open your mouth. So that alone is a little bit of a stress reducer. And the fact of the matter is we all need to be connected.

One of the difficulties in this quarantine life that we’ve all been living is that people have been feeling isolated and it’s caused really a mental health crisis in this country. So getting connected is always important. Yeah. I think for a lot of folks in our group and myself included. W what we do is very high stress, and it’s hard for us to even explain what the heck we do.

It’s nice to leave that behind from time to time and just have to explain it. It doesn’t matter. It doesn’t matter at the end of the day, or to take a break from it. Yeah. And then the flip side of that, too, is that you could be part of entrepreneurs, group, or CEOs group, that Or even mastermind group, that allows you to connect in a professional way as well.

Yeah, I think I just been conscious of both of those, right? I think people need both. They need something totally non-related to what their thing is, their highest and best uses. And then to get into a mastermind group that augments exactly that or their interests. All right. Where are we? Where are we at with the, we have any more, what do we have to, we’re up to number five.

So number five is spiritual. We talked a little bit about meditation, cause that’s a great way to access kind of that spiritual self, for a lot of us, we belong to churches or synagogues. And we know we can go into them, but many of them now offer services that are accessible virtually as well.

Of course there’s also TV services, but that’s another great stress reliever. I talk a lot with my clients about the difference between spirituality and religion, because like I grew up Catholic, so religion was religion. It wasn’t until I got older, I realized that spirituality doesn’t have to be religion.

But it is a way of. Nurturing and acknowledging your inner self, which is important for managing stress, right? The dating app say spiritual but not religious. Exactly. And I think I mentioned the Chopra app already. I liked them for that. I also like the Gaia channel and kidnapped, but that work was another one.

And the last one I had, if you want to give you want me to give you number six? Let’s do it. So number six was really going old school and just remembering that if you are really having an issue with stress management therapy and coaching two routes that are always there for you now that every, all the doctors are on zoom, right?

So you don’t have to go into their office for those things either, which is fantastic. If you don’t, if you don’t feel like traveling and the big difference really between I’ll just mention it. So you’re. Your listeners are aware of it, but the big difference between therapy and coaching therapy is typically dealing with past incidents that you’re trying to work through that may be affecting you now, whereas coaching I’m sure.

Probably all your listeners have coaches anyway, cause they’re so top notch, but coaching is working on setting goals for the future. So it’s more future driven. Yeah, I know. That’s what my coach says. I’m like, don’t you want to hear my context of why I am? She’s I don’t care. I don’t care. We’re going to go past present features is going to talk about the future.

I’m like, all right, I it’s like a therapist to work through your, your teenage years and stuff like that. Yeah. And maybe another thing like the therapy, right? There’s a lot of these apps that people can just sign up for. They can pay for the hour and just talk to somebody. They don’t really get to create that long-term relationship.

They can just try it out, see how it works and go from there. Yeah, they do have apps now for therapy. I think that you can even text where you don’t even have to make a phone call or do assume that you could actually look at text therapy because, I am a mom to a 20 year old and the younger generation, my daughter doesn’t pick up the phone.

She talks to texts. So some people don’t really want to talk. Yeah. And it’s like the younger generations, like people don’t talk about it with all the, like the COVID stuff, but a lot of people are like community, more people are committing suicide right. Lately. Yeah. I don’t know what the, I don’t know what the numbers are.

Maybe like 20 to 30% more than average or something like that, or sounds about right. Yeah. Yeah, no, isolation is a real issue. Like even when we look at some of the. Rioting and things that were taking place. I think a lot of that is also related, not just to the political environment, but also to the fact that people are isolated and stressed out.

Yeah. And I think it’s I think when you’re spiritual like that, you don’t have to go into the office. I think that’s the big hangup is you need to go to your normal PCP, get a referral to this person, go through all of that. Maybe the therapists on the app isn’t as good.

I don’t know. But if that barrier to entry is a lot lower and you need it, give it a try. Even if I don’t know. I probably say if you don’t need it, maybe just see what it’s all about. Just give it a try. It might be for you. Cause I know a lot of people in my network have used it for therapeutic reasons.

The app. Yeah. It just wanted to just have somebody to talk to and just curiosity over the whole virtual therapists. It’s not like they’re cuckoo anymore, right? It’s not a stigma, but some people still think it is just unfortunate day. No, it’s funny. The first time I went to a therapist was when I was married and it was like for marriage counseling.

And I remember the building had a big letters on the outside mental health, and I felt like I needed a wig and shades like a scarf to put over my head to go in there because it was such a stigma in my mind. But now I like to think that we’ve come a long way since then. And That people feel good about taking care of their mental health, the same way that we’ve learned to feel good about taking care of our physical health.

