WEBVTT

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Feel good. I feel great.

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I feel like this every day.
Got the investor secret nap.

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Welcome. Welcome. So excited.

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Welcome to the Creating
Your Empire Masterclass.

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We are so excited
to have you join us.

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My name is Maylene Nelson,

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and I get to introduce my amazing
husband, Mitch Nelson, tonight.

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Before I do, I would love to kind
of just give you a little bit of a

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backstory of who we
are and what we do.

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Thirteen years ago,

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Mitch had started doing
real estate investing,

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and he's going to be telling
you his story and his journey.

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And he had started doing
quite a few fix and flips.

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And then he became a

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steward of someone that wanted
to teach and to train exactly

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how he was doing it.

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And I actually ended up
landing in a room just like you

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are, just nine years ago.

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And I sat in the audience
and actually sat in the very back

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row because I actually thought I was
going to be being sold something.

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Right?

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I was like, what is
this? I don't know.

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I just got trapped in
being sold something.

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And when I was sitting there, it
was really interesting, though.

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Prior to me sitting there,

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I had actually just
had back surgery.

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And prior to that, for a
year well, for nine months,

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I was actually in a wheelchair.

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And during those nine months,

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while I was sitting
in this wheelchair,

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not being able to walk,

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it was an interesting
parallel universe

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that happened.

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Because prior to that,

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I was actually one of the
number one door knocking people

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in the country.

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So I ran one of the top door
knocking solar companies in the

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nation for the last four years.

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And it was one of the top you
know, I felt like, well, look,

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I made it.

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I was icon moment.

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And I had retired my ex husband,

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and we were living the dream.

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And unfortunately, one day
I stepped off the curb,

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and my left leg went weird
while I was knocking doors.

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And all of sudden I went
I fell to the ground.

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And within seconds,

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I realized that I was not
going to be able to walk again.

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And my left leg just
wouldn't it just seized up.

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And it was so much pain.

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And I realized
that, oh, literally,

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you don't know when something's
going to happen to you.

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Right?

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You literally have no idea.

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You could walk out this door right
now and something could happen.

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And I was not prepped for that.

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I wasn't prepped
for it financially.

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I wasn't prepped
for it emotionally.

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No one will ever be, right?

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But there's a lot of things
that we could do to structure

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our lives that if the
what if does happen,

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your families would
be taken care of.

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And I had not done that.

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Absolutely not any of the
things that I should have done.

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And so, I had a
successful business,

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but it was a business that
could crumble overnight.

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And it actually did.

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In those nine months of
me being in a wheelchair,

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we lost everything.

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My house, all of it. I
actually kept my car.

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I did foreclose on my house.

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I did keep the car,

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and we moved back home to
Utah with two kids, and a dog,

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and two suitcases.

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That is what we came home with.

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And we and if you have a
foreclosure on your name,

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you actually don't get
to rent anywhere either.

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You get to move in
with family. Yes.

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So we moved into the basement,
my ex husband's grandparents'

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basement, and it was a dungeon.

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There was literally one
window in this basement.

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I was like, oh, it's like the
worst. But I had back surgery.

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I was starting to recover.

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I did I'm able to walk again,
right? So it's a good story.

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But during that time, it
really helped me realize I

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structured things all wrong.

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That's not a
successful business.

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If you are the person that
starts and stops with,

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that's not a
successful business.

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And I needed to figure out a
way to create multiple streams

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of income so that if anything
ever happened to me again,

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that that would not be the case,

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that my kids would
be taken care of.

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And so I was so grateful
that I actually did it was

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like one night, really, really,
really late, I was like crying.

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I'm like, mom, my
life is horrible.

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I'm living in this dungeon.
Right? I was like, wah.

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And by I'm literally in the tub.

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And I'm like, oh, why is this
happening to me? Not for me.

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I wasn't booming in
the good mindset.

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And all of sudden,

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I had this download of you need
to be a real estate investor.

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You need to start doing
real estate investing.

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And I'm like, I'm so good
at real estate investing.

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I just lost my house.

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I'm I would be amazing
at that, right?

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Like, it would be amazing.

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But I just had this
kept this urge, right?

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And so then I felt like
I needed to open up.

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I'm like, Okay, well,

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maybe I'd where was the first
time I learned about real

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estate investing?

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And it was the book
Rich Dad Poor Dad.

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Have you ever read that
book? Yeah. So good.

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So good. And so I read the book.

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And again, I was like,
oh my gosh, that's right.

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I always wanted to be a real
estate investor from like the

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time I was sixteen,

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which was when I actually read
the book for the first time.

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And I was like, well,
how am I gonna do that?

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I have no money,
I have no credit,

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and I have no idea how to do it.

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Perfect. So then I thought,
oh, I'll start googling.

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I'll start trying
to do research.

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And I actually started
reading a bunch of articles,

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a bunch of things, and I
just kept, like, reading,

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and I kept watching things.

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It would take me so
far, and then nothing.

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It would actually never do the
full circle of how to do it.

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It would give you just
enough to be like, cool.

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Well, that didn't do it.
I don't know what it is.

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And then literally, one day I
was driving my kids to school,

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and I saw a sign on the
side of the road that said,

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real estate investors
seeks training.

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And I was like, little on
the nose, don't you think?

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Like, okay, thanks, God.
I'm glad you're here for me.

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So I did. I called on the sign.

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That's what brought me to
the workshop that you're in right

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now, a similar one at least.

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And honestly, in those three
hours that I sat in the

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workshop, I had never
learned more about business, banking,

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and real estate than I had ever
learned in just those three hours.

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And I had owned a business for
fourteen years prior to that.

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I was kind of pissed,
I'll be honest.

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So you might be a little mad
before you leave, just warning.

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You might be like, really?

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How did I not know
this this whole time?

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But nevertheless, you're
going to know tonight,

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and then you can't unknow,
which is also fantastic.

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You're welcome.

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And in those
powerful three hours,

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I didn't know who Mitch was,

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but he transformed
my entire life.

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I owe him everything.

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From that moment,

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I really decided that I could become
actually a real estate investor.

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I could actually shift my
mindset to become someone that

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I had always wanted to be,

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where I actually didn't have to
forfeit my time with my kids,

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where I didn't actually have
to forfeit my time and my life,

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my livelihood.

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I could actually have
money and wealth,

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real generational wealth
for my kids and their kids.

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For that, I owe now
my husband so much,

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so much love and so much grace.

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And he is a number one
best selling author,

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four times number one
best selling author,

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and he has transformed
thousands of people,

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not just my life.

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For that, I am so excited for you to
hear all the amazingness that he's

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gonna share with you tonight.

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So please welcome to
the stage Mitch Nelson.

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How are we doing tonight?
You guys good? Alright. Good.

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I'm excited. Let's
get into this thing.

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Guys, we have some incredible stuff
we're gonna be sharing with you tonight.

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We got some awesome
financial strategies.

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We got some really
cool real estate investing strategies.

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So here's what I want you to do.

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It's gonna be a little bit
of an interactive workshop.

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I want you to turn to the
person you're sitting next to

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and apologize for all the brain
matter you're gonna splatter

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all over them because we're
gonna blow your minds.

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This is gonna be awesome.

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Quick disclaimer.

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This one makes the
the the lawyers happy.

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I am not a licensed attorney,
accountant, financial adviser,

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real estate agent,
real estate broker.

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I've got a driver's license.

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That's that's about all you get.

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But I'm a student just like you.

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So, all the information
I'm sharing,

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I didn't create any of it
And, you know, I learned it,

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just like you're going to.

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So, is everybody okay
with that? Okay. Awesome.

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This isn't financial
advice for anybody.

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This is just educational
stuff tonight.

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And last thing before
we dive in here,

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let's let's address the
elephant in the room.

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Cause Meli kind of
alluded to it, right?

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You come to these workshops
and you're like, alright,

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what are they going to sell me?

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That's all you're thinking
about until I tell you what I'm

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going to sell you, right?

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So, is make sure to sell
me anything tonight?

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The answer is yes, I am.

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How much does it cost?

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Well, it's twenty six thousand seven
hundred and eighty eight bucks.

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Anybody ready now? Do
you guys bring cash?

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Make it rain? Alright. Alright.
Alright. We'll see by the end.

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Right?

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Do you do you need to buy
anything tonight to get value

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out of what we're
going to share?

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The answer is no.

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You'll notice we don't have
any credit card machines here.

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We're not going be sending you
to the back of the room to sign

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up by the end of the night.

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This is something that
we want you to, you know,

00:08:45.420 --> 00:08:47.420
we want you to if you're going
to join us and if you're going

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to do this, we want you
to be sure about it.

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We want to give you a chance to do
some due diligence and plug in with us.

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But the things but I'm only
going to take about ten minutes

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in the middle of this thing and
kind of scattered throughout

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to to really share with you how you
can get involved with our community.

00:09:01.755 --> 00:09:03.755
The rest of the two and a
half hours we're going to be

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together is for you.

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It's just it's just value.

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It's education.
Everybody cool with that?

00:09:09.675 --> 00:09:11.930
Alright. Okay. Okay. Good.

00:09:11.930 --> 00:09:14.410
Thank you, the three of you
who who clapped. Alright.

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So,

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my name is Mitch Nelson.

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Like Meily said, I'm a four times
number one best selling author.

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This is my my first book that I published
back in September of twenty fifteen.

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So, it's been ten and a half years
since I published Mindset is a

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Millionaire, and I was twenty
nine years old. It's awesome.

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But, the the story
isn't about the book.

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The story is about
how this book started,

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because when I started
writing this book,

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I didn't know I was writing
a book. I was twenty seven.

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This was twenty thirteen.

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And, on my twenty
seventh birthday,

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something weird happened, like
a switch flipped in my brain,

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where yesterday I was twenty
six, was in my mid twenties,

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and now, today, I was, you know,

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I'm in my I'm twenty seven,
I'm in my late twenties. Right?

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You ever make that shift where
you go from mid whatevers to

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late whatevers and
it's like, holy crap?

00:10:03.225 --> 00:10:05.225
Yeah, that's what was
happening to me that day.

00:10:05.225 --> 00:10:08.290
And, you know, I was
working at the Apple store,

00:10:08.290 --> 00:10:11.890
was making about forty grand a
year at twenty seven years old,

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and I was looking back on
my twenties and I was like,

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alright, what goals
did I set for myself?

00:10:16.290 --> 00:10:18.050
And I remembered
when I turned twenty,

00:10:18.050 --> 00:10:19.810
I set some pretty
lofty goals for myself.

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I said, by the time I'm thirty,
I want to be a millionaire.

00:10:23.335 --> 00:10:25.815
How many people have set like
crazy goals for themselves?

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Like, I have no idea I'm
going hit this, but yeah,

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that sounds nice.

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Right?

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I'm going be a millionaire
by the time I'm thirty,

00:10:31.095 --> 00:10:32.375
and by the time I'm thirty five,

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I'm going make a million
dollars in a calendar year.

00:10:34.295 --> 00:10:36.630
And here I was twenty
seven years old,

00:10:36.630 --> 00:10:39.110
much closer chronologically
to that goal than I was

00:10:39.110 --> 00:10:41.510
financially, and where to turn.

00:10:41.510 --> 00:10:42.550
I didn't have a plan.

00:10:42.550 --> 00:10:43.990
Nobody told me like, oh,

00:10:43.990 --> 00:10:46.230
this is these are the steps
to becoming a millionaire.

00:10:46.230 --> 00:10:46.470
Right?

00:10:46.470 --> 00:10:47.750
And so, you know,

00:10:47.750 --> 00:10:49.765
working at the Apple they
didn't give me Steve Jobs'

00:10:49.765 --> 00:10:51.845
cell phone number when
when I got my job there.

00:10:51.845 --> 00:10:54.965
So, I I didn't have anybody I
could call to be like, what's up?

00:10:54.965 --> 00:10:56.965
Like, how do you, you know,
how do you do the thing?

00:10:56.965 --> 00:11:01.440
All I had to rely on was my
my public education and what

00:11:01.440 --> 00:11:03.360
they taught me in
public education.

00:11:03.360 --> 00:11:04.400
Now, here's the thing.

00:11:04.400 --> 00:11:06.400
I have a lot of
respect for teachers.

00:11:06.400 --> 00:11:08.720
If it weren't for teachers, I
wouldn't be where I am today.

00:11:08.720 --> 00:11:10.880
Right? Thank goodness for
the Renatus instructors.

00:11:10.880 --> 00:11:12.640
Am I right? Yeah.

00:11:12.640 --> 00:11:14.400
Yeah. Right. Nate
and Becky Lambert.

00:11:14.400 --> 00:11:15.960
We got to hear from them today.

00:11:16.335 --> 00:11:17.495
But,

00:11:18.975 --> 00:11:20.495
let's call it what it is.

00:11:20.495 --> 00:11:26.295
Public education is average people
teaching us how to be average people.

00:11:27.295 --> 00:11:29.775
So, we plug in, we learn the
things that they teach us,

00:11:29.775 --> 00:11:32.980
we start doing them and
we wonder why when we're

00:11:32.980 --> 00:11:35.380
doing those things, we're not
becoming more than average.

00:11:35.380 --> 00:11:38.580
It's because the things that we
were taught to do made us average.

00:11:38.580 --> 00:11:38.980
Right?

00:11:38.980 --> 00:11:42.580
And so, I decided that if I didn't
know anybody that could teach me how

00:11:42.580 --> 00:11:45.295
to be a millionaire, I would
just start studying them myself.

00:11:45.295 --> 00:11:46.975
So, I picked up every
book I could find,

00:11:46.975 --> 00:11:48.895
watched every TED
talk, YouTube videos,

00:11:48.895 --> 00:11:51.055
all the things about
wealthy people.

00:11:51.055 --> 00:11:52.975
If I knew they were a
millionaire or a billionaire,

00:11:52.975 --> 00:11:53.935
I was going to study them.

00:11:53.935 --> 00:11:56.735
And, I dove deep into this study
and I learned some crazy stuff.

00:11:56.735 --> 00:11:58.650
Number one, these
are human beings.

00:11:58.650 --> 00:12:01.050
Just like you and me, they got
twenty four hours in a day.

00:12:01.050 --> 00:12:04.250
Like, knew that, but it didn't really
like I didn't consciously think about

00:12:04.250 --> 00:12:05.850
it like these are normal people.

00:12:05.850 --> 00:12:08.330
They have relationship problems and
they get hungry and they're

00:12:08.330 --> 00:12:10.185
sleepy sometimes,
you know, like,

00:12:10.185 --> 00:12:13.945
they have good mood good moods
and bad moods just like us.

00:12:13.945 --> 00:12:16.745
But, the one thing that set
them apart was their mindset.

00:12:16.745 --> 00:12:18.265
It's the way that they think.

00:12:18.265 --> 00:12:21.225
They didn't they don't rely
on that that public education.

00:12:21.225 --> 00:12:23.460
In public education, we're
taught one way to make money.

00:12:23.460 --> 00:12:25.060
That's go to school,
get good grades,

00:12:25.060 --> 00:12:26.500
so you can get into
a good college,

00:12:26.500 --> 00:12:28.660
so you can get a degree,
you can get a what?

00:12:28.660 --> 00:12:30.500
Job. Get a job. Right?

00:12:30.500 --> 00:12:34.500
Are any of these people
W two employees? No. No.

00:12:34.500 --> 00:12:37.620
And so, I realized that what I
had plugged into is what I learned

00:12:37.620 --> 00:12:40.425
later, Robert Kiyosaki
calls the rat race.

00:12:40.425 --> 00:12:43.705
And that is, we get the job and the first
thing that comes out of our paycheck.

00:12:43.705 --> 00:12:45.545
The only the only
way, by the way,

00:12:45.545 --> 00:12:48.105
where you pay taxes first is
if you're a W two employee,

00:12:48.105 --> 00:12:49.945
which is the only
way they teach us.

00:12:49.945 --> 00:12:52.720
You know, taxes come out
first and then, you know,

00:12:52.720 --> 00:12:54.960
we're left with not enough
money to live the lifestyle we

00:12:54.960 --> 00:12:57.520
either want to or need to live,
so we have to get into debt.

00:12:57.520 --> 00:12:59.600
Most of us get into debt and
that creates more expenses,

00:12:59.600 --> 00:13:01.520
which means we got to go back
to our job and it's just this

00:13:01.520 --> 00:13:03.760
hamster wheel that
we get caught on.

00:13:03.760 --> 00:13:05.440
And our silly human
brains think, well,

00:13:05.440 --> 00:13:06.345
that's not working,

00:13:06.345 --> 00:13:09.385
then maybe I just need to
run harder on this hamster wheel.

00:13:09.385 --> 00:13:10.905
Maybe I'll get somewhere. Right?

00:13:10.905 --> 00:13:12.905
So, we get the second job
and we take the overtime.

00:13:12.905 --> 00:13:13.705
We'll get the third job.

00:13:13.705 --> 00:13:15.705
Anybody in here had two
or three jobs before?

00:13:15.705 --> 00:13:17.945
I have. Yeah.

00:13:17.945 --> 00:13:21.345
Did that make you the wealth you were
looking to did that set you free?

00:13:21.570 --> 00:13:24.290
No? Yeah. Me neither.

00:13:24.290 --> 00:13:26.050
Because if you run harder
on a hamster wheel,

00:13:26.050 --> 00:13:27.170
you don't still
don't get anywhere,

00:13:27.170 --> 00:13:28.850
you just get tired faster.

00:13:28.850 --> 00:13:31.330
Right? The wealthy don't
use that that system.

00:13:31.330 --> 00:13:34.290
The wealthy have completely
different systems that they use.

00:13:34.290 --> 00:13:36.965
And just because you haven't
been taught these things yet,

00:13:36.965 --> 00:13:39.525
does not mean they don't exist
or that they're out there ready

00:13:39.525 --> 00:13:40.325
for you to learn.

00:13:40.325 --> 00:13:41.845
Everything is learnable.

00:13:41.845 --> 00:13:45.125
Everything is figureoutable,
which is nice, right?

00:13:45.125 --> 00:13:47.205
It's one of things one of
my mentors told me, like,

00:13:47.205 --> 00:13:49.485
I like that. Everything's
figureoutable.

00:13:49.610 --> 00:13:51.370
So, the wealthy,
they don't you know,

00:13:51.370 --> 00:13:53.690
none of those wealthy
people are W-two employees,

00:13:53.690 --> 00:13:55.610
like they wealthy make
their money differently.

00:13:55.610 --> 00:13:58.410
They're for the most part business
owners or real estate investors.

