Creating Your Empire Real Estate Investing Masterclass
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[00:00:02.400] Feel good. I feel great. I feel like this every day. Got the investor secret nap. Welcome. Welcome. So excited. Welcome to the Creating Your Empire Masterclass. We are so excited to have you join us. My name is Maylene Nelson, and I get to introduce my amazing husband, Mitch Nelson, tonight. Before I do, I would love to kind of just give you a little bit of a backstory of who we are and what we do. Thirteen years ago, Mitch had started doing real estate investing, and he's going to be telling you his story and his journey. And he had started doing quite a few fix and flips. And then he became a

[00:00:41.300] steward of someone that wanted to teach and to train exactly how he was doing it. And I actually ended up landing in a room just like you are, just nine years ago. And I sat in the audience and actually sat in the very back row because I actually thought I was going to be being sold something. Right? I was like, what is this? I don't know. I just got trapped in being sold something. And when I was sitting there, it was really interesting, though. Prior to me sitting there, I had actually just had back surgery. And prior to that, for a year well, for nine months, I was actually in a wheelchair.

[00:01:19.575] And during those nine months, while I was sitting in this wheelchair, not being able to walk, it was an interesting parallel universe that happened. Because prior to that, I was actually one of the number one door knocking people in the country. So I ran one of the top door knocking solar companies in the nation for the last four years. And it was one of the top you know, I felt like, well, look, I made it. I was icon moment. And I had retired my ex husband, and we were living the dream. And unfortunately, one day I stepped off the curb, and my left leg went weird while I was knocking doors. And all of sudden I went I fell to the ground.

[00:02:00.450] And within seconds, I realized that I was not going to be able to walk again. And my left leg just wouldn't it just seized up. And it was so much pain. And I realized that, oh, literally, you don't know when something's going to happen to you. Right? You literally have no idea. You could walk out this door right now and something could happen. And I was not prepped for that. I wasn't prepped for it financially. I wasn't prepped for it emotionally. No one will ever be, right? But there's a lot of things that we could do to structure our lives that if the what if does happen, your families would be taken care of.

[00:02:35.755] And I had not done that. Absolutely not any of the things that I should have done. And so, I had a successful business, but it was a business that could crumble overnight. And it actually did. In those nine months of me being in a wheelchair, we lost everything. My house, all of it. I actually kept my car. I did foreclose on my house. I did keep the car, and we moved back home to Utah with two kids, and a dog, and two suitcases. That is what we came home with. And we and if you have a foreclosure on your name, you actually don't get to rent anywhere either. You get to move in with family. Yes.

[00:03:15.630] So we moved into the basement, my ex husband's grandparents' basement, and it was a dungeon. There was literally one window in this basement. I was like, oh, it's like the worst. But I had back surgery. I was starting to recover. I did I'm able to walk again, right? So it's a good story. But during that time, it really helped me realize I structured things all wrong. That's not a successful business. If you are the person that starts and stops with, that's not a successful business. And I needed to figure out a way to create multiple streams of income so that if anything ever happened to me again,

[00:03:52.850] that that would not be the case, that my kids would be taken care of. And so I was so grateful that I actually did it was like one night, really, really, really late, I was like crying. I'm like, mom, my life is horrible. I'm living in this dungeon. Right? I was like, wah. And by I'm literally in the tub. And I'm like, oh, why is this happening to me? Not for me. I wasn't booming in the good mindset. And all of sudden, I had this download of you need to be a real estate investor. You need to start doing real estate investing. And I'm like, I'm so good at real estate investing. I just lost my house.

[00:04:26.255] I'm I would be amazing at that, right? Like, it would be amazing. But I just had this kept this urge, right? And so then I felt like I needed to open up. I'm like, Okay, well, maybe I'd where was the first time I learned about real estate investing? And it was the book Rich Dad Poor Dad. Have you ever read that book? Yeah. So good. So good. And so I read the book. And again, I was like, oh my gosh, that's right. I always wanted to be a real estate investor from like the time I was sixteen, which was when I actually read the book for the first time. And I was like, well, how am I gonna do that?

[00:04:56.685] I have no money, I have no credit, and I have no idea how to do it. Perfect. So then I thought, oh, I'll start googling. I'll start trying to do research. And I actually started reading a bunch of articles, a bunch of things, and I just kept, like, reading, and I kept watching things. It would take me so far, and then nothing. It would actually never do the full circle of how to do it. It would give you just enough to be like, cool. Well, that didn't do it. I don't know what it is. And then literally, one day I was driving my kids to school, and I saw a sign on the side of the road that said, real estate investors seeks training.

[00:05:31.200] And I was like, little on the nose, don't you think? Like, okay, thanks, God. I'm glad you're here for me. So I did. I called on the sign. That's what brought me to the workshop that you're in right now, a similar one at least. And honestly, in those three hours that I sat in the workshop, I had never learned more about business, banking, and real estate than I had ever learned in just those three hours. And I had owned a business for fourteen years prior to that. I was kind of pissed, I'll be honest. So you might be a little mad before you leave, just warning. You might be like, really? How did I not know this this whole time?

[00:06:04.460] But nevertheless, you're going to know tonight, and then you can't unknow, which is also fantastic. You're welcome. And in those powerful three hours, I didn't know who Mitch was, but he transformed my entire life. I owe him everything. From that moment, I really decided that I could become actually a real estate investor. I could actually shift my mindset to become someone that I had always wanted to be, where I actually didn't have to forfeit my time with my kids, where I didn't actually have to forfeit my time and my life, my livelihood. I could actually have money and wealth, real generational wealth for my kids and their kids.

[00:06:45.395] For that, I owe now my husband so much, so much love and so much grace. And he is a number one best selling author, four times number one best selling author, and he has transformed thousands of people, not just my life. For that, I am so excited for you to hear all the amazingness that he's gonna share with you tonight. So please welcome to the stage Mitch Nelson. How are we doing tonight? You guys good? Alright. Good. I'm excited. Let's get into this thing. Guys, we have some incredible stuff we're gonna be sharing with you tonight. We got some awesome financial strategies. We got some really cool real estate investing strategies.

[00:07:22.480] So here's what I want you to do. It's gonna be a little bit of an interactive workshop. I want you to turn to the person you're sitting next to and apologize for all the brain matter you're gonna splatter all over them because we're gonna blow your minds. This is gonna be awesome. Quick disclaimer. This one makes the the the lawyers happy. I am not a licensed attorney, accountant, financial adviser, real estate agent, real estate broker. I've got a driver's license. That's that's about all you get. But I'm a student just like you. So, all the information I'm sharing, I didn't create any of it And, you know, I learned it,

[00:07:54.250] just like you're going to. So, is everybody okay with that? Okay. Awesome. This isn't financial advice for anybody. This is just educational stuff tonight. And last thing before we dive in here, let's let's address the elephant in the room. Cause Meli kind of alluded to it, right? You come to these workshops and you're like, alright, what are they going to sell me? That's all you're thinking about until I tell you what I'm going to sell you, right? So, is make sure to sell me anything tonight? The answer is yes, I am. How much does it cost? Well, it's twenty six thousand seven hundred and eighty eight bucks.

[00:08:22.630] Anybody ready now? Do you guys bring cash? Make it rain? Alright. Alright. Alright. We'll see by the end. Right? Do you do you need to buy anything tonight to get value out of what we're going to share? The answer is no. You'll notice we don't have any credit card machines here. We're not going be sending you to the back of the room to sign up by the end of the night. This is something that we want you to, you know, we want you to if you're going to join us and if you're going to do this, we want you to be sure about it. We want to give you a chance to do some due diligence and plug in with us.

[00:08:52.620] But the things but I'm only going to take about ten minutes in the middle of this thing and kind of scattered throughout to to really share with you how you can get involved with our community. The rest of the two and a half hours we're going to be together is for you. It's just it's just value. It's education. Everybody cool with that? Alright. Okay. Okay. Good. Thank you, the three of you who who clapped. Alright. So, my name is Mitch Nelson. Like Meily said, I'm a four times number one best selling author. This is my my first book that I published back in September of twenty fifteen. So, it's been ten and a half years since I published Mindset is a

[00:09:28.515] Millionaire, and I was twenty nine years old. It's awesome. But, the the story isn't about the book. The story is about how this book started, because when I started writing this book, I didn't know I was writing a book. I was twenty seven. This was twenty thirteen. And, on my twenty seventh birthday, something weird happened, like a switch flipped in my brain, where yesterday I was twenty six, was in my mid twenties, and now, today, I was, you know, I'm in my I'm twenty seven, I'm in my late twenties. Right? You ever make that shift where you go from mid whatevers to late whatevers and it's like, holy crap?

[00:10:03.225] Yeah, that's what was happening to me that day. And, you know, I was working at the Apple store, was making about forty grand a year at twenty seven years old, and I was looking back on my twenties and I was like, alright, what goals did I set for myself? And I remembered when I turned twenty, I set some pretty lofty goals for myself. I said, by the time I'm thirty, I want to be a millionaire. How many people have set like crazy goals for themselves? Like, I have no idea I'm going hit this, but yeah, that sounds nice. Right? I'm going be a millionaire by the time I'm thirty, and by the time I'm thirty five,

[00:10:32.375] I'm going make a million dollars in a calendar year. And here I was twenty seven years old, much closer chronologically to that goal than I was financially, and where to turn. I didn't have a plan. Nobody told me like, oh, this is these are the steps to becoming a millionaire. Right? And so, you know, working at the Apple they didn't give me Steve Jobs' cell phone number when when I got my job there. So, I I didn't have anybody I could call to be like, what's up? Like, how do you, you know, how do you do the thing? All I had to rely on was my my public education and what they taught me in public education.

[00:11:03.360] Now, here's the thing. I have a lot of respect for teachers. If it weren't for teachers, I wouldn't be where I am today. Right? Thank goodness for the Renatus instructors. Am I right? Yeah. Yeah. Right. Nate and Becky Lambert. We got to hear from them today. But, let's call it what it is. Public education is average people teaching us how to be average people. So, we plug in, we learn the things that they teach us, we start doing them and we wonder why when we're doing those things, we're not becoming more than average. It's because the things that we were taught to do made us average. Right? And so, I decided that if I didn't know anybody that could teach me how

[00:11:42.580] to be a millionaire, I would just start studying them myself. So, I picked up every book I could find, watched every TED talk, YouTube videos, all the things about wealthy people. If I knew they were a millionaire or a billionaire, I was going to study them. And, I dove deep into this study and I learned some crazy stuff. Number one, these are human beings. Just like you and me, they got twenty four hours in a day. Like, knew that, but it didn't really like I didn't consciously think about it like these are normal people. They have relationship problems and they get hungry and they're sleepy sometimes, you know, like,

[00:12:10.185] they have good mood good moods and bad moods just like us. But, the one thing that set them apart was their mindset. It's the way that they think. They didn't they don't rely on that that public education. In public education, we're taught one way to make money. That's go to school, get good grades, so you can get into a good college, so you can get a degree, you can get a what? Job. Get a job. Right? Are any of these people W two employees? No. No. And so, I realized that what I had plugged into is what I learned later, Robert Kiyosaki calls the rat race. And that is, we get the job and the first thing that comes out of our paycheck.

[00:12:43.705] The only the only way, by the way, where you pay taxes first is if you're a W two employee, which is the only way they teach us. You know, taxes come out first and then, you know, we're left with not enough money to live the lifestyle we either want to or need to live, so we have to get into debt. Most of us get into debt and that creates more expenses, which means we got to go back to our job and it's just this hamster wheel that we get caught on. And our silly human brains think, well, that's not working, then maybe I just need to run harder on this hamster wheel. Maybe I'll get somewhere. Right?

[00:13:10.905] So, we get the second job and we take the overtime. We'll get the third job. Anybody in here had two or three jobs before? I have. Yeah. Did that make you the wealth you were looking to did that set you free? No? Yeah. Me neither. Because if you run harder on a hamster wheel, you don't still don't get anywhere, you just get tired faster. Right? The wealthy don't use that that system. The wealthy have completely different systems that they use. And just because you haven't been taught these things yet, does not mean they don't exist or that they're out there ready for you to learn. Everything is learnable.

[00:13:41.845] Everything is figureoutable, which is nice, right? It's one of things one of my mentors told me, like, I like that. Everything's figureoutable. So, the wealthy, they don't you know, none of those wealthy people are W-two employees, like they wealthy make their money differently. They're for the most part business owners or real estate investors. Do you think we got banking strategies up here. Do you think the wealthy bank the same way we were taught to bank? You think their billions come from this awesome CD that they have down at the credit union? Is that where they're making their money? I don't think so.

[00:14:13.165] How about taxes? Do the wealthy pay pay taxes differently than we were taught? Yeah. They got some they got some different strategies. We've all heard the wealthy pay less than taxes. Well, I'm here to tell you that most of them do it legally, morally and ethically. I did say most, but we are going to go into that a little bit deeper today. So, let's talk about some of these strategies that we're taught. So, as employees, we were taught that the priority needs to be money. We need to chase a dollar. Right? And so, if the analogy is the analogy I like to use here is, you know, we're taught to hunt eggs and hoard them in nests.

[00:14:48.230] So, we build these nests. We build a checking account, right, for our monthly expenses, and we build a savings account for a rainy day, and we're just trying to stack as many eggs into these nests as we can. Our four zero one ks is the same thing. We build a nest, it's our four zero one ks, and every check, we put an egg in the nest, and if you work for a good enough company, they'll match you. If you put an egg in the nest, they'll put an egg in the nest. And, over the course of, you know, your entire career, you build a pretty good pile of eggs and it gives you this false sense of security. And, you're thinking, you know what?

[00:15:17.020] This is looking pretty good. I think I'm I think I'm going to retire. And so, at sixty five or whatever, you cut it off. You start con you stop contributing eggs to the nest and you start pulling eggs out of the nest. And, every month, you crack one and you use it. The next one, you crack one and you use it. Right? And you get you hit seventy years old and you're thinking, well, I mean, it's dwindled a little bit, but I think we're going to be Okay. Right? And then, you keep going and you hit seventy five and you're thinking, well, it's getting down there, but I should be fine. And then, hit eighty, and you're like, holy crap,

[00:15:49.060] hopefully I die before I run out of money because that's going to get really uncomfortable really soon. Right? I can tell you this, if your backup plan to your financial strategies is, hopefully, I die if this doesn't work out, you have the wrong financial strategies. You need to get a little more educated. Right? But that's the problem with what I call accumulation strategies is when you focus on accumulation, it's it's always finite. It doesn't matter how much you have, it's always finite. So, and and when you when you cut it off, when you stop trading your time for money, and you go into retirement,

[00:16:21.210] it's just it's just going to dwindle. And so, we need to we need to avoid that. So, if it's about eggs, what do you think the wealthy focus on? Chickens. Chickens. Yeah. Because chickens lay eggs, right? So, why don't I just collect some chickens? Then, doesn't matter if I'm sick, doesn't matter. The chicken will still lay an egg. A chicken laying an egg has nothing to do with whether or not I'm sick or out of the country or on vacation or retired or whatever it is, the chicken is going lay an egg. And if I want more eggs, I'll just go get more chickens. See, we were taught in public education that we're supposed

[00:16:56.335] to chase a dollar. But, what the wealthy do is they chase assets because those chickens will keep laying eggs. Right? And that's, of course, what the chicken represents is assets. Now, this is for the most part of real estate investing workshops. So, what kind of assets do you think we're talking about here? Rentals are a great one. Yeah. I think I heard someone say rentals. Yeah. Rentals are a fantastic asset. Right? Because a well managed rental will pay you if you're sick. I've never seen a lease agreement that says, hey, if the landlord is sick, you totally don't have to pay rent this month.

[00:17:27.185] Right? Mine don't say that for sure. If I'm out of the country, they still have to pay me. They still have to pay me even if I'm dead. Think about that for a second. Your rentals, your tenants still have to pay you even if you're dead. This is a legacy that you're creating. This is generational wealth. This is something that will outlast you, something that you'll get to pass on to your kids and they get to pass on to their kids and so on and so forth until someone who looks like you, who comes from the same gene pool messes it up. Right? It won't matter, you'll be dead, it's fine. So, but look, the focus is on assets.