Cause like we all know we need to exercise and drink water and eat well to take care of our bodies. And I think for our mental health, we need to learn the same thing, that there are certain things we need to do to just maintain our mental health quick tips or tools that you’ve seen lately that.

Just to have people try out to close things out. I think I gave you guys most of the kind of online resources that I was thinking of, but I will say one thing that I think is extremely important is to have a mindset of gratitude. So for myself I always wake up with this kind of gratitude mindset.

I actually. Wrote an affirmation that I use to create my mind, happiness, self care e-book and you guys can access that on my website. But gratitude, cures. So many things like you, you can’t be angry and grateful at the same time. It’s really impossible. And Yeah, it’s just a cure for a lot of things.

So many times we think, especially as high achieving individuals. So many times we think about what’s next, bigger, better, faster, stronger, and taking that moment to be grateful for where you are, is incredibly important. Flips everything around. I used to do this really strange activity where I would write down.

I would be happy when.dot dot. And I would think of what I would want, like kind of lifestyle. I wanted car I wanted where I would be living out my daily activities B and then I would do this exercise maybe every six months to a year. And I realized that kept changing as I started to mold my life to be more of that.

And then I, after doing this for like maybe five, four to six years, I started to realize that this damn thing keeps changing and this is like a constant moving cycle might as well just be happy with the journey and you hear about it. So cliche. But until you do this little.

This little exercise on your own, which will take you four to six years, maybe for smarter than me, it’ll take you one or two times and doing this every six months, you start to realize that it’s just a constant, constant battle or constant, journey, depending on how you look at it. It’s true.

If you’re not happy in the moment, you’ll never be happy. It’s just true. And when I was working as a financial advisor with my clients, sometimes we would say what dollar amount do you need? Do you know how many millions of dollars do you need to be happy or to have everything you need?

And it’s really hard to get that number because there’s always something more. So yeah, you got it right lane. You gotta be happy on the journey. There’s a balance there, right? Folks. People not in their head right now. You gotta make some money because. The $10 and below at wine really sucks.

So you need to get a decent amount of money. So that’s the challenge of life, right? Balancing the two. Oh, you do need money, it was shocking. We’ve had so many suicides among very wealthy people or drug overdoses among wealthy people. So yeah, the balance is definitely key.

Money’s not everything, but it sure makes life a lot easier. For some who said I’ve been rich and I’ve been poor, but I like rich better. Yeah or I never liked cars, but then I got one and now I like cars, exactly. But yeah thanks for joining us, Trish. Again, you guys can read more for her content at mindblowinghappiness.com.

And if you guys want to make me more happier, go ahead and book that Intro onboarding call. If you have never connected yet, go to simple passive cashflow.com/contact. That makes me feel really special that I can help people out in the world, that’ll be my release, make me happy. All right. See you guys. Bye.

Thank you.

What to Do Before You or Your Parents Die – Annette Kam

https://youtu.be/kgMl_iEYiLY

Wow on today’s podcast, you’re going to be able to download a free family planning spreadsheet. Ooh, we love spreadsheets. Don’t wait You can grab that at simplepassivecashflow.com slash legacy, and it’s going to be a good one today, but before we get going a little bit recap, Christmas is over you.

Celebrate Christmas. Hopefully we’re all selling in the new year. But right now, in terms of investing things have going pretty well for investors right now that everybody knows about inflation, even the regular people out there, they know that inflation is rising. All the bolts at this point and prices on real estate is just keeps going up commercial real estate.

Hasn’t really gone on the huge frenzy that residential real estate is going. But I definitely see the second half 2023, the commercial prices will definitely be running up along what you’d like. Have you seen with the residents prices? Which means it’s not yet too late to get. As far as apartment goals everything’s going pretty well.

Rents are continuing going up. I anticipate rents that kind of slowed down a little bit, but still be increasing which has healthy,

but as much as I love and investing in apartments majority of my net worth is in that asset class. I’ve been looking around lately and you always want to look for stuff. The contrarian point of view, and what is one of those will tell us, right?

We’ll tell us, get beat up in the pandemic recession, but something I’ve been realizing is, hotels, just like short-term rentals. Everybody’s looking at short-term rentals out. Airbnb VR BL there are discretionary items. That’s something I’ve been learning a little bit of doing my due diligence on this asset class is either there’s a big difference between the two and the three star hotels.

The crappy holiday and expresses that I stayed. And for about five years, the comfort ends the maybe the semi nicer, three, four star hotels, the lore and Marriott’s those types. Those are the ones that are gonna to me, struggle in another pandemic or session, especially as people stop spending money on that of.