00:13:58.410 --> 00:14:01.290
Do you think we got
banking strategies up here.

00:14:01.290 --> 00:14:04.370
Do you think the wealthy bank the
same way we were taught to bank?

00:14:04.685 --> 00:14:08.045
You think their billions come
from this awesome CD that they

00:14:08.045 --> 00:14:10.045
have down at the credit union?

00:14:10.045 --> 00:14:13.165
Is that where they're making
their money? I don't think so.

00:14:13.165 --> 00:14:13.965
How about taxes?

00:14:13.965 --> 00:14:18.245
Do the wealthy pay pay taxes
differently than we were taught?

00:14:18.500 --> 00:14:20.420
Yeah. They got some they got
some different strategies.

00:14:20.420 --> 00:14:22.100
We've all heard the wealthy
pay less than taxes.

00:14:22.100 --> 00:14:24.980
Well, I'm here to tell you that
most of them do it legally,

00:14:24.980 --> 00:14:26.580
morally and ethically.

00:14:26.580 --> 00:14:28.100
I did say most,

00:14:28.100 --> 00:14:31.540
but we are going to go into
that a little bit deeper today.

00:14:31.540 --> 00:14:34.815
So, let's talk about some of these
strategies that we're taught.

00:14:34.815 --> 00:14:36.175
So, as employees,

00:14:36.175 --> 00:14:39.375
we were taught that the
priority needs to be money.

00:14:39.375 --> 00:14:40.655
We need to chase a dollar.

00:14:40.655 --> 00:14:40.895
Right?

00:14:40.895 --> 00:14:44.335
And so, if the analogy is the
analogy I like to use here is,

00:14:44.335 --> 00:14:48.230
you know, we're taught to hunt
eggs and hoard them in nests.

00:14:48.230 --> 00:14:49.430
So, we build these nests.

00:14:49.430 --> 00:14:51.270
We build a checking
account, right,

00:14:51.270 --> 00:14:52.550
for our monthly expenses,

00:14:52.550 --> 00:14:55.190
and we build a savings
account for a rainy day,

00:14:55.190 --> 00:14:58.230
and we're just trying to stack as
many eggs into these nests as we can.

00:14:58.230 --> 00:15:00.510
Our four zero one ks
is the same thing.

00:15:00.545 --> 00:15:02.865
We build a nest, it's our four
zero one ks, and every check,

00:15:02.865 --> 00:15:03.985
we put an egg in the nest,

00:15:03.985 --> 00:15:05.745
and if you work for a
good enough company,

00:15:05.745 --> 00:15:06.385
they'll match you.

00:15:06.385 --> 00:15:09.185
If you put an egg in the nest,
they'll put an egg in the nest.

00:15:09.185 --> 00:15:11.745
And, over the course of, you
know, your entire career,

00:15:11.745 --> 00:15:14.305
you build a pretty good pile
of eggs and it gives you this

00:15:14.305 --> 00:15:15.865
false sense of security.

00:15:15.900 --> 00:15:17.020
And, you're thinking,
you know what?

00:15:17.020 --> 00:15:17.980
This is looking pretty good.

00:15:17.980 --> 00:15:20.340
I think I'm I think
I'm going to retire.

00:15:20.620 --> 00:15:23.020
And so, at sixty five or
whatever, you cut it off.

00:15:23.020 --> 00:15:25.340
You start con you stop
contributing eggs to the nest

00:15:25.340 --> 00:15:27.420
and you start pulling
eggs out of the nest.

00:15:27.420 --> 00:15:29.765
And, every month, you
crack one and you use it.

00:15:29.765 --> 00:15:31.685
The next one, you crack
one and you use it. Right?

00:15:31.685 --> 00:15:33.845
And you get you hit seventy
years old and you're thinking,

00:15:33.845 --> 00:15:36.245
well, I mean, it's
dwindled a little bit,

00:15:36.245 --> 00:15:38.365
but I think we're
going to be Okay.

00:15:38.405 --> 00:15:38.805
Right?

00:15:38.805 --> 00:15:42.165
And then, you keep going and
you hit seventy five and you're

00:15:42.165 --> 00:15:44.340
thinking, well, it's
getting down there,

00:15:44.340 --> 00:15:46.260
but I should be fine.

00:15:46.260 --> 00:15:49.060
And then, hit eighty, and
you're like, holy crap,

00:15:49.060 --> 00:15:50.980
hopefully I die before I run
out of money because that's

00:15:50.980 --> 00:15:52.660
going to get really
uncomfortable really soon.

00:15:52.660 --> 00:15:53.220
Right?

00:15:53.220 --> 00:15:54.260
I can tell you this,

00:15:54.260 --> 00:15:56.900
if your backup plan to your
financial strategies is,

00:15:56.900 --> 00:15:58.975
hopefully, I die if
this doesn't work out,

00:15:58.975 --> 00:16:01.615
you have the wrong
financial strategies.

00:16:01.615 --> 00:16:04.015
You need to get a little
more educated. Right?

00:16:04.015 --> 00:16:07.295
But that's the problem with
what I call accumulation

00:16:07.295 --> 00:16:11.095
strategies is when you
focus on accumulation,

00:16:11.690 --> 00:16:13.130
it's it's always finite.

00:16:13.130 --> 00:16:15.690
It doesn't matter how much
you have, it's always finite.

00:16:15.690 --> 00:16:17.610
So, and and when you
when you cut it off,

00:16:17.610 --> 00:16:19.770
when you stop trading
your time for money,

00:16:19.770 --> 00:16:21.210
and you go into retirement,

00:16:21.210 --> 00:16:23.465
it's just it's just
going to dwindle.

00:16:23.465 --> 00:16:25.785
And so, we need to we
need to avoid that.

00:16:25.785 --> 00:16:27.985
So, if it's about eggs,

00:16:28.025 --> 00:16:30.625
what do you think
the wealthy focus on?

00:16:31.465 --> 00:16:32.785
Chickens.

00:16:33.625 --> 00:16:35.510
Chickens. Yeah.

00:16:35.510 --> 00:16:37.270
Because chickens
lay eggs, right?

00:16:37.270 --> 00:16:39.590
So, why don't I just
collect some chickens?

00:16:39.590 --> 00:16:41.750
Then, doesn't matter if
I'm sick, doesn't matter.

00:16:41.750 --> 00:16:43.510
The chicken will
still lay an egg.

00:16:43.510 --> 00:16:45.830
A chicken laying an egg has
nothing to do with whether or

00:16:45.830 --> 00:16:48.310
not I'm sick or out of the
country or on vacation or

00:16:48.310 --> 00:16:51.110
retired or whatever it is, the
chicken is going lay an egg.

00:16:51.110 --> 00:16:54.175
And if I want more eggs, I'll
just go get more chickens.

00:16:54.175 --> 00:16:56.335
See, we were taught in public
education that we're supposed

00:16:56.335 --> 00:16:58.135
to chase a dollar.

00:16:59.295 --> 00:17:02.295
But, what the wealthy
do is they chase assets

00:17:02.335 --> 00:17:04.550
because those chickens
will keep laying eggs.

00:17:04.550 --> 00:17:04.870
Right?

00:17:04.870 --> 00:17:07.750
And that's, of course, what the
chicken represents is assets.

00:17:07.750 --> 00:17:10.230
Now, this is for the most part of
real estate investing workshops.

00:17:10.230 --> 00:17:12.990
So, what kind of assets do you
think we're talking about here?

00:17:13.830 --> 00:17:15.030
Rentals are a great one. Yeah.

00:17:15.030 --> 00:17:16.630
I think I heard someone
say rentals. Yeah.

00:17:16.630 --> 00:17:19.425
Rentals are a
fantastic asset. Right?

00:17:19.425 --> 00:17:23.225
Because a well managed rental
will pay you if you're sick.

00:17:23.345 --> 00:17:24.865
I've never seen a lease
agreement that says, hey,

00:17:24.865 --> 00:17:25.665
if the landlord is sick,

00:17:25.665 --> 00:17:27.185
you totally don't have
to pay rent this month.

00:17:27.185 --> 00:17:29.945
Right? Mine don't
say that for sure.

00:17:30.065 --> 00:17:32.600
If I'm out of the country,
they still have to pay me.

00:17:32.600 --> 00:17:35.440
They still have to pay
me even if I'm dead.

00:17:35.560 --> 00:17:37.400
Think about that for a second.

00:17:37.400 --> 00:17:41.400
Your rentals, your tenants still
have to pay you even if you're dead.

00:17:41.400 --> 00:17:43.080
This is a legacy
that you're creating.

00:17:43.080 --> 00:17:44.920
This is generational wealth.

00:17:44.920 --> 00:17:47.155
This is something
that will outlast you,

00:17:47.155 --> 00:17:49.395
something that you'll get to
pass on to your kids and they

00:17:49.395 --> 00:17:52.515
get to pass on to their kids
and so on and so forth until

00:17:52.515 --> 00:17:53.555
someone who looks like you,

00:17:53.555 --> 00:17:55.475
who comes from the same
gene pool messes it up.

00:17:55.475 --> 00:17:57.635
Right? It won't matter,
you'll be dead, it's fine.

00:17:57.635 --> 00:17:58.795
So,

00:17:59.875 --> 00:18:02.970
but look, the
focus is on assets.

00:18:02.970 --> 00:18:04.170
We were taught again,

00:18:04.170 --> 00:18:08.210
we were taught in public
education to chase money.

00:18:09.450 --> 00:18:11.130
I want you to answer
this question.

00:18:11.130 --> 00:18:13.330
Can you make more money?

00:18:14.170 --> 00:18:16.450
Yeah, you can always
make more money, right?

00:18:16.755 --> 00:18:20.675
Can you make more time? No.
See, there's a flaw in this.

00:18:20.675 --> 00:18:23.315
We were taught that the only
the only asset that you were

00:18:23.315 --> 00:18:26.035
given is time and that's something
that you were given freely.

00:18:26.035 --> 00:18:28.955
And so, you should go exchange
the hours of your life

00:18:29.070 --> 00:18:32.910
for fifteen, twenty, twenty
five, thirty dollars an hour.

00:18:32.910 --> 00:18:36.430
But, there is nobody on this planet
that can tack an hour onto the

00:18:36.430 --> 00:18:37.910
end of your life.

00:18:38.190 --> 00:18:40.670
And, that's something that equalizes
us to all those wealthy people

00:18:40.670 --> 00:18:41.870
I had on the screen earlier.

00:18:41.870 --> 00:18:44.695
They also only have twenty four
hours in a day and their lives

00:18:44.695 --> 00:18:46.415
are finite as well.

00:18:46.695 --> 00:18:49.335
So, we're selling off we were
taught to sell off the hours of

00:18:49.335 --> 00:18:53.095
our lives for not very much money
and that's the inherent problem.

00:18:53.095 --> 00:18:55.015
Money is something you
can make money more of.

00:18:55.015 --> 00:18:56.535
Money is something you
could buy some chickens,

00:18:56.535 --> 00:18:59.055
you could buy some assets and
it will just create money.

00:18:59.080 --> 00:19:02.280
But, time is something that that
is actually more valuable and the

00:19:02.280 --> 00:19:03.560
wealthy recognize that.

00:19:03.560 --> 00:19:05.800
Now, let's talk let's go back
to retirement for a second.

00:19:05.800 --> 00:19:09.000
Vanguard published that
as of twenty twenty two,

00:19:09.000 --> 00:19:12.680
the median retirement savings
for sixty five to seventy four

00:19:12.680 --> 00:19:15.875
year olds in the United States
of America is a hundred and

00:19:15.875 --> 00:19:17.395
sixty five thousand dollars.

00:19:17.395 --> 00:19:18.435
That's our boomers.

00:19:18.435 --> 00:19:20.795
Do I have any boomers
in the house tonight?

00:19:21.635 --> 00:19:25.515
One. And, she's like,
don't tell anybody.

00:19:26.980 --> 00:19:28.220
So,

00:19:28.820 --> 00:19:32.420
boomers are retiring with an
average of a hundred and sixty

00:19:32.420 --> 00:19:33.380
four thousand dollars.

00:19:33.380 --> 00:19:36.220
Vanguard also
published this matrix,

00:19:36.580 --> 00:19:39.140
which says that if you want
to retire for five years,

00:19:39.140 --> 00:19:42.780
that means you only plan for on living
for five years after you retire,

00:19:43.015 --> 00:19:45.575
that and you only want to
retire on three thousand

00:19:45.575 --> 00:19:49.135
dollars a month, which right
now is below the poverty line,

00:19:49.335 --> 00:19:51.175
then you need two hundred
thousand dollars in your

00:19:51.175 --> 00:19:52.815
retirement account.

00:19:52.935 --> 00:19:55.215
Anybody see a problem
with this trend?

00:19:56.430 --> 00:20:01.190
The article also said that Gen
X is worse off than boomers.

00:20:01.310 --> 00:20:03.310
The millennials are
worse off than Gen X.

00:20:03.310 --> 00:20:04.830
We're on a worse trend.

00:20:04.830 --> 00:20:07.710
I don't even know what Gen
Z is going to do. Right?

00:20:07.710 --> 00:20:10.910
Hopefully, their TikTok accounts
make make money for them or whatever.

00:20:10.910 --> 00:20:13.175
But but, man, if you want to

00:20:13.175 --> 00:20:15.655
retire for twenty years on
something like seventy five

00:20:15.655 --> 00:20:16.455
hundred dollars a month,

00:20:16.455 --> 00:20:19.895
you need almost two point
six million dollars saved up.

00:20:19.895 --> 00:20:21.175
And, the average person,

00:20:21.175 --> 00:20:24.455
the average boomer right now has
a hundred and sixty five thousand.

00:20:24.455 --> 00:20:25.775
That's crazy.

00:20:25.850 --> 00:20:28.010
It's obviously
not going to work.

00:20:28.010 --> 00:20:30.330
We can't rely on the same
systems that worked for our

00:20:30.330 --> 00:20:32.410
grandparents, that
worked for our parents.

00:20:32.410 --> 00:20:34.770
We have to do
something different.

00:20:34.810 --> 00:20:38.570
Now, the only way I know how
to retire wealthier than you

00:20:38.570 --> 00:20:43.365
were when you were working is
passive income real estate, rentals.

00:20:43.725 --> 00:20:45.565
That's also the best
tax strategy I know of,

00:20:45.565 --> 00:20:46.765
but we'll get into
that in a second.

00:20:46.765 --> 00:20:51.485
So, I follow Alex
Hermosy on social media.

00:20:51.485 --> 00:20:53.965
I saw this saw this the other day
and I wanted to share it with you.

00:20:53.965 --> 00:20:58.350
So, said, rich people buy
time, poor people buy stuff.

00:20:58.350 --> 00:21:03.670
Ambitious people buy skills, and
lazy people buy distractions.

00:21:03.710 --> 00:21:07.085
Think about, you know, the things
that you spend your money on.

00:21:07.085 --> 00:21:10.525
Are they are they going to help
you with skills to be able to

00:21:10.525 --> 00:21:13.245
increase your your lifestyle
and increase your cash flow and

00:21:13.245 --> 00:21:14.525
increase your net worth?

00:21:14.525 --> 00:21:18.045
Or, are they things that are just
distractions that that use up

00:21:18.045 --> 00:21:21.845
our time in ways that don't
necessarily build our empire?

00:21:22.670 --> 00:21:25.910
How do we spend our how
do we spend our time?

00:21:26.590 --> 00:21:30.750
Now, what I want the focus to be
and the reason we're starting with

00:21:30.750 --> 00:21:33.470
mindset tonight is because
mindset is such a foundational

00:21:33.470 --> 00:21:34.670
part of building your empire,

00:21:34.670 --> 00:21:37.465
it's such a foundational
part of building wealth.

00:21:37.465 --> 00:21:39.465
There's totally a way that
you can go about real estate

00:21:39.465 --> 00:21:42.905
investing where all it will do
is replace the amount of money

00:21:42.905 --> 00:21:46.345
that you make at your job and
require the same amount of time.

00:21:46.345 --> 00:21:48.505
Is anybody here because they
want to make exactly what

00:21:48.505 --> 00:21:50.865
they're currently making
just doing something else?

00:21:51.500 --> 00:21:55.020
I see no hands and I can't see
the people in the recording.

00:21:55.020 --> 00:21:58.260
So, know, answer out loud.
I'll pretend like I understand.

00:21:58.620 --> 00:22:02.500
But, alright. So, what do
you want then? Yell it out.

00:22:03.985 --> 00:22:07.825
Freedom. Time freedom.
Financial freedom.

00:22:07.825 --> 00:22:10.705
That's right. Time
for what what's that?

00:22:10.705 --> 00:22:11.505
More time.

00:22:11.505 --> 00:22:13.745
More time. Like
for family. Yeah.

00:22:13.745 --> 00:22:16.225
I don't want to be I don't
want to be like working like most of

00:22:16.225 --> 00:22:19.170
my day and then have a few
minutes left for my spouse and

00:22:19.170 --> 00:22:20.770
kids when I get home.

00:22:20.770 --> 00:22:22.290
Like, it's awful.
I want more time.

00:22:22.290 --> 00:22:26.730
I want to make more money
working less. Right?

00:22:27.010 --> 00:22:30.210
Well, what what we need
to focus on then is chickens.

00:22:30.210 --> 00:22:33.170
What we need to focus on is
allowing the assets to create

00:22:33.170 --> 00:22:36.105
wealth for us so that
we can spend our time,

00:22:36.105 --> 00:22:38.345
our precious time that
we can't get more of,

00:22:38.345 --> 00:22:40.905
doing the things that
we actually want to do.

00:22:40.905 --> 00:22:43.945
And that requires a
completely different mindset.

00:22:43.945 --> 00:22:45.305
We're going to get
into that in a minute.

00:22:45.305 --> 00:22:48.665
But one of the things you'll notice
as you would start to interact,

00:22:48.665 --> 00:22:52.400
and hopefully you guys got to
network with with our students

00:22:52.400 --> 00:22:56.000
and our community members
before this started because we

00:22:56.000 --> 00:22:58.880
have an incredible community
of like minded people here.

00:22:58.880 --> 00:23:01.600
And the coolest thing is all
of us come from came from

00:23:01.600 --> 00:23:02.720
different backgrounds,

00:23:02.720 --> 00:23:05.400
and I don't know one of
us that started Rich.

00:23:05.795 --> 00:23:09.555
All of us started pretty much the
same way I did in one way or another.

00:23:09.555 --> 00:23:12.035
Right? I was working
at the Apple Store.

00:23:12.035 --> 00:23:16.275
Alinda was a single mom that was
struggling to make ends meet.