[00:18:02.970] We were taught again, we were taught in public education to chase money. I want you to answer this question. Can you make more money? Yeah, you can always make more money, right? Can you make more time? No. See, there's a flaw in this. We were taught that the only the only asset that you were given is time and that's something that you were given freely. And so, you should go exchange the hours of your life for fifteen, twenty, twenty five, thirty dollars an hour. But, there is nobody on this planet that can tack an hour onto the end of your life. And, that's something that equalizes us to all those wealthy people

[00:18:40.670] I had on the screen earlier. They also only have twenty four hours in a day and their lives are finite as well. So, we're selling off we were taught to sell off the hours of our lives for not very much money and that's the inherent problem. Money is something you can make money more of. Money is something you could buy some chickens, you could buy some assets and it will just create money. But, time is something that that is actually more valuable and the wealthy recognize that. Now, let's talk let's go back to retirement for a second. Vanguard published that as of twenty twenty two, the median retirement savings for sixty five to seventy four

[00:19:12.680] year olds in the United States of America is a hundred and sixty five thousand dollars. That's our boomers. Do I have any boomers in the house tonight? One. And, she's like, don't tell anybody. So, boomers are retiring with an average of a hundred and sixty four thousand dollars. Vanguard also published this matrix, which says that if you want to retire for five years, that means you only plan for on living for five years after you retire, that and you only want to retire on three thousand dollars a month, which right now is below the poverty line, then you need two hundred thousand dollars in your

[00:19:51.175] retirement account. Anybody see a problem with this trend? The article also said that Gen X is worse off than boomers. The millennials are worse off than Gen X. We're on a worse trend. I don't even know what Gen Z is going to do. Right? Hopefully, their TikTok accounts make make money for them or whatever. But but, man, if you want to retire for twenty years on something like seventy five hundred dollars a month, you need almost two point six million dollars saved up. And, the average person, the average boomer right now has a hundred and sixty five thousand. That's crazy. It's obviously not going to work.

[00:20:28.010] We can't rely on the same systems that worked for our grandparents, that worked for our parents. We have to do something different. Now, the only way I know how to retire wealthier than you were when you were working is passive income real estate, rentals. That's also the best tax strategy I know of, but we'll get into that in a second. So, I follow Alex Hermosy on social media. I saw this saw this the other day and I wanted to share it with you. So, said, rich people buy time, poor people buy stuff. Ambitious people buy skills, and lazy people buy distractions. Think about, you know, the things that you spend your money on.

[00:21:07.085] Are they are they going to help you with skills to be able to increase your your lifestyle and increase your cash flow and increase your net worth? Or, are they things that are just distractions that that use up our time in ways that don't necessarily build our empire? How do we spend our how do we spend our time? Now, what I want the focus to be and the reason we're starting with mindset tonight is because mindset is such a foundational part of building your empire, it's such a foundational part of building wealth. There's totally a way that you can go about real estate investing where all it will do is replace the amount of money

[00:21:42.905] that you make at your job and require the same amount of time. Is anybody here because they want to make exactly what they're currently making just doing something else? I see no hands and I can't see the people in the recording. So, know, answer out loud. I'll pretend like I understand. But, alright. So, what do you want then? Yell it out. Freedom. Time freedom. Financial freedom. That's right. Time for what what's that? More time. More time. Like for family. Yeah. I don't want to be I don't want to be like working like most of my day and then have a few minutes left for my spouse and kids when I get home.

[00:22:20.770] Like, it's awful. I want more time. I want to make more money working less. Right? Well, what what we need to focus on then is chickens. What we need to focus on is allowing the assets to create wealth for us so that we can spend our time, our precious time that we can't get more of, doing the things that we actually want to do. And that requires a completely different mindset. We're going to get into that in a minute. But one of the things you'll notice as you would start to interact, and hopefully you guys got to network with with our students and our community members before this started because we

[00:22:56.000] have an incredible community of like minded people here. And the coolest thing is all of us come from came from different backgrounds, and I don't know one of us that started Rich. All of us started pretty much the same way I did in one way or another. Right? I was working at the Apple Store. Alinda was a single mom that was struggling to make ends meet. You know, there's so many stories of of people coming from different places and now, we've found this community where we get to hang out together, we all have similar goals and we all support each other. So, here's basically how we bring all of this together.

[00:23:33.530] It's three things. It's the investor's secret network. It's the incredible community of individuals. It's the it's the first flip challenge. It's the skills that we need to start doing the things that are going to bring those those chickens into our lives, those assets into our lives. And it's the most importantly, it's the Renatus education. It's it's the knowledge that we need to go out and start changing our behavior, changing our lives. When knowledge increases, behavior changes. So, it is. Step one, we need to surround ourselves with the resources. My guess is that most of you who are guests

[00:24:09.195] tonight are here because you're wondering how the heck do I break into this real estate investing thing. There doesn't seem to be a way other than just have millions of dollars already saved up. Right? Well, the problem is you're thinking on an island. You're thinking that it has to do with what's in your checking account and what your credit score is. And, I'm sorry, that's just that's not how the wealthy do it. The wealthy team up, they go out and get deals done. How much would you rather have a one hundred percent or no deal or split a deal ten different ways, pool your resources and go get one deal done?

[00:24:40.315] You want ten percent of an actual deal or one hundred percent or no deal? Ten percent. Right? Let's do that four or five times, maybe ten times, save up some money and then have enough to go buy a rental on our own, you know, and start collecting that cash flow. So, we got to surround ourselves with the resources. Then, we need the skills and that's what the first flip challenge does in ninety days. Where are my challengers at? Holler out at me. Make some noise. Where's my challengers at? Alright. Okay. So, in the first flip challenge, the first ninety days of your experience with us is to go through and learn the skills of finding, analyzing,

[00:25:15.435] negotiating, funding, and closing on deals. That's going to get you into your first deal. You start applying those things, that will lead to your first deal. We want to get your first deal out of the way as quickly as possible because the first deal is the hardest one. The first deal is the one where you're looking at it saying, don't know if I could do this. Right? By the second deal, you're like, I've already done it. I know I could do it. Like, there's evidence that you can do it. Right? But the first deal, man, that's the hardest one. And it's not because of the deal, it's because of you. It's because there's a learning curve.

[00:25:41.965] So, let's just let's get that out of the way in like the first three months, then we can focus on scaling. We can focus on going out and doing, you know, five, ten deals at a time, buying, you know, ten, fifteen, twenty rentals a year. So, that's exactly what the first flip challenge does. And, of course, once we close on the deal and buy it, we need to know what to do with that thing. That's where the liability starts. Right? That's where the risk starts. What do we do with this property after we've purchased it? Well, what's incredible about the Renatus education is that it gives you lifetime access to a vault of trainings taught by

[00:26:14.285] practitioner instructors from around the country. And we don't just teach one strategy, they teach all the strategies. There's something like ninety two different topics that they teach on. I didn't even know there were ninety two different real estate investing strategies. I didn't know there were ninety two different things you could do with a house to make But, you know, you could fix it up and sell it for more than what you put into it. That's called a fix and flip. You could hold it long term, put tenants in there, collect rent, buy and holds. You do short term, mid term rentals. Renata teaches that.

[00:26:42.935] We just recorded today our commercial one of our commercial tracks. Nate and Becky Lambert's still in the house? I saw Becky wandering back there, but they just knocked out a re recording of one of our commercial tracks and man, it was awesome. I was here listening to it today. So, you know, if single family houses aren't your aren't your gig, that's alright. Let's go buy some storage units. I got a student who loves doing parking lots, you know, because they don't want to deal with tenants, they don't want to deal with having to, like, replace the carpet and repaint the walls every time they turn over.

[00:27:14.050] A parking lot, you've got a parking stall, you can rent that thing out four or five times a day, you know, there's no maintenance. When they leave, there's a little oil spot, who cares? The next one will park over it, it doesn't matter. Right? A lot less maintenance on something like that. We teach wholesaling, multi family, mobile homes and mobile home parks, tax liens and deeds, real estate hacking, which is where you make money on the house you live in. That's pretty cool. Note trading, private equity funds and so much more. And, the beautiful thing about it is I already shared the price with you.

[00:27:43.600] It's a one time payment, you get lifetime access. So, let's talk about our stats in the FirstFlip Challenge. Now, in our just our little Salt Lake group here, since July of twenty twenty four, and I know Meily is going get mad at me because I did not update these slides. The numbers are actually better than this by now because we just had another season of the First Flip Challenge and we have some new information. But, as of season five, we had one hundred and seventy nine challengers go through the First Flip Challenge, who closed over a hundred and thirty eight real estate transactions. I think that number is over two hundred now.

[00:28:17.810] But, and a lot of them do it together, that's why there's disparity in that number. A lot of them will team up, pool their resources and go get a deal done. That means in our little group, little Wasatch Front group, we've moved eighty million dollars in transaction volume since July of twenty twenty four. And, almost all of our challengers started as average people, employees, small business owners, just like I would guess most of us in this room, right? Started as average people. So, let's get in, let's talk about deals. Now, what's what's one of the things that you guys are most worried about

[00:28:52.965] with real estate investing? What's the thing that's holding you back? You're like, this is the thing, this is the reason I haven't got out and started buying some investment property yet. Throw it out at me. Money. Okay. We're going talk about money today for sure. Like, I need capital. Real estate costs money. Well, the good news is it doesn't necessarily cost your money. So, we're going to I'm going show you a strategy on how you can find all the money that you need regardless of what's in your checking account. You'll know you'll realize by the end of this thing, you could have a negative balance in your checking

[00:29:25.845] account, but as long as you have the right knowledge, you can go get go get deals done. So, let's start with money. Let's jump into that. Let's start with money and we'll jump into some of the other things here in a second. This is a deal we did a little while back. Two thousand six seventy seven West Jordan Meadows Lane in the far off mystical land of West Jordan, Utah, right, which is just down the street, for those of you that are watching this on the recording, it's not too far away from here. My point is, you know, everybody around the country, around the continent, you hear, well, this isn't a good place to invest, like,

[00:29:55.975] probably shouldn't invest here, you've got go out to the Midwest. Right? And the people in the Midwest are saying, well, you got to go out to the mountain west. Right? And it's like, no, you as long as the numbers work, like, there's real estate everywhere. Think about the billions of dollars of real estate that you drove past just to get here tonight. There's so much opportunity out there, you just need to be educated enough to realize how to spot it. And so, the funding strategy that I'm going to share with you right now is going to show you how you can you can fund any type of deal. I used this one, I've done two seventy eight fix and flips now,

[00:30:29.410] and I've used this strategy I'm going to show you on every one of those fix and flips to structure it using other people's money. You can use this same strategy to acquire BRRRR strategy rentals, you do it with multi families, you can do it with storage units, you name it, whatever you want to do, this is an incredible way to buy them. Okay? So, let me break down the numbers on this one for you. So, this one, this property, you'll notice that we did kind of a splash and dash, you know, lipstick on a pig, know, polish a **** kind of thing. It wasn't it wasn't a deep remodel on it, we weren't like tearing down walls.

[00:31:01.420] It's the same cabinets in this kitchen, we just painted them and put some handles on them. Right? It's the same hardwood floor, we just we just refinished it. Same granite, same tile, we put a little backsplash on, put some nice appliances in there. We bought this house for two hundred and fifty thousand dollars We put about fifty thousand dollars into fixing it up. Our holding costs were ten thousand dollars Holding costs, what does that mean? Well, see, when I started, when I was sitting in the seats that you're sitting in now and I was watching, you know, kind of this intro workshop for the first time,

[00:31:35.010] my I had a very one dimensional attitude about real estate. I thought, I only want rentals. Right? I just wanted that cash flow. I want to be able to replace my income and retire by the time I was thirty. And so, just don't talk to me about any other strategies, I just want rentals. And, one of my mentors pulled me aside and he said, you know, Mitch, you've got kind of the wrong idea here. None of us buy fix and flips or none of us do fix and flips because we think that it's a retirement strategy. It helps fund our retirement strategy. A well run fix and flip business is like a legal money printing factory.

[00:32:06.130] How many of you want a legal money factory? Sign me up for that. Right? I'd stand in line for that. That'd be awesome. That's what a fix and flip business is. And so, opened my mind to this idea that I can use multiple real estate investing strategies to all help fund the one strategy that I was focused on the most and that's buy and hold real estate. Right? And so, I actually, Meily and I are now are kind of known as fix and flippers, even though that's not our primary strategy, it's still rentals. So, if I have extra money, what am I gonna am I gonna throw that money at flips or am I gonna throw it at rentals?

[00:32:38.655] Rentals. Rentals. My primary strategy. Right? So, who funds my flips? Other people. Yeah. And, if I'm gonna use other people's money, there's only one or two ways I could do that. Could either borrow it or I could steal it. Which one do you think it is? Yeah. Steal Yeah. Steal it. Yeah. That's what this meeting is. We're gonna turn off the lights in a sec, take all your waltz and purses and go buy real estate with what we find. That's how we it's we borrow it. Right? And, of course, I know the sirens go off when I say the borrow word and we're talking about money because you're like, well, I remember this one time,

[00:33:05.765] had to call my mom because I spent too much money, you know, partying in college one month and they were going to shut the power off, had to borrow a hundred bucks. That's charity. That's not what I'm talking about. This is this is more of a business proposition. Joe, I know you got that extra fifty grand laying around, man. So, if you gave me that fifty grand, so I could go do this deal for like four months and I brought you back sixty grand, would you be open to have a conversation about that? Sign Right? If I bring him back more money than what I borrowed within a short period of time, he's like, I'm all in.

[00:33:37.355] Let's do this. Easy conversation to have. Right? Because it's a business proposition. So, that's what my holding costs are. Most of I mean, some of it's like property taxes and insurance and whatnot, the cost of owning a prop, but most of it is just the cost of my money. So, I can go get this deal done. So, I've actually accounted for that here on these numbers, my closing costs when I sell the property. Question for you, is a real estate investor and a real estate agent the same thing? No. What does a real estate agent do? Sells houses. Is that important? Yes. But, is it what investors do? No.

[00:34:12.570] What does a real estate investor do? Buy houses. We buy houses. Yeah. This is one of the common misconceptions that a lot of people have about investors is that they're magically just like every profession. Right? Like, I'm going be an investor which means I got to buy a tool belt and some tools so I can go remodel the house myself. No. That's what a contractor does. An investor does five things. That's it. We find, analyze, negotiate, fund and close on deals. And when we're done, we we keep going. We hire professionals to do all the other things, like sell the house. That's not my job. That's an agent's job.

[00:34:43.350] And so, we're going to pay the agent to do that. I've got a very expensive agent. It's my wife. So, we got to pay her a full commission. Right? So so, twenty five thousand dollars on the on the closing commission on this, a little bit to the title company. All in, if you add all that up, three hundred and thirty five thousand dollar all in cost on this house, we sold this house four months later for three hundred and eighty grand, which means we made forty five thousand dollars in a hundred and twenty days and about seven hours of my time. I made more with seven hours of input than I made an entire year working at the Apple Store full time.

[00:35:18.945] Who is excited about this strategy? Does it get even more exciting when I tell you that I do ten to twelve of them at a time? Ten to twelve flips at a time. Yeah. That's awesome. And, it all it all is we take the money that we make, Meilyne and I take the money we make off our flips and we go buy rentals to the tune of, on average, about one a month, which is also awesome. Right? We want to get there. There's people who are doing even better than me. Mean, Nate and Becky Lambert, they buy thousands and thousands of doors every year. It's crazy. Those are people you want to follow. So, let's break this down a little bit.

[00:35:51.545] I want to bust some myths. So, we have we've you know I mean, where we're recording this, we're in Utah right now. This is the DIY capital of the world. Right? So, I know that there's a lot of people who think that the best way to do a fix and flip, for example, or a rental, there's the rental version of this as well. But, we are talking our example here is a fix and flip. They're like, oh, sweet. Yeah. I'm going to save some money. I'm going to do the work myself. We'll move into it. Right? And, we'll just work on it on the nights and weekends. Can you imagine having that conversation with your spouse?

[00:36:24.865] Go home after this meeting and be like, hey, babe, we got a new business plan. We're going to move our whole family into one of these. What do think? Know how you love the open? Look at the open floor plan, the natural light, it's awesome. Right? We're going move the whole family in, we're going to work on it nights and weekends, it'll take us about a year. It'll be beautiful by the time it's done. It's going be your dream home. But, just as it's getting pretty, we're going to sell it and we're going to move into another one of these. And, that's what we'll do for the next, you know, eighteen, twenty years.

[00:36:50.935] What do you think? Sounds pretty. Yeah. Sounds amazing. Right? Even worse than that, I like doing ten to twelve fix and flips at a time. So, if my plan is to move in to every fix and flip that I do, what does that limit my scale to? One at a time. This strategy is far too slow because the mindset this is what I was talking about earlier. There's totally a way that you can do real estate investing where all it will do is replace the amount of money you make at your job and and take you the same amount of time. If I was living in this house doing a nice and weekends, I'd make about the same I was making at Apple.

[00:37:31.035] Right? And I'd only be able to do one. So, it's it's the mindset, it's that employee mindset of, well, I'm doing it because I don't want to pay a contractor because I want to save money. Guys, you will never save your way to wealth. It's not about hoarding the eggs, it's about finding the chickens, so the eggs just replace themselves. Right? So, rather than being the contractor to save money, spend your time, the most valuable currency you have, doing the thing that is going to make you the most, and that's finding the next chicken. Find, analyze, negotiate, fund, and close. Right? So, this type two investor and I've broken these down into,

[00:38:08.080] like, three categories because, I mean, I've done this for a while now, and I get to talk to all kinds of people, and you all have some crazy ideas about how you think real estate is supposed to be done. But, I can categorize it into one of the three, right? The DIY stuff, the move in, I'm going work on it myself, blah blah blah, or with the rentals, I'll be my own property manager. I got a fun story for you later on in the workshop here about a property manager who thought that it was a good idea to do it themselves. I I have been paid rent checks for the last thirteen years of my life, but I've never personally collected one.