Something I’ve realized lately is the high-end luxury stuff. Like your four seasons in Hawaii or a Hilton in Hawaii. And it keeps saying Hawaii, because I think there’s a big difference between investing in 2, 3, 4 star hotels in the middle of a piece of junk Alabama, Kentucky, like these areas that no wonder they want to go for vacation.

Really your only reason you’re going there is because your company tells you, you got to get your butt on a plane. The go talk to some folks in the flyover states, but places like Hawaii, we always beat up on Hawaii. California is places where it’s not a really great place to invest for cashflow, but it is always going to be paradise.

And place where people will aspire to live the dream for their one week of vacation. And the people that are self selecting to going to these places are going to be going to the five or six star hotels. So started to look into buying a hotel in Hawaii, is that everybody wants to do that. What a flip trophy asset that is add that to my coffee and chocolate farm parcels,

but . I started to talk to some developers that I knew and some other folks in the industry and start to realize that if go off on this investment thesis, that I needed to stay to the high-end. So I can go into recession, proof assets that cashflow, I need to be now competing with the institutional operators, which is not going to happen.

It’s the same reason why. There were a few out there that we’ll invest in like Maine Frank computers, but now Amazon is getting into the game. All the little guys are getting blown out of the water with this type of stuff. Same thing with industrial and office space, which is why the average person can’t really get involved.

But, apartments, you can buy , smaller apartments or put together private equity group go after a 40, $50 million. But within industrial and office, you’ve got to get too much huge or scale and very similarly, and maybe to March stream case luxury five star, six star hotels, which are talking now on a magnitude of , $200 million plus, and there’s not very good financing on that.

So you’re talking about it, bigger equity in comparison to the purchase price. Another thing. These are the weird wants to don’t really think of as an investor when you’re outside of the industry. Something I’ve learned is that, developers went to making these really fancy five, six star hotels.

When you look into the PNLs of this stuff, they’re not really cash lying, or it’s not, doesn’t seem too much of a moneymaker, but what’s really, the moneymaker is selling off the timeshare. So if you’ve seen a place like Hilton wine village, there’s it was built in different phases and there was a section of it that gets sold off to the timeshares because the timeshares goes after How do I say this in a nice way, but they are the absolutely worse consumers buying that stuff. So basically you can, if you’re the hotel owner, you create a nice property, a campus, you make a couple of timeshares, you sell it and you gouge those types of unsophisticated investors, so-called investors, but we all know who the people buy timeshares.

Those are the people just get suckered into buying this stuff because they want that dream. They want to feel like an infant. But they’re really just a timeshare person with a bunch of points or whatever, but that’s the play for these large hotel operators, developers that they create the campus and they make their money on that sale of those timeshares, to the sucker buyers.

Another thing too, that I also found is a lot of these bigger brands, like the Hilton. Th these main states, if you’ve heard, they get out of it. And lot of the money is coming in is dumb institutional money. Again, like these are the people who are investing the lazy retirement funds of a lot of folks that don’t listen to this podcast.

The expectations are a lot lower and a lot of times these big hotel operators they’re just lending their brands. So really they don’t have any skin in the game. Just another example of the bigger that you get, it’s easier to not fail and you don’t really have skin in the game.

And as much as I’d love to go on and invest in a Hilton or four seasons, they don’t need private equity money. So it’s not really finding any deals in that type of work. But you can go buy a holiday Inn or just one of these Thor and hotels. But again, like I said earlier, I think there’s a lot of risk into buying that type of discretionary item in the two to four star category.

But anyway, part of this whole idea of investing in hotels and probably not going to do it, but it was just put on because the mastermind that we’re putting on in Hawaii, this next. Pretty much the final week to buy your ‘ tickets. For those of you coming out, or you’re going to have over 80 people there, I’m really excited to see you guys there.

We’re going to have a little less than half are family office, Ohana members or VIP’s, and then general admittance . So looking forward to meeting you a lot of people in person for the first time, but yeah, enjoy the show

hey simple passive cashflow listeners. Today, we are going to be talking to Annette Kam who wrote a book called Wait, Don’t Die Yet! So it’s a complete guide for all things that nobody wants to talk about before, during, and after a loved one’s passing so going to be a lot to do with legacy and estate planning.

If you guys want to check out the show notes to this, we’ll post the video of this, and also a more pertinent information surrounding this topic at simplepassivecashflow.com/legacy and before we get going, I’m going to apologize because Annette is here in Hawaii too. And she is probably going to get me to speak some pretty poor pigeon English, which tends to come up when we get together, but we’re not drinking, so won’t be too bad. But, Annette thanks for jumping on. Appreciate it.