00:23:16.275 --> 00:23:20.810
You know, there's so many
stories of of people coming

00:23:20.810 --> 00:23:22.570
from different places and now,

00:23:22.570 --> 00:23:25.130
we've found this community where
we get to hang out together,

00:23:25.130 --> 00:23:29.090
we all have similar goals and
we all support each other.

00:23:29.930 --> 00:23:33.530
So, here's basically how we
bring all of this together.

00:23:33.530 --> 00:23:34.930
It's three things.

00:23:35.115 --> 00:23:37.195
It's the investor's
secret network.

00:23:37.195 --> 00:23:39.835
It's the incredible
community of individuals.

00:23:39.835 --> 00:23:41.755
It's the it's the
first flip challenge.

00:23:41.755 --> 00:23:45.355
It's the skills that we need
to start doing the things that are

00:23:45.355 --> 00:23:48.120
going to bring those those
chickens into our lives,

00:23:48.120 --> 00:23:49.320
those assets into our lives.

00:23:49.320 --> 00:23:52.440
And it's the most importantly,
it's the Renatus education.

00:23:52.440 --> 00:23:56.680
It's it's the knowledge that
we need to go out and start

00:23:56.680 --> 00:23:59.000
changing our behavior,
changing our lives.

00:23:59.000 --> 00:24:01.835
When knowledge increases,
behavior changes. So, it is.

00:24:01.835 --> 00:24:05.195
Step one, we need to
surround ourselves with the resources.

00:24:05.195 --> 00:24:09.195
My guess is that most
of you who are guests

00:24:09.195 --> 00:24:12.475
tonight are here because you're
wondering how the heck do I

00:24:12.475 --> 00:24:14.915
break into this real
estate investing thing.

00:24:15.370 --> 00:24:17.850
There doesn't seem to be a way
other than just have millions

00:24:17.850 --> 00:24:19.530
of dollars already saved up.

00:24:19.530 --> 00:24:23.530
Right? Well, the problem is
you're thinking on an island.

00:24:23.530 --> 00:24:25.930
You're thinking that it has to
do with what's in your checking

00:24:25.930 --> 00:24:28.410
account and what
your credit score is.

00:24:28.410 --> 00:24:31.355
And, I'm sorry, that's just
that's not how the wealthy do it.

00:24:31.355 --> 00:24:33.515
The wealthy team up, they
go out and get deals done.

00:24:33.515 --> 00:24:35.595
How much would you rather have
a one hundred percent or no

00:24:35.595 --> 00:24:38.075
deal or split a deal
ten different ways,

00:24:38.075 --> 00:24:40.315
pool your resources and
go get one deal done?

00:24:40.315 --> 00:24:42.795
You want ten percent of
an actual deal or one hundred

00:24:42.795 --> 00:24:43.995
percent or no deal?

00:24:43.995 --> 00:24:45.235
Ten percent.

00:24:46.020 --> 00:24:46.500
Right?

00:24:46.500 --> 00:24:48.900
Let's do that four or five
times, maybe ten times,

00:24:48.900 --> 00:24:51.460
save up some money and then
have enough to go buy a rental

00:24:51.460 --> 00:24:54.500
on our own, you know, and start
collecting that cash flow.

00:24:54.500 --> 00:24:57.460
So, we got to surround
ourselves with the resources.

00:24:57.460 --> 00:24:59.780
Then, we need the skills and that's
what the first flip challenge

00:24:59.780 --> 00:25:01.060
does in ninety days.

00:25:01.060 --> 00:25:03.355
Where are my challengers
at? Holler out at me.

00:25:03.355 --> 00:25:05.355
Make some noise. Where's
my challengers at?

00:25:05.355 --> 00:25:07.195
Alright. Okay.

00:25:07.195 --> 00:25:08.955
So, in the first flip challenge,

00:25:08.955 --> 00:25:12.235
the first ninety days of your
experience with us is to go

00:25:12.235 --> 00:25:15.435
through and learn the skills
of finding, analyzing,

00:25:15.435 --> 00:25:18.170
negotiating, funding,
and closing on deals.

00:25:18.170 --> 00:25:19.930
That's going to get you
into your first deal.

00:25:19.930 --> 00:25:21.450
You start applying those things,

00:25:21.450 --> 00:25:22.730
that will lead to
your first deal.

00:25:22.730 --> 00:25:25.370
We want to get your first deal
out of the way as quickly as

00:25:25.370 --> 00:25:28.330
possible because the first
deal is the hardest one.

00:25:28.330 --> 00:25:30.570
The first deal is the one where
you're looking at it saying,

00:25:30.570 --> 00:25:31.805
don't know if I could do this.

00:25:31.805 --> 00:25:32.125
Right?

00:25:32.125 --> 00:25:33.645
By the second deal, you're
like, I've already done it.

00:25:33.645 --> 00:25:34.685
I know I could do it.

00:25:34.685 --> 00:25:36.685
Like, there's evidence
that you can do it. Right?

00:25:36.685 --> 00:25:39.005
But the first deal, man,
that's the hardest one.

00:25:39.005 --> 00:25:40.925
And it's not because of the
deal, it's because of you.

00:25:40.925 --> 00:25:41.965
It's because there's
a learning curve.

00:25:41.965 --> 00:25:44.125
So, let's just let's get that
out of the way in like the first

00:25:44.125 --> 00:25:46.680
three months, then we
can focus on scaling.

00:25:46.680 --> 00:25:48.840
We can focus on going out
and doing, you know, five,

00:25:48.840 --> 00:25:52.200
ten deals at a time, buying,
you know, ten, fifteen,

00:25:52.200 --> 00:25:54.240
twenty rentals a year.

00:25:54.440 --> 00:25:56.840
So, that's exactly what the
first flip challenge does.

00:25:56.840 --> 00:25:59.965
And, of course, once we
close on the deal and buy it,

00:25:59.965 --> 00:26:01.725
we need to know what
to do with that thing.

00:26:01.725 --> 00:26:03.325
That's where the
liability starts. Right?

00:26:03.325 --> 00:26:04.685
That's where the risk starts.

00:26:04.685 --> 00:26:08.125
What do we do with this property
after we've purchased it?

00:26:08.125 --> 00:26:11.485
Well, what's incredible about
the Renatus education is that it

00:26:11.485 --> 00:26:14.285
gives you lifetime access to
a vault of trainings taught by

00:26:14.285 --> 00:26:17.060
practitioner instructors
from around the country.

00:26:17.060 --> 00:26:19.460
And we don't just
teach one strategy,

00:26:19.460 --> 00:26:21.540
they teach all the strategies.

00:26:21.540 --> 00:26:24.500
There's something like ninety two
different topics that they teach on.

00:26:24.500 --> 00:26:26.900
I didn't even know there were
ninety two different real

00:26:26.900 --> 00:26:28.180
estate investing strategies.

00:26:28.180 --> 00:26:29.620
I didn't know there were ninety
two different things you could

00:26:29.620 --> 00:26:31.895
do with a house to
make But, you know,

00:26:31.895 --> 00:26:35.095
you could fix it up and sell it
for more than what you put into it.

00:26:35.095 --> 00:26:36.135
That's called a fix and flip.

00:26:36.135 --> 00:26:38.455
You could hold it long
term, put tenants in there,

00:26:38.455 --> 00:26:40.055
collect rent, buy and holds.

00:26:40.055 --> 00:26:42.935
You do short term, mid term
rentals. Renata teaches that.

00:26:42.935 --> 00:26:46.020
We just recorded today
our commercial one of our

00:26:46.020 --> 00:26:46.820
commercial tracks.

00:26:46.820 --> 00:26:49.180
Nate and Becky Lambert's
still in the house?

00:26:49.540 --> 00:26:51.780
I saw Becky
wandering back there,

00:26:51.780 --> 00:26:55.220
but they just knocked out a
re recording of one of our

00:26:55.220 --> 00:26:56.980
commercial tracks and
man, it was awesome.

00:26:56.980 --> 00:26:58.780
I was here listening
to it today.

00:26:59.095 --> 00:27:02.935
So, you know, if single family houses
aren't your aren't your gig, that's alright.

00:27:02.935 --> 00:27:05.375
Let's go buy some storage units.

00:27:05.495 --> 00:27:08.375
I got a student who loves
doing parking lots, you know,

00:27:08.375 --> 00:27:09.655
because they don't want
to deal with tenants,

00:27:09.655 --> 00:27:11.015
they don't want to deal
with having to, like,

00:27:11.015 --> 00:27:14.050
replace the carpet and repaint the
walls every time they turn over.

00:27:14.050 --> 00:27:15.970
A parking lot, you've
got a parking stall,

00:27:15.970 --> 00:27:18.850
you can rent that thing out
four or five times a day,

00:27:18.850 --> 00:27:20.050
you know, there's
no maintenance.

00:27:20.050 --> 00:27:22.130
When they leave, there's a
little oil spot, who cares?

00:27:22.130 --> 00:27:24.050
The next one will park
over it, it doesn't matter.

00:27:24.050 --> 00:27:26.345
Right? A lot less maintenance
on something like that.

00:27:26.345 --> 00:27:28.345
We teach wholesaling,
multi family,

00:27:28.345 --> 00:27:31.545
mobile homes and mobile home
parks, tax liens and deeds,

00:27:31.545 --> 00:27:33.065
real estate hacking,

00:27:33.065 --> 00:27:36.425
which is where you make money
on the house you live in.

00:27:36.425 --> 00:27:37.785
That's pretty cool.

00:27:37.785 --> 00:27:40.800
Note trading, private equity
funds and so much more.

00:27:40.800 --> 00:27:43.600
And, the beautiful thing about it is
I already shared the price with you.

00:27:43.600 --> 00:27:46.400
It's a one time payment,
you get lifetime access.

00:27:46.400 --> 00:27:48.720
So, let's talk about our stats
in the FirstFlip Challenge.

00:27:48.720 --> 00:27:51.200
Now, in our just our little
Salt Lake group here,

00:27:51.200 --> 00:27:52.560
since July of
twenty twenty four,

00:27:52.560 --> 00:27:54.640
and I know Meily is going get
mad at me because I did not

00:27:54.640 --> 00:27:55.760
update these slides.

00:27:55.760 --> 00:27:57.965
The numbers are actually better
than this by now because we

00:27:57.965 --> 00:28:01.245
just had another season of the
First Flip Challenge and we

00:28:01.245 --> 00:28:02.365
have some new information.

00:28:02.365 --> 00:28:05.125
But, as of season five,

00:28:06.205 --> 00:28:08.605
we had one hundred
and seventy nine

00:28:08.605 --> 00:28:10.850
challengers go through
the First Flip Challenge,

00:28:10.850 --> 00:28:14.690
who closed over a hundred and thirty
eight real estate transactions.

00:28:14.690 --> 00:28:17.290
I think that number is
over two hundred now.

00:28:17.810 --> 00:28:20.050
But, and a lot of
them do it together,

00:28:20.050 --> 00:28:21.330
that's why there's
disparity in that number.

00:28:21.330 --> 00:28:22.450
A lot of them will team up,

00:28:22.450 --> 00:28:24.810
pool their resources
and go get a deal done.

00:28:25.155 --> 00:28:27.795
That means in our little group,
little Wasatch Front group,

00:28:27.795 --> 00:28:31.715
we've moved eighty million
dollars in transaction volume

00:28:31.715 --> 00:28:33.395
since July of
twenty twenty four.

00:28:33.395 --> 00:28:37.835
And, almost all of our challengers
started as average people,

00:28:38.390 --> 00:28:41.710
employees, small
business owners,

00:28:41.910 --> 00:28:44.870
just like I would guess most
of us in this room, right?

00:28:44.870 --> 00:28:46.630
Started as average people.

00:28:46.630 --> 00:28:48.310
So, let's get in,
let's talk about deals.

00:28:48.310 --> 00:28:49.230
Now, what's

00:28:50.405 --> 00:28:52.965
what's one of the things that
you guys are most worried about

00:28:52.965 --> 00:28:54.005
with real estate investing?

00:28:54.005 --> 00:28:55.605
What's the thing that's
holding you back?

00:28:55.605 --> 00:28:56.725
You're like, this is the thing,

00:28:56.725 --> 00:28:58.965
this is the reason I haven't
got out and started buying some

00:28:58.965 --> 00:29:00.485
investment property yet.

00:29:00.485 --> 00:29:01.805
Throw it out at me.

00:29:02.300 --> 00:29:05.980
Money. Okay. We're going talk
about money today for sure.

00:29:05.980 --> 00:29:09.260
Like, I need capital.
Real estate costs money.

00:29:09.260 --> 00:29:11.860
Well, the good news is
it doesn't necessarily

00:29:11.900 --> 00:29:13.740
cost your money.

00:29:13.740 --> 00:29:16.740
So, we're going to I'm
going show you a strategy

00:29:17.925 --> 00:29:20.965
on how you can find all the
money that you need regardless

00:29:20.965 --> 00:29:22.165
of what's in your
checking account.

00:29:22.165 --> 00:29:24.005
You'll know you'll realize
by the end of this thing,

00:29:24.005 --> 00:29:25.845
you could have a negative
balance in your checking

00:29:25.845 --> 00:29:28.725
account, but as long as you
have the right knowledge,

00:29:28.725 --> 00:29:31.110
you can go get go
get deals done.

00:29:31.110 --> 00:29:33.910
So, let's start with money.
Let's jump into that.

00:29:33.910 --> 00:29:36.310
Let's start with money and
we'll jump into some of the

00:29:36.310 --> 00:29:37.590
other things here in a second.

00:29:37.590 --> 00:29:39.750
This is a deal we did
a little while back.

00:29:39.750 --> 00:29:42.550
Two thousand six seventy seven
West Jordan Meadows Lane in the

00:29:42.550 --> 00:29:45.415
far off mystical land of
West Jordan, Utah, right,

00:29:45.415 --> 00:29:46.615
which is just down the street,

00:29:46.615 --> 00:29:48.295
for those of you that are
watching this on the recording,

00:29:48.295 --> 00:29:49.655
it's not too far away from here.

00:29:49.655 --> 00:29:52.855
My point is, you know,
everybody around the country,

00:29:52.855 --> 00:29:54.215
around the continent,
you hear, well,

00:29:54.215 --> 00:29:55.975
this isn't a good
place to invest, like,

00:29:55.975 --> 00:29:57.175
probably shouldn't invest here,

00:29:57.175 --> 00:29:58.370
you've got go out
to the Midwest.

00:29:58.370 --> 00:29:58.690
Right?

00:29:58.690 --> 00:30:00.130
And the people in the
Midwest are saying, well,

00:30:00.130 --> 00:30:01.810
you got to go out to
the mountain west.

00:30:01.810 --> 00:30:02.290
Right?

00:30:02.290 --> 00:30:05.650
And it's like, no, you as long
as the numbers work, like,

00:30:05.650 --> 00:30:06.850
there's real estate everywhere.

00:30:06.850 --> 00:30:09.730
Think about the billions of
dollars of real estate that you

00:30:09.730 --> 00:30:11.885
drove past just to
get here tonight.

00:30:11.885 --> 00:30:14.285
There's so much
opportunity out there,

00:30:14.285 --> 00:30:17.085
you just need to be educated
enough to realize how to spot it.

00:30:17.085 --> 00:30:19.805
And so, the funding strategy that
I'm going to share with you right

00:30:19.805 --> 00:30:25.970
now is going to show you how you
can you can fund any type of deal.

00:30:25.970 --> 00:30:29.410
I used this one, I've done two
seventy eight fix and flips now,

00:30:29.410 --> 00:30:31.890
and I've used this strategy I'm
going to show you on every one

00:30:31.890 --> 00:30:35.090
of those fix and flips to structure
it using other people's money.

00:30:35.090 --> 00:30:38.290
You can use this same strategy
to acquire BRRRR strategy

00:30:38.290 --> 00:30:40.930
rentals, you do it
with multi families,

00:30:40.930 --> 00:30:43.635
you can do it with storage
units, you name it,

00:30:43.635 --> 00:30:44.755
whatever you want to do,

00:30:44.755 --> 00:30:46.515
this is an incredible
way to buy them.

00:30:46.515 --> 00:30:48.995
Okay? So, let me break down the
numbers on this one for you.

00:30:48.995 --> 00:30:50.995
So, this one, this property,

00:30:50.995 --> 00:30:54.115
you'll notice that we did kind
of a splash and dash, you know,

00:30:54.115 --> 00:30:55.595
lipstick on a pig,

00:30:56.140 --> 00:30:57.580
know, polish a
**** kind of thing.

00:30:57.580 --> 00:30:59.740
It wasn't it wasn't
a deep remodel on it,

00:30:59.740 --> 00:31:01.420
we weren't like
tearing down walls.

00:31:01.420 --> 00:31:03.900
It's the same cabinets
in this kitchen,

00:31:03.900 --> 00:31:06.460
we just painted them and
put some handles on them.

00:31:06.460 --> 00:31:06.700
Right?

00:31:06.700 --> 00:31:09.815
It's the same hardwood floor,
we just we just refinished it.

00:31:09.815 --> 00:31:12.615
Same granite, same tile, we
put a little backsplash on,

00:31:12.615 --> 00:31:14.295
put some nice
appliances in there.

00:31:14.295 --> 00:31:16.215
We bought this house for two
hundred and fifty thousand

00:31:16.215 --> 00:31:19.975
dollars We put about fifty
thousand dollars into fixing it up.

00:31:19.975 --> 00:31:23.575
Our holding costs were ten
thousand dollars Holding costs,

00:31:23.575 --> 00:31:24.735
what does that mean?

00:31:25.730 --> 00:31:28.050
Well, see, when I started,

00:31:28.050 --> 00:31:31.170
when I was sitting in the seats
that you're sitting in now and

00:31:31.170 --> 00:31:32.290
I was watching, you know,

00:31:32.290 --> 00:31:35.010
kind of this intro workshop
for the first time,

00:31:35.010 --> 00:31:37.570
my I had a very one dimensional
attitude about real estate.

00:31:37.570 --> 00:31:39.645
I thought, I only
want rentals. Right?

00:31:39.645 --> 00:31:40.765
I just wanted that cash flow.

00:31:40.765 --> 00:31:44.525
I want to be able to replace my income
and retire by the time I was thirty.

00:31:44.525 --> 00:31:47.325
And so, just don't talk to me
about any other strategies,

00:31:47.325 --> 00:31:48.365
I just want rentals.