[00:38:39.215] I've had tenants evicted. I've never personally evicted anyone because that's not my job. That's not what an investor does. That's what a property manager does. Right? So, I've heard people say, well, I don't want rentals because I want be a landlord. Then, don't. That's like the worst idea ever. It's smart to own the rentals. It's unless you are a property manager and that's like your profession, don't be the property manager. You be the investor. Let the property manager be the property manager. If you want to make more money, don't try to squeeze it out of the one that you have, just go get another one.

[00:39:09.745] That will make you more. Right? And then, you find that one, well, got some time now, I found it, I set it up, property manager's handling it. Well, then, let's go find another one. You'll make way more money doing it that way. So, this type two investor, this is the investor that I think gives us the bad name. How many of you heard that real estate investing is risky? I want to see a show of hands. Who thinks real estate investing is risky? Okay. Maybe that's some of the reason why why a few of you haven't started doing it yet. Because, man, it seems like it's so like, could lose money, like, if two thousand eight happens again?

[00:39:39.565] Well, this is why I think people think it's risky, is because you were taught how to use other people's money, but you were only taught one way to use other people's money in your public education. And that was a debt relationship. That's how we use the bank's money and the bank's money is other people's money. And so, if all you know is a debt relationship, that's going to put you in trouble because here's the thing, how many of you know stupid people? I want see show of hands. Hundred percent participation here. Yeah. We all know stupid people. Right? Think about this for a second. The bank will lend your stupid friends money.

[00:40:13.295] Why would the bank lend your stupid friends money? That sounds like a really bad idea. The reason is, is because in a debt relationship, it transfers all of the risk to the borrower. Now, as a real estate investor, and the definition of an investor that we just decided was we buy houses, in a lending relationship that makes me the borrower. That means I'm taking on the risk in a debt all the risk in a debt relationship, and a lender's taking on none. Don't believe me? Guess what? If I'm on time with my payments, they get my interest. If I'm not on time with my payments, what happens? They get my house, no matter what they get something.

[00:40:48.115] Right? And I'm out something, no matter what. That's that's how a debt relationship works. And so, they're willing to lend and, you know, if anything goes wrong, well, they just get to take it. So, if all we understand is debt and we're looking at this deal, you know, I've got some upfront costs here. I have to have enough money to go buy this house. I have to have enough money to fix it up. But, the holding costs, my deal that I have with Joe here was he'll give me fifty grand, I'll go use it. When I sell the house, I'll bring him back sixty. That doesn't happen till I sell the house. So, I don't I don't need to have that money upfront to pay Joe back.

[00:41:24.410] Right? So, I don't need to raise that, that's a back end cost. And then, my closing cost, when paying my agent, well, that doesn't happen till till she sells the house. Right? So, and the title company and so forth. So, there's front end cost here, there's back end cost. I only need to raise money from my front end costs. So, I raised three hundred grand and if all I know is debt, well, I pull up my my Google machine and I type in fix and flip money Utah and up pops a list of hard money lenders. Who's worked with hard money lenders out here before? What kind of rates and terms have you seen, Christine?

[00:41:53.330] To twelve. Ten to twelve percent? And, how long do they let you have the money for? Six to months. Six to nine months. Yeah. So, that's what I had on here. It's about twelve percent interest, which is still cheap, by the way. Debt's cheap. Debt's cheap because they're transferring all the risk to you. Other ways to do it are are more expensive, but don't carry as much risk. And here's a here's a misconception about real estate investors. You a lot of people think that real estate investors love risk. Right? Do you think I'm just driving around all day like, where's the risk at? Like, want to collect some risk,

[00:42:26.770] just throw it in the back. Right? You got risk? I'll take it. Right? Just like, no, I my risk tolerance is exactly the same as it was when I started. I'm not here to tell you to lower your risk tolerance to go out and start doing real estate. That's keep it where it's at. It's healthy. What I'm here to tell you to do is raise that knowledge level above your risk tolerance. The reason that you haven't gone out and done real estate yet, if it's risk related, is because you haven't learned a way to mitigate the risk yet. And, just because you don't know that there is a way, doesn't mean it doesn't exist.

[00:43:00.975] You just have to learn it. Okay? So, I don't want to take I don't want to like, well, I want it to be cheap so I'm loading up on the debt. Right? But, taking on all this risk. Do I have any contractors in the house by the way? Who's a contractor? What's your name? Brian. Brian. Alright, Brian. What's your most dangerous tool? All of them. All of them. Just throw throw the one that you think might be the most dangerous. Throw it at me. Concrete cutter. That's that big like gas powered like saw thing. Right? Yeah. That's pretty dangerous. Would you do you have little ones running around by chance?

[00:43:38.305] What's up? Do you have little ones running around your house? No? If you did, you think you'd be leaving that concrete cutter like on, running in your front room? Why not? It's dangerous. So, why do you have it then if it's so dangerous? Shut up. You don't know why you have a concrete cutter? It makes him money. He can do more work with it. Right? Could you imagine Brian being out there like, I don't like dangerous tools. So, I'm just going to judo chop this concrete till I get a nice straight line in it. Right? That would take him so much longer to do it that way. Tools, if it if they're in the right hands, make work lighter,

[00:44:17.320] make work easier. We can get more work done. We could build more things with tools. But in the wrong hands, the reason you wouldn't leave that concrete cutter around where the kids can get a hold of it is because in the wrong hands, it can be incredibly dangerous. That doesn't mean the tool itself is good or bad. Debt's a tool, guys. I know you've been taught your entire life that debt is bad. It's not bad, it's a tool. What's what's makes it good or bad is the user. And, if you're if if you're an uneducated user of debt, which they didn't teach us anything about debt other than abstinence, stay away from it.

[00:44:49.940] Right? It's awful and then we're like, oh, but I need and then we get into it, we get in trouble because we don't know what we're doing. Debt is a tool that can completely destroy your life. I'm sure we all have examples of family members or maybe personal experiences where that's true. But, it's also something that, if used correctly, can build your empire. So, we need to understand how to use that debt safely. Right? And, one of the ways is not leveraging your whole deal in debt, like like this person in this example. And, the reason is because, yeah, could I go get this deal done in six months?

[00:45:22.050] Absolutely, I did it in four. So, what's the problem? Why would I be worried about that? Well, the first the problem is is the first step to becoming an educated real estate investor is recognizing that you don't have control over everything. There are things you can control. I get to pick which properties I buy and which ones I don't. I have control over that. In fact, that's probably the most important part of what I do. I look at a lot of deals and most of them are no. Because the numbers don't work or there's too much that needs to be done with it and I'll be over budget or whatever the case.

[00:45:50.430] It's not the right location to be a rental and it won't cash flow the way I want it to. Right? That is probably the most important thing that I do is picking which deals I do and which ones I don't. I get to pick which money lenders I use, who I partner with. I get to pick that. Do I get to pick if the market's going to go up or down while I own a deal While I'm in a project? No. No. I just have to respond to it. Well, if if the market does change, do I like I mean, do I have any part of that that I can control? Could there be a market change that like where the bottom falls out like it did in two thousand and eight and

[00:46:23.125] house prices plummet? Could that happen again? Yeah. In fact, it probably will. Does anybody know when? I need to know like to like a ninety day window. If any of you know? No, your crystal ball is fuzzy than mine? Alright. Okay. So, here's the thing, it absolutely could. So, what happens if you're this investor, you go buy this deal, you get into it and two months into your four month project, act of God, act of terrorism, act of war, whatever, act of politics, whatever it is, the economy sinks and and this house this house drops. In fact, the reason I picked this house is because I have some pretty

[00:46:59.915] interesting data on it. Long before I bought and did this deal, I noticed on the tax data that this house had been purchased at two very interesting dates. It had purchased in two thousand and seven. Where was the mark in two thousand and seven? All the way up. And then, it had been sold. Whoever bought in two thousand and seven sold it in two thousand eleven. Where was the market in twenty eleven? All the way down. Right? Whoever bought it in two thousand seven, sold it in twenty eleven for a hundred thousand dollars less than they bought it for. So, what happens if you're this investor, you go do this deal,

[00:47:30.960] two months in your four month project, the the market changes, bottom falls out and when you thought you could sell it at an after repair value of three hundred and eighty thousand, now it's only worth two eighty and you still have two months left to go on it. Got a problem here because you borrowed in debt three hundred thousand dollars and you owe back that debt with interest or they'll take the house. Right? So, we can't sell it. And by the way, if you do sell it, you're going owe those back end fees too, which means you got to run a fifty five thousand dollar check. I don't know about you,

[00:48:05.610] I didn't get into this to write checks. I to sell I want to get the checks written to me. Right? So, that's not an option. What else can we do with it? What are some ideas here? What can we do with this house? We can rent it out. Okay. You said rent, you said refinance. Let's address those. So, we'll throw some tenants in there, right? It takes us four months to complete the project. So, we throw some tenants in there. They're good tenants. So, they pay their bills. We collect that rent check, get some cash flow. Now, we're at month five. Then, next month, they pay their rent again. Now, we're at month six.

[00:48:34.280] What happens at month six in one day? Yeah, we got to pay our hard money lender back. We get this nice little phone call, hard money lenders, drove past that house you guys did, looks amazing. Well done. You can put some cash flowing tenants in there for me. Thank you so much. It's mine now. So, that won't work. It's a good idea, but it won't work. You said refinance it. Why don't we just take it down to the bank? I'm going take this house down to the Bank of Jeff. Alright? Jeff, I got this two hundred and eighty thousand dollar house here. I'm wondering if you could use this two hundred eighty

[00:49:09.465] thousand dollars worth of collateral to lend me three hundred grand. So, I could pay my hard money lender off. What do think? Will you lend me three hundred grand on two hundred eighty thousand worth of collateral? For those at home, was sarcasm. Of course, he wouldn't. Right? Because no bank is going to give you more money than the collateral you're using to secure it. So, my point is here, good idea, good idea, not going to work. And, if you've got ten or twelve of these going on at once, you know what that's called? Bankruptcy. Put you out of the game. It's too risky. So, I don't want to be the I don't want to be the the dead investor.

[00:49:48.930] Now, let's talk about the way that I learned how to do this. Through the Renatus education, I learned a strategy called the debt equity blend. And, I've used it two hundred and seventy eight times on fix and flips and maybe another hundred times on other strategies. I've done probably six hundred transactions since I started thirteen years ago and I'm not even the most impressive student in this company. So but this this strategy, this is the one that educated investors use. This is the one that the first flip challenges are using to get into their first deal in ninety days and it's pretty awesome.

[00:50:23.410] So and I'm going give it all to you. So, if you're not taking notes at this point, you're probably going to want to start. You're going to be kind of mad at yourself, especially my live audience here because there's no rewind button. Right? The people at home, you can just hit the rewind button. What do you say? You know, go back, turn the closed captions on. You guys don't get that. So, I'm telling you now, take some notes. This debt equity blend, there's a secret ratio. Obviously, we want to use debt. Debt's a tool, and if we use it correctly, it can help us get work done. Right? It's cheap, it's risky,

[00:50:47.840] so we want to balance the level of risk with the cheapness. And what we found is that's a cap of two thirds of our all in cost, of our upfront cost. What's our upfront cost on this deal? Three hundred thousand dollars. So, what's two thirds of three hundred thousand dollars? Two hundred thousand dollars. So, we can raise two hundred thousand in debt. We can even use that same twelve percent six month hard money guy. Okay? But now, I still need another hundred grand to get this deal done. I need three hundred grand upfront. So, when I said at the beginning, the wealthy, they're business owners, real estate investors,

[00:51:18.060] sometimes that dovetails pretty closely. You're going to learn to treat your real estate investing like a business. Run it like a business, it'll pay you like a business. Run it like a hobby, it'll pay you like a hobby. Right? So, in this case, what I did was I started an LLC. And, inside my LLC, I gave myself fifty percent ownership, which left fifty percent available for someone else. But, I also put the deal inside the LLC. You're going learn there's a lot of reasons why you don't want to own deals in your own name. Right? Asset protection is one of them. We want to use companies, limited liabilities companies or trusts.

[00:51:52.595] In this case, it's an LLC. I put the I put the deal inside the LLC. So, now, the deal is owned by the LLC and I own half the LLC. And, I take the other half of this company and I go around and I look for someone who wants to buy the other half of this thing for a hundred grand. So, that's where we just start calling all of our buddies. Right? To have a hundred grand just like stuffed in their couch cushions. Yeah. Bring your couch. We're buying a house. Right? I don't know about you guys. When I started, I didn't have any friends that had a hundred grand laying around. But, I had an instructor who taught me from this stage.

[00:52:27.805] He said, there's twenty seven trillion dollars in retirement accounts in this country. Twenty seven trillion. How many people live in the United States? About three hundred and thirty million. So, do some math. Three hundred and thirty million people have twenty seven trillion dollars carry the one, that's a lot of people with a lot of So, so so, what that what that actually, we had a slide on it earlier. You know what it actually comes out to? An average of a hundred and sixty five thousand dollars per person. So, look around. There's a hundred and sixty five thousand, there's a hundred and sixty five thousand,

[00:53:04.270] there's a hundred and sixty five thousand. You're thinking, yeah, but not everybody has exactly hundred and sixty. No, that's an average. Right? There's probably some people in this room who don't have a retirement account and there might be a handful of them, one or two, that have millions of dollars in their retirement account. But, it's going to average out to a hundred and sixty five thousand dollars per person. That was a light bulb moment when I heard that. I'm like, there's my capital. How do I get access to it? He said, well, there's two two questions that you need to memorize and ask to everybody.

[00:53:32.910] And, I thought, know, I mean, I'm I'm an apple store guy. Like, I barely graduated high school. I didn't go to college. But, I can memorize two simple questions and ask them to anybody that comes within arm's length of me. Right? And, that was my rule, I just made the rule. So, I memorized these questions. This is the reason why, by the way, my my dentist has been an equity partner in several of my deals because he came in my bubble, he came within arm's length. Right? So, I asked him the questions. That was awkward because I had tools in my mouth and I was asking him, you know. My doctor, equity partner.

[00:54:04.660] In fact, about a year and a half ago, I got an itch. I wanted a toy. So, I went down to the Ford dealership and I bought a Bronco, a Ford Bronco. And, the guy who sold me the Bronco, he got my bubble too. He slid the papers over, hand me the pen, I'm like, oh, arm's length, I'm asking him the questions. Right? Here are the questions. Very simple questions. Write these down. Question number one. Ask them to everybody. Question number one. Did you know that you can use your retirement account to buy real estate? A lot of people don't know that. But, think about this for a second. What does your retirement account do while you're going about your day?

[00:54:41.625] It's investing in your future. Right? Is real estate an investment? Yes. Yes, it is. So, your retirement account, if done right, can buy real estate instead of stocks. Now, what is what are most people's I'm not to the second question yet. Well, I'll get there but I'm kind of setting it up. What are most people's retirement accounts indexed in? Mutual funds. Yeah. Heard it out there. Mutual funds. What kind of rate of return can you expect on mutual funds? Four, five, six, seven. Let's go with six. Is that fair? Everybody cool with six? Alright. Second question. If I were to show you this is a long one,

[00:55:24.950] so I'll repeat it a couple of times. If I were to show you how you could double or triple your current rate of return backed by real estate, would you consider partnering with me on my next deal? If I were to show you how you could double or triple your current rate of return backed by real estate. Would you consider partnering with me on my next deal, John? What do you think? Oh, he's intently writing notes. What do you think, John? Would you consider it? Yeah. You consider it. Of course, he would. Right? Who wouldn't consider that? Double or triple? Prove it. Right? John's going to have questions, of course.

[00:56:09.535] And, obviously, there's some wordsmithing in there. If I'd been like, John, if I could double or triple your current rate of return back by real estate, would you sign this document now, committing your entire retirement account to me? He'd be like, no, get out of my face, weirdo. Right? But, I said, would you consider? He's like, of course, consider it. Let's let's have a conversation. Let's prove to me that you can do it. He's going start asking questions about the property. What? Tell me about it. Well, I've got this real estate purchase contract all filled out and signed by the seller. We're buying this house,

[00:56:35.545] two thousand six hundred seventy seven West Jordan Meadows Lane. You can see right here, two hundred and fifty thousand dollars. They signed it. They committed to it. In fact, we closed in seven days. We're going put about fifty grand into fixing it up and John, our holding costs, I don't need all three hundred thousand dollars from you, I've already raised two hundred grand. It's a hard money lender at twelve percent interest, we're going to pay him about ten grand for letting us hang on to his money for a second. But, I only need a hundred from you. And so, our closing costs, we're going to pay an agent about twenty five thousand dollars.