Thank you for the invitation. I’m excited. I’m really excited to be here.

Yeah. So paint the picture for us. What did you do before you really got interested into this topic matter? What did you do for that treaded day job?

Oh, my history wise I like to go back to my history because to me, everything is not a coincidence. Okay. Back in 1968, I spent two months in the hospital with a ruptured appendix almost died, but that propelled me to become a nurse. So for the last 42 years, I was a nurse. I retired five years ago. But within this timestamp, I also came down with an illness called fibromyalgia and it was very debilitating suffered for over 10 years.

But then found this book that changed my life. Connected up with the doctor, started a nonprofit here in Hawaii reached out to the mainland and beyond. And last November, I had to pivot my whole focus in life because of what had happened to me with my in-laws passing and this is what has led me on a new mission.

So I stepped down as president of the nonprofit last November, and I wrote this book to help people realize that they think they have their affairs in order, for passing or their loved ones passing other parents past again, that is such a myth that they think as long as they have the will, the trust and all that. They’re fine. That’s really not the case, basically.

So before we unraveled some of those problems and issues that people don’t think of too much, you spent a lot of your career as a postpartum nurse and we’ve had a lot postpartum nurses or doctors in that arena on the podcast in the last several years and they give some insights into this from their dying patients. Anything before we move on any takeaways that kind of have been impactful to your life, going through that experience with so many patients?

I was a postpartum nurse I didn’t have the death and dying part as much, but I’ve seen the lights. I did an interview once and it was interesting because she said I’ve seen life coming to the world.

I’ve seen suffering because of my family had to go and now I’m helping people in death. That’s a kind of a neat psycho through to be in touch all phases of life.

All right. So let’s get into this typical example, right? So I think the most people that are listening here, mostly accredited investors may be in their thirties, forties, and fifties and they have an older parent that is dying. Most of the people listening are typically first-generation wealth folks. So a lot of our parents, they might have a million dollars now cause you know, when you’re a good saver, anybody can get to a million dollars in 70, 80, 90 years. So not talking about a huge estate being left behind, but what are you seeing as some of the pitfalls or the mistakes that people should be planning for right now? Knowing that the, this is going to happen.

If you look at the history of what I went through in my book my father-in-law was very organized. He was 99 when he passed had both of his checkbooks, your balance to the penny and 16 years before he pass you actually educated us one Sunday night when went over there

and he told us exactly where the safe was, where the key to a safe was. This work is we always trust the best directives, power of attorney he had all that stuff. So we thought when he passed and my mother-in-law told me, you take care of everything. We thought it wouldn’t be that much of a problem because he had all this paperwork, but then we found out.

It wasn’t just the paperwork that was enough. It was all the other mundane things that people just never think about. Things like the secret safe he had a secret key that he showed us. We went to get the key. Here’s a key instead of one key on a key chain there’s 20 keys on the key chain. All unabled.

So this is little things like that just makes you that’s a little harder when you follow up with somebody who passes. Just little things like that had mentioned about utility bills with the telephone company where, 10 days after my father-in-law passed, my mother-in-law’s phone broke, but online that’s the one that communication with us.

And you think it’s so simple, I just call the telephone company up. They can fix the home, but it took me three months, 29 phone calls and getting the better business bureau involved because she was not on the bill so she didn’t have the authorization, even though we have to still pay the bill, she wasn’t authorized to get it fixed.

How simple would it have been just to add on the second name and people don’t think of those little things, just little things like that and location of words, your motor vehicle registration, who’s on the registration. And how do you sell the car if your name is not on it? Yeah. So these are the things that I captured in the book.

When I started going through all this, not knowing what phone numbers to call, who to call, what to follow up on, what happened is I started making a list and I gave this list of to friends. Cause we’re all baby boomers and we all have parents that are passing or spouses that are sick actually with the age responses or sick.

And everybody, I gave this to told me you got to get this out there and that’s why I wrote the book. It was to help people to avoid going through what I went through, basically. That’s a basic premises is just getting them through. But the book itself is not just about the things you do beforehand.

It also takes you through everything to like caregiving, and a file system what to do after that, there’s even a section on transitioningif they need a carehome . What are you looking for? These are the thing that people just don’t think of, basically.

Yeah. So we’ll dive in today, the care home and the assisted living portion here in a little bit, but just to close the loop on all those, the laundry list of things that you should probably be looking for Annette’s book, we’ll get you guys access to electronic copy later.

I’ve got a laundry list of things and a Google sheet form for that we use in the family office group at simplepassivecashflow.com/legacy . But my suggestion would be, yeah. It seems really annoying for a lot of us because on the parent’s passing, like our time is very valuable, right?