00:31:48.365 --> 00:31:51.005
And, one of my mentors pulled
me aside and he said, you know,

00:31:51.005 --> 00:31:54.450
Mitch, you've got kind
of the wrong idea here.

00:31:54.450 --> 00:31:57.410
None of us buy fix and flips
or none of us do fix and flips

00:31:57.410 --> 00:31:59.890
because we think that it's
a retirement strategy.

00:31:59.890 --> 00:32:02.850
It helps fund our
retirement strategy.

00:32:02.850 --> 00:32:05.330
A well run fix and flip
business is like a legal money

00:32:05.330 --> 00:32:06.130
printing factory.

00:32:06.130 --> 00:32:08.445
How many of you want
a legal money factory?

00:32:08.445 --> 00:32:09.725
Sign me up for that.

00:32:09.725 --> 00:32:12.325
Right? I'd stand in line
for that. That'd be awesome.

00:32:12.685 --> 00:32:14.605
That's what a fix
and flip business is.

00:32:14.605 --> 00:32:17.645
And so, opened my mind to this
idea that I can use multiple real

00:32:17.645 --> 00:32:21.560
estate investing strategies to all
help fund the one strategy

00:32:21.560 --> 00:32:25.080
that I was focused on the most and
that's buy and hold real estate.

00:32:25.080 --> 00:32:25.400
Right?

00:32:25.400 --> 00:32:27.400
And so, I actually,

00:32:27.400 --> 00:32:30.360
Meily and I are now are kind
of known as fix and flippers,

00:32:30.360 --> 00:32:31.960
even though that's not
our primary strategy,

00:32:31.960 --> 00:32:33.135
it's still rentals.

00:32:33.135 --> 00:32:34.575
So, if I have extra money,

00:32:34.575 --> 00:32:36.655
what am I gonna am I gonna
throw that money at flips or am

00:32:36.655 --> 00:32:38.535
I gonna throw it at rentals?

00:32:38.655 --> 00:32:40.415
Rentals. Rentals. My
primary strategy. Right?

00:32:40.415 --> 00:32:42.375
So, who funds my flips?

00:32:42.415 --> 00:32:44.415
Other people. Yeah.

00:32:44.415 --> 00:32:45.855
And, if I'm gonna use
other people's money,

00:32:45.855 --> 00:32:47.295
there's only one or two
ways I could do that.

00:32:47.295 --> 00:32:50.050
Could either borrow it
or I could steal it.

00:32:50.050 --> 00:32:52.610
Which one do you think it is?
Yeah. Steal Yeah. Steal it.

00:32:52.610 --> 00:32:53.570
Yeah. That's what
this meeting is.

00:32:53.570 --> 00:32:54.770
We're gonna turn off
the lights in a sec,

00:32:54.770 --> 00:32:57.330
take all your waltz and purses and
go buy real estate with what we find.

00:32:57.330 --> 00:32:59.730
That's how we it's
we borrow it. Right?

00:32:59.730 --> 00:33:03.445
And, of course, I know the sirens go
off when I say the borrow word and we're

00:33:03.445 --> 00:33:04.885
talking about money
because you're like, well,

00:33:04.885 --> 00:33:05.765
I remember this one time,

00:33:05.765 --> 00:33:08.085
had to call my mom because I
spent too much money, you know,

00:33:08.085 --> 00:33:10.725
partying in college one month
and they were going to shut the

00:33:10.725 --> 00:33:12.325
power off, had to
borrow a hundred bucks.

00:33:12.325 --> 00:33:14.605
That's charity. That's not
what I'm talking about.

00:33:15.600 --> 00:33:18.640
This is this is more of
a business proposition.

00:33:18.640 --> 00:33:21.760
Joe, I know you got that extra
fifty grand laying around, man.

00:33:21.760 --> 00:33:24.440
So, if you gave me
that fifty grand,

00:33:24.480 --> 00:33:27.680
so I could go do this deal
for like four months and I brought

00:33:27.680 --> 00:33:29.280
you back sixty grand,

00:33:29.280 --> 00:33:31.560
would you be open to have
a conversation about that?

00:33:32.235 --> 00:33:32.595
Sign

00:33:33.275 --> 00:33:33.595
Right?

00:33:33.595 --> 00:33:35.755
If I bring him back more money
than what I borrowed within a

00:33:35.755 --> 00:33:37.355
short period of time,
he's like, I'm all in.

00:33:37.355 --> 00:33:40.155
Let's do this. Easy
conversation to have.

00:33:40.155 --> 00:33:41.595
Right? Because it's a
business proposition.

00:33:41.595 --> 00:33:42.955
So, that's what my
holding costs are.

00:33:42.955 --> 00:33:43.750
Most of I mean,

00:33:43.750 --> 00:33:46.710
some of it's like property
taxes and insurance and

00:33:46.710 --> 00:33:47.990
whatnot, the cost
of owning a prop,

00:33:47.990 --> 00:33:50.630
but most of it is just
the cost of my money.

00:33:50.630 --> 00:33:52.310
So, I can go get this deal done.

00:33:52.310 --> 00:33:55.030
So, I've actually accounted
for that here on these numbers,

00:33:55.030 --> 00:33:57.310
my closing costs when
I sell the property.

00:33:57.565 --> 00:33:58.365
Question for you,

00:33:58.365 --> 00:34:02.685
is a real estate investor and a
real estate agent the same thing?

00:34:02.685 --> 00:34:04.085
No.

00:34:04.445 --> 00:34:06.805
What does a real
estate agent do?

00:34:07.405 --> 00:34:10.205
Sells houses. Is
that important? Yes.

00:34:10.205 --> 00:34:12.570
But, is it what
investors do? No.

00:34:12.570 --> 00:34:13.930
What does a real
estate investor do?

00:34:13.930 --> 00:34:16.890
Buy houses. We buy houses. Yeah.

00:34:16.890 --> 00:34:19.050
This is one of the common
misconceptions that a lot of

00:34:19.050 --> 00:34:22.730
people have about investors
is that they're magically just

00:34:22.730 --> 00:34:24.770
like every profession.

00:34:25.015 --> 00:34:25.735
Right?

00:34:25.735 --> 00:34:28.295
Like, I'm going be an investor
which means I got to buy a tool belt

00:34:28.295 --> 00:34:30.535
and some tools so I can go
remodel the house myself.

00:34:30.535 --> 00:34:32.535
No. That's what a
contractor does.

00:34:32.535 --> 00:34:34.135
An investor does five
things. That's it.

00:34:34.135 --> 00:34:36.295
We find, analyze, negotiate,
fund and close on deals.

00:34:36.295 --> 00:34:37.830
And when we're done,
we we keep going.

00:34:37.830 --> 00:34:40.150
We hire professionals to
do all the other things,

00:34:40.150 --> 00:34:41.270
like sell the house.

00:34:41.270 --> 00:34:43.350
That's not my job.
That's an agent's job.

00:34:43.350 --> 00:34:45.750
And so, we're going to
pay the agent to do that.

00:34:45.750 --> 00:34:48.870
I've got a very expensive
agent. It's my wife.

00:34:48.870 --> 00:34:51.070
So, we got to pay her a
full commission. Right?

00:34:51.215 --> 00:34:54.335
So so, twenty five thousand dollars
on the on the closing commission

00:34:54.335 --> 00:34:56.495
on this, a little bit
to the title company.

00:34:56.495 --> 00:34:57.775
All in, if you add all that up,

00:34:57.775 --> 00:35:00.335
three hundred and thirty five thousand
dollar all in cost on this house,

00:35:00.335 --> 00:35:04.010
we sold this house four months later
for three hundred and eighty grand,

00:35:04.010 --> 00:35:07.530
which means we made forty five
thousand dollars in a hundred

00:35:07.530 --> 00:35:11.050
and twenty days and about
seven hours of my time.

00:35:11.050 --> 00:35:15.850
I made more with seven hours
of input than I made an

00:35:15.850 --> 00:35:18.850
entire year working at
the Apple Store full time.

00:35:18.945 --> 00:35:21.345
Who is excited
about this strategy?

00:35:21.345 --> 00:35:23.745
Does it get even more exciting
when I tell you that I do ten

00:35:23.745 --> 00:35:25.745
to twelve of them at a time?

00:35:25.745 --> 00:35:28.865
Ten to twelve flips at a
time. Yeah. That's awesome.

00:35:28.865 --> 00:35:31.505
And, it all it all is we
take the money that we make,

00:35:31.505 --> 00:35:33.665
Meilyne and I take the money
we make off our flips and we go

00:35:33.665 --> 00:35:37.260
buy rentals to the tune of,
on average, about one a month,

00:35:37.260 --> 00:35:38.780
which is also awesome.

00:35:38.780 --> 00:35:40.300
Right? We want to get there.

00:35:40.300 --> 00:35:41.980
There's people who are
doing even better than me.

00:35:41.980 --> 00:35:43.260
Mean, Nate and Becky Lambert,

00:35:43.260 --> 00:35:46.060
they buy thousands and
thousands of doors every year.

00:35:46.060 --> 00:35:48.900
It's crazy. Those are
people you want to follow.

00:35:49.145 --> 00:35:51.545
So, let's break this
down a little bit.

00:35:51.545 --> 00:35:53.145
I want to bust some myths.

00:35:53.145 --> 00:35:57.305
So, we have we've
you know I mean,

00:35:57.305 --> 00:35:59.305
where we're recording this,
we're in Utah right now.

00:35:59.305 --> 00:36:01.145
This is the DIY capital
of the world. Right?

00:36:01.145 --> 00:36:04.260
So, I know that there's a lot of
people who think that the best

00:36:04.260 --> 00:36:07.380
way to do a fix and flip,
for example, or a rental,

00:36:07.380 --> 00:36:09.540
there's the rental
version of this as well.

00:36:09.540 --> 00:36:13.100
But, we are talking our
example here is a fix and flip.

00:36:13.460 --> 00:36:16.860
They're like, oh, sweet. Yeah.
I'm going to save some money.

00:36:16.865 --> 00:36:19.665
I'm going to do the work
myself. We'll move into it.

00:36:19.665 --> 00:36:22.625
Right? And, we'll just work on
it on the nights and weekends.

00:36:22.625 --> 00:36:24.865
Can you imagine having that
conversation with your spouse?

00:36:24.865 --> 00:36:27.505
Go home after this meeting
and be like, hey, babe,

00:36:27.505 --> 00:36:28.465
we got a new business plan.

00:36:28.465 --> 00:36:30.545
We're going to move our whole
family into one of these.

00:36:30.545 --> 00:36:31.625
What do think?

00:36:31.660 --> 00:36:33.100
Know how you love the open?

00:36:33.100 --> 00:36:35.980
Look at the open floor plan,
the natural light, it's awesome.

00:36:35.980 --> 00:36:36.300
Right?

00:36:36.300 --> 00:36:37.500
We're going move
the whole family in,

00:36:37.500 --> 00:36:38.860
we're going to work on
it nights and weekends,

00:36:38.860 --> 00:36:39.820
it'll take us about a year.

00:36:39.820 --> 00:36:41.420
It'll be beautiful by
the time it's done.

00:36:41.420 --> 00:36:43.140
It's going be your dream home.

00:36:43.420 --> 00:36:45.580
But, just as it's
getting pretty,

00:36:45.580 --> 00:36:47.975
we're going to sell it and
we're going to move into

00:36:47.975 --> 00:36:48.695
another one of these.

00:36:48.695 --> 00:36:50.935
And, that's what we'll do for the
next, you know, eighteen, twenty years.

00:36:50.935 --> 00:36:52.455
What do you think?
Sounds pretty.

00:36:52.455 --> 00:36:54.055
Yeah. Sounds amazing. Right?

00:36:54.055 --> 00:36:55.815
Even worse than that,

00:36:55.815 --> 00:36:58.935
I like doing ten to twelve
fix and flips at a time.

00:36:58.935 --> 00:37:02.590
So, if my plan is to
move in to every fix and

00:37:02.590 --> 00:37:05.790
flip that I do, what does
that limit my scale to?

00:37:05.790 --> 00:37:08.510
One at a time.

00:37:08.510 --> 00:37:13.150
This strategy is far too
slow because the mindset

00:37:13.150 --> 00:37:14.590
this is what I was
talking about earlier.

00:37:14.590 --> 00:37:17.195
There's totally a way that you
can do real estate investing

00:37:17.195 --> 00:37:20.875
where all it will do is replace
the amount of money you make at

00:37:20.875 --> 00:37:25.435
your job and and take you
the same amount of time.

00:37:25.435 --> 00:37:27.595
If I was living in this house
doing a nice and weekends,

00:37:27.595 --> 00:37:30.355
I'd make about the same
I was making at Apple.

00:37:31.035 --> 00:37:33.235
Right? And I'd only
be able to do one.

00:37:33.970 --> 00:37:37.410
So, it's it's the mindset,
it's that employee mindset of, well,

00:37:37.410 --> 00:37:39.090
I'm doing it because I don't
want to pay a contractor

00:37:39.090 --> 00:37:40.530
because I want to save money.

00:37:40.530 --> 00:37:44.090
Guys, you will never
save your way to wealth.

00:37:44.130 --> 00:37:46.570
It's not about
hoarding the eggs,

00:37:47.005 --> 00:37:49.485
it's about finding the chickens,

00:37:49.485 --> 00:37:52.325
so the eggs just
replace themselves.

00:37:52.365 --> 00:37:52.765
Right?

00:37:52.765 --> 00:37:55.325
So, rather than being
the contractor to save money,

00:37:55.325 --> 00:37:58.800
spend your time, the most
valuable currency you have,

00:37:58.800 --> 00:38:00.960
doing the thing that is
going to make you the most,

00:38:00.960 --> 00:38:02.800
and that's finding
the next chicken.

00:38:02.800 --> 00:38:05.520
Find, analyze, negotiate,
fund, and close. Right?

00:38:05.520 --> 00:38:08.080
So, this type two investor and
I've broken these down into,

00:38:08.080 --> 00:38:09.920
like, three categories
because, I mean,

00:38:09.920 --> 00:38:11.880
I've done this for a while now,

00:38:11.895 --> 00:38:13.495
and I get to talk to
all kinds of people,

00:38:13.495 --> 00:38:16.855
and you all have some crazy
ideas about how you think real

00:38:16.855 --> 00:38:17.975
estate is supposed to be done.

00:38:17.975 --> 00:38:20.215
But, I can categorize it
into one of the three, right?

00:38:20.215 --> 00:38:22.775
The DIY stuff, the move in,
I'm going work on it myself,

00:38:22.775 --> 00:38:24.375
blah blah blah, or
with the rentals,

00:38:24.375 --> 00:38:25.890
I'll be my own property manager.

00:38:25.890 --> 00:38:29.330
I got a fun story for you
later on in the workshop here about a

00:38:29.330 --> 00:38:32.770
property manager who thought that it
was a good idea to do it themselves.

00:38:32.770 --> 00:38:35.970
I I have been paid rent
checks for the last thirteen years of

00:38:35.970 --> 00:38:38.890
my life, but I've never
personally collected one.

00:38:39.215 --> 00:38:40.575
I've had tenants evicted.

00:38:40.575 --> 00:38:43.135
I've never personally evicted
anyone because that's not my job.

00:38:43.135 --> 00:38:44.735
That's not what
an investor does.

00:38:44.735 --> 00:38:47.175
That's what a
property manager does.

00:38:47.215 --> 00:38:47.455
Right?

00:38:47.455 --> 00:38:48.655
So, I've heard people say, well,

00:38:48.655 --> 00:38:50.495
I don't want rentals because
I want be a landlord.

00:38:50.495 --> 00:38:53.055
Then, don't. That's like
the worst idea ever.

00:38:53.055 --> 00:38:54.610
It's smart to own the rentals.

00:38:54.610 --> 00:38:57.570
It's unless you are a property
manager and that's like your

00:38:57.570 --> 00:39:00.530
profession, don't be
the property manager.

00:39:00.530 --> 00:39:01.570
You be the investor.

00:39:01.570 --> 00:39:03.410
Let the property manager
be the property manager.

00:39:03.410 --> 00:39:04.850
If you want to make more money,

00:39:04.850 --> 00:39:07.650
don't try to squeeze it out
of the one that you have,

00:39:07.650 --> 00:39:09.450
just go get another one.

00:39:09.745 --> 00:39:11.905
That will make you more. Right?

00:39:11.905 --> 00:39:14.305
And then, you find that one,
well, got some time now,

00:39:14.305 --> 00:39:16.705
I found it, I set it up,
property manager's handling it.

00:39:16.705 --> 00:39:17.985
Well, then, let's
go find another one.

00:39:17.985 --> 00:39:19.905
You'll make way more
money doing it that way.

00:39:19.905 --> 00:39:21.185
So, this type two investor,

00:39:21.185 --> 00:39:23.785
this is the investor that I
think gives us the bad name.

00:39:24.040 --> 00:39:26.360
How many of you heard that
real estate investing is risky?

00:39:26.360 --> 00:39:27.400
I want to see a show of hands.

00:39:27.400 --> 00:39:30.040
Who thinks real estate
investing is risky?

00:39:30.040 --> 00:39:30.360
Okay.

00:39:30.360 --> 00:39:33.160
Maybe that's some of the reason
why why a few of you haven't

00:39:33.160 --> 00:39:34.520
started doing it yet.

00:39:34.520 --> 00:39:37.320
Because, man, it seems like
it's so like, could lose money,

00:39:37.320 --> 00:39:39.565
like, if two thousand
eight happens again?

00:39:39.565 --> 00:39:42.365
Well, this is why I think
people think it's risky,

00:39:42.365 --> 00:39:45.005
is because you were taught how
to use other people's money,

00:39:45.005 --> 00:39:47.645
but you were only taught one
way to use other people's money

00:39:47.645 --> 00:39:49.685
in your public education.

00:39:49.805 --> 00:39:52.485
And that was a
debt relationship.

00:39:53.350 --> 00:39:55.510
That's how we use the bank's
money and the bank's money is

00:39:55.510 --> 00:39:56.870
other people's money.

00:39:56.870 --> 00:40:00.470
And so, if all you know
is a debt relationship,

00:40:00.470 --> 00:40:02.630
that's going to put you
in trouble because here's the

00:40:02.630 --> 00:40:04.630
thing, how many of you
know stupid people?

00:40:04.630 --> 00:40:05.430
I want see show of hands.

00:40:05.430 --> 00:40:06.390
Hundred percent
participation here.

00:40:06.390 --> 00:40:07.695
Yeah. We all know
stupid people. Right?

00:40:07.695 --> 00:40:08.895
Think about this for a second.

00:40:08.895 --> 00:40:12.295
The bank will lend your
stupid friends money.