[00:57:03.985] We think, all in, we're going to be three hundred and thirty five thousand dollars on this little house, John, that you and I are together as fifty fifty partners. I'm one one half of that partnership. John's retirement account, not John, John's retirement account is the other half of that partnership. So, all in will be three hundred and thirty five thousand dollars if you add all of it up. And I think, John, if you look at these these comps here, there's these are other properties that have sold in this neighborhood in the last ninety days, in the same neighborhood as this property we're looking at.

[00:57:32.535] And if you average out all these sale prices, it comes to three eighty. So, I think we're going to be able to sell this house for three eighty. The difference between what we spend on it, three thirty five, and the three eighty, well, that's forty five thousand dollars. And, because I'm half partner and your four zero one k is half partner, we'll split that forty five grand. I'll get a check for twenty two five and, John, your four zero one k will make twenty two five twenty two thousand five hundred as growth after you get your capital back. So, let's do some math real quick. John directed his four zero one k to put in a hundred thousand

[00:58:07.265] dollars towards this project. At the end of the project, he got his hundred grand back plus a check for twenty two five. What's John's rate of return? Twenty two and a half percent. Is that more than double six? Is that more than triple six that John was getting the mutual funds? What do you think, John? You excited? You ready? Yeah. He's going to sign. Alright. That was that's awesome. Is this an easy conversation to have with people? Two questions, show them that how the deal is going to make them money, make them three, four times what it is. It gets better than this because I put this in the

[00:58:43.920] actual column for a reason. John's actual rate of return is twenty two five. When we're talking about six percent on mutual funds, how many months does it take to get six percent on a mutual fund? Twelve. Twelve months. How many months did it take for for me and John to do this deal? Six. Four. Took four months. So, there are three four month periods in a year. So, if we annualize this rate of return, sixty seven point five percent. Did I have to rip John off to get him to jump into this deal? No. I actually took really good care of him and you know what? He's going to be excited to do the next one.

[00:59:20.195] When I give him that money back and he's made a sixty seven point five percent annualized rate of return, I never have to pitch John on it again. In fact, John calls me now. Right? Hey, when's the next one? Let's go do this again. Right? Raising the capital is so easy when you know what you're doing, which brings me to my next point. One of the concerns John might have is, hey, you talked about that debt guy and how he lost all of his money, know, because he had some debt. We got some debt in this deal, like, are we not going to lose money? Well, it's different now because John created the John's position in

[00:59:53.655] this deal created some equity in this property. I don't have three hundred thousand dollars worth of debt and if this two thousand eight happened again and this this house price dropped by a hundred grand, I've got an equity position. We, as a partnership, have an equity position. I'm not leveraged to three hundred thousand dollars on the house. What's my debt on this house in this case? Two hundred thousand. So, if I go down to the bank of Jeff and I bring my two hundred and eighty thousand dollars worth of collateral, this house, John or Jeff, here's two hundred eighty grand, will you lend me two hundred against this, please?

[01:00:26.475] Now, will. Because my debt, I'm not over leveraged on it, right? So, Jeff gives me a thirty year mortgage that pays off my hard money lender and gets him out of the picture before the six months is Now, with a thirty year mortgage, I can just make little tiny baby payments and remember, we're talking worst case scenario. We're talking if two thousand and eight happens, John, right? So, now, when I'm just can make little baby payments, I got long term financing, what can I do with it? I can rent it out. That's right. Can put some tenants in there. If you think about it, if I got a mortgage that's on a basis of me borrowing two hundred grand,

[01:01:03.110] the payment's going to be on that basis of two hundred grand. The house is worth two eighty, so I can rent it out on that basis. Is there going to be some cash flow? Now, it might not be very much. But remember, we're talking worst case scenario here, like the world explodes and we got to find a backup plan. You know, there's going to be cash flow. So, John and I will just convert this into a rental. We'll hold on to it for a little while, we'll rent it out, we'll make a little bit of cash flow, you might make two three percent in the bad economy while we're waiting for the market to come back,

[01:01:31.090] while all of his friends who left their money in mutual funds how did mutual funds do in two thousand and eight? They're not good. Right? Like, they halved. The 401ks became two zero one ks's. Right? So, but we're making money all along the way and I don't know how long it's going to take. It could take six months, it could take a year, it could take ten years. But, will the market always come back, the real estate market? Yes, it will. Because we human beings, we need three things. We need food, we need water, we need shelter. It's the only investment category that's based on actual human needs.

[01:02:04.855] It will always come back. And, when it comes back to three eighty, however long that takes, we're going to sell it. He's going to make his twenty two five and I'll make my twenty two five, plus all the cash flow we made along the way. Worst case scenario, we make more money. Told you. It's okay. We got a cleaning crew coming in. You just leave it. It's fine. It'll happen again. So, don't worry about it. But, what for those of you who thought that real estate investing was risky, like five minutes ago, what changed? Knowledge. When knowledge increases, behavior changes. Now, this still gets better.

[01:02:53.860] There's another party in this. Who have I not listed yet? Me. Me and Melee. How much money did we bring to the table? Zero dollars. But, I also got a check for twenty two thousand five hundred. See what I mean, legal money printing factory? I also got a check for twenty two thousand five hundred dollars on this deal. So, what does that make my rate of return? Twenty two thousand five hundred percent of zero is still zero. This is this question is for the guests. I know students, you know this one. My guess, what's my rate of return? Oh, I feel like a third grader when I say this. I made infinity percent on this deal.

[01:03:38.055] I like making an infinity percent on every deal. And, if I'm making an infinite rate of return on these on these properties and I'm able to take that twenty two grand and use it to go buy a rental property or a down payment on a rental, You see how this can speed up the process? How much money if if you knew how to do this whole thing, how much money would you have to have in your checking account to make this happen? Doesn't matter. It could be negative. It's fine. You can still get this deal done and make twenty two five because it has nothing to do with your with your resources. Has everything to do with learning to leverage other

[01:04:16.780] people's resources. Now, I want to share this is one of our challenges. This is Mahea. Is Mahea here tonight? Where's Mahea at? Hi, Mahea. Everybody wave at Mahea. Yeah. So, was her first deal that she did in the first flip challenge. So, when I met Mejia, she was working as a loan officer at Mountain America Credit Union. Okay? And, she came in, she joined the challenge, she made the big sacrifice, all of are like, you're going twenty six grand for me, you're crazy. Well, Mejia did it. She spent the twenty six grand, she got into the challenge, she started to apply the things that she was learning.

[01:04:51.565] She was learning how to find deals. She went out and found this deal, someone who was behind on their mortgage and and was about to lose their house to the bank and she had a conversation with them that actually was a little bit different than the debt equity blend. This is kind of a spin on the debt equity blend. She was able to pick up this house in West Valley for two hundred and twenty three thousand dollars. She put about fifty thousand into fixing it up. Her holding costs were twelve grand seller financed. She used a spin on the debt equity blend. She used a seller financed equity blend.

[01:05:24.335] Actually, to get technical, if you want to be more specific, subject to is the seller financing strategy that she used. That's where you use the previous owner's mortgage to fund your deal. How many of all the real estate that's out there, that's either owned free or clear or already has a loan on it, why do you think you need to get a new loan? You ever thought about just asking the person who owns it now if you could use their loan? The loan they already have in place? It's like a fifteen minute conversation. And especially, if we can help that person and create a win win just like Mahea did here. Right?

[01:06:00.560] So, they were about to lose their house, Mahea had a very simple conversation with them. She said, hey, look, the bank's you got one or two options. The bank's going to take your house, but if you give it over to the bank, they're going to destroy your credit with a foreclosure mark or you could turn the title over to me. Either way, you're going to lose the house, but if you turn it over to me, I'm going save your credit. Here's how I'm going to do it. We're going to put a contract in place. First paragraph, you give the title to me. Second paragraph, I will you'll stay on as as tied to the mortgage, you'll just now be a credit partner.

[01:06:26.520] You won't be the owner anymore, you'll just be a credit partner, you're staying on on the mortgage. But, I will immediately catch you up on your back payments. How much are you behind? Twelve grand. Okay. Write a check to the bank, send it to the don't give it to them. Who knows what they'll do with it? Right? Send it off to the bank, catch them up with their payments. What happens to the to the foreclosure when they're caught up on their payments? It stops the foreclosure. It stops the bleeding on their credit. Third paragraph of the contract, I will make your payments on time every single month or you

[01:06:55.230] get the house back. What happens as Mahea starts to make those payments on time every month? What happens to the to the previous owner's credit? It improves. So, here's your choices. Turn the house over to the bank, credit destroyed. Turn your house over to me, credit saved. Which one do think they picked? Credit saved. Right? And, now they're just on as a credit partner and the win they get is credit repair. So, Mahea raised equity equity money, somebody else's retirement funds. Right? To cover the rehab, the seller finance costs there. And then, she sold it, back end costs, of course, she was an agent and and paid that agent.

[01:07:33.515] So, all in, if you add all this up, three hundred and ten thousand dollars in, she sold it six months later for four hundred and twenty four thousand dollars on her first deal in the first flip challenge. She made a hundred and fourteen grand. That's pretty awesome. Yeah. That deserves a round of applause. Well done, Mahe. Well done, Ron. Okay. So, needless to say, I don't think Mahe works at Mountain America Credit Union anymore. Retired. Right? Unemployable. Yeah. I love it. I love it. How many Mihayah, how many deals have you done since this one? Thirteen. How long you've a part of the group?

[01:08:10.600] Couple So, thirteen deals in two years. That's incredible. And then, not done well, you guys did a live in flip. You were the move in investor before that, but just once, right? Before that, they hadn't done any real estate deals. And, since they joined the First Float Challenge, thirteen deals done in two years. That's exciting. That's transformational. Right? These are not the only strategies that we have. There's so many different ways that you can leverage other people's money. The capital, guys, is not the problem. Hopefully, you can see from that from that little taste that I just gave you how easy it is to find and raise the capital when you

[01:08:46.830] know how to put a good deal together. You don't need to work a job trading the hours of your life, climbing the corporate ladder, working two or three, spinning on the hamster wheel, trying to save up enough to eventually, maybe, go buy one. Just learn how to put a good deal together and anyone will end on it. Now, once the capital portion is taken care of, and I mean, twenty seven trillion dollars out there in just retirement accounts, you know, I did told myself when I'm like, I'm going to ask everybody these questions, I'm going to tap into all twenty seven trillion. Well, I'm sad to report,

[01:09:24.895] I did not raise twenty seven trillion. I have still a little ways to go, but in the last thirteen years, I've raised about a hundred and thirty million. Apple store guy, barely graduated high school, didn't go to college, raised a hundred and thirty million because I decided to change what was going into here. Now, once the capital portion is taken care of and you've got enough capital to go out and do as much real estate as you want to, there's another currency that's more important than money that we need to focus on. What is it? Time. Time's the more valuable currency, it's the non renewable currency.

[01:10:08.260] Time's the one that we need to manage. Because, if you've got all the if you've got all the capital in the world, but you don't know how to control your time, guys, you're not going be able to scale this business. And this is exactly what the what the business needs because time is the limiting factor. You need to move as quickly as possible. So, we need to Henry Ford this stuff. Right? We need to create an assembly line where you can just crack these things out and just, you know, hyper speed. Well, good good news for you. I'm promoting every one of you tonight. You are all now CEO of your own personal real estate investing empire.

[01:10:44.255] Give yourselves a hand. That's an awesome promotion. CEO? People work their entire lives to be CEOs, man. That's awesome. So, what's your job description as a CEO? What what do you do you need to do now? What what do CEOs do? They manage. Okay. Yeah. They manage. I like that. What else? They buy assets. Yes. What else? What else do CEOs do? Strategize. Strategize. Yeah. Do they clean the bathroom? No. They sweep the floor? Who does? Employees. Okay. So, got to delegate. I mean, because all the responsibilities of every employee eventually falls back on the CEO, but the CEO doesn't have enough time to do all the things.

[01:11:23.055] So, they got to delegate, right? They got to manage, they got to keep that ship aimed towards the goal, aimed towards the vision. They're the captain. You all told me that your vision tonight is not to just replace your job with something different Because real estate can be that if you're not careful. You told me that your vision is that you want to build wealth, you want to create assets. And, if that's the case, then we got to steer the ship in that direction. Build wealth. There's only one one direct action that I do in my real estate investing career. That when I do that thing, the moment I do that thing,

[01:12:07.820] my net worth goes up. It's the only thing that I do where that happens. It's not networking. It's not learning. Those are all important things. It's not attending workshops like this, things. You're all here but your net worth is not necessarily going up. Your knowledge level is, that's important. But, when this one thing happens, I'm in the same place every time. It's a beautiful conference room, it's got a nice granite table, a bunch of chairs. I sit down, there's a, you know, nice man or woman across the table and they slide a stack of papers across the table to me and I write my name on it.

[01:12:42.175] Can everybody here write their name? Perfect. You're all qualified. Okay. So, when I write my name on this stack of papers, my net worth goes up. Where am I? Title company, closing on a deal, buying deals. That's what real estate investors do. When I buy a deal, my net worth goes up in that moment. So, I do five things and that's it. And, the only reason I do the first four is because it leads to the fifth. I find, I analyze, I negotiate, I fund and I close on deals. When I'm done closing on the deal, what do I do? ***** ** a tool belt and go start framing a wall? Is my net worth going up when I ***** ** a tool belt and

[01:13:24.870] pretend to be a contractor? No, it's not. My net worth only goes up when I close on the next deal. So, when I close on the deal, I start the process over. I go find the next one, analyze, negotiate, fund it, close on it. Find the next one, analyze, negotiate, fund it, close on it. I just got this thing, this machine going. Right? And, I popped out ten deals. I got ten deals over there and nothing's happening to them. It's called fix and flips. I got ten fix and flips over there, nothing's happening to them. What needs to happen? They can't just sit there because eventually, I'll run out of time with my hard money lender,

[01:13:56.130] they'll foreclose, my equity partners will get mad. Right? So, I can't I got something's gotta happen. I've got to I've I need somebody in there. So, delegate. You think you said manage. Right? So, we got we got to man and we got to delegate these responsibilities. We got to hire some general contractors to get those things done. Now, if I've got ten projects, I need ten different crews and that means that there's ten different contractors calling me off the hook wondering what it is that I want done with these properties. Because I don't know about you, but the contractors I work with, they don't like making decisions on their own Because

[01:14:29.855] they're worried that me, the homeowner, is not going to like what they pick, they'd rather just ask me in the first place what I want. Right? So, all of a sudden, ten contractors calling me all day long, what color of tile you want, what color of wallpaper you want, color of paint. Right? What what toilet you want in the bathroom? Like, the questions. So, how do I avoid this is not what real estate investors do. Unless, I'm talking to homeowners and sellers, that's what I want to be doing. Don't want be talking to contractors, that takes my time. So, how do I eliminate this? What do I need? It's for the guests.

[01:15:05.275] I know the students. I already know you know, the students. What what are the what a guest? What what do I need to do to get rid of this? I need an assistant. Is that what you said? Assistant or a system? Oh, which one? System. System. Okay. Alright. Yes. You're you were correct. I thought you said assistant. I'm like, don't you would just, you know, that one person who would funnel in and just asked me. You're right. We need a system. Here's my system for flips in particular. I know that the HGTV shows make you think that, you know you've seen the shows where like they take like a whole episode just to go pick what color of granite they're

[01:15:40.565] going to put in the house? Like, we got time for that. Right? I'm doing ten to twelve at a time, I'd just be at the granite quarry all, you know, all day long. That's and that makes me an interior designer. I want to be an interior designer. I need them, but I don't want to be that. I want to be an investor. I need to be finding, analyzing, negotiating, funding and closing on deals. So, my system is I put the same crap in every house. Then, don't have to make the decision more than once. Right? Now, it's beautiful crap, Mealy, it's beautiful. Mealy goes to their parade of homes every year and picks out

[01:16:13.470] the most beautiful crap. But then, that's what goes in the house for the rest of the year. Right? In every house we do and it saves me time and it saves me money. It saves me time because I only have to make the decision once. It saves me money for a couple of reasons. I can now buy in bulk. I know that, you know, I get a discount when I buy in bulk. If I you buy a box of tile, it's going to cost you less per tile to buy a pallet versus a box. Right? So, buy the pallet because we know it's going to thirty houses. Buy the paint in bulk, buy all the thing, and the waste. Any waste I have from house one,

[01:16:45.560] I can just roll into house two, and so on and so forth. I only have one house of waste at the very end. So, it saves me money. Now, how you record your system is very important. This is probably the biggest secret to systems. It's how I don't know if you guys are ready, it's a big secret. I don't if you're ready. Are you ready for it? You guys ready for this biggest secret? Okay, write it down. No. That's the secret. Write it down. If you have a system, write it down because you can make copies. Right? If it's just stored in your head, your contractors still have to call you to access it or your

[01:17:21.210] property managers or whoever you who you're delegating to have to call you to access it. If you write it down, you can make copies of the system. And then, they call you and use your time to ask you what color of paint you want, even if you know it, don't tell them. Train them. It's in the system. Just look in the system. Right? Then, they'll remember next time I go, oh, I gotta call Mitch. I gotta ask him what kind of tile he want. Oh, he's just gonna tell me, it's in the system. I'll check the system. And, I could be spending that time that I would have been talking to them, finding, analyzing, negotiating, funding,

[01:17:48.520] and closing on deals. Right? Which is how our net worth goes up. So, the better you get at systems, and this is a process, it's not just a switch you'll flip, but I got good news for you. You're not the first person to think that flipping a house is a good idea. You're not the first person to think that buying and holding a rental property and collecting cash flow is a good idea. People have become have come before you. People have come before me. Our Renatus instructors, these are people who do way more deals than I do and they already have systems in place. All you have to do is come in and learn them and start

[01:18:21.420] applying them in your business. In fact, my my my first template, my first flip template, like the paint colors and the dial and all that, I didn't want to design it. I learned how to create a system from the instructor. I'm like, I don't want I don't want to have to go do the thing. My mentor is like, oh, here, just use mine. How awesome is that? Being surrounded by people who are already doing it, that I could just plug into these systems and start using them. But, once you understand those two main currencies, how to protect, how to raise the capital and how to protect the time. You can't make more time,

[01:18:55.555] you just have to protect the time you have. Right? We can we can raise more capital. We can't raise more time. Once we have those two things down, you could build a bang in real estate investing empire. I mean, this thing, you could get this thing humming. Right? But, it's not just about building wealth. There's a crazy statistic out there. It's something like ninety percent of people who win the lottery are bankrupt within a decade of their lottery winning. Isn't that crazy? These people win like hundreds of millions of dollars and they're bankrupt within a decade. You know why? Because they never learned how to keep it.