We are the sandwich generation. We have to take care of the older folks’ affairs close it up but also we got the younger generation to take care of. So if the older generation could just spend granted, it takes them a long time to do this. But Hey, they have time, at that point in their life, print out the Google sheet or whatever, put it on paper for them to hand write it in.

I think everybody over a million dollar net worth should have an executive assistant scan it and then put it into your Google doc form. You don’t have mom and dad do that. But to me, that’s a best practice, but any other best practices you’ve picked up.

The book itself has my story in it and everything segues into the guide book that is a free downloadable also and people think I don’t have time to do this at all, but actually in reality, it takes maybe two weeks to fill it out because then you’re not gonna fill up the whole guidebook at once. It’s really not the pipe that you’re living through at the moment and it just has all the important information.

So you just got to tell your heirs where the information is you fill it out, basically download the guidebook, you fill it out and then you just update it once a year. I recommend using a erasable pen because things change, you’re adding properties, you’re adding more assets, you sell properties, and so these things have to be updated obviously, but it’s easily done with this guidebook that I included.

And it tells everything, basically if you have a mortgage, who’s the mortgage with, who’s your agents for insurance, it covers everything that I could possibly think of. I don’t know. It’s just a great resource, I think and I just want to help people out basically.

Checklist manifesto, because I’ve read that book fly a plane without it.

Here’s something that I’m not really familiar is like the parents get to that age where they can’t take care of themselves. Maybe walk us through that issue.

Yeah. I went to that with my father-in-law and then my mother-in-law actually, my father-in-law was going through your possibly passed away too soon, but then my mother-in-law got sick a little later and there’s nothing like, one thing that really pertinent is that a lot of older people once they fall, that’s the downhill trend.

She didn’t break a hip, but she did fall at one was supposed to be a short, we have since ended up being three months. And then all of a sudden you don’t realize that these rehab centers can tell you next week she’s gotta be out of here. And then what do you do? So then you have to go find out carehome or a nursing home, whatever.

And what I found out, and I was really fortunate because the social worker helped us. But what I found out is that you have to be very careful about your carehomes. You think that when you’re looking for a good care home or that you’re looking for a place that’s safe it’s clean, you have RN running a place on those activities.

But the book goes into a little bit more of that because I interview caregivers and I was really lucky because the caregiver I chose, she had been doing it for 16 years. Before I even introduce it to my mother-in-law, we had sent there, she had already gone there to interview her and find out what her favorite foods were because can you imagine going to a care home and not being able to eat the foods that you want?

In my mother-in-law’s case, all she went over, talk about tacos, burger king, Coca-Cola a hot cocoa, sushi. So if she had that once a week, she was happy.

I’m actually general partner in a deal where we’re building some assisted living and we’re building them a pod. This is on the mainland. Every pod is supposed to be like a different ethnic group. Older people that they like to live with their own ethnic kind of group, whether it’s right or wrong, it is what it is. It doesn’t matter, but they have different like food offerings.

Yeah. So the transition part is there’s a part in the book about going through the transition part where I’ve interviewed caregivers, whether or not you’re going to be the caregiver for your parents or you don’t have room and the caregiver has to go outside of your home. It’s just some guidelines.

Things like if you think about like my girlfriend, she brought her mother and her to her home and forgot about the prologue, I guess what she fell and broke her hip s o these are the little things that I covered in the book that are not really little things, actually big things.

If you really think about it is wow, there’s a lot of things, people think about like pen rail, safety, stuff like that, but they forget the little things now.

So, at what age should like my generation be like, Hey mom or dad? At what age do they hit that you should start to have this conversation like, all right, the next five to 10 years, what is the plan?

It’s already rough thing because it’s a sensitive topic and really when you’re in your thirties, forties, your parents are in their fifties, sixties, and they’re like, I almost 70 and I’m doing well, but if I didn’t go through this and somebody who’s brought it up Hey, tell me about what’s what you got pat, and, down the road, you don’t, it’s not a subject that people like to bring up because it’s not an easy subject to bring up because the personal thing.

I’m not even at that point where I’m sick or dying, so why we’re bringing it up now, but people just don’t realize just how important it is to be ready ahead of time, because things can happen at any time.

One of my friends just texted me, emailed me the other day that his brother who is only two years younger, he was like 68, just passed away suddenly. Nothing in order. So that propelled him to really take a look at the book and say, I got to get my things in order for my family, because you think you’re 67, I’m still young and I still got time. That’s all we associate, we have a kind of a long lifespan, so you think you have a lot of time, but the death has no post mortem. When it’s going to happen, you’re either going to be ready or you’re not basically that’s bottom line.