00:40:13.295 --> 00:40:16.495
Why would the bank lend
your stupid friends money?

00:40:16.495 --> 00:40:18.335
That sounds like
a really bad idea.

00:40:18.335 --> 00:40:21.175
The reason is, is because
in a debt relationship,

00:40:21.230 --> 00:40:25.470
it transfers all of the
risk to the borrower.

00:40:25.470 --> 00:40:26.910
Now, as a real estate investor,

00:40:26.910 --> 00:40:28.910
and the definition of an
investor that we just decided

00:40:28.910 --> 00:40:33.390
was we buy houses, in a lending
relationship that makes me the borrower.

00:40:33.390 --> 00:40:35.710
That means I'm taking on the
risk in a debt all the risk in

00:40:35.710 --> 00:40:38.355
a debt relationship, and
a lender's taking on none.

00:40:38.355 --> 00:40:39.635
Don't believe me? Guess what?

00:40:39.635 --> 00:40:42.435
If I'm on time with my
payments, they get my interest.

00:40:42.435 --> 00:40:44.515
If I'm not on time with
my payments, what happens?

00:40:44.515 --> 00:40:47.995
They get my house, no matter
what they get something.

00:40:48.115 --> 00:40:50.860
Right? And I'm out
something, no matter what.

00:40:50.860 --> 00:40:53.740
That's that's how a
debt relationship works.

00:40:53.740 --> 00:40:57.820
And so, they're willing
to lend and, you know,

00:40:57.820 --> 00:41:00.700
if anything goes wrong, well,
they just get to take it.

00:41:00.700 --> 00:41:04.220
So, if all we understand is debt
and we're looking at this deal,

00:41:04.220 --> 00:41:05.875
you know, I've got some
upfront costs here.

00:41:05.875 --> 00:41:08.355
I have to have enough
money to go buy this house.

00:41:08.355 --> 00:41:10.435
I have to have enough
money to fix it up.

00:41:10.435 --> 00:41:11.795
But, the holding costs,

00:41:11.795 --> 00:41:15.075
my deal that I have with
Joe here was he'll give me fifty

00:41:15.075 --> 00:41:16.115
grand, I'll go use it.

00:41:16.115 --> 00:41:18.115
When I sell the house,
I'll bring him back sixty.

00:41:18.115 --> 00:41:20.315
That doesn't happen
till I sell the house.

00:41:20.730 --> 00:41:24.410
So, I don't I don't need to have
that money upfront to pay Joe back.

00:41:24.410 --> 00:41:24.570
Right?

00:41:24.570 --> 00:41:27.050
So, I don't need to raise
that, that's a back end cost.

00:41:27.050 --> 00:41:29.370
And then, my closing cost,
when paying my agent, well,

00:41:29.370 --> 00:41:31.850
that doesn't happen till
till she sells the house.

00:41:31.850 --> 00:41:34.170
Right? So, and the title
company and so forth.

00:41:34.170 --> 00:41:36.165
So, there's front end cost
here, there's back end cost.

00:41:36.165 --> 00:41:38.805
I only need to raise money
from my front end costs.

00:41:38.805 --> 00:41:41.045
So, I raised three hundred grand
and if all I know is

00:41:41.045 --> 00:41:45.445
debt, well, I pull up my my
Google machine and I type in

00:41:45.445 --> 00:41:48.885
fix and flip money Utah and up
pops a list of hard money lenders.

00:41:48.885 --> 00:41:50.770
Who's worked with hard money
lenders out here before?

00:41:50.770 --> 00:41:53.330
What kind of rates and terms
have you seen, Christine?

00:41:53.330 --> 00:41:53.810
To twelve.

00:41:53.810 --> 00:41:55.170
Ten to twelve percent?

00:41:55.170 --> 00:41:57.690
And, how long do they let
you have the money for?

00:41:57.810 --> 00:41:59.330
Six to months.

00:41:59.330 --> 00:42:02.770
Six to nine months. Yeah. So,
that's what I had on here.

00:42:02.770 --> 00:42:06.285
It's about twelve percent interest,
which is still cheap, by the way.

00:42:06.285 --> 00:42:07.165
Debt's cheap.

00:42:07.165 --> 00:42:10.405
Debt's cheap because they're
transferring all the risk to you.

00:42:10.685 --> 00:42:12.925
Other ways to do it
are are more expensive,

00:42:12.925 --> 00:42:14.045
but don't carry as much risk.

00:42:14.045 --> 00:42:17.205
And here's a here's a misconception
about real estate investors.

00:42:17.650 --> 00:42:22.010
You a lot of people think that
real estate investors love risk.

00:42:22.130 --> 00:42:22.370
Right?

00:42:22.370 --> 00:42:24.130
Do you think I'm just
driving around all day like,

00:42:24.130 --> 00:42:24.930
where's the risk at?

00:42:24.930 --> 00:42:26.770
Like, want to collect some risk,

00:42:26.770 --> 00:42:27.730
just throw it in the back.

00:42:27.730 --> 00:42:27.970
Right?

00:42:27.970 --> 00:42:29.945
You got risk? I'll
take it. Right?

00:42:29.945 --> 00:42:31.625
Just like, no,

00:42:31.625 --> 00:42:35.985
I my risk tolerance is exactly
the same as it was when I started.

00:42:36.505 --> 00:42:39.065
I'm not here to tell you to
lower your risk tolerance to go

00:42:39.065 --> 00:42:40.345
out and start doing real estate.

00:42:40.345 --> 00:42:43.330
That's keep it where
it's at. It's healthy.

00:42:43.330 --> 00:42:46.290
What I'm here to tell you to do
is raise that knowledge level

00:42:46.290 --> 00:42:48.690
above your risk tolerance.

00:42:48.690 --> 00:42:51.090
The reason that you haven't
gone out and done real estate

00:42:51.090 --> 00:42:52.530
yet, if it's risk related,

00:42:52.530 --> 00:42:56.010
is because you haven't learned
a way to mitigate the risk yet.

00:42:56.975 --> 00:42:59.135
And, just because you don't
know that there is a way,

00:42:59.135 --> 00:43:00.975
doesn't mean it doesn't exist.

00:43:00.975 --> 00:43:03.695
You just have to learn it. Okay?

00:43:03.695 --> 00:43:06.255
So, I don't want to take I
don't want to like, well,

00:43:06.255 --> 00:43:08.975
I want it to be cheap so I'm
loading up on the debt. Right?

00:43:08.975 --> 00:43:10.415
But, taking on all this risk.

00:43:10.415 --> 00:43:12.935
Do I have any contractors
in the house by the way?

00:43:13.080 --> 00:43:15.640
Who's a contractor? What's
your name? Brian. Brian.

00:43:15.640 --> 00:43:18.320
Alright, Brian. What's
your most dangerous tool?

00:43:18.520 --> 00:43:20.840
All of them. All of them.

00:43:20.840 --> 00:43:23.800
Just throw throw the one that you
think might be the most dangerous.

00:43:23.800 --> 00:43:25.040
Throw it at me.

00:43:30.385 --> 00:43:31.185
Concrete cutter.

00:43:31.185 --> 00:43:34.545
That's that big like gas
powered like saw thing. Right?

00:43:34.545 --> 00:43:35.825
Yeah. That's pretty dangerous.

00:43:35.825 --> 00:43:38.305
Would you do you have little
ones running around by chance?

00:43:38.305 --> 00:43:40.465
What's up? Do you have little
ones running around your house?

00:43:40.465 --> 00:43:41.025
No?

00:43:41.025 --> 00:43:44.350
If you did, you think you'd be
leaving that concrete cutter like on,

00:43:44.350 --> 00:43:46.030
running in your front room?

00:43:46.030 --> 00:43:47.430
Why not?

00:43:47.550 --> 00:43:49.390
It's dangerous.

00:43:49.390 --> 00:43:51.830
So, why do you have it
then if it's so dangerous?

00:43:52.350 --> 00:43:55.910
Shut up. You don't know why
you have a concrete cutter?

00:43:57.015 --> 00:43:58.095
It makes

00:43:58.615 --> 00:43:59.255
him money.

00:43:59.255 --> 00:44:01.815
He can do more work
with it. Right?

00:44:01.815 --> 00:44:04.375
Could you imagine Brian
being out there like,

00:44:04.375 --> 00:44:06.215
I don't like dangerous tools.

00:44:06.215 --> 00:44:09.015
So, I'm just going to judo chop
this concrete till I get a nice

00:44:09.015 --> 00:44:10.040
straight line in it.

00:44:10.040 --> 00:44:12.760
Right? That would take him so
much longer to do it that way.

00:44:12.760 --> 00:44:17.320
Tools, if it if they're in the
right hands, make work lighter,

00:44:17.320 --> 00:44:18.040
make work easier.

00:44:18.040 --> 00:44:19.160
We can get more work done.

00:44:19.160 --> 00:44:21.680
We could build more
things with tools.

00:44:21.880 --> 00:44:23.025
But in the wrong hands,

00:44:23.025 --> 00:44:25.265
the reason you wouldn't leave
that concrete cutter around

00:44:25.265 --> 00:44:27.345
where the kids can get a hold
of it is because in the wrong

00:44:27.345 --> 00:44:29.425
hands, it can be
incredibly dangerous.

00:44:29.425 --> 00:44:31.905
That doesn't mean the tool
itself is good or bad.

00:44:31.905 --> 00:44:33.425
Debt's a tool, guys.

00:44:33.425 --> 00:44:35.985
I know you've been taught your
entire life that debt is bad.

00:44:35.985 --> 00:44:37.865
It's not bad, it's a tool.

00:44:38.740 --> 00:44:42.620
What's what's makes it
good or bad is the user.

00:44:42.820 --> 00:44:45.780
And, if you're if if you're
an uneducated user of debt,

00:44:45.780 --> 00:44:48.180
which they didn't teach us
anything about debt other than

00:44:48.180 --> 00:44:49.940
abstinence, stay away from it.

00:44:49.940 --> 00:44:50.340
Right?

00:44:50.340 --> 00:44:51.620
It's awful and then
we're like, oh,

00:44:51.620 --> 00:44:52.980
but I need and then
we get into it,

00:44:52.980 --> 00:44:55.020
we get in trouble because
we don't know what we're doing.

00:44:55.195 --> 00:44:58.155
Debt is a tool that can
completely destroy your life.

00:44:58.155 --> 00:45:01.195
I'm sure we all have examples
of family members or maybe

00:45:01.195 --> 00:45:03.595
personal experiences
where that's true.

00:45:03.595 --> 00:45:06.555
But, it's also something
that, if used correctly,

00:45:06.555 --> 00:45:08.355
can build your empire.

00:45:09.170 --> 00:45:12.770
So, we need to understand how
to use that debt safely. Right?

00:45:12.770 --> 00:45:15.970
And, one of the ways is not
leveraging your whole deal in

00:45:15.970 --> 00:45:18.530
debt, like like this
person in this example.

00:45:18.530 --> 00:45:19.970
And, the reason
is because, yeah,

00:45:19.970 --> 00:45:22.050
could I go get this
deal done in six months?

00:45:22.050 --> 00:45:24.490
Absolutely, I did it in
four. So, what's the problem?

00:45:24.645 --> 00:45:26.005
Why would I be
worried about that?

00:45:26.005 --> 00:45:30.245
Well, the first the problem is
is the first step to becoming an

00:45:30.245 --> 00:45:32.805
educated real estate investor
is recognizing that you don't

00:45:32.805 --> 00:45:34.565
have control over everything.

00:45:34.565 --> 00:45:35.765
There are things
you can control.

00:45:35.765 --> 00:45:38.005
I get to pick which properties
I buy and which ones I don't.

00:45:38.005 --> 00:45:38.910
I have control over that.

00:45:38.910 --> 00:45:41.390
In fact, that's probably the
most important part of what I do.

00:45:41.390 --> 00:45:44.790
I look at a lot of deals
and most of them are no.

00:45:44.910 --> 00:45:47.230
Because the numbers don't work
or there's too much that needs

00:45:47.230 --> 00:45:50.430
to be done with it and I'll be
over budget or whatever the case.

00:45:50.430 --> 00:45:52.750
It's not the right location to
be a rental and it won't cash

00:45:52.750 --> 00:45:53.950
flow the way I want it to.

00:45:53.950 --> 00:45:54.430
Right?

00:45:54.430 --> 00:45:56.325
That is probably the most
important thing that I do is

00:45:56.325 --> 00:45:58.005
picking which deals I do
and which ones I don't.

00:45:58.005 --> 00:46:00.405
I get to pick which
money lenders I use,

00:46:00.405 --> 00:46:01.925
who I partner with.

00:46:01.925 --> 00:46:02.885
I get to pick that.

00:46:02.885 --> 00:46:05.365
Do I get to pick if the
market's going to go up or down

00:46:05.365 --> 00:46:08.090
while I own a deal
While I'm in a project?

00:46:08.090 --> 00:46:08.970
No.

00:46:08.970 --> 00:46:11.410
No. I just have
to respond to it.

00:46:11.530 --> 00:46:14.970
Well, if if the market does
change, do I like I mean,

00:46:14.970 --> 00:46:17.890
do I have any part of
that that I can control?

00:46:18.170 --> 00:46:21.285
Could there be a market
change that like where the

00:46:21.285 --> 00:46:23.125
bottom falls out like it did
in two thousand and eight and

00:46:23.125 --> 00:46:24.005
house prices plummet?

00:46:24.005 --> 00:46:27.965
Could that happen again? Yeah.
In fact, it probably will.

00:46:28.005 --> 00:46:29.965
Does anybody know when?

00:46:30.245 --> 00:46:33.965
I need to know like to
like a ninety day window.

00:46:34.005 --> 00:46:34.790
If any of you know?

00:46:34.790 --> 00:46:38.110
No, your crystal ball is fuzzy
than mine? Alright. Okay.

00:46:38.310 --> 00:46:41.270
So, here's the thing,
it absolutely could.

00:46:41.270 --> 00:46:44.390
So, what happens if you're this
investor, you go buy this deal,

00:46:44.390 --> 00:46:48.350
you get into it and two months
into your four month project,

00:46:48.555 --> 00:46:51.675
act of God, act of terrorism,
act of war, whatever,

00:46:51.675 --> 00:46:53.875
act of politics, whatever it is,

00:46:54.075 --> 00:46:57.755
the economy sinks and and
this house this house drops.

00:46:57.755 --> 00:46:59.915
In fact, the reason I picked this
house is because I have some pretty

00:46:59.915 --> 00:47:00.875
interesting data on it.

00:47:00.875 --> 00:47:02.860
Long before I bought
and did this deal,

00:47:02.860 --> 00:47:05.980
I noticed on the tax data that
this house had been purchased

00:47:05.980 --> 00:47:07.820
at two very interesting dates.

00:47:07.820 --> 00:47:09.660
It had purchased in
two thousand and seven.

00:47:09.660 --> 00:47:11.660
Where was the mark in
two thousand and seven?

00:47:11.660 --> 00:47:14.140
All the way up. And
then, it had been sold.

00:47:14.140 --> 00:47:17.060
Whoever bought in two thousand and
seven sold it in two thousand eleven.

00:47:17.215 --> 00:47:20.655
Where was the market in twenty
eleven? All the way down.

00:47:20.655 --> 00:47:20.895
Right?

00:47:20.895 --> 00:47:22.175
Whoever bought it in
two thousand seven,

00:47:22.175 --> 00:47:25.455
sold it in twenty eleven for a
hundred thousand dollars less

00:47:25.455 --> 00:47:26.815
than they bought it for.

00:47:26.815 --> 00:47:30.960
So, what happens if you're this
investor, you go do this deal,

00:47:30.960 --> 00:47:32.960
two months in your
four month project,

00:47:32.960 --> 00:47:34.560
the the market changes,

00:47:34.560 --> 00:47:38.240
bottom falls out and when you
thought you could sell it at an

00:47:38.240 --> 00:47:40.400
after repair value of three
hundred and eighty thousand,

00:47:40.400 --> 00:47:42.560
now it's only worth two eighty
and you still have two months

00:47:42.560 --> 00:47:44.040
left to go on it.

00:47:45.915 --> 00:47:50.155
Got a problem here because
you borrowed in debt three hundred

00:47:50.155 --> 00:47:54.395
thousand dollars and you owe
back that debt with interest

00:47:54.395 --> 00:47:56.315
or they'll take the house.

00:47:56.315 --> 00:47:57.235
Right?

00:47:57.850 --> 00:47:59.050
So, we can't sell it.

00:47:59.050 --> 00:48:00.650
And by the way,
if you do sell it,

00:48:00.650 --> 00:48:02.250
you're going owe those
back end fees too,

00:48:02.250 --> 00:48:04.970
which means you got to run a
fifty five thousand dollar check.

00:48:04.970 --> 00:48:05.610
I don't know about you,

00:48:05.610 --> 00:48:07.450
I didn't get into
this to write checks.

00:48:07.450 --> 00:48:09.770
I to sell I want to get
the checks written to me.

00:48:09.770 --> 00:48:11.690
Right? So, that's not an option.

00:48:11.690 --> 00:48:13.745
What else can we do with it?
What are some ideas here?

00:48:13.745 --> 00:48:17.585
What can we do with this house?
We can rent it out. Okay.

00:48:17.585 --> 00:48:18.865
You said rent, you
said refinance.

00:48:18.865 --> 00:48:19.905
Let's address those.

00:48:19.905 --> 00:48:22.065
So, we'll throw some
tenants in there, right?

00:48:22.065 --> 00:48:24.065
It takes us four months
to complete the project.

00:48:24.065 --> 00:48:25.665
So, we throw some
tenants in there.

00:48:25.665 --> 00:48:27.480
They're good tenants.
So, they pay their bills.

00:48:27.480 --> 00:48:29.560
We collect that rent
check, get some cash flow.

00:48:29.560 --> 00:48:31.360
Now, we're at month five.

00:48:31.400 --> 00:48:33.160
Then, next month, they
pay their rent again.

00:48:33.160 --> 00:48:34.280
Now, we're at month six.

00:48:34.280 --> 00:48:36.880
What happens at
month six in one day?

00:48:38.920 --> 00:48:41.175
Yeah, we got to pay our
hard money lender back.

00:48:41.175 --> 00:48:43.735
We get this nice little phone
call, hard money lenders,

00:48:43.735 --> 00:48:46.615
drove past that house you
guys did, looks amazing.

00:48:46.615 --> 00:48:47.335
Well done.

00:48:47.335 --> 00:48:49.495
You can put some cash flowing
tenants in there for me.