[01:19:32.930] I had a mentor one time, she told me, you have to build a big fence for the fat cows. And, I looked at her like she was crazy because I didn't know what the heck she was talking about. Right? What do mean build build a big fence for the fat cows? But, it's kind of clicked over the years. If you're building if if if you're going to buy some fat cows, should we build the fence before or after we buy the cows? Before. And, the fat cows are our assets. It's the wealth that we're building. It's the empire we're building. Right? Well, the big fence is the keep your wealth skills. You have to understand how to structure.

[01:20:09.070] The average American will spend a third of their lifetime income. This is average. Right? Average Americans will spend a third of their lifetime income on taxes. The average American will spend a third of their lifetime income on interest. How many thirds are we at so far? So, means that anything you've ever spent money on outside of taxes or interest, you've done with the last third of your income. No wonder, most people feel broke all the time. There are two things that are certain in this life, death and Taxes. Yeah. Let's talk about taxes for what is the secret that the wealthy that know about taxes that apparently we weren't taught in school?

[01:20:53.535] Because, what we were taught in school was go to school, get good grades, get into a good college, get a degree, get a job. Right? And, in that job, if you do pretty well at it, you'll make about a hundred grand there. Right? And, the first thing they'll take out of that check, taxes, before you even see your money. They'll take on average a third, thirty to thirty three percent. So, the government takes thirty thousand dollars right off the top, you're left with seventy cents on the earned dollar. And, you know, if you've got a mortgage and a couple of car payments and some cell phones and some kids, all that stuff is really expensive,

[01:21:25.040] you've probably spent all of it by the end of the year. Right? Now, the thing that the wealthy understand is that it comes down the big secret, it's one thing, It's deductions. That's it. It's deductions. It's write offs. That's all. That's the big secret of the wealthy. Okay? And so, how the wealthy leverage that is they recognize that the tax code applies differently to business owners than it does to w two employees. Business owners let's say a business owner who makes the same amount of gross income here, a business owner who makes a hundred grand just like our w two employee does not pay taxes first.

[01:22:06.295] They get to take something called deductible expenses first. And, I know when I say deductions, you know, so some of you might have a vague idea of what that means. You mean, like, I could write off my home office, check. Could deduct some mileage for business, check. Right? Deduct the cell phone, check. Maybe Internet, right? We think very one dimensionally about it, like, it's just these these single things that we could check off. There's a list at the IRS of, I don't know, about twenty two hundred possible deductions and next to each deduction is a key to unlock that deduction and the key is an action that you have to do.

[01:22:41.445] And, if you do that action, it unlocks the deduction. But, here's the catch. They don't just give it to you. They don't show up at your doorstep like Publishers Clearing House like, you got a deduction. Right? You have to you have to know that the thing you did unlocks the deduction and you have to claim it at the end of the year. If you don't know that the thing you did, there's probably a lot of you that are doing things that would unlock deductions, you just didn't know to claim it. And, they're not going to come tell you. Now, if it's the other way, if you're claiming too much, they will be sure to tell you.

[01:23:14.185] Right? The IRS will let you know through an audit that you're you're claiming too many deductions. So, don't do that either. But, it's important. This is why knowledge is so important if we understand the strategies. We also need to understand that it's not just one dimensional. We can actually create like multi layered strategies to be able to write off things we normally couldn't write off. For example, how many of you have kids at home? Yeah. Yeah. I got I got a seventeen year old daughter who loves volleyball. Volleyball is expensive. If you got kids in sports, that's not a cheap thing. Right?

[01:23:50.715] So, I learned something from an instructor, Patrick Munson, right from this stage. He said he told me something I didn't know. He said, you know, child labor laws don't apply to your own kids. They only apply to other kids? Like, can't hire your kids, but I can slave labor my kids? It's like, yeah, one hundred percent. I mean, could you got you want to pay them, so not slave labor, but you can hire them from zero up until they're eighteen years old. As long as they're dependent on your taxes, they live in your household, you can hire them in your business and you could pay them up to fourteen thousand dollars a year tax free.

[01:24:32.880] Man, when I learned that, my seventeen year old daughter became the vice president of shredding paper. Right? I hired her in my business, paid her fourteen grand a year. My son, my fourteen year old son became the director of taking out the garbage. Like, have to give them jobs, but they actually have to do the jobs and then we actually have to pay them. So, the money transfers from the business into their bank accounts, but it's tax free. Then, it comes time to buy it's like when it comes time to paying for my daughter's volleyball, well, she's got a job, make her pay for it. And now, instead of paying for volleyball with

[01:25:07.425] a value of seventy cents on the dollar, because I paid taxes off of the gross. Right? My daughter now has tax free money in her bank account, she pays for volleyball with pre tax dollars. Hundred percent of the value is still there. Right? That's the same net effect as a write off. I just wrote off volleyball. We have them do it with school supplies, not tax deductible, but because of the strategy, now we're paying for school supplies with pre tax dollars, same as writing them off. Even the breakfast cereal, Meily and I don't eat breakfast cereal, the kids do. So, we make them buy their own breakfast cereal. Right?

[01:25:46.085] Now, we're good parents, we're smart parents, like, I know that if I give my fourteen year old son a debit card with fourteen grand behind it, tomorrow I will wake up with fourteen thousand dollars worth of Fortnite add ons. Right? So, I'm going to keep that debit card and when it comes time for him, you know, needing something like school supplies or field trip or sports or whatever, I'll pull the debit card out, I'll pay you know, we'll we'll pay for it, but using his money. So, there's there's sorts of strategies you can do. We got we got a little bit of time. I'll I'll share a couple of the strategies here.

[01:26:17.705] So, you guys are going to think we're awful parents. We have a rule in the Nelson household, no family vacations. I know, aren't we awful? How bad. Right? Kids hate us. No. They love us. Because instead of family vacations, we take board of directors meetings in either Anaheim or Orlando each year. What's the difference between a family vacation and a board of directors meeting where your kids sit on your board? Tax write off. That's what we call it. And, also, like, be legal, moral and ethical about this stuff. We actually have the board meeting. There's a little red picnic table right next to the soda

[01:26:55.430] shop on Main Street in Disneyland. We sit in the same spot every time and I bring my phone because I know if I ever get audited, the IRS is going be like, why are you writing off so much Disneyland? Right? So, I set up a little tabletop tripod and I film our board of directors meetings. And then, put them all on a ten terabyte hard drive when I get home. So, if I ever get out of it, I'd be like, here's ten terabytes worth of our Disney trip. Good luck. Right? But but, somewhere on that hard drive is a clip of one of our meetings and one of the kids asked, mom, dad, we want a dog. And my response was, you know what?

[01:27:27.965] Our home office needs a security system. What's the difference between a family pet and a home office security system? Tax deduction. Yeah. Now, can write off the cost of the dog, I can write off the vet bills, I can write off the grooming, I can write off the food, it's all a write off. I don't have to change the way I'm behaving, I just had to change what was in here. Remember, the wealthy people I had on the screen earlier, they're still human beings. They still do all the things that human beings do. The only thing that's different about them is what's in here. I had a student one time. I do this same workshop every Thursday I have for the last ten years.

[01:28:13.140] Minimum of fifty times a year. And and I love it. I'm gonna keep doing it for another ten years. But we we usually have a mastermind. Today, we did it before, but we usually have a mastermind running at the same time in a different room. And all the students would normally be in doing the mastermind. There's anywhere from a hundred to two hundred people, two hundred students in our in our group. And, it's, you know, I mean, we have a culture here. And, the culture is you show up. We jokingly call Thursday nights real estate church. Show up to the mastermind. Right? If you I mean, if you got a miss, it's fine.

[01:28:45.930] But, you know, you really should be here. If you're if you're gone too many weeks in a row, we're going to send the missionaries after you. But, one of the students came in after this after this mastermind one time and he said, Mitch, I'm not going to be He was he had been in for like three, four months. He was already in his first deal, had gone through the first flip challenge. But he's like, Mitch, I'm not going to be here next week, man. I'm sorry. I'm like, it's fine. Just make sure you're coming back, you know. He's like, yeah. My wife is making me go up and visit my mother-in-law. And, I could tell he was kind of like, you know,

[01:29:20.625] irked about it. So, I kind of commiserate. I'm like, oh, man, that's rough. I'm sorry. And, he's like, yeah. She lives all the way up in Millat, Idaho. And, for those of you on the recording, that's probably three hours away, two hours away. And, I'm like, yeah, man. She's like, yeah, makes me do that every quarter. It's like the worst part of it is I can't even write it off. I said, woah. Wait. I'm going stop you there. You you come here every week. You've learned how to buy real estate. If you know that you're making a trip to Millad, Idaho every quarter, buy a freaking rental in Millad. Then, the trip once a quarter is not we're going to visit grandma.

[01:30:00.450] The trip is I've got to go check on my rental property. You drive past the rental property and you say, you know what? Mom lives just around the corner. It'd be rude if we didn't stop and say hi. Right? The difference between those two is a tax deduction. And, I would argue, the tax deductible way is even better because now you have a rental in the lab that's cash flowing. Right? Okay. So, business owners don't pay taxes on their gross income like w two employees do. They get to take deductible expenses first. And, if we have a strategy around how to write off most of the things in our lives, like if we convert our pets into home office security systems,

[01:30:40.310] and we convert our trips to go see mom into I got a check on the rental, and, you know, all of these things, all of a sudden, most of the things in your life can become tax deductible. Now, I'm not saying write off things you shouldn't be writing off. Be legal, be moral, be ethical about all of it. If you can't write something off, don't. What I'm saying is most things you can write off if you change what's in here and create some strategy. So, if we're writing off most of the stuff now, business owners don't like I said, they don't pay taxes on their gross income, they pay taxes on what's called their adjusted gross income or

[01:31:11.315] AGI, and that's a simple equation. It's your gross income minus your deductible expenses equals your adjusted gross income. A hundred grand minus seventy grand equals thirty grand, and that's the number, the AGI, that's the number that that business owner is going to pay taxes on. The government takes their thirty to thirty three percent and one could argue, wouldn't you be in a lower tax bracket at this point? Yes. But, to keep it apples to apples, let's just look at it in the higher tax bracket. The government takes ten thousand dollars in taxes and you're left with twenty thousand dollars. Who wants to save an extra twenty grand on taxes this year?

[01:31:44.835] Okay. About half of you. Cool. Alright. What's wrong with the rest of you? Who's not going to raise their hand no matter what I say? Okay. Alright. Got it. Nobody raised their hand for the for the record. So, here's the thing. Here's why I love that twenty thousand dollar number. My numbers are a little bit different than this. But, even if this was me and I was saving an extra twenty grand a year, twenty thousand dollars represents a rental to me. Do you remember that subject to strategy where Mahea used the previous owner's mortgage to fund the deal that she worked on? That's the strategy I use to buy every one of the twelve to

[01:32:21.665] fifteen rental properties I buy a year. Because Fannie Mae and Freddie Mac will only let any individual have ten mortgages on their name. You can own as much property as you want to, but you can only have ten mortgages at a time on your social security number. And trust me, I've tried thinking, oh, well, I'll just have my business go up. They still want you to personally guarantee it and it still counts as one when you do. Right? So, max it ten. If all I get is ten rental properties and a single family rental averages four to five hundred dollars a month in cash flow, a good one. Right? So, times that by ten,

[01:32:55.760] I'm capping out at five grand a month. I don't know about you, but when I think about retiring wealthy, the number is not five grand a month. Keep adding zeros and commas and I'll tell you when to stop. Right? So, I need something scalable. If the if the properties, the rental properties that I buy, if the mortgages are in everybody else's name, what's my limit? I love that number. That's become my favorite number. Infinite scalability. Right? We could scale it to the moon. I'm not saying don't go get the ten. Absolutely, go get the ten but have some other strategies so you're not capped at ten.

[01:33:34.375] There should not be a ceiling in your scalability with your real estate empire. And, if there is, the problem's here. Just elevate your knowledge that will get you to the next level. So, with that said, these are all just systems. Right? And, as you make the trek from your employee mindset to your wealthy mindset, you will find that you start using hundreds of business systems a day because it allows you to do more. And, there are four systems that are more important than any others. In fact, these are so important, we gave them their own special name. We call these the four pillars of wealth.

[01:34:11.305] And, the four pillars of wealth are taxes, banking, business and real estate. And, when you learn to navigate these four pillars of wealth, you can have anything you want. There's a reason why you look at the wealthy and you're like, why is it that they seem to have all the time in the world and all the toys and then they just get to spend all their time enjoying their toys? While I'm here working my fingers to the bone, barely making it every month. Well, it's because they understand this. When you understand the four pillars of wealth, you're going to have an apartment building tomorrow if that's what you want.

[01:34:43.695] It's not just the assets, it's it also applies to liabilities. When I was growing up, I had a poster of my dream car. I love American cars and I had a poster of a nineteen fifty eight C1 Corvette on my wall. It's over a hundred thousand dollars at the time. And, of course, I didn't buy it. Right? Because Corvette, a hundred thousand dollar two seater car that can't even fit a bag of golf clubs in the back, like, that's the most impractical thing I could possibly spend my money on. That's not what I'm going be doing. Right? We we have this tendency when we're growing up and we're kids, we have big dreams, and we want our means to match our dreams.

[01:35:24.430] And then, we hit about twenty and we have to start our career and we start realizing how hard it is to grow your means with the systems that we've been taught. And so, what happens instead is we start shrinking our dreams to meet our means. And so, we settle. We don't go get the Corvette. We buy the used whatever. Right? For a fraction of the cost because we can't afford it. It's not that you can't afford it. So, you have the wrong system. Eventually, bought my Corvette. In twenty sixteen, I learned the four pillars of wealth, it just clicked for me. On my birthday, January twenty fifteen or excuse me,

[01:36:05.065] January fifteenth twenty sixteen, I turned thirty years old. And this had clicked, like, a few days prior to that. I made the decision, I'm going in and I'm buying my Corvette. And so, did. I was pointed to a shark gray C7 Corvette on the showroom floor And since then, I'm on my third Corvette now. I've driven for the last ten years, I just turned forty. Ten years later, for the last ten years, I have driven my dream car every single day and my favorite part about it is I've never spent a single penny. It's not about whether or not I can afford it. I have the mental capital to be able to do it and it doesn't

[01:36:42.830] come out of my pocket. In fact, this is the car I'm driving now. This is my third Corvette. This one was a hundred and thirty five thousand dollars. And I'm so proud of the fact that I've never spent any money to drive my my dream car that this is my license plate for free. Right? Who wants the strategy? Yes. Like, four of you? Seriously? Who wants the strategy? It's not just cars. Can have you can have anything you want with these strategies. Let me share just a simple one, one that I started with, the tax strategy. I'm I I've graduated beyond this strategy now, but oh, I didn't update that. Dang it.

[01:37:17.585] Well, it's a little bit different this year. I think it's seventy two cents per mile now that you can write off for business miles. This is as simple as it gets. This is the simplest version of the strategy. I drive about twenty five thousand miles a year because this is my daily driver. Right? So, if if I use some of the tax strategies that I taught you to to make sure that most of the things that I'm doing are somehow business related, even though I'm accomplishing some some personal stuff along the way, that's a sixteen thousand seven hundred and fifty dollar deduction on last year's price per mile.