I haven’t thought too much about it. We haven’t had a thought yet, but you got several options and maybe add on to find missing anything, but your first option is t he parents, they own their own house so they’re already living in somewhere, they age in place, right? This is typically what most folks want to do cause you know, people don’t like change, change is bad.

And they got all their crap all there they don’t want to go through it, but it’s the cons are obviously right it may not be set up to be medically, the best place they could trip and fall and they don’t have the medical staff there available.

So you’ve got to have somebody come and help them out, or you gotta be a person to do it, which in my opinion is not the highest and best use, especially if you’re listening to this podcast right now. The next option is, you have a series of different assisted living, semi assist like maybe can you break down those different options?

I know here in Hawaii, it’s interesting because there’s assisted living facility, but you also have to think ahead because they’re nice places, wonderful places, but then you have to think about down the road once they need more care, can they stay there?

And many of the places here, they’re not an hour once they need skilled nursing care, they’re outta there. They’re fine as long as they’re ambulatory and they don’t have any major medical problems, but once they hit a certain benchmark and they need more skilled nursing care, you have to find another place. I think there’s only in Hawaii. There’s only three places that let you w hen you get in, you can stay until you die. Cause they have the care that they give you there.

But it’s like a jacked up system, right? Because it’s a life of lottery like you pay in and if you die early, then the house takes the money. If you happen to live the most. Then you eat off of the other person who’s died off their funds that they put into the system. Yeah. I mean it, no, I don’t know. The way we do business, it’s carried interest to me. I don’t seems to me that they make money when the person does not live long, which doesn’t seem to align interests. But anyway that’s just how it is, but is that pretty much the gamble that unsophisticated money people have to make.

But you know what to do because s ome of them here that I hear, I haven’t checked out myself is that, yeah, you got to put it in like a million dollars. You have to put in 5,000 just to be on the waiting list, which is like four or five years long. So you have to think way ahead.

And most people who are, hoarding cash in their house only have sub million dollar net worth and they have to either sell the house and they don’t want to do that because they want to live in place as much as possible or do a reverse HELOC first mortgage, which is in a bad idea in some cases.

But I don’t know. It’s worth the discussion because it gets complicated like this, typically the house wins, right? The sophisticated operators win off and then the uneducated consumer gets screwed at the end.

So now, with your listeners here with this network of what we have, including myself, it’s nice to have all these other properties and you can still end up going to a really nice place that will take you all the way until you pass away because you can sell one of your properties. At least here in Hawaii, you can, and you can get back a million dollars from one or two properties so that’s one thought. Yeah, you don’t have to give your whole network away if you have only one property. Yeah. That house has got to go when it’s time for you to actually get there. And that’s the only way to get there is by selling your house.

Can you stay in the house and then assign the rights to it at a future date? Does it work like that? Or do you have to totally commit?

Yeah. Once they say, okay, we have an opening, you got to take it now. I think you got to take it and then you have so much time to get the money in, to pay for the rest of your stay there. Yeah. That’s how I understand it. I’m just talking to different people who are in the process of doing it.

My brother-in-law, I have a friend that is doing that now. Just getting prepare, but yeah, this is a really interesting situation that you find yourself inside, especially here in Hawaii it’s not cheap. That a nursing care home will probably cost you anywhere from eight to $10,000 even more a month and people aren’t prepared for that.

I don’t know if you can speak to this, but for some people maybe under half a million dollars net worth, probably on or under millions is still a thought, is the strategy sometimes to exhaust all assets to be a warden of the state.

Yeah, I think two years but it might be more now where you have to exhaust everything and then there’s this gap of two years or more now. In order for you to qualify, to go under state care.

That said you don’t really want to go to the state care.

Some people have to. The private care home as I found out are not actually bad. They’re much cheaper and it’s not bad, getting like maybe four people, enough resident home, we’re really fortunate here in Hawaii because we have that culture like that. There’s a nice Filipino culture that they do this for the family and they do this for others.

So that’s what happened in my mother-in-law’s case and I was really happy with what we ended up with.

Yeah. My personal way I’ll do it, but it’s technically legal to sanctions right, we all know that but that’s just how people do things in Hawaii. And I guess what we’re talking about folks, most of the listeners here on the mainland, but here you’ll get somebody who everybody’s got side gigs here in Hawaii

cause it’s so hard to make ends meet. So you might have a nurse that works their job, and then will also part-time live in somebody else’s houses, stay in caregiver. Best of both worlds right. You get people who like love the client, gives them the best care and it’s a win-win for both.

We do have our big box assisted living and care homes here in Hawaii, but not as prevalent as the mainland, as things on the main things are typically.