00:48:49.495 --> 00:48:51.815
Thank you so much.
It's mine now.

00:48:51.815 --> 00:48:52.615
So, that won't work.

00:48:52.615 --> 00:48:55.615
It's a good idea,
but it won't work.

00:48:56.330 --> 00:48:58.250
You said refinance it.

00:48:58.250 --> 00:49:00.010
Why don't we just take
it down to the bank?

00:49:00.010 --> 00:49:03.370
I'm going take this house down
to the Bank of Jeff. Alright?

00:49:03.370 --> 00:49:07.410
Jeff, I got this two hundred and
eighty thousand dollar house here.

00:49:07.785 --> 00:49:09.465
I'm wondering if you could
use this two hundred eighty

00:49:09.465 --> 00:49:12.785
thousand dollars worth of collateral
to lend me three hundred grand.

00:49:12.985 --> 00:49:15.785
So, I could pay my hard money
lender off. What do think?

00:49:15.785 --> 00:49:17.305
Will you lend me three hundred
grand on two hundred eighty

00:49:17.305 --> 00:49:18.785
thousand worth of collateral?

00:49:21.560 --> 00:49:24.320
For those at home, was sarcasm.

00:49:24.520 --> 00:49:26.280
Of course, he wouldn't. Right?

00:49:26.280 --> 00:49:28.920
Because no bank is going to
give you more money than the

00:49:28.920 --> 00:49:31.120
collateral you're
using to secure it.

00:49:31.815 --> 00:49:34.615
So, my point is here,
good idea, good idea,

00:49:34.615 --> 00:49:35.815
not going to work.

00:49:35.815 --> 00:49:38.455
And, if you've got ten or
twelve of these going on at

00:49:38.455 --> 00:49:40.135
once, you know
what that's called?

00:49:40.135 --> 00:49:44.575
Bankruptcy. Put you out of
the game. It's too risky.

00:49:45.730 --> 00:49:48.930
So, I don't want to be the I don't
want to be the the dead investor.

00:49:48.930 --> 00:49:51.490
Now, let's talk about the way
that I learned how to do this.

00:49:51.490 --> 00:49:53.250
Through the Renatus education,

00:49:53.250 --> 00:49:55.570
I learned a strategy called
the debt equity blend.

00:49:55.570 --> 00:49:58.450
And, I've used it two hundred and
seventy eight times on fix and

00:49:58.450 --> 00:50:02.255
flips and maybe another hundred
times on other strategies.

00:50:02.255 --> 00:50:05.215
I've done probably six hundred
transactions since I started

00:50:05.215 --> 00:50:07.775
thirteen years ago and I'm
not even the most impressive

00:50:07.775 --> 00:50:10.295
student in this company.

00:50:10.895 --> 00:50:13.735
So but

00:50:13.810 --> 00:50:15.090
this this strategy,

00:50:15.090 --> 00:50:17.090
this is the one that
educated investors use.

00:50:17.090 --> 00:50:19.890
This is the one that the first
flip challenges are using to

00:50:19.890 --> 00:50:23.410
get into their first deal in ninety
days and it's pretty awesome.

00:50:23.410 --> 00:50:25.170
So and I'm going
give it all to you.

00:50:25.170 --> 00:50:27.090
So, if you're not taking
notes at this point,

00:50:27.090 --> 00:50:28.165
you're probably going
to want to start.

00:50:28.165 --> 00:50:29.365
You're going to be kind
of mad at yourself,

00:50:29.365 --> 00:50:32.165
especially my live audience here
because there's no rewind button.

00:50:32.165 --> 00:50:34.005
Right? The people at home, you
can just hit the rewind button.

00:50:34.005 --> 00:50:34.645
What do you say?

00:50:34.645 --> 00:50:36.485
You know, go back, turn
the closed captions on.

00:50:36.485 --> 00:50:37.365
You guys don't get that.

00:50:37.365 --> 00:50:39.725
So, I'm telling you
now, take some notes.

00:50:39.760 --> 00:50:42.080
This debt equity blend,
there's a secret ratio.

00:50:42.080 --> 00:50:43.440
Obviously, we want to use debt.

00:50:43.440 --> 00:50:44.960
Debt's a tool, and if
we use it correctly,

00:50:44.960 --> 00:50:46.160
it can help us get work done.

00:50:46.160 --> 00:50:46.320
Right?

00:50:46.320 --> 00:50:47.840
It's cheap, it's risky,

00:50:47.840 --> 00:50:51.120
so we want to balance the level
of risk with the cheapness.

00:50:51.120 --> 00:50:54.815
And what we found is that's a
cap of two thirds of our all in

00:50:54.815 --> 00:50:56.335
cost, of our upfront cost.

00:50:56.335 --> 00:50:58.695
What's our upfront
cost on this deal?

00:50:58.735 --> 00:50:59.935
Three hundred thousand dollars.

00:50:59.935 --> 00:51:02.175
So, what's two thirds of three
hundred thousand dollars?

00:51:02.175 --> 00:51:03.695
Two hundred thousand dollars.

00:51:03.695 --> 00:51:05.855
So, we can raise two
hundred thousand in debt.

00:51:05.855 --> 00:51:09.740
We can even use that same twelve
percent six month hard money guy.

00:51:09.740 --> 00:51:10.060
Okay?

00:51:10.060 --> 00:51:12.460
But now, I still need another
hundred grand to get this deal done.

00:51:12.460 --> 00:51:14.060
I need three hundred
grand upfront.

00:51:14.060 --> 00:51:15.980
So, when I said at the
beginning, the wealthy,

00:51:15.980 --> 00:51:18.060
they're business owners,
real estate investors,

00:51:18.060 --> 00:51:20.300
sometimes that dovetails
pretty closely.

00:51:20.300 --> 00:51:23.555
You're going to learn to treat your
real estate investing like a business.

00:51:23.555 --> 00:51:25.475
Run it like a business, it'll
pay you like a business.

00:51:25.475 --> 00:51:28.115
Run it like a hobby, it'll
pay you like a hobby.

00:51:28.115 --> 00:51:32.115
Right? So, in this case, what
I did was I started an LLC.

00:51:32.115 --> 00:51:36.155
And, inside my
LLC, I gave myself

00:51:36.275 --> 00:51:37.995
fifty percent ownership,

00:51:38.210 --> 00:51:41.250
which left fifty percent
available for someone else.

00:51:41.250 --> 00:51:43.810
But, I also put the
deal inside the LLC.

00:51:43.810 --> 00:51:45.250
You're going learn there's a
lot of reasons why you don't

00:51:45.250 --> 00:51:46.930
want to own deals
in your own name.

00:51:46.930 --> 00:51:48.450
Right? Asset protection
is one of them.

00:51:48.450 --> 00:51:49.970
We want to use companies,

00:51:49.970 --> 00:51:52.595
limited liabilities
companies or trusts.

00:51:52.595 --> 00:51:54.275
In this case, it's an LLC.

00:51:54.275 --> 00:51:56.675
I put the I put the
deal inside the LLC.

00:51:56.675 --> 00:51:59.955
So, now, the deal is owned by
the LLC and I own half the LLC.

00:51:59.955 --> 00:52:02.435
And, I take the other half of
this company and I go around and I

00:52:02.435 --> 00:52:04.515
look for someone who wants
to buy the other half of this

00:52:04.515 --> 00:52:06.475
thing for a hundred grand.

00:52:06.980 --> 00:52:09.220
So, that's where we just start
calling all of our buddies.

00:52:09.220 --> 00:52:10.020
Right?

00:52:10.020 --> 00:52:13.380
To have a hundred grand just like
stuffed in their couch cushions.

00:52:13.380 --> 00:52:13.780
Yeah.

00:52:13.780 --> 00:52:16.020
Bring your couch. We're
buying a house. Right?

00:52:16.020 --> 00:52:17.380
I don't know about you guys.

00:52:17.380 --> 00:52:21.260
When I started, I didn't have any friends
that had a hundred grand laying around.

00:52:22.765 --> 00:52:26.885
But, I had an instructor who
taught me from this stage.

00:52:27.805 --> 00:52:31.885
He said, there's twenty
seven trillion dollars in

00:52:31.885 --> 00:52:34.485
retirement accounts
in this country.

00:52:34.620 --> 00:52:35.900
Twenty seven trillion.

00:52:35.900 --> 00:52:38.340
How many people live
in the United States?

00:52:39.980 --> 00:52:42.260
About three hundred
and thirty million.

00:52:42.300 --> 00:52:43.420
So, do some math.

00:52:43.420 --> 00:52:46.140
Three hundred and thirty
million people have twenty

00:52:46.140 --> 00:52:47.900
seven trillion
dollars carry the one,

00:52:47.900 --> 00:52:49.905
that's a lot of people
with a lot of So,

00:52:49.905 --> 00:52:52.785
so so, what that what that

00:52:52.785 --> 00:52:53.985
actually, we had a
slide on it earlier.

00:52:53.985 --> 00:52:55.665
You know what it
actually comes out to?

00:52:55.665 --> 00:52:59.185
An average of a hundred and sixty
five thousand dollars per person.

00:52:59.185 --> 00:53:01.225
So, look around.

00:53:01.310 --> 00:53:02.990
There's a hundred and
sixty five thousand,

00:53:02.990 --> 00:53:04.270
there's a hundred and
sixty five thousand,

00:53:04.270 --> 00:53:05.550
there's a hundred and
sixty five thousand.

00:53:05.550 --> 00:53:06.190
You're thinking, yeah,

00:53:06.190 --> 00:53:08.110
but not everybody has
exactly hundred and sixty.

00:53:08.110 --> 00:53:09.630
No, that's an average. Right?

00:53:09.630 --> 00:53:11.710
There's probably some people
in this room who don't have a

00:53:11.710 --> 00:53:15.470
retirement account and there might
be a handful of them, one or two,

00:53:15.470 --> 00:53:18.565
that have millions of dollars
in their retirement account.

00:53:18.565 --> 00:53:21.525
But, it's going to average out to
a hundred and sixty five thousand

00:53:21.525 --> 00:53:22.565
dollars per person.

00:53:22.565 --> 00:53:24.965
That was a light bulb
moment when I heard that.

00:53:24.965 --> 00:53:27.045
I'm like, there's my capital.

00:53:27.045 --> 00:53:28.325
How do I get access to it?

00:53:28.325 --> 00:53:32.910
He said, well, there's two two questions that
you need to memorize and ask to everybody.

00:53:32.910 --> 00:53:36.030
And, I thought, know, I mean,
I'm I'm an apple store guy.

00:53:36.030 --> 00:53:37.550
Like, I barely
graduated high school.

00:53:37.550 --> 00:53:38.510
I didn't go to college.

00:53:38.510 --> 00:53:41.550
But, I can memorize two simple
questions and ask them to

00:53:41.550 --> 00:53:43.825
anybody that comes within
arm's length of me.

00:53:43.825 --> 00:53:46.545
Right? And, that was my
rule, I just made the rule.

00:53:46.545 --> 00:53:48.225
So, I memorized these questions.

00:53:48.225 --> 00:53:50.545
This is the reason
why, by the way,

00:53:50.545 --> 00:53:54.065
my my dentist has been an
equity partner in several of my

00:53:54.065 --> 00:53:56.065
deals because he
came in my bubble,

00:53:56.065 --> 00:53:57.140
he came within arm's length.

00:53:57.140 --> 00:53:58.420
Right? So, I asked
him the questions.

00:53:58.420 --> 00:54:00.580
That was awkward because I had
tools in my mouth and I was

00:54:00.580 --> 00:54:02.100
asking him, you know.

00:54:02.100 --> 00:54:04.660
My doctor, equity partner.

00:54:04.660 --> 00:54:07.460
In fact, about a year and
a half ago, I got an itch.

00:54:07.460 --> 00:54:08.660
I wanted a toy.

00:54:08.660 --> 00:54:11.055
So, I went down to the Ford
dealership and I bought a

00:54:11.055 --> 00:54:12.575
Bronco, a Ford Bronco.

00:54:12.575 --> 00:54:15.055
And, the guy who sold me the
Bronco, he got my bubble too.

00:54:15.055 --> 00:54:18.015
He slid the papers over, hand
me the pen, I'm like, oh,

00:54:18.015 --> 00:54:20.495
arm's length, I'm asking
him the questions.

00:54:20.495 --> 00:54:21.055
Right?

00:54:21.055 --> 00:54:23.775
Here are the questions.
Very simple questions.

00:54:23.775 --> 00:54:26.000
Write these down.
Question number one.

00:54:26.000 --> 00:54:27.280
Ask them to everybody.

00:54:27.280 --> 00:54:28.560
Question number one.

00:54:28.560 --> 00:54:34.760
Did you know that you can use your
retirement account to buy real estate?

00:54:35.040 --> 00:54:36.800
A lot of people don't know that.

00:54:36.800 --> 00:54:38.160
But, think about
this for a second.

00:54:38.160 --> 00:54:41.080
What does your retirement account do
while you're going about your day?

00:54:41.625 --> 00:54:43.625
It's investing in
your future. Right?

00:54:43.625 --> 00:54:47.585
Is real estate an
investment? Yes. Yes, it is.

00:54:47.625 --> 00:54:50.665
So, your retirement
account, if done right,

00:54:50.665 --> 00:54:53.025
can buy real estate
instead of stocks.

00:54:53.065 --> 00:54:57.380
Now, what is what are most people's
I'm not to the second question yet.

00:54:57.380 --> 00:54:59.540
Well, I'll get there but
I'm kind of setting it up.

00:54:59.540 --> 00:55:03.020
What are most people's
retirement accounts indexed in?

00:55:04.260 --> 00:55:06.900
Mutual funds. Yeah. Heard
it out there. Mutual funds.

00:55:06.900 --> 00:55:09.820
What kind of rate of return
can you expect on mutual funds?

00:55:13.005 --> 00:55:17.965
Four, five, six, seven.
Let's go with six.

00:55:17.965 --> 00:55:20.445
Is that fair? Everybody
cool with six? Alright.

00:55:20.445 --> 00:55:21.765
Second question.

00:55:22.950 --> 00:55:24.950
If I were to show you
this is a long one,

00:55:24.950 --> 00:55:26.230
so I'll repeat it
a couple of times.

00:55:26.230 --> 00:55:30.550
If I were to show you how
you could double or triple

00:55:30.550 --> 00:55:34.830
your current rate of return
backed by real estate,

00:55:35.815 --> 00:55:39.375
would you consider partnering
with me on my next deal?

00:55:41.415 --> 00:55:45.895
If I were to show you how
you could double or triple

00:55:45.895 --> 00:55:48.255
your current rate of return

00:55:48.700 --> 00:55:50.900
backed by real estate.

00:55:51.820 --> 00:55:55.620
Would you consider partnering
with me on my next deal, John?

00:55:56.300 --> 00:55:57.860
What do you think?

00:55:58.380 --> 00:56:01.420
Oh, he's intently writing
notes. What do you think, John?

00:56:01.420 --> 00:56:02.735
Would you consider it?

00:56:02.735 --> 00:56:05.135
Yeah. You consider it. Of
course, he would. Right?

00:56:05.135 --> 00:56:06.975
Who wouldn't consider
that? Double or triple?

00:56:06.975 --> 00:56:09.535
Prove it. Right? John's going
to have questions, of course.

00:56:09.535 --> 00:56:11.615
And, obviously, there's
some wordsmithing in there.

00:56:11.615 --> 00:56:12.495
If I'd been like, John,

00:56:12.495 --> 00:56:13.855
if I could double or
triple your current rate of return

00:56:13.855 --> 00:56:16.280
back by real estate, would
you sign this document now,

00:56:16.280 --> 00:56:18.360
committing your entire
retirement account to me?

00:56:18.360 --> 00:56:21.000
He'd be like, no, get out
of my face, weirdo. Right?

00:56:21.000 --> 00:56:22.600
But, I said, would you consider?

00:56:22.600 --> 00:56:24.040
He's like, of
course, consider it.

00:56:24.040 --> 00:56:25.640
Let's let's have a conversation.

00:56:25.640 --> 00:56:27.520
Let's prove to me
that you can do it.

00:56:27.625 --> 00:56:29.705
He's going start asking
questions about the property.

00:56:29.705 --> 00:56:30.745
What? Tell me about it.

00:56:30.745 --> 00:56:33.305
Well, I've got this real estate
purchase contract all filled

00:56:33.305 --> 00:56:34.585
out and signed by the seller.

00:56:34.585 --> 00:56:35.545
We're buying this house,

00:56:35.545 --> 00:56:36.985
two thousand six hundred
seventy seven West Jordan

00:56:36.985 --> 00:56:37.465
Meadows Lane.

00:56:37.465 --> 00:56:38.265
You can see right here,

00:56:38.265 --> 00:56:39.545
two hundred and fifty
thousand dollars.

00:56:39.545 --> 00:56:40.665
They signed it. They
committed to it.

00:56:40.665 --> 00:56:42.390
In fact, we closed
in seven days.

00:56:42.390 --> 00:56:44.790
We're going put about fifty
grand into fixing it up and

00:56:44.790 --> 00:56:46.630
John, our holding costs,

00:56:46.630 --> 00:56:49.110
I don't need all three hundred
thousand dollars from you,

00:56:49.110 --> 00:56:51.110
I've already raised
two hundred grand.

00:56:51.110 --> 00:56:53.110
It's a hard money lender
at twelve percent interest,

00:56:53.110 --> 00:56:54.950
we're going to pay him about
ten grand for letting us hang

00:56:54.950 --> 00:56:56.590
on to his money for a second.

00:56:56.865 --> 00:56:58.945
But, I only need a
hundred from you.

00:56:58.945 --> 00:57:01.105
And so, our closing costs,

00:57:01.105 --> 00:57:03.985
we're going to pay an agent about
twenty five thousand dollars.

00:57:03.985 --> 00:57:04.705
We think, all in,

00:57:04.705 --> 00:57:06.145
we're going to be three hundred
and thirty five thousand

00:57:06.145 --> 00:57:07.345
dollars on this
little house, John,

00:57:07.345 --> 00:57:10.320
that you and I are together
as fifty fifty partners.

00:57:10.320 --> 00:57:12.320
I'm one one half of
that partnership.

00:57:12.320 --> 00:57:13.920
John's retirement
account, not John,

00:57:13.920 --> 00:57:17.520
John's retirement account is the
other half of that partnership.

00:57:17.520 --> 00:57:19.840
So, all in will be three
hundred and thirty five thousand

00:57:19.840 --> 00:57:21.360
dollars if you add all of it up.