[01:37:46.875] Right? But, my Corvette payment is twenty one hundred dollars a month. I did finance it. There's a strategy there I'm going to share with you in a second. But, twelve months worth of that payment is twenty five thousand two hundred dollars. That means I got to write off sixty six percent of that thing. That means the post dollar cost of my of my dream car puts it at about the price of a mid range Honda Civic. Who would drive their dream car if it was the same price as a mid range Honda Civic? Yeah, we all would. Right? Get that G Wagon, man. That's awesome. Whatever it is you want, Lamborghini, whatever.

[01:38:18.415] But and this is like starter stuff. Like, there's a more advanced strategy. As you start building wealth and and and start making more money in your business, and your business starts to make more than what the car is worth, you can start leveraging some cool strategies. So, last year, my education business by itself, not even my real estate business, my education business, just on ads, meta ads, that had the Corvette in it. I sometimes didn't even mention the Corvette, it's just in the background. Melee doesn't have this problem. Melee gets clicks. I don't get clicks like Melee does. Right? They don't want to click on my if the car if the car is in the in the shot.

[01:38:59.850] Like, what's that car? Right? They don't want to click on that. Ads featuring the Corvette brought a hundred and eighty seven thousand dollar. Meta gives you a really awesome way to track all this stuff. A hundred and eighty seven thousand dollars worth of profit into my business. The car out the door was a hundred and thirty five grand. Did my business by itself pay for this car? The business pillar paid for the car and I leveraged it as marketing material. What percentage can you write off of marketing marketing material? A hundred percent. Right? Now, you if your business is only making forty grand and you go

[01:39:33.220] buy a hundred and fifty thousand dollar car and, like, I'm writing it off as marketing material, you're probably going to get out of it. Don't do that. But, when your business starts making significantly more than the cost of the car and you can justify because of the profit to your business from it, now all of a sudden you've got some strategies open up to you where you can start leveraging some of those types of things. So, here's the thing, grandma told all of us, the best way to if you're going to buy a car, the best way to pay for it is to pay Cash. Cash. Yeah. Pay cash. Right? And grandma, she was smart.

[01:40:02.960] So, obviously, should follow her advice. Yeah. What's your name? Lindsay. Alright, Lindsay. I got an investment opportunity for you. Okay, Lindsay? You're gonna give me a hundred and thirty five thousand dollars. So, I've got Lindsay's a hundred and thirty five thousand thousand bucks. I'm gonna take it over here. I'm gonna invest it for like five years. And, at the end of five years, Lindsay, I'm gonna bring you back a grand total of sixty thousand bucks. You in? That is better than no bucks. Losing half is better than losing all of it. Right? Oh, no. Yeah. Grand total. She's like, no. See, here's the thing.

[01:40:39.525] If I had followed grandma's advice, paid a hundred and thirty five thousand dollars cash for my car, drove it around for five years, taking it back to the dealership, turn it back in, they'd offer me sixty grand for it. Is that a good investment? Nope. Think what that's what the wealthy are doing with their cash? Nope. So, while we can we can love grandma but we don't have to follow her financial advice. Right? If you only want to end up as wealthy as grandma was, that's, you know, that's what you do, you follow what grandma did. Now, if your grandma was Gail Miller, then, you know, go ahead. But but, other than that,

[01:41:15.515] probably listen to people that are a little better off than grandma was. So, the wealthy obviously don't behave that way. So, what I did is I did save up the hundred and thirty five grand. When Chevy announced the mid engine c eight Corvette, I was like, babe, I'm going to the dealership, I'll see you later. Right? I was off. And, I put in an order form, man, I checked every box on that order form, that's how it was a hundred and thirty five thousand dollars. Right? Fully loaded, I handed it back to the sales rep, he did some math, he's like, that's going be a hundred and thirty five grand. I said, how much if I finance it?

[01:41:44.605] He said, twenty one hundred dollars a month. I said, okay, perfect. How long do I have before it gets here? He said, seven months. So, I knew I had seven months. I went out and I identified two fix and flips that I called the Corvette flips that I knew, together, would make me a little more than a hundred and thirty five grand that I needed for the car. So, I did the flips using other people's money, hundred hundred percent or excuse me, infinite rate of return for me, created the hundred and thirty five grand out of thin air. Right? I took the hundred and thirty five grand in cash, I stacked it into a briefcase,

[01:42:13.850] handcuffed the briefcase to my wrist and walked it down to the dealership and bought my car. Right? No, I didn't. I took the money down to Provo, Provo, Utah and I found a sixteen plex that was in foreclosure. What had happened is this this the owner of this sixteen plex didn't live in Provo, lived in Arizona and thought that it'd be a good idea, it's a good strategy to save money. I was he was going to manage it himself from Arizona. How do you think that worked out? Not so good. Right? The property got into disrepair. It was about fifty percent occupied. In fact, he started he lost so many tenants that he couldn't keep

[01:42:52.880] up with the payments. He was a hundred and nineteen thousand dollars behind on his mortgage. So, I had the same subject to conversation with him. Today, the bank's going to take this thing, if they do, they'll restore your credit, but I can save your credit if we set up this subject to strategy. I'll immediately catch you up on your hundred and nineteen and back payments. I will make your payment every month on time. All you you have do is turn the title over to me, you stay on as a credit partner. Put the contract in place, he was all for it because it saved his credit. Right? Sent the hundred nineteen thousand to his bank,

[01:43:18.700] caught him up, started making the payments, used about twenty five thousand dollars to fix up the property, got it in a beautiful condition, and rented out every one of the rooms. And I'd done this math ahead of time, but it cash flows about twenty five hundred dollars a month, fully tenanted. Twenty five hundred dollars is more than my car payment. So, I used the Corvette money to buy the Corvette property. The cash flow is enough to service the loan. Right? So, the sixteen plex creates cash flow which pays for my Corvette, the Corvette property. Sixteen families in Provo, Utah go to work every single day so they can make the most

[01:43:53.685] important check of the month, the rent check. Sixteen rent checks go into one account and out of that account come two things, the previous owner's mortgage and my Corvette payment. Who pays for my Corvette? My tenants. Don't believe me? At the end of five years or if you're still having a hard time connecting the dots there, after five years when the when the when the loan is done on my Corvette, because it's a five year loan, I will have a paid for car that I've gotten to drive the entire time. I will still have the cash flow from the sixteen plex. I'll still have the asset itself and I will still have

[01:44:33.965] the hundred and thirty five thousand dollars. Where's the hundred and thirty five thousand dollars at? It's equity in the property. And, equity grows. It doesn't shrink like cars do, right, in value. Real estate grows in value. Does anybody not understand how my Corvette was free? Pretty dope, right? You can apply this to anything. You want a jet? Go buy a jet. Right? Just make sure that you have an asset that pays for it. Not your time. That is the biggest mindset shift of the night. Not your your time doesn't pay for the things you want. Assets pay for the things you want. Your time should be used acquiring assets. Got it? Okay.

[01:45:16.905] Now, with that said, and understanding this strategy, how can you start doing this? The coolest part of everything that I've shared with you tonight is that you do not have to be wealthy to start doing this. You don't have to be wealthy to start buying real estate. You don't have to be wealthy to start right taking deductions and paying your kids and all the things. We have this weird thing about our brains where we think, oh, one day when I magically wake up rich, like I'm going to start acting like a wealthy person. Doesn't work that way. That's backwards. If you want to become a wealthy person,

[01:45:48.415] you have to start doing wealthy person things because your life is the result of the actions you take. If you continue tonight after tonight, if you continue to do average person things, the results you will get down the road are average person results. If you start immediately doing wealthy people things, you won't be able to help it. The more wealthy people things you do will just lead you to becoming a wealthy person. It's your actions. So, start taking the actions. Surround yourself with the resources that you need to go out and start doing this stuff, the capital, the relationships. Surround yourself with people who aren't going to tell you

[01:46:37.630] you're crazy for wanting something more. Surround yourself with people who are doing the same thing that you're doing, who are going to support you and push you along and mentor you. Plug in and learn the skills to not only get the first deal done but every deal after that. Wouldn't it be nice two years from now just like Mahea and Ron to look back and be like, we've done thirteen deals in the last two years. Whereas before, two years ago, we'd never done any. Get the education that you need to be able to do the things you need to do with those properties once they're once you bought them. The investor's secret network, the first flip challenge,

[01:47:17.945] the Renatus education. Let's talk about that Renatus education for a second. What an incredible what an incredible education platform. We are standing in the corporate studio for Renatus. Renatus is a Utah based company. They serve about twenty thousand students nationwide. They've been in business since twenty eleven. That's, what, fifteen years? In fifteen years, they've won sixteen Best in State Awards, the Utah Best in State Award. One of those is to our CEO and founder, Mr. Bob Snyder. Bob runs Renatus Debt Free. So, when he says lifetime access to the education, he means lifetime access to the education.

[01:47:57.410] And, I don't know if any of you have ever tried to to get a Utah Best in State award before, but it is not an easy thing. Especially, to get sixteen of them in fifteen years. That's pretty incredible feat. It's an award winning education and I think that those awards come for a very specific reason. Renatus does not pay their instructors like professors. It's not a salaried position where they stand up at the podium and read to you out of a textbook every single day and that's all they do. These are practitioner instructors. These are people who are making their six, seven figures doing the things in their business that we bring

[01:48:31.510] them in to teach you how to do. For example, the person that taught me that there's twenty seven trillion dollars in retirement accounts in this country, he gave me two questions, he gave me access to all of it. His name is Matt Sorenson. Matt is the CEO and founder of Directed IRA and Directed Trust Company. All he does all day long is help people self direct their retirement accounts so that they can go out and and invest in in alternate investor retirement in alternate investments such as real estate. That's the dude you want to learn that strategy from, not me. I'd just be repeating what I learned from him.

[01:49:04.775] Right? Chris Wilson, this guy, I mean, I've done like six hundred transactions, I might be an okay person to learn from a little bit. Chris has done forty thousand transactions. This is who I learned the subject to strategy from. Thank goodness for Chris cause he's allowed he's he's enabled me and empowered me with knowledge that has allowed me to go out and buy hundreds of rental properties. Garrett Gunderson, this guy has been on just about every money talk show, famous money talk show you can think of. He's a New York Times bestseller, wrote one of my favorite books that I actually read before I

[01:49:33.285] got the chance to meet Garrett because he's a Renatus instructor. Garrett wrote Killing Sacred Cows. If you haven't read that book, put it on your to read list because that's exactly what we're talking about tonight. We create all these ideas, all these sacred cows. Right? And, some of them we don't want to let go of. I may have struck a chord at some point tonight. May have touched on one of those sacred cows and you're like, I don't want to get rid of that. I don't want to get rid of I don't want to stop contributing my four zero one ks. I've been told my whole life that's the thing to do. We got to kill the sacred cows.

[01:50:03.565] They're what's holding you back. Right? Read the book. Ron Williams teaches our Your Most Valuable Real Estate class. So, that class is about your mind and body and how important that is in in creating your empire. And and and to teach that class, we brought in a seven times mister Olympia, seven times mister world, seven times mister universe. These are the caliber of instructors that Renatus brings in to teach all of the various strategies. So, it's no longer learning how to be average from average people, it's learning how to be wealthy from wealthy people. There are forty two practitioner instructors,

[01:50:36.475] all of them experts in their field, teaching ninety different real estate investing strategies. Again, we're learning from the one percent. We're learning from the wealthy how to be wealthy. So, what do we do in the first flip challenge in the Investor Secret Network? Well, we have weekly live group trainings. We meet up at least weekly. And, for those of you who are in the Investor Secret Network and have looked at the calendar recently, there's stuff going on every day, multiple times a day. There's more stuff than you could possibly attend. I'm I'm the leader of the local community here and I can't even

[01:51:07.205] attend all the stuff. So, there's plenty for you to plug into and to start to start learning. We have one on one strategy sessions. We have ways to connect and share deals and money and, you know, capital resources, relationships on both online and in person. We have real deal house tours. In fact, we just had one last week at one of Mahea's deals, one of Ron and Mahea's deals in Salt Lake. They're going to crush it on that one too. I think what your profit was about what, ninety grand on that one? How how far out are you before you list it? About eight Yeah. How cool is that? Right? Just popping these things out.

[01:51:43.240] So, we meet up at our students' deals. We're doing Allison's in charge of it locally. How many we do in about one a week? About one a week and we've got we could probably do more than that with how many deals are going on. Right? So, where every week, we're meeting up at another student's deal. There are people in this room, guests, who within ninety days will you'll be in your first deal and Alison will be calling you saying, hey, can we come do a house tour at your at your fix and flip? And, that's cool because all of us come and we show up and you get to show us all the cool ways that you found it, analyzed it,

[01:52:18.475] negotiated it, funded it. Right? And then, we get to give you ideas on, hey, you know, what if you did this instead of that? And, you're like, I would have never thought of that. So, we're here to support each other, we're here to help each other grow. VIP award ceremonies, live studio training. Hey, does that look familiar? This dude right here, Bridger Pennington, is a twenty six year old millionaire. And, I'm actually I just recently plugged, like logged back into my education, thirteen years into my career, logged back into my education so that I could watch Bridger's class on creating private equity funds.

[01:52:48.835] You will need lifetime access to this education because it will last you a lifetime. It will take you a lifetime to get through it. You will continue to level up and level up and level up. I'm learning how to raise private equity so I could put twenty four million dollars together to go do a big multifamily project in Ogden, something I would have never thought to do thirteen years ago. We do field trainings, mentoring team accountability, it all comes down to a system. We call this system the four phase plan, it's the same system that my mentor plugged me into. The four phases get into your first deal.

[01:53:21.805] Once you buy that first deal, great. We're through the the the first three phases are designed to be a leapfrog of learning and action steps. Right? And so, Meily and I became the leaders of local community here, well, let's let's take those first three phases, let's create a challenge around it. Really, I mean, it would be challenging, it's totally possible, but it'd challenging to do that in ninety days, three phases, three months, that's a phase a month. Going start in phase one in the essentials. The Renatus Essentials library, basically, you watch a class, go do the action steps. Your mentor and and peers are there along the way.

[01:53:53.615] Renatus has a a staff of coaches to help you attack those action steps in an organized way, in a way that keeps you safe. Right? So, each one of these line items is Renatus class that averages about seven hours. Right? So, you've got about, you know, eighty to one hundred and twenty hours in each one of these libraries. But it starts with the first half of this is, let's build a big fence for the fat cows. Thirty of your lifetime income for the average person goes to taxes. So, let's start with tax and legal. So, that'll take you about the first week. And then, the second week, third of your lifetime income goes to interest.

[01:54:26.140] What we're going to leverage to get into your first couple of deals, that means you're going be paying interest. Let's minimize the amount of interest that you're going to pay. That's the velocity banking strategy. And then, the last half of the month, month one, we're going be focused on the last half of the Essentials library, a combination of learning and action steps, watch a class, take some action. Those last six classes are going to teach you five very important skills, how to find, analyze, negotiate, fund, and close on deals. You will have those skills within your first month here. Then, it's a matter of going out and applying them.

[01:54:58.680] And then, as you start applying them, well, let's learn how to systematize those skills because we know that's how we duplicate ourselves. It's not about putting more time in, it's about being smarter with the time that we have that we are putting in and systematizing the skills that we're learning. So, the profits the profits library will be month two. And, the profits library is going to teach you business systems and automations. So, all those skills you're learning, now we're going to put those in the business systems and we're going to set them off to run by themselves, right, with with as little input from you as possible.

[01:55:27.300] And then, of course, month three, it's kind of pick your poison. Since you get lifetime access to the education, there's no fear of missing out. And, the good news is, if Renatus ever re records a class, which they do about three times a month, we were just doing that today, right, you get access to the any new classes they create. I paid for my education thirteen years ago. And, the class that Nate and Becky Lambert recorded today will just show up behind my login. I won't have to pay anything extra for it. And, that applies to you too. So, we don't have to have fear of missing out. Whatever type of deal, first flip challenge,

[01:55:59.990] you don't have to do a fix and flip. First flip challenge is going teach you how to finalize, negotiate, fund and close. You choose what to do with the deal after you've closed on it. And if it's going to be a fix and flip, great. Then, spend month three, focus on the fix and flip library. Also, eighty to one hundred and twenty hours. Right? If you want it to be a rental, perfect. Watch the buy and hold track. Or maybe you want to skip right to apartment buildings, that's fine too. Or commercial, you want to do storage units or retail space or whatever it is. Right? Maybe you want to do short term and mid term rentals, Airbnb's,

[01:56:27.620] VRBO's, doesn't matter. Whatever it is that you're going to do with the property after you buy it, that's what you'll spend month three on. And then, by the end of month three, your goal is to get into that first deal, have purchased that first deal within those ninety days. Once that first deal is out of the way, now we can focus on scaling. Let's focus on how to do two, three, four of them at a time. That's how you're going to build your empire. That's how you're going to build true wealth, is by scaling. But, bringing look at this studio. This studio must have cost Bob millions and millions of dollars.