Yeah, you can pour it a lot more too. That is one of the things where, nice to live in Hawaii. If you know the right people, right? It’s all your network, is your net worth, or your networkers who watches your mom, what’s your opinion between some of those smaller let’s call them boutiques versus the big boxes. What’s your personal opinion?

Say, a personal opinion, depends on what kind of setting you want your parent or you want yourself to be in. Some people like to have this nice setting where they go through the dining room to eat, and then you have all these friends there, versus staying in a home where you’re eating with two or three other people.

Yeah. So this is a personal opinion and also you have to look at what kind of activities do they offer? If you’re just going to sit and watching TV all day in this home, that doesn’t make any sense, but do they have activities to keep you busy? Whatever it is, it could be, do they have shows to watch and do they have classes or art or whatever.

Those things are things that are part of a assisted living facility. They do have these things and that’s pretty impressive when you actually go to visit them and you see what they have. Aside from they have, some of them even have a beauty salon or pickleball courts, it’s crazy, but they do offer those things.

Yeah. You like the thick of all. That’s a thing now. Here’s the big question is like, all right, mom and dad are getting to that age. Who do I talk to? Is there a date, like a website with, let’s like a directory, like where do I go to figure out number one? What are those big boxes and how can even start to find some of those smaller boutique?

The first step obviously is communicating with your spouse or your parents. You have to get the communication open first to even talk about something like this. And then once they see that, yeah, I should start thinking about this and, long-term care or whatever, maybe we should start looking.

When my mother-in-law was at that point, we had to scramble to look for different places. So we went to visit different places before we settled on one, I think being able to have the conversation and then actually going out to visit the different assisted care facilities is a big help because then you have open communication.

Yeah. I don’t mind being here or I don’t mind staying at least they have input rather than if they get sick and they’re forced to do something because that’s the only place that’s open at that time, which is sad. So planning ahead is important. Like many of these places you can reserve a spot for down the road know, and it cost you maybe a $2,000.

Where do they get the list of places first?

Well, hospital’s setting, Rehab center, a social worker will help you do that. There’s the private ones and then, the state run ones and then the more private ones, a more exclusive ones, I think it’s on their own basically. Hey, get up to yellow pages, do an internet search, there’s many out there.

It’s better for you guys to do the searches. If not, you guys would get head hunted with a bunch of sales reps. We’re bringing it to the ones that just are good with marketing.

Yeah, and you got to do it early. You got to be prepared. It’s sad to say that you have to think of this so in advance, but you really do because you just never know. Tomorrow your spouse could have a stroke and then what?

So getting off the topic of care homes, any things that you’ve seen, like a lesson learned, or maybe this has happened that should have been avoided somehow it’s a little bit proactive planning we want to mention.

Yeah and that’s what the guy looks about. Cause the guy just step by step and apply the book. It’s just little things like. Say something happens to your spouse and I ended up in the hospital. Okay. Would you know exactly what meds she’s on? How much the dosage, how often is taken what’s for, who her doctor is, or the doctor’s phone number?

The guide will guide you through all that stuff. So that there’s no question and all you do is update it. You can just grab this book and go, Hey, this is what it is, or make a copy of that part of the guidebook and take it to you with that too, at a hospital. But those are the things that are important things like you can have insurance, but okay if you pass away, who’s my agent, like I have some whole life insurance policies and when I looked up on the website, okay, who am I contacted this I four different numbers. So then I got to my agent, I said, okay, I know you’re the first contact.

What’s the second contact in case I can’t get hold of you and that’s in my guidebook, so I put it down. When I went through this whole process of my mother, my father-in-law, I can only tell you how horrendous waste of time staying in the phone, especially with Hawaii being six hours on for three to six hours

the mainland is closing and we’re waking up and I have to get hold of all these important people or departments and you have to go through a long list of okay go on the internet, find out the number, call the number, and then you’d get transferred and transfer. So those phone calls took me anywhere from half an hour to an hour, just to get to the right person.

So this, the guide book had every phone number in there, the contact person, so he can go straight to the number, if something should happen to you or your heirs can go straight to it. There’s people don’t realize how many places have to be notified. Your pension, your social security or insurance, all kinds of stuff.

Everybody’s gotta be notified and they all want your death certificate. So that’s another thing you have to think about how many death certificates are you going to order when your loved one passes. People don’t realize all these little things that they need to end up doing, and, they need time to grieve. They don’t need to be thrown into this situation of having to handle all this in the middle of a loved one passing so this is just to avoid all that basically.

We’re known for the simple, passive way of doing things. So if we pay a little bit of money, not overpaying, but we just pay for time. Like when people get married and, spouses have to change their name there’s consultants for that, we pay consultants to book our rewards travel or our credit points. The other thing. I paid people to negotiate cars for me. I never go to the dealership. They just do all that stuff for me.