00:57:21.360 --> 00:57:24.520
And I think, John, if you look
at these these comps here,

00:57:24.775 --> 00:57:27.575
there's these are other
properties that have sold in

00:57:27.575 --> 00:57:30.135
this neighborhood in
the last ninety days,

00:57:30.135 --> 00:57:32.535
in the same neighborhood as
this property we're looking at.

00:57:32.535 --> 00:57:35.095
And if you average out
all these sale prices,

00:57:35.095 --> 00:57:36.215
it comes to three eighty.

00:57:36.215 --> 00:57:39.040
So, I think we're going to be able
to sell this house for three eighty.

00:57:39.040 --> 00:57:42.160
The difference between what we
spend on it, three thirty five,

00:57:42.160 --> 00:57:43.440
and the three eighty, well,

00:57:43.440 --> 00:57:44.720
that's forty five
thousand dollars.

00:57:44.720 --> 00:57:47.920
And, because I'm half partner
and your four zero one k is half

00:57:47.920 --> 00:57:50.960
partner, we'll split
that forty five grand.

00:57:50.960 --> 00:57:53.825
I'll get a check for
twenty two five and, John,

00:57:53.825 --> 00:57:57.585
your four zero one k will make
twenty two five twenty two

00:57:57.585 --> 00:58:00.945
thousand five hundred as growth
after you get your capital back.

00:58:00.945 --> 00:58:03.385
So, let's do some
math real quick.

00:58:03.425 --> 00:58:07.265
John directed his four zero one
k to put in a hundred thousand

00:58:07.265 --> 00:58:09.100
dollars towards this project.

00:58:09.100 --> 00:58:10.060
At the end of the project,

00:58:10.060 --> 00:58:12.540
he got his hundred grand back
plus a check for twenty two five.

00:58:12.540 --> 00:58:14.660
What's John's rate of return?

00:58:16.780 --> 00:58:18.940
Twenty two and a half percent.

00:58:18.940 --> 00:58:20.820
Is that more than double six?

00:58:21.515 --> 00:58:24.955
Is that more than triple six that
John was getting the mutual funds?

00:58:24.955 --> 00:58:27.075
What do you think,
John? You excited?

00:58:27.435 --> 00:58:29.915
You ready? Yeah. He's
going to sign. Alright.

00:58:29.915 --> 00:58:31.675
That was that's awesome.

00:58:31.675 --> 00:58:33.755
Is this an easy conversation
to have with people?

00:58:33.755 --> 00:58:37.440
Two questions, show them that how
the deal is going to make them money,

00:58:37.440 --> 00:58:39.280
make them three, four
times what it is.

00:58:39.280 --> 00:58:43.920
It gets better than this
because I put this in the

00:58:43.920 --> 00:58:46.000
actual column for a reason.

00:58:46.000 --> 00:58:48.160
John's actual rate of
return is twenty two five.

00:58:48.160 --> 00:58:50.680
When we're talking about
six percent on mutual funds,

00:58:50.825 --> 00:58:53.865
how many months does it take to
get six percent on a mutual fund?

00:58:53.865 --> 00:58:55.385
Twelve. Twelve months.

00:58:55.385 --> 00:58:58.585
How many months did it take for
for me and John to do this deal?

00:58:58.585 --> 00:59:00.865
Six. Four.

00:59:01.145 --> 00:59:02.705
Took four months.

00:59:03.420 --> 00:59:06.140
So, there are three four
month periods in a year.

00:59:06.140 --> 00:59:08.380
So, if we annualize
this rate of return,

00:59:08.380 --> 00:59:11.180
sixty seven point five percent.

00:59:11.180 --> 00:59:14.540
Did I have to rip John off to
get him to jump into this deal?

00:59:14.540 --> 00:59:17.540
No. I actually took really good
care of him and you know what?

00:59:17.875 --> 00:59:20.195
He's going to be excited
to do the next one.

00:59:20.195 --> 00:59:22.275
When I give him that money back
and he's made a sixty seven

00:59:22.275 --> 00:59:24.035
point five percent
annualized rate of return,

00:59:24.035 --> 00:59:26.195
I never have to pitch
John on it again.

00:59:26.195 --> 00:59:28.195
In fact, John calls
me now. Right?

00:59:28.195 --> 00:59:30.875
Hey, when's the next one?
Let's go do this again. Right?

00:59:31.320 --> 00:59:35.520
Raising the capital is so easy
when you know what you're doing,

00:59:36.040 --> 00:59:38.320
which brings me
to my next point.

00:59:39.880 --> 00:59:42.120
One of the concerns
John might have is, hey,

00:59:42.120 --> 00:59:44.440
you talked about that debt
guy and how he lost all of his

00:59:44.440 --> 00:59:46.615
money, know, because
he had some debt.

00:59:46.615 --> 00:59:48.455
We got some debt
in this deal, like,

00:59:48.455 --> 00:59:49.575
are we not going to lose money?

00:59:49.575 --> 00:59:53.655
Well, it's different now because
John created the John's position in

00:59:53.655 --> 00:59:56.535
this deal created some
equity in this property.

00:59:56.535 --> 00:59:58.695
I don't have three hundred
thousand dollars worth of debt

00:59:58.695 --> 01:00:01.800
and if this two thousand eight
happened again and this this

01:00:01.800 --> 01:00:04.640
house price dropped
by a hundred grand,

01:00:05.160 --> 01:00:06.440
I've got an equity position.

01:00:06.440 --> 01:00:08.840
We, as a partnership,
have an equity position.

01:00:08.840 --> 01:00:11.240
I'm not leveraged to three hundred
thousand dollars on the house.

01:00:11.240 --> 01:00:13.600
What's my debt on this
house in this case?

01:00:13.960 --> 01:00:15.440
Two hundred thousand.

01:00:15.915 --> 01:00:19.275
So, if I go down to the bank of
Jeff and I bring my two hundred

01:00:19.275 --> 01:00:20.955
and eighty thousand dollars
worth of collateral,

01:00:20.955 --> 01:00:22.715
this house, John or Jeff,

01:00:22.715 --> 01:00:23.835
here's two hundred eighty grand,

01:00:23.835 --> 01:00:26.475
will you lend me two hundred
against this, please?

01:00:26.475 --> 01:00:27.795
Now, will.

01:00:28.660 --> 01:00:30.140
Because

01:00:30.660 --> 01:00:33.700
my debt, I'm not over
leveraged on it, right?

01:00:33.700 --> 01:00:37.220
So, Jeff gives me a thirty year
mortgage that pays off my hard

01:00:37.220 --> 01:00:39.300
money lender and gets him out
of the picture before the six

01:00:39.300 --> 01:00:41.855
months is Now, with a
thirty year mortgage,

01:00:41.855 --> 01:00:44.095
I can just make little
tiny baby payments and remember,

01:00:44.095 --> 01:00:45.375
we're talking worst
case scenario.

01:00:45.375 --> 01:00:48.255
We're talking if two thousand
and eight happens, John, right?

01:00:48.255 --> 01:00:51.455
So, now, when I'm just can make

01:00:51.455 --> 01:00:53.375
little baby payments, I
got long term financing,

01:00:53.375 --> 01:00:54.615
what can I do with it?

01:00:54.950 --> 01:00:56.950
I can rent it out. That's right.

01:00:56.950 --> 01:00:58.550
Can put some tenants in there.

01:00:58.550 --> 01:00:59.430
If you think about it,

01:00:59.430 --> 01:01:03.110
if I got a mortgage that's on a basis
of me borrowing two hundred grand,

01:01:03.110 --> 01:01:05.910
the payment's going to be on
that basis of two hundred grand.

01:01:05.910 --> 01:01:07.350
The house is worth two eighty,

01:01:07.350 --> 01:01:09.225
so I can rent it
out on that basis.

01:01:09.225 --> 01:01:11.665
Is there going to
be some cash flow?

01:01:11.705 --> 01:01:13.385
Now, it might not be very much.

01:01:13.385 --> 01:01:16.025
But remember, we're talking
worst case scenario here,

01:01:16.025 --> 01:01:19.105
like the world explodes and
we got to find a backup plan.

01:01:19.225 --> 01:01:20.745
You know, there's
going to be cash flow.

01:01:20.745 --> 01:01:23.250
So, John and I will just
convert this into a rental.

01:01:23.250 --> 01:01:24.770
We'll hold on to it
for a little while,

01:01:24.770 --> 01:01:26.530
we'll rent it out, we'll make
a little bit of cash flow,

01:01:26.530 --> 01:01:29.010
you might make two three
percent in the bad economy

01:01:29.010 --> 01:01:31.090
while we're waiting for
the market to come back,

01:01:31.090 --> 01:01:32.770
while all of his friends who
left their money in mutual

01:01:32.770 --> 01:01:35.370
funds how did mutual funds
do in two thousand and eight?

01:01:35.970 --> 01:01:37.595
They're not good. Right?

01:01:37.595 --> 01:01:39.355
Like, they halved.

01:01:39.355 --> 01:01:43.395
The 401ks became two
zero one ks's. Right?

01:01:43.435 --> 01:01:45.915
So, but we're making money all
along the way and I don't know

01:01:45.915 --> 01:01:46.795
how long it's going to take.

01:01:46.795 --> 01:01:48.395
It could take six months,
it could take a year,

01:01:48.395 --> 01:01:49.675
it could take ten years.

01:01:49.675 --> 01:01:51.275
But, will the market
always come back,

01:01:51.275 --> 01:01:52.540
the real estate market?

01:01:52.540 --> 01:01:55.980
Yes, it will. Because we human
beings, we need three things.

01:01:55.980 --> 01:01:58.460
We need food, we need
water, we need shelter.

01:01:58.460 --> 01:02:02.260
It's the only investment
category that's based on

01:02:02.380 --> 01:02:04.500
actual human needs.

01:02:04.855 --> 01:02:05.975
It will always come back.

01:02:05.975 --> 01:02:07.655
And, when it comes
back to three eighty,

01:02:07.655 --> 01:02:11.175
however long that takes,
we're going to sell it.

01:02:11.175 --> 01:02:13.335
He's going to make his twenty
two five and I'll make my

01:02:13.335 --> 01:02:17.655
twenty two five, plus all the
cash flow we made along the way.

01:02:17.655 --> 01:02:20.415
Worst case scenario,

01:02:21.060 --> 01:02:23.020
we make more money.

01:02:25.460 --> 01:02:27.540
Told you. It's okay. We got
a cleaning crew coming in.

01:02:27.540 --> 01:02:28.420
You just leave it. It's fine.

01:02:28.420 --> 01:02:30.580
It'll happen again. So,
don't worry about it.

01:02:30.580 --> 01:02:31.420
But,

01:02:33.765 --> 01:02:35.845
what for those of you who
thought that real estate

01:02:35.845 --> 01:02:39.485
investing was risky,
like five minutes ago,

01:02:40.165 --> 01:02:41.805
what changed?

01:02:43.925 --> 01:02:48.205
Knowledge. When knowledge
increases, behavior changes.

01:02:49.700 --> 01:02:50.940
Now,

01:02:51.380 --> 01:02:53.340
this still gets better.

01:02:53.860 --> 01:02:57.980
There's another party in this.
Who have I not listed yet?

01:02:59.460 --> 01:03:01.100
Me.

01:03:01.135 --> 01:03:04.015
Me and Melee. How much money
did we bring to the table?

01:03:04.015 --> 01:03:06.015
Zero dollars.

01:03:06.015 --> 01:03:09.855
But, I also got a check for
twenty two thousand five hundred.

01:03:09.855 --> 01:03:12.855
See what I mean, legal
money printing factory?

01:03:13.070 --> 01:03:15.470
I also got a check for twenty
two thousand five hundred

01:03:15.470 --> 01:03:16.270
dollars on this deal.

01:03:16.270 --> 01:03:18.590
So, what does that
make my rate of return?

01:03:18.590 --> 01:03:21.070
Twenty two thousand five hundred

01:03:21.070 --> 01:03:23.670
percent of zero is still zero.

01:03:24.910 --> 01:03:26.430
This is this question
is for the guests.

01:03:26.430 --> 01:03:28.230
I know students,
you know this one.

01:03:28.695 --> 01:03:31.095
My guess, what's
my rate of return?

01:03:31.095 --> 01:03:34.535
Oh, I feel like a third
grader when I say this.

01:03:34.535 --> 01:03:37.455
I made infinity
percent on this deal.

01:03:38.055 --> 01:03:40.815
I like making an infinity
percent on every deal.

01:03:42.110 --> 01:03:45.470
And, if I'm making an infinite
rate of return on these on these

01:03:45.470 --> 01:03:48.270
properties and I'm able to take
that twenty two grand and use

01:03:48.270 --> 01:03:52.310
it to go buy a rental property
or a down payment on a rental,

01:03:52.365 --> 01:03:54.925
You see how this can
speed up the process?

01:03:54.925 --> 01:03:58.605
How much money if if you knew
how to do this whole thing,

01:03:58.605 --> 01:04:00.365
how much money would you
have to have in your checking

01:04:00.365 --> 01:04:02.045
account to make this happen?

01:04:02.045 --> 01:04:05.885
Doesn't matter. It could
be negative. It's fine.

01:04:05.885 --> 01:04:10.260
You can still get this deal done
and make twenty two five because

01:04:10.860 --> 01:04:14.620
it has nothing to do with
your with your resources.

01:04:14.620 --> 01:04:16.780
Has everything to do with
learning to leverage other

01:04:16.780 --> 01:04:18.100
people's resources.

01:04:20.075 --> 01:04:23.115
Now, I want to share this
is one of our challenges.

01:04:23.115 --> 01:04:26.235
This is Mahea. Is Mahea here
tonight? Where's Mahea at?

01:04:26.235 --> 01:04:29.715
Hi, Mahea. Everybody
wave at Mahea. Yeah.

01:04:30.395 --> 01:04:34.840
So, was her first deal that she
did in the first flip challenge.

01:04:34.840 --> 01:04:36.600
So, when I met Mejia,

01:04:36.600 --> 01:04:39.880
she was working as a loan
officer at Mountain America

01:04:39.880 --> 01:04:41.240
Credit Union. Okay?

01:04:41.240 --> 01:04:42.760
And, she came in, she
joined the challenge,

01:04:42.760 --> 01:04:44.520
she made the big
sacrifice, all of are like,

01:04:44.520 --> 01:04:46.360
you're going twenty six
grand for me, you're crazy.

01:04:46.360 --> 01:04:47.325
Well, Mejia did it.

01:04:47.325 --> 01:04:49.885
She spent the twenty six grand,
she got into the challenge,

01:04:49.885 --> 01:04:51.565
she started to apply the
things that she was learning.

01:04:51.565 --> 01:04:52.605
She was learning
how to find deals.

01:04:52.605 --> 01:04:53.965
She went out and
found this deal,

01:04:53.965 --> 01:04:57.565
someone who was behind on their
mortgage and and was about to

01:04:57.565 --> 01:04:59.805
lose their house to the bank
and she had a conversation with

01:04:59.805 --> 01:05:02.680
them that actually was a little bit
different than the debt equity blend.

01:05:02.680 --> 01:05:05.000
This is kind of a spin
on the debt equity blend.

01:05:05.000 --> 01:05:07.320
She was able to pick up
this house in West Valley for two

01:05:07.320 --> 01:05:08.840
hundred and twenty
three thousand dollars.

01:05:08.840 --> 01:05:12.120
She put about fifty
thousand into fixing it up.

01:05:12.120 --> 01:05:15.840
Her holding costs were
twelve grand seller financed.

01:05:16.895 --> 01:05:19.295
She used a spin on
the debt equity blend.

01:05:19.295 --> 01:05:23.735
She used a seller
financed equity blend.

01:05:24.335 --> 01:05:27.375
Actually, to get technical, if
you want to be more specific,

01:05:27.375 --> 01:05:30.320
subject to is the seller
financing strategy that she used.

01:05:30.320 --> 01:05:34.960
That's where you use the previous
owner's mortgage to fund your deal.

01:05:34.960 --> 01:05:39.040
How many of all the real
estate that's out there,

01:05:39.040 --> 01:05:41.680
that's either owned free or
clear or already has a loan on

01:05:41.680 --> 01:05:44.520
it, why do you think you
need to get a new loan?

01:05:44.855 --> 01:05:47.415
You ever thought about just
asking the person who owns it

01:05:47.415 --> 01:05:49.615
now if you could use their loan?

01:05:49.735 --> 01:05:51.815
The loan they already
have in place?

01:05:51.815 --> 01:05:54.255
It's like a fifteen
minute conversation.

01:05:54.375 --> 01:05:58.560
And especially, if we can help that
person and create a win win just like

01:05:58.560 --> 01:06:00.560
Mahea did here. Right?

01:06:00.560 --> 01:06:02.080
So, they were about
to lose their house,

01:06:02.080 --> 01:06:03.840
Mahea had a very
simple conversation with them.

01:06:03.840 --> 01:06:06.160
She said, hey, look, the bank's
you got one or two options.

01:06:06.160 --> 01:06:07.760
The bank's going
to take your house,

01:06:07.760 --> 01:06:09.120
but if you give it
over to the bank,

01:06:09.120 --> 01:06:11.120
they're going to destroy your
credit with a foreclosure mark

01:06:11.120 --> 01:06:13.475
or you could turn
the title over to me.

01:06:13.475 --> 01:06:14.755
Either way, you're
going to lose the house,

01:06:14.755 --> 01:06:16.595
but if you turn it over to me,
I'm going save your credit.

01:06:16.595 --> 01:06:17.795
Here's how I'm going to do it.

01:06:17.795 --> 01:06:19.475
We're going to put
a contract in place.

01:06:19.475 --> 01:06:21.075
First paragraph, you
give the title to me.

01:06:21.075 --> 01:06:24.840
Second paragraph, I will you'll
stay on as as tied to the

01:06:24.840 --> 01:06:26.520
mortgage, you'll just
now be a credit partner.

01:06:26.520 --> 01:06:27.400
You won't be the owner anymore,

01:06:27.400 --> 01:06:28.360
you'll just be a credit partner,

01:06:28.360 --> 01:06:30.040
you're staying on
on the mortgage.

01:06:30.040 --> 01:06:33.000
But, I will immediately catch
you up on your back payments.

01:06:33.000 --> 01:06:35.880
How much are you behind?
Twelve grand. Okay.

01:06:35.880 --> 01:06:37.415
Write a check to the bank,

01:06:37.415 --> 01:06:38.935
send it to the don't
give it to them.

01:06:38.935 --> 01:06:40.215
Who knows what they'll
do with it? Right?