[01:56:58.755] And then, bringing practitioner instructors into Centreville, Utah to teach these classes, pull them away from their businesses, this is not cheap. It's not cheap to to put all this together for you and for me. And, that's why there's a price tag associated with it. And, I've already shared that with you, twenty six thousand seven hundred and eighty eight dollars for the First Flip Challenge, the Investor's Secret Network and lifetime access to the Renatus education. And, I don't know about you, but when I was sitting where you are right now, watching whoever it was that was that was talking thirteen

[01:57:31.445] years ago, the whole time I was thinking, I didn't realize it was so simple. I can do this thing he's talking about. Like, I didn't realize the tax strategies were so simple. Like, of course, I can do I can ask people two questions. That's easy. All of it seemed like this is all stuff I can do up until this point. Because in my head, was calculating how many hours I would have to work at the Apple Store to pay for this dang thing. And, it worked out to be like nine months if working full time if I didn't pay taxes. And, that was the point where I started backing away a little bit. Realizing that the path to my dreams and the path to my goals

[01:58:14.500] was so simple, but this caused me to back away. Well, I got good news. That job money that you're worried about parting with to pay for this, I don't want that. I just got done explaining to you how using the four pillars of wealth, you can have anything you want. Do any of you not understand how my Corvette is free? There's a reason I shared that story and it wasn't just to brag, maybe a little bit to brag, but mostly so that you understand that the way that you were taught was not how to be wealthy. The way you were taught was designed to keep you average. The wealthy understand strategies. That's why they get to have the things

[01:58:57.745] that we all wish we had. Is why we all desire to be wealthy because of the lifestyle that they get to live and the and the things that they get to enjoy. How many real estate deals like the one I did in West Jordan would you have to do to make this worth it? One. And then, the rest is cream forever. How many tax years like the one that I showed you would you have to have to make this worth it? One one in a little bit, like fifteen months. Right? And then, the rest is cream. I did save one of these pillars for last, the banking pillar. And, I did it on purpose because I saved a strategy that I find to

[01:59:44.505] be the most powerful strategy of the night. I saved the best for last. This is called the velocity banking strategy. And, I have three goals to share with you while I share the velocity banking strategy. You will want to take notes, I promise you because this this has the power of changing your life immediately and it's so simple. It's awesome. First goal, I'm going show you how to pay off your debt in a fraction of the time without having to get a raise at your job or change your lifestyle. You don't have to cut back, can keep Netflix. Right? While accomplishing goal number one, I'm going to show you how you can fund your first deal

[02:00:17.235] and other people's deals. You can be a lender. There's a lot of students that come in and don't realize that they could be lenders. They end up being lenders on other people's deals because they didn't realize they could use their four zero one ks. They didn't realize that they could tap into the equity in their home and leverage that to be able to lend on real estate deals and make a profit. Right? So, I'm going to show you the with that and goal number two and then goal number three, obviously, is education pays for itself which makes it effectively free. Everybody okay free? It makes a lot of sense if it's free, right? Alright.

[02:00:49.975] Well, just like my Corvette was free, we're going to leverage a strategy. And that strategy is gonna be velocity banking. So, let's dive in. Alright. So, let's talk about banking for a second. Average American makes about five thousand dollars a month. That's sixty thousand dollars a year. And, when we get paid at our jobs, we take that money down to the bank. We deposit it into what accounts? Checking and savings. Why? Because that's what we were told to do and we never asked any questions. Here's what I don't like about checking and savings. Your money has value while it's at rest. While you're not using it,

[02:01:23.110] it's worth something and it can do work. But guess who it's working for while it's at rest if it's in checking and savings? The bank. Banking law says that they can use the money that's in your checking and savings while you're not using it. They can go out and extend loans to other bank other bank customers and collect interest on your money. And then, as long as, you know, when you come and say, hey, need to withdraw one hundred dollars they give you the one hundred dollars Do you guys know that? Banks using your money while you're not using it. It's out working for them. So, we probably should take a look at a way that we could

[02:01:53.870] recapture the rest work energy of that money. The other thing I don't like about checking and savings is it subjects us to what I call cash fragmentation, where we live on a cash basis and when we get paid, it's almost like that money just explodes into our situation. We got money going to checking and savings and retirement and kids college fund and mortgage payment and card payment and credit card payments and, you know, all it just goes all over the place. And, cash fragmentation, these are average American numbers that I just googled, but well, savings. I got tired of slicing the pie here,

[02:02:24.620] so I lumped all the savings together. But, that includes like four zero one k contributions and savings account allocations, etcetera. But, if you add this up, it's five thousand dollars in, five thousand dollars out for the average American. That's a cash flow of zero. If this is a rental, who would buy it? Here's the problem. Cash flow is king. You know, we only think that cash flow matters when it comes to rentals. It it that's not true. Wealth the wealthy make a lot of times, the wealthy use systems that are simpler than what we were taught as average people. Because the convoluted systems we were taught were just

[02:02:57.990] designed so that other people can take advantage of us. Wealthy, they focus entirely on cash flow. Every decision they make is based on cash flow, which is different than how you were taught to bank because you weren't taught to make banking decisions based on cash flow. You were taught, if you're going to go get a debt vehicle to shop for something using a metric other than cash flow, you were taught to shop using interest rate numbers. But, the bank knows a little trick. You see, we were we were taught that we feel safe in loans. If you could if you're going go get debt think about this for a second.

[02:03:33.385] If you're to go get debt on a car, you're to put that on a credit card or you're going to put that on a on a in a loan? Sure. Absolutely. Yeah. Or a HELOC or any kind of line of credit. Yeah. HELOC's a credit card. Yeah. But, the answer is loan, right? You feel safer in a loan in that case. That's just what we were taught, we don't know why. Safer. We were told it's safer. Guys, credit card debt and loan debt, they're both debt. If you stop paying on either one of them, the bank will come take your stuff and start destroying your credit. Equal risk. Right? But, here's the thing, in a loan, they get to do a little something crazy with the interest.

[02:04:13.360] They get to they get to do something called amortization with the interest that ends up costing you way more money than simple interest. Simple interest ends up being cheaper even when the number is higher. Like this twenty one percent credit card, if I'm going show you how using this twenty one percent credit card, this this family will pay off their house faster than in their six percent mortgage. And, it's because of a trick that the bank uses called amortization. So, with that, when you buy this house, we'll just we'll take a look at this little house right here. Two hundred thousand dollar mortgage,

[02:04:51.125] thirty year amortization at six percent, gives them a payment of about twelve hundred dollars. So, they buy this house, they move their family and they make their first payment of twelve hundred bucks, and the bank sends back a little statement says, thank you so much for your first payment of twelve hundred dollars. Here's how we broke it down, two hundred and fifty went to principal and nine hundred and fifty went to interest. Does that look like six percent to anybody? No. But, because they've stretched the amortization out across thirty years, if you do the math backwards, it is six percent.

[02:05:19.925] But, you might call me and be like, you said six percent. I don't understand. Why is nine hundred fifty going out? Well and then, they'll explain to you, well, know, it crisscrosses by year twenty two and by the last payment, it's the inverse. You know, you'll make your last payment three hundred and sixty months from now will be twelve hundred dollars and nine hundred and fifty of it will go to principal and two hundred and fifty will go to interest. So, it evens out. And, you're like, oh, I thought you were ripping me off for a second. Right? But, here's what here's the problem. What they don't tell you is how the average American behaves.

[02:05:47.675] How many people do you know that actually go the full thirty years on a term? What are we doing? We're either refinancing or we're getting into new loans, means we buy a new house with a new mortgage on average every seven years. So, this is what most people look like. Their entire lives, they're paying mostly interest on every loan. It's about a quarter of the way through the loan. We go get a new car, quarter of the way through the loan. We refinance our car, quarter of way through the loan. Same thing with mortgages. Right? Paying mostly interest all the time. This is why a third of your lifetime income goes to interest.

[02:06:24.425] Let's let's just take a little snapshot, four year snapshot for this family. Remember, this is a two hundred thousand dollar mortgage at six percent interest, that's about average right now. Right? Twelve hundred dollar forty eight payments of twelve hundred dollars means that this little family will pay fifty seven thousand dollars to the bank. That's a quarter of what they borrowed. More than a quarter of what they borrowed. It's also about a quarter of their income during that time. It's a full year of income during that time. And yet, the bank will only reduce their debt by twelve thousand dollars.

[02:07:01.340] The other forty five thousand dollars because of amortization, the other forty five thousand dollars goes in the bank's pocket as interest. Does that look like six percent to anybody? Do you want to see how to calculate amortized interest? Okay. Hundred percent participation on this one because this affects all of you. Promise? Alright. I'm going to have you prove it. Everybody pull out your supercomputers. And, we've all been told how powerful these things are. Right? More powerful than the than the computers that send the astronauts to the moon in the sixties. Right? Pull out your supercomputers, open your calculator and show me.

[02:07:38.155] Hundred percent participation. Raise your raise up your let's see them. Come on. We're not going until everybody has it. I'll keep you here till midnight if I have to. Alright. Here's what I want you to do. Nothing. Because this isn't powerful enough to calculate amortized interest. That's a crazy math that they're doing to be able to charge you that kind of money. Right? The amortization is so nuts, you need like a database and a spreadsheet. But, don't put these away yet. Put it back up in the air, show me if you have a if you have a mortgage, put it back up in the air. I want to see it. Who has mortgages? Alright. Keep them up. Keep them up.

[02:08:13.145] Okay. Alright. Here's what I want you to do. People with mortgages, keep them up. Everyone who doesn't have their hand in the air right now, look around. Okay. Watch these people's faces. This is what nightmares look like. Lock into your brain, how much you owe? How much you owe on your mortgage? Okay. Nod at me when you have it locked in. I'm not seeing anyone nod. Yes. Okay. Good. Okay. Yeah. Maybe it's because I was nodding and we were like equaling out the, you know, the wave function here. Okay. Now, on your calculator, type in your monthly payment. Okay. So whatever your monthly payment is on your mortgage, type it in

[02:08:47.295] and times it by twelve. If we times our monthly payment by twelve and hit the equals key, that will give us our yearly payment. Right? Because twelve months in a year. So, now, take your yearly payment and hit the times key and times it by however many years you have left in your mortgage. So, if you got a thirty year mortgage five years ago, you have twenty five years left. Does that make sense? So, in that case, you times it by twenty five, hit the equals key. So, times it by how many, hit the equals key, look at the number, compare it to the number in your head. How we doing? How'd you do? Anybody get double? Did you get double? Oh, it's a double?

[02:09:27.530] Yeah. What's your interest rate like three? Two and a quarter is the that's what they taught us in school. Right? Two and a two and and two point two five percent equals double. Yeah? I don't think so. That's not what we were expecting when we went into this. Anybody get triple? It's alright. Don't be shy. Who got triple? Yeah. If you got like a four to five percent interest rate, you'll end up paying triple on your mortgage. So, what's your name? Ralph. Ralph. Yeah. How do you feel about that, Ralph? You excited to pay the bank double what you borrowed when they told you two and a half or two and a quarter percent?

[02:10:04.405] Yeah. But, this is the effect that this little trick that the bank plays on us, amortization, this is the effect that it has in your life. This is one of the reasons why you get that feeling sometimes, like you're working your fingers to the bone and you feel like you make more money than you're actually getting to spend, it's because someone's taken more than they should. Uncle Sam, the bank. Those are the two biggest ones. We need strategies. Okay? So, now that we understand amortized interest, it's not about amortized interest, it's about cash flow. Cash flow is king. So, looking at this from a cash flow perspective,

[02:10:39.915] when I'm paying a loan, like this mortgage for example, my first payment twelve hundred dollars. Right? But, two hundred and fifty dollars of that, twelve hundred dollars is principal. Shouldn't I get to like reuse that principal somehow? But, I don't and alone all of it disappears. A hundred percent of my payment disappears from my cash from my cash flow. Now, think about this in the in the same terms, but with a credit card. Credit card is an example of a line of credit. Okay? If you have a maxed out credit card and you make a payment, some of that payment will disappear to interest but the rest of it opens up room on the credit

[02:11:20.231] card that you can use immediately at the gas station, at the grocery store. Literally, the money that you just used for the payment, you can reuse again to buy more stuff. Right? So the principle stays liquid. So, now, have to ask yourself, if it's about cash flow, if cash flow is king for the wealthy, would I rather be paying my debt in a way where a hundred percent of my payment disappears from my cash flow or only twenty one? Only twenty one percent, right? Twenty one percent and where am I getting that from? So, the credit card percent interest rates twenty one percent. The loan six percent,

[02:12:02.255] wouldn't we think we'd want the lower interest rate? Well, not if it's going to not if it's they're going to amortize and it's going to end up costing us, you know, double to triple what we ended up borrowing, that's not six percent anyway. So, let's go let's take a look at the way that provides for more cash flow, the line of credit, even though it's more interest. We don't make decisions based on interest rates because interest rates don't pay off debt. Cash flow does. We make decisions based on cash flow. Okay? Two rules to this strategy. Rule number one, consolidate your debt into simple interest lines of credit.

[02:12:37.640] So, a lot of you may have have friends or family members, maybe you've done this yourself, where you went and refinanced your mortgage to pay off your credit card debt. What did you just do? You converted your simple interest debt into amortized interest debt and the bank loves you for it because they're going to make way more money on that amortized interest debt. A lot of times, what the wealthy are doing, average people think is crazy. Do you want to know what a lot of people in this room have done? They've refinanced their mortgages into first position HELOCs. What's a HELOC? It's a line of credit.

[02:13:10.005] Basically, a giant credit card that's collateralized by your house, just like a mortgage is. But, what that does is it converts the debt that's left into simple interest debt and opens up the equity as a line as available in the line of credit, just like the available room on a credit card. What could you do with that available room, that liquid equity in your house? You could go fund your own deals or fund someone else's deal. You could consolidate the rest of your debt, eliminating the debt payments, put pay off the car with the HELOC, consolidate that payment into one payment. Right? Get rid of the car payment.

[02:13:45.065] What happens to cash flow when that happens? Cash flow goes up. We just made a good cash flow decision. Consolidate all the debt into one place, you have one payment and we're now we're going to eliminate that payment because with a line of credit, I can put my cash in there and I'll still have access to it. So, if my debt is in one place, in in let's say a HELOC or a credit card and I have one payment on all of that debt, but I put my cash in there every time I get paid, two times a month, sometimes three times a month, does my deposit of my check count as as a payment? Yeah. And now, instead of storing it in a checking account where the bank

[02:14:22.640] can use it while I'm not using it, now I'm leveraging the fact that the the money has value while I'm not using it. If I'm putting it into my HELOC, it lowers my debt balance, not the limit. The limit stays the same. So, it opens up the full room of my paycheck. But while I'm not using that paycheck, it's lowered the debt amount. So, the amount I'm being charged interest on is less. And then, as I need it, I can pull against it. Right? So now, it's working for me while I'm not using it, thereby charging me less in interest. Now, this has a small effect in just one month. But if you if you stack that up across many many months,

[02:14:57.050] we get a huge effect here. So, just like I was saying, family deposits their whole check-in, they don't have to budget for a payment anymore because the whole check going into the credit card counts as the payment. So, that money goes back to cash flow. Also, I think we already talked about the nest of the eggs thing, not the strategy. Don't hoard eggs. Right? So, stop contributing to four zero one ks, stop doing the savings account thing, velocity banking, that's what we're going to do. That puts fourteen hundred dollars a month back into the average person's cash flow, add the six hundred dollars to the fourteen hundred dollars,

[02:15:26.810] that's two thousand dollars a month we pick up in cash flow. And, now, because that cash flow is also our net debt pay down, that money left over at the end of the month, five thousand dollars of income, we still have three thousand dollars worth of expenses, there's two thousand dollars left over, but that money is sitting on top of the debt, we can use it. If this is their, let's say, Discover card, they can still swipe that Discover card and tap into that two grand if they needed to for an emergency or an asset or whatever. But, while they're not using it, the net debt reduction is their cash flow each month.

[02:15:57.605] So, if their cash flow is two thousand dollars, that's how much their their debts going to go down by every month. And, if they continue to do this, two thousand dollar net debt reduction, twelve thousand dollar starting point divided by two thousand dollars a month takes them six months to pay off the the credit card. Making the minimum payment on a credit card will take you seven years to pay off the card. What would have taken this family seven years is zero cash flow per month. They just changed a little bit of their strategy and on the same income without getting a raise of their job, without changing their lifestyle,

[02:16:30.235] they paid it off in six months instead of seven years. And, they did it all while enjoying a two thousand dollar a month cash flow instead of a zero dollar a month cash flow. Now, once that credit card's paid off, we saw this really expensive amortized interest debt over here. So, let's start pushing that over into the line of credit so that we can, you know, in this case, the family didn't get a HELOC. They're just doing it out of their, we call this the Discover card, we'll keep calling it that, out of their little Discover card here. And, twelve thousand dollars, that's a familiar amount. That's the that's the amount of the cycle they did last time.

[02:17:02.025] So, let's just keep that consistent. We know what kind of time timeline that's going to keep us on. So, they balance transfer twelve thousand dollars principal only out of the mortgage and into the line of credit. So, you check the next day, the balance on the mortgage went down by twelve thousand dollars and the balance on the credit card went up by twelve thousand dollars. Right? So, same amount of debt, they just transferred the debt over so they could do the strategy because you need a line of credit to do the strategy on. So, they do the same thing. Same action, same numbers, gives us the same results.