I pay them a little bit, but there should be somebody who like, there’s a huge service for somebody who like does this stuff for people. So I don’t know when I find that person, I’ll put it into that webpage for you guys and there’s gotta be somebody or you guys out there have found lift up these private consultants that do this.

This is what entrepreneurs do, they find that need in the community and they fulfill it and they monetize it. But it’s a little bit of a public service here. Just off the top of my head, if you guys have wills, you guys don’t want wills. You guys want trust so you can skip probate.

To me, if your attorney gets, you probably need a new attorney because that’s not what you want. I like to know your opinion on this so like my opinion, I just see so many clients, they go through so much battles, even when all the surviving siblings can still get along to liquidate assets.

If you guys are already at that point, or your parents are urgently liquidate this stuff and get rid of the stupid things, because it’s like all this crap about like sentiment of vow was just going to piss people off at the end of the day.

You’re so right Lane because right now, I know so many people who got along with the siblings until the parents passed and all of a sudden they want to sell it and one person holds off. You don’t want to bring the one sibling to court, to settle this, so things just go on for years.

Whatever reminds me of is that boss at work would never like to be the enemy and always wanted to play both sides. At the end of the day, all their employees get pissed off at each other and the team falls apart anyway. So you parents out there, you guys need to be the bad guy and make the unenviable decision just to making a call for everybody so we can just all move on and focus. That’s my rant.

I agree and I’ve seen this in my family is broken up. Sibling getting along and then all of a sudden, not getting along, not talking to each other.

Or they get cute with, oh, somebody gets the sports car, somebody gets this, dude just liquidate everything and just a math exercise. I think part of it is if you’re older and why not give away the things now? Why wait until you die to give away everything?

Okay. Folks be careful there. Do not give properties away.

I got property, what’s wrong with that? You give it to them while they can enjoy it.

Of course, we all want to be on the up and up, 15,000 exemption, whatever. Yeah. I agree like those smaller things give it away now, but like properties, the reason why you guys don’t want to give properties away is your kids will not get the step up basis and they’re going to absorb the base that you have and they have to pay huge capital gains. So I’ve seen this happen two or three times where a family has like a $500,000 property bought in Los Angeles and now it’s worth 4 million and the parents just so kind in their heart to give it away, but dude, don’t do that. You screwed them over.

Oh yeah. After your parents died or whatever, I think that you’d probably agree with me on this is that you do an appraisal. So that’s your cost basis for tax wise and you don’t end up paying up, crazy taxes, with the appreciation.

Yeah. If the estate is over five, $10 million, you probably should consult an attorney because it may make more sense to put into irrevocable trust, a dynasty trust, but if it’s less than that keep it, that should be pretty simple.

But I will say, to be prepared you have to get a good attorney and a good accountant. I was fortunate because I had and they spoke with each other. So that was really nice, so I got things done, which would have been very difficult if I didn’t have someone I trusted.

Any other last tidbits of advice?

All I say is, get prepared, take the first step. I think the book that I have is pretty, pretty comprehensive and whether or not people think they need or not, it wasn’t hard to download it because it’s free, it’s Annettekam.com, A N N E T T E .com one word, you can download the book for free. You can download the guidebook.

If you think, nah, I think I got everything covered. I encouraged them to just go on Amazon, look at the reviews because I get emails, I look at the reviews and I know that something as simple as this book and it’s not difficult, you can probably read it in a couple of days, but as something as simple as this can impact so many people, that’s what I’ve learned.

People that have all of a sudden said, okay, yeah, I’m ready to do this. Tell me I’m doing it and it’s changing our lives because I’m communicating with my husband, so that’s important thing is communication, get prepared, do the first steps, just one step at a time. If you don’t make the first step, nothing is done.

So folks go to Amazon, pick up the book, Wait, Don’t Die by Annette Kam there’s a 123 five star reviews, which is pretty awesome. People are so negative these days either to see the two or three stars so that means it’s pretty good. Her website, she has the free electronic copy of this.

You guys can read it, but Hey, I would pick up the hard copy for mom and dad. You know how they don’t trust anything that’s electronic these days. They don’t think it’s legitimate. So like the 20 bucks you guys pay will be worth it. That’s like a one hour of some new college aged kid, maybe you guys hourly rates for way more than that.

So just pick up the book, buy two for them put it on every John that they have, so the parents can read it and maybe it sends a message that way. We’ll put this in the show notes at simplepassivecashflow.com/legacy. Thanks for jumping on Annette.

Oh, thank you for having me Lane. Appreciate it.