[02:17:32.875] It takes them six months to pay off twelve thousand dollars worth of mortgage principal, which if you remember, in the amortized loan would have taken four years and cost forty five thousand dollars in interest. Now, I did the math for you. Simple interest right here, twelve thousand dollars times twenty one percent annual interest rate. It didn't take us a full year, that's an annual interest rate. It took half a year. So, we divide that by two. You can check my math if you want. Look at the savings difference and that's just on a two hundred thousand dollar mortgage. My guess is some of you probably have a much larger

[02:18:03.705] mortgage than that, which means the interest the dollar amount of interest you're parting with is astronomical. But, no one ever told us to question these things because that's not what we were subscribing to. Right? We were plugging in learning from average people how to be average people. No more. You cannot know the stuff that you've learned tonight. This is life changing. So, if we could pay off twelve thousand if this family could pay off twelve thousand dollars worth of mortgage principal every six months, that's two cycles a year, they just keep doing this. The math works out to be about seven,

[02:18:35.950] a little over seven years. This family will pay off their entire thirty year mortgage without getting a raise of their job or changing their lifestyle. So, we're now seven and a half years down the road, they paid off the mortgage and the credit card. Well, when they pay off the mortgage, when you don't have a mortgage anymore, you don't have a mortgage payment anymore, that money goes back to cash flow. And remember, the cash flow in the Velocity Banking strategy is your net debt reduction. So, the amount we're reducing the debt by each month just went up to thirty two hundred instead of two thousand.

[02:19:05.230] So, we pay off this fifty thousand dollar car in a fraction of the time, when we don't have a car loan anymore, we don't have a car payment anymore, that takes about six months. Within eight years, seven years for the mortgage, six months for the credit card, six months for the car, In eight years, this family paid off thirty years worth of debt without getting a raise of their job, without changing their lifestyle. This is on average American income numbers and average American debt load numbers. Mind's blown? Right? I told you what happened again. It's fine. If you have this two hundred thousand dollar house now

[02:19:38.790] that's paid off, they paid it off in seven years. Real estate's leverageable. They could go down to the bank, they could get a giant two hundred thousand dollar credit card. It's called a home equity line of credit. They get a home two hundred thousand dollar home equity line of credit. Remember how much I said the average amount that I'm coming up with for a rental to catch people up on their mortgages and do the subject to strategy about twenty grand. That's ten properties that I could buy with that two hundred grand. Ten rentals that I add to my portfolio just with this one strategy that you will learn

[02:20:10.980] in the first two weeks of your lifetime experience here. One of our simplest yet most powerful strategies that we teach. Ten rental properties added to the portfolio and if they average four hundred dollars a month in cash flow, that adds four hundred times ten, that's four thousand dollars a month that this family adds to the thirty eight hundred dollars a month that they picked up by paying off their debt, which pushed the total cash flow at seventy eight hundred dollars a month. If seventy eight hundred dollars a month is the cash flow, that's also the amount that the debt goes down by each month,

[02:20:41.230] month after month. So, that pays off this whole HELOC in two years. Eight years to pay off the debt, we acquired ten rental properties, we paid back ourselves back for the down payment of all ten of them. Within two years, we're now a decade in. These families paid off on the average American income without getting a raise of their job, without changing their lifestyle, paid off the average American debt load, acquired ten rental properties, paid themselves back for the down payments on all of them, put their cash flow at seventy eight hundred dollars a month. Very easy decision to to retire at this point if that's what you wanted to.

[02:21:14.955] Right? Isn't it fun when we get to make the decision as to whether we get to choose whether or not we want to have a job anymore. It's no longer a requirement. If you love what you do, great. Then keep doing it. But, now it's a choice. You're out of the rat race. One strategy. Imagine if we just kept adding strategies to this, how that could change the future. Promise one, promise two fulfilled. Promise one, I'll show you how to pay off all of your debt in a fraction of the time with a very simple strategy and it's so simple. Here's how simple it is, keep all of your debt and all of your money in the same place.

[02:21:49.915] What you're doing is way too complicated, don't spread it out everywhere, keeping all your money in a bunch of different places where the bank can use it, keeping all your debt in in different places where every new place requires a new payment that's draining your cash flow, keep it all in the same place and put your money on top of it. That's it. It's the whole strategy, very simple. Pay off your debt in fraction of the time. Same strategy, goal number two fulfilled. How you can use that same strategy to fund your own and other people's deals. Goal number three, how does that make the education pay for itself?

[02:22:16.175] Well, in order to do that, I need to introduce you to somebody. This is Dane and Paige Clark. Dane and Paige and I all met on the same day, two thousand eleven. We all got hired to the Apple Store on the exact same day. We became really close friends. We tended to have our breaks and our lunches together and we, you know, we talk and we dream together and we talk about one day when we're wealthy and what we're going to do and all these things. And, we we got super close. Well, they got a little closer than I got to them. But, they got married and had now they have like fifty kids or something.

[02:22:48.301] I know it's a lot. But, that was their first one, Liam. They got married and I disappeared. In twenty thirteen, I just stopped showing up to work because one day I woke up and I realized I made more in that month doing real estate part time than I had an entire year working at Apple full time. So, I went back to sleep. I never called in. I probably am still on the payroll at Apple, I just don't have any hours for them to pay me for. But, it took about a year and a half, but Dane called me one day. He called me and said, Mitch, where'd you go? We were having so much fun, like we were hanging out.

[02:23:18.590] What happened? And, I said, oh, Dane. Yeah. I'm retired. And, he laughed in my ear so loud I had to pull the phone away because he knows I'm kind of an idiot. Right? He's like, you're twenty nine. We're talking about retired. I said, yeah. I never I never ever need a job again. He's like, are you doing? I said, well, real estate? So, what do mean? What what happens if all your real estate goes away? Like, you'd need a job again. I said, no, I wouldn't. You can take my money and you could take my property. Sure. That all that could go away potentially. But, I know how to do it. So, why would I go get a job, I just start that over?

[02:23:55.690] Like, I'd never I never need a job again. And, he got super quiet. He's like, oh, well, Paige and I have gone the other direction. He said, you know, Paige is eight months pregnant with our first Liam and she's still working full time so that we can make it. She's working full time at the Apple Store. I'm still working full time at the Apple Store. And, I've even taken on a part time job roofing so we can, you know, just have a little extra spending money. And, I said, Dane, you've got red hair and fair skin roofing? You've chosen a better thing. No. But he's like, Mitch, can you show me what you how you did this?

[02:24:34.115] I said, yeah. No problem. We got a meeting. We got a workshop. The Creating Your Empire Masterclass. It happens every Thursday. Come this Thursday. What are you doing next Thursday you can't get out of? He said, well, I guess nothing. I guess I'm showing up and hanging out with you. He came and he sat in these seats. And by the end, which here we are, we're at the end. Right? By the end, he came up, he said, Mitch, all of the stuff that you described, I can do all of that. Like, none of it seems so weird and alien that I couldn't figure, you know, figure it out and continue the process of learning and

[02:25:04.585] tackling it. But I'm scared to death of the twenty six thousand dollars. If you can show me how to put that together, I'm in. Said, no problem. I introduced him to a relationship of mine, one of the members of the community that we have, who was able to get him a forty thousand dollar line of credit at zero percent interest for twenty or for twenty four months. Guys, do you think velocity banking is cool at twenty one percent? At zero percent, it's magic. So, Dane got this forty thousand dollar line of credit, he paid off, he balance transferred the only amortized interest debt he had left, paid off his car by balance transferring the

[02:25:43.480] eleven thousand nine hundred dollars he owed on it into the zero percent line. When he balance transferred, he made a cash flow based decision because when he balance transferred that debt, what happened to his car loan or his car payment, excuse me. It went away, his cash flow went up. He got the title back in the mail to his car immediately. Debt's still there, which he's going to work away with the strategy, but he used the rest of the line of credit to invest in the most important real estate that you will ever invest in in your entire lives, and that's the six inches between your ears. He bought his real estate investor education,

[02:26:14.420] got on the first flip challenge, and started doing velocity banking while going through the challenge. Renatus got paid, which means he had access to the education and he was able to start doing the the phase one, month one of the first flip challenge. But, when he put his money in, his two paychecks because that's what velocity banking says to do, put your money in the same place you keep your debt. Right? Which has to be a line of credit so you can access it again. How much did the bank take in interest when he put his paychecks in? His three household paychecks. None. So, how much did his education cost him that month?

[02:26:49.449] Zero. Okay. So, he went through month one of the challenge and then he did it again. Month two, how much did the bank take? None. So, his education cost him nothing. Okay. And then month three, bank takes nothing, so his education cost him nothing that month. He was still able to use the in fact, his cash flow went up. So he's actually net more than than had he not done this because now we learned the strategy. Right? So got through the challenge, got into his first deal, bank's still taking nothing. He still has full access to his check, plus doesn't have a car payment anymore. Paid off or excuse me.

[02:27:22.271] Sold his first deal about here, made like twenty grand. And, Dane wanted to do flips and seller finance rentals like his old buddy Mitch. He wanted to follow in my footsteps. Right? But, when he sold that first deal and made twenty thousand dollars on his first flip, he called me and he said, Mitch, I hate flips. I said, okay, Dane. That's fine. Sometimes, got to do the strategy to realize like, you know, maybe this strategy isn't for you. Good thing we're not as teachers ninety different strategies. Let's pick another one. What part of it did you like? He said, I loved raising the money. He's like, I got this idea.

[02:27:50.840] I want to go out and just raise capital like crazy and then lend it to other members of the community so that they can go do their deals. And I said, Dane, that sounds like a brilliant business model. Here's the Renata's classes you should watch. Watch them and let's put this together for you. And he won't watch those classes and started building an incredible lending business. But, he still wanted to do the subject to rental thing, so he's still working on that. And, about the time he paid off his his debt in full, ten months. Ten months is not twenty four months. How much did Dane lose out of his paycheck to pay for the education?

[02:28:19.400] In that ten months, nothing. In fact, gained because he didn't have a car payment anymore. Right? So, by the end of ten months, all of his debt was paid off and he had a fully available forty thousand dollar line of credit. They had fourteen months left, a zero percent interest. He went and bought his first seller financed property subject to. The owner was behind a little a little duplex in Taylorsville. The owner was behind thirty one thousand dollars in their payments. Dane leveraged the the zero percent line of credit, caught the owner up, took over the title, rented out one side, moved his family into the other side,

[02:28:51.735] and what he was able to rent the other side out for was more than what the previous owner's mortgage payment was. Dane was getting paid to live in real estate he owned. We call that real estate hacking. It's a strategy we teach here as well. Now, Dane lived in that duplex from twenty sixteen until early twenty twenty three. About this time in twenty twenty three, Dane called me. And I could tell immediately what he was doing. He was trying to turn the tables on me from that phone call we had had back in twenty twenty five when I told him I was retired at twenty nine. He said, Mitch, I'm done. So, what do you mean done, Dane? So, I'm done.

[02:29:27.814] He said, between my lending business and my subject to rental portfolio business, my cash flow this month is around eighty or around ninety thousand dollars. Excuse me. Ninety thousand dollars a month in cash flow. He said, I'm done. Yeah. So, Dane, I said, okay, well what does done mean? He said, I'm not coming to Thursday's anymore. In fact, I paid I just paid two million dollars cash for a ranch in Weston, Idaho. This is a courtesy call. I'm moving my family there as we speak. Forty six acres, my dream, retired at thirty five years old. What an incredible story Dane has. Look at that story arc from working three jobs, pregnant wife,

[02:30:12.065] eight months along has to work full time so they can make ends meet, to retired seven years later on an incredible amount of cash flow. This is what I want for every single one of you. Learning that concept from you to always continue to reinvest in the six inches between yours made all the difference. But I was just I was so depressed. I would I would literally make enough money working super part time roofing, and I would just I would sit on the freaking couch and watch Netflix. And I was just like, wait a second. Wait a second. Mitch said real estate. Saw you on Facebook doing real estate deals and I was just

[02:30:54.700] like, I got an idea. And so I call you up and I'm like, Mitch, I'm gonna buy a rental. Do you wanna help me out? And you kept on saying, dude you need to get educated. And I remember your laugh like like Dame, you're gonna hurt yourself. And it started sinking in like, oh I see what you mean educated. There's something to know about this Yeah. That I don't know. It's not just houses and tenants. And all of a sudden, I'm I'm feeling like, man, I can I can I don't have to have Mitch like behind my shoulder to have a conversation anymore? Oh, man. Started buying houses and buying houses and oh my gosh.

[02:31:31.801] Changed my life. I think to date, we have put to work like fifty eight million dollars in real estate. That and that's that's between my portfolio, that's between funding other people's real estate deals. It's all about how many people I can help. I have helped nine hundred and sixty six people get into and actually make money in a real estate deal. And now, I I I can't go longer than like six months without being like, I gotta call Mitch and just tell him thanks. Every person we we talk about helping people. I hope every person that that I helped down this path takes themself as seriously and and invests in themselves the

[02:32:10.285] way that you have. That's my goal for every one of them is that they become like Dane. My goal for every one of you is that you become like Dane and like Mahea, and like Christine, and Vivian, and Jeff, and Sam, Shanna. What an incredible story, Shanna. I mean, you have done absolutely incredible. Alison, the first flip challengers. These are these are life changing experiences for these challengers who started as average people just like I did. But, made an extraordinary decision and a sacrifice to put themselves outside of their comfort zone to do the things that they recognize would make a change in their life,

[02:32:53.920] surrounding themselves with the right people, learning the right skills, having the accountability and systems to be able to implement those things even in times when it got hard, and gaining knowledge through education to go out and start making wealthy decisions on a daily basis. It's a simple process. And, I know some of you might look at this stuff and feel like this. Right? We're at the end of this thing and if you're feeling like this after hearing all of this incredible stuff, this probably isn't for you. And, at this point, you can go. I thank you for your time. But, if you looked at this and you're sad by what you heard,

[02:33:37.115] But also, there's a handful of you, I'm sure, if you didn't get up and leave already. Right? Some people did and that's fine. We know how they feel. Right? But, if you stayed all the way to the end because this two and a half hours of of strategy just blew your mind like it did mine the first time I saw it. You're recognizing that seed of, oh my gosh, I think this is what I've been waiting for. Like, I've been waiting for somebody to show me step by step what I need to do to make these things happen. You're probably feeling like this by the end of it. Right? And, if you're if this is you, if you're my happy babies,

[02:34:13.375] like, you're you're in the right place. We need to continue this conversation. And, the way that the conversation is gonna take don't worry, it's not tonight. We're sending you home. Everyone's going home. But, we but, look, this was tonight, this was one to many. Whether you're here live in the studio audience or you're watching this on the recording, this had to be applicable to everyone that watches it, which means it's not applicable to any one individual. Right? If it applies to everyone, it applies to no one. So, I want to continue the conversation. And again, this is both available to those in the live studio audience as

[02:34:45.845] well as those who are watching this later on a recording. We want to continue the conversation one on one. We'd like you to have a one on one conversation with one of our five star mentors. They're the same rank that I am, so don't worry if it's me or if it's another one of them. We're all, you know, we all we all are capable of helping you through this process. The key to getting that one on one conversation, it's not going to cost you anything. It's absolutely free. We don't have credit card machines, so don't worry about it. We're just going to sit down and talk about how these strategies can apply to you.

[02:35:18.740] Now, the appropriate way to schedule that one on one is to get back with the person who invited you down and schedule that. Okay? And, as a gift for scheduling that one on one conversation, I'm going give you a copy of my four times number one Amazon bestseller, Mindset's a Millionaire. We sell it for twenty dollars on Amazon. I'm just going to give you a digital copy of it. Immediately, when you sign up for that one on one, you'll get emailed automatically a copy. Now, during that one on one conversation, we're going to go through systems. We're going talk about systems. The first system we're going talk about is the system we're

[02:35:49.060] going to use to get you in and out of that first deal. I want to see you get into that first deal in those ninety days during the first flip challenge. So, let's talk about every step you're going to be taking along the way. There's no secret here. I'm going show you every step you're going to take along the way to get into that deal. We're also going to be going through your velocity banking strategy. You thought velocity banking was cool on this little family? Just wait till you see it run on your own numbers. Let's do a velocity banking simulation, let's show you how that twenty, thirty years of debt that you think you have is actually like six.

[02:36:18.610] Okay? Even including the cost of getting into the education. So, if you can net save yourself, you know, twelve, fifteen years of debt payoff and hundreds of thousands of dollars of interest you would otherwise paid, this thing pays for itself. Wouldn't you agree? Yeah. Okay. We're going go over the four pillars of wealth and and lastly, we're going to dive into that vault of trainings that Renatus has and we're going to show you what it's like to learn from millionaires. Guys, that's all the time we have together tonight. Make sure you schedule your one on ones. Drive safe.