01:06:40.215 --> 01:06:42.455
Send it off to the bank, catch
them up with their payments.

01:06:42.455 --> 01:06:44.855
What happens to the to the
foreclosure when they're caught

01:06:44.855 --> 01:06:46.295
up on their payments?

01:06:46.295 --> 01:06:48.295
It stops the foreclosure.

01:06:48.295 --> 01:06:50.110
It stops the bleeding
on their credit.

01:06:50.110 --> 01:06:51.630
Third paragraph of the contract,

01:06:51.630 --> 01:06:55.230
I will make your payments on
time every single month or you

01:06:55.230 --> 01:06:56.870
get the house back.

01:06:57.070 --> 01:07:00.590
What happens as Mahea starts to make
those payments on time every month?

01:07:00.590 --> 01:07:03.590
What happens to the to the
previous owner's credit?

01:07:03.715 --> 01:07:07.475
It improves. So,
here's your choices.

01:07:07.475 --> 01:07:09.635
Turn the house over to the
bank, credit destroyed.

01:07:09.635 --> 01:07:11.635
Turn your house over
to me, credit saved.

01:07:11.635 --> 01:07:13.595
Which one do think they picked?

01:07:14.035 --> 01:07:15.435
Credit saved.

01:07:15.570 --> 01:07:15.970
Right?

01:07:15.970 --> 01:07:20.530
And, now they're just on as a credit partner
and the win they get is credit repair.

01:07:20.530 --> 01:07:23.250
So, Mahea raised
equity equity money,

01:07:23.250 --> 01:07:24.770
somebody else's
retirement funds.

01:07:24.770 --> 01:07:28.450
Right? To cover the rehab, the
seller finance costs there.

01:07:28.450 --> 01:07:30.930
And then, she sold it,
back end costs, of course,

01:07:30.930 --> 01:07:33.515
she was an agent and
and paid that agent.

01:07:33.515 --> 01:07:34.795
So, all in, if you
add all this up,

01:07:34.795 --> 01:07:36.715
three hundred and ten
thousand dollars in,

01:07:36.715 --> 01:07:39.995
she sold it six months later
for four hundred and twenty

01:07:39.995 --> 01:07:42.955
four thousand dollars on her first
deal in the first flip challenge.

01:07:42.955 --> 01:07:46.630
She made a hundred and fourteen
grand. That's pretty awesome.

01:07:46.630 --> 01:07:46.870
Yeah.

01:07:46.870 --> 01:07:49.270
That deserves a round of
applause. Well done, Mahe.

01:07:49.270 --> 01:07:51.590
Well done, Ron. Okay.

01:07:51.590 --> 01:07:53.030
So, needless to say,

01:07:53.030 --> 01:07:56.430
I don't think Mahe works at Mountain
America Credit Union anymore.

01:07:56.470 --> 01:07:57.845
Retired. Right?

01:07:57.845 --> 01:08:01.365
Unemployable. Yeah.
I love it. I love it.

01:08:01.365 --> 01:08:05.485
How many Mihayah, how many deals
have you done since this one?

01:08:07.605 --> 01:08:09.805
Thirteen. How long you've
a part of the group?

01:08:10.600 --> 01:08:11.040
Couple

01:08:11.800 --> 01:08:14.600
So, thirteen deals in
two years. That's incredible.

01:08:14.600 --> 01:08:17.160
And then, not done well,
you guys did a live in flip.

01:08:17.160 --> 01:08:20.200
You were the move in investor
before that, but just once, right?

01:08:20.200 --> 01:08:22.335
Before that, they hadn't
done any real estate deals.

01:08:22.335 --> 01:08:24.335
And, since they joined
the First Float Challenge,

01:08:24.335 --> 01:08:26.775
thirteen deals
done in two years.

01:08:27.135 --> 01:08:30.735
That's exciting. That's
transformational. Right?

01:08:30.735 --> 01:08:32.815
These are not the only
strategies that we have.

01:08:32.815 --> 01:08:36.270
There's so many different ways that
you can leverage other people's money.

01:08:36.270 --> 01:08:39.110
The capital, guys,
is not the problem.

01:08:39.630 --> 01:08:42.910
Hopefully, you can see from that from
that little taste that I just gave

01:08:42.910 --> 01:08:46.830
you how easy it is to find
and raise the capital when you

01:08:46.830 --> 01:08:48.950
know how to put a
good deal together.

01:08:49.615 --> 01:08:53.055
You don't need to work a job
trading the hours of your life,

01:08:53.055 --> 01:08:55.135
climbing the corporate
ladder, working two or three,

01:08:55.135 --> 01:08:56.175
spinning on the hamster wheel,

01:08:56.175 --> 01:08:59.735
trying to save up enough to
eventually, maybe, go buy one.

01:09:01.080 --> 01:09:06.000
Just learn how to put a good deal
together and anyone will end on it.

01:09:06.760 --> 01:09:08.080
Now,

01:09:08.920 --> 01:09:11.720
once the capital portion is
taken care of, and I mean,

01:09:11.720 --> 01:09:14.120
twenty seven trillion dollars
out there in just retirement

01:09:14.120 --> 01:09:18.255
accounts, you know, I did
told myself when I'm like,

01:09:18.255 --> 01:09:20.335
I'm going to ask
everybody these questions,

01:09:20.335 --> 01:09:22.895
I'm going to tap into all
twenty seven trillion.

01:09:22.895 --> 01:09:24.855
Well, I'm sad to report,

01:09:24.895 --> 01:09:27.215
I did not raise
twenty seven trillion.

01:09:27.215 --> 01:09:29.375
I have still a
little ways to go,

01:09:29.375 --> 01:09:30.575
but in the last thirteen years,

01:09:30.575 --> 01:09:33.335
I've raised about a
hundred and thirty million.

01:09:33.990 --> 01:09:35.950
Apple store guy,

01:09:36.470 --> 01:09:39.990
barely graduated high
school, didn't go to college,

01:09:39.990 --> 01:09:43.350
raised a hundred and thirty
million because I decided to

01:09:43.350 --> 01:09:45.470
change what was going into here.

01:09:47.825 --> 01:09:51.905
Now, once the capital portion
is taken care of and you've got

01:09:51.905 --> 01:09:55.025
enough capital to go out and do as
much real estate as you want to,

01:09:55.025 --> 01:09:58.545
there's another currency that's
more important than money that

01:09:58.545 --> 01:09:59.505
we need to focus on.

01:09:59.505 --> 01:10:00.505
What is it?

01:10:03.780 --> 01:10:04.740
Time.

01:10:04.740 --> 01:10:06.180
Time's the more
valuable currency,

01:10:06.180 --> 01:10:08.260
it's the non renewable currency.

01:10:08.260 --> 01:10:10.660
Time's the one that
we need to manage.

01:10:10.660 --> 01:10:13.300
Because, if you've got all the if
you've got all the capital in the

01:10:13.300 --> 01:10:15.065
world, but you don't know how to

01:10:15.065 --> 01:10:16.105
control your time, guys,

01:10:16.105 --> 01:10:18.425
you're not going be able
to scale this business.

01:10:18.425 --> 01:10:21.785
And this is exactly what the
what the business needs because

01:10:21.785 --> 01:10:23.385
time is the limiting factor.

01:10:23.385 --> 01:10:25.985
You need to move as
quickly as possible.

01:10:26.025 --> 01:10:28.785
So, we need to Henry
Ford this stuff.

01:10:28.990 --> 01:10:29.310
Right?

01:10:29.310 --> 01:10:31.470
We need to create an assembly
line where you can just crack

01:10:31.470 --> 01:10:35.110
these things out and just,
you know, hyper speed.

01:10:35.870 --> 01:10:37.310
Well, good good news for you.

01:10:37.310 --> 01:10:39.230
I'm promoting every
one of you tonight.

01:10:39.230 --> 01:10:44.255
You are all now CEO of your own
personal real estate investing empire.

01:10:44.255 --> 01:10:44.975
Give yourselves a hand.

01:10:44.975 --> 01:10:46.335
That's an awesome
promotion. CEO?

01:10:46.335 --> 01:10:49.295
People work their entire
lives to be CEOs, man.

01:10:49.295 --> 01:10:50.495
That's awesome.

01:10:50.495 --> 01:10:52.575
So, what's your job
description as a CEO?

01:10:52.575 --> 01:10:57.360
What what do you do you need to
do now? What what do CEOs do?

01:10:58.040 --> 01:11:01.440
They manage. Okay. Yeah. They
manage. I like that. What else?

01:11:02.200 --> 01:11:05.000
They buy assets. Yes. What
else? What else do CEOs do?

01:11:05.000 --> 01:11:08.760
Strategize. Strategize. Yeah.
Do they clean the bathroom?

01:11:08.760 --> 01:11:10.880
No. They sweep the floor?

01:11:11.295 --> 01:11:12.615
Who does?

01:11:12.655 --> 01:11:15.695
Employees. Okay.
So, got to delegate.

01:11:15.695 --> 01:11:17.535
I mean, because all the
responsibilities of every

01:11:17.535 --> 01:11:20.495
employee eventually
falls back on the CEO,

01:11:20.495 --> 01:11:23.055
but the CEO doesn't have enough
time to do all the things.

01:11:23.055 --> 01:11:24.335
So, they got to delegate, right?

01:11:24.335 --> 01:11:25.055
They got to manage,

01:11:25.055 --> 01:11:28.760
they got to keep that ship
aimed towards the goal,

01:11:28.760 --> 01:11:29.880
aimed towards the vision.

01:11:29.880 --> 01:11:31.439
They're the captain.

01:11:32.280 --> 01:11:35.640
You all told me that your
vision tonight is not to just

01:11:35.640 --> 01:11:39.575
replace your job with something
different Because real estate

01:11:39.575 --> 01:11:42.015
can be that if
you're not careful.

01:11:42.535 --> 01:11:46.295
You told me that your vision is
that you want to build wealth,

01:11:46.295 --> 01:11:48.335
you want to create assets.

01:11:48.935 --> 01:11:50.055
And, if that's the case,

01:11:50.055 --> 01:11:52.415
then we got to steer the
ship in that direction.

01:11:53.980 --> 01:11:56.500
Build wealth.

01:11:56.700 --> 01:12:02.100
There's only one one
direct action that I do

01:12:02.220 --> 01:12:04.620
in my real estate
investing career.

01:12:04.620 --> 01:12:07.820
That when I do that thing,
the moment I do that thing,

01:12:07.820 --> 01:12:09.095
my net worth goes up.

01:12:09.095 --> 01:12:12.655
It's the only thing that
I do where that happens.

01:12:13.895 --> 01:12:16.615
It's not networking.
It's not learning.

01:12:16.615 --> 01:12:18.295
Those are all important things.

01:12:18.295 --> 01:12:20.455
It's not attending
workshops like this, things.

01:12:20.455 --> 01:12:23.300
You're all here but your net
worth is not necessarily going up.

01:12:23.300 --> 01:12:25.780
Your knowledge level
is, that's important.

01:12:25.780 --> 01:12:27.220
But, when this
one thing happens,

01:12:27.220 --> 01:12:29.580
I'm in the same
place every time.

01:12:29.860 --> 01:12:31.300
It's a beautiful
conference room,

01:12:31.300 --> 01:12:33.860
it's got a nice granite
table, a bunch of chairs.

01:12:33.860 --> 01:12:35.460
I sit down, there's a, you know,

01:12:35.460 --> 01:12:38.100
nice man or woman across the
table and they slide a stack of

01:12:38.100 --> 01:12:42.175
papers across the table to
me and I write my name on it.

01:12:42.175 --> 01:12:44.455
Can everybody here
write their name?

01:12:44.895 --> 01:12:46.975
Perfect. You're all
qualified. Okay.

01:12:46.975 --> 01:12:49.695
So, when I write my name
on this stack of papers,

01:12:49.695 --> 01:12:51.335
my net worth goes up.

01:12:52.810 --> 01:12:54.370
Where am I?

01:12:55.290 --> 01:12:59.530
Title company, closing
on a deal, buying deals.

01:12:59.530 --> 01:13:00.970
That's what real
estate investors do.

01:13:00.970 --> 01:13:05.170
When I buy a deal, my net
worth goes up in that moment.

01:13:06.645 --> 01:13:08.885
So, I do five things
and that's it.

01:13:08.885 --> 01:13:12.725
And, the only reason I do the first
four is because it leads to the fifth.

01:13:12.725 --> 01:13:16.645
I find, I analyze, I negotiate,

01:13:16.645 --> 01:13:19.125
I fund and I close on deals.

01:13:19.125 --> 01:13:20.710
When I'm done closing on
the deal, what do I do?

01:13:20.710 --> 01:13:22.790
***** ** a tool belt and
go start framing a wall?

01:13:22.790 --> 01:13:24.870
Is my net worth going up when
I ***** ** a tool belt and

01:13:24.870 --> 01:13:27.070
pretend to be a contractor?

01:13:27.110 --> 01:13:28.550
No, it's not.

01:13:28.550 --> 01:13:31.205
My net worth only goes up
when I close on the next deal.

01:13:31.205 --> 01:13:33.765
So, when I close on the deal,
I start the process over.

01:13:33.765 --> 01:13:36.485
I go find the next one, analyze,
negotiate, fund it, close on it.

01:13:36.485 --> 01:13:38.965
Find the next one, analyze,
negotiate, fund it, close on it.

01:13:38.965 --> 01:13:40.805
I just got this thing,
this machine going. Right?

01:13:40.805 --> 01:13:42.325
And, I popped out ten deals.

01:13:42.325 --> 01:13:45.205
I got ten deals over there and
nothing's happening to them.

01:13:45.205 --> 01:13:46.370
It's called fix and flips.

01:13:46.370 --> 01:13:47.810
I got ten fix and
flips over there,

01:13:47.810 --> 01:13:48.850
nothing's happening to them.

01:13:48.850 --> 01:13:50.410
What needs to happen?

01:13:51.650 --> 01:13:53.890
They can't just sit
there because eventually,

01:13:53.890 --> 01:13:56.130
I'll run out of time with
my hard money lender,

01:13:56.130 --> 01:13:58.530
they'll foreclose, my equity
partners will get mad.

01:13:58.530 --> 01:14:01.210
Right? So, I can't I got
something's gotta happen.

01:14:02.045 --> 01:14:04.285
I've got to I've I
need somebody in there.

01:14:04.285 --> 01:14:06.605
So, delegate. You think
you said manage. Right?

01:14:06.605 --> 01:14:08.605
So, we got we got to man
and we got to delegate these

01:14:08.605 --> 01:14:09.645
responsibilities.

01:14:09.645 --> 01:14:12.685
We got to hire some general
contractors to get those things done.

01:14:12.685 --> 01:14:15.500
Now, if I've got ten projects,

01:14:15.500 --> 01:14:18.700
I need ten different crews and
that means that there's ten

01:14:18.700 --> 01:14:21.740
different contractors calling
me off the hook wondering what

01:14:21.740 --> 01:14:23.740
it is that I want done
with these properties.

01:14:23.740 --> 01:14:25.340
Because I don't know about you,

01:14:25.340 --> 01:14:27.020
but the contractors I work with,

01:14:27.020 --> 01:14:29.855
they don't like making
decisions on their own Because

01:14:29.855 --> 01:14:31.615
they're worried that
me, the homeowner,

01:14:31.615 --> 01:14:32.895
is not going to
like what they pick,

01:14:32.895 --> 01:14:35.535
they'd rather just ask me in
the first place what I want.

01:14:35.535 --> 01:14:35.855
Right?

01:14:35.855 --> 01:14:36.655
So, all of a sudden,

01:14:36.655 --> 01:14:38.255
ten contractors calling
me all day long,

01:14:38.255 --> 01:14:39.215
what color of tile you want,

01:14:39.215 --> 01:14:42.255
what color of wallpaper
you want, color of paint.

01:14:42.255 --> 01:14:44.210
Right? What what toilet
you want in the bathroom?

01:14:44.210 --> 01:14:46.090
Like, the questions.

01:14:46.210 --> 01:14:49.570
So, how do I avoid this
is not what real estate investors do.

01:14:49.570 --> 01:14:52.690
Unless, I'm talking to
homeowners and sellers,

01:14:52.690 --> 01:14:53.570
that's what I want to be doing.

01:14:53.570 --> 01:14:55.010
Don't want be talking
to contractors,

01:14:55.010 --> 01:14:56.730
that takes my time.

01:14:56.850 --> 01:14:58.650
So, how do I eliminate this?

01:14:59.035 --> 01:15:00.075
What do I need?

01:15:00.075 --> 01:15:05.275
It's for the guests.

01:15:05.275 --> 01:15:08.075
I know the students. I already
know you know, the students.

01:15:08.075 --> 01:15:09.995
What what are the what a guest?

01:15:09.995 --> 01:15:12.115
What what do I need to
do to get rid of this?

01:15:12.800 --> 01:15:15.360
I need an assistant.
Is that what you said?

01:15:15.360 --> 01:15:17.120
Assistant or a system?

01:15:17.120 --> 01:15:21.200
Oh, which one? System.
System. Okay. Alright. Yes.

01:15:21.200 --> 01:15:23.440
You're you were correct. I
thought you said assistant.

01:15:23.440 --> 01:15:25.120
I'm like, don't you
would just, you know,

01:15:25.120 --> 01:15:27.685
that one person who would
funnel in and just asked me.

01:15:27.685 --> 01:15:28.965
You're right. We need a system.

01:15:28.965 --> 01:15:32.125
Here's my system for
flips in particular.

01:15:32.725 --> 01:15:35.685
I know that the HGTV
shows make you think that,

01:15:35.685 --> 01:15:38.165
you know you've seen the shows
where like they take like a

01:15:38.165 --> 01:15:40.565
whole episode just to go
pick what color of granite they're

01:15:40.565 --> 01:15:41.805
going to put in the house?

01:15:41.810 --> 01:15:43.490
Like, we got time
for that. Right?

01:15:43.490 --> 01:15:44.930
I'm doing ten to
twelve at a time,

01:15:44.930 --> 01:15:48.730
I'd just be at the granite quarry
all, you know, all day long.

01:15:49.330 --> 01:15:51.090
That's and that makes
me an interior designer.

01:15:51.090 --> 01:15:52.530
I want to be an
interior designer.

01:15:52.530 --> 01:15:54.905
I need them, but I
don't want to be that.

01:15:54.905 --> 01:15:56.025
I want to be an investor.

01:15:56.025 --> 01:15:57.465
I need to be finding,
analyzing, negotiating,

01:15:57.465 --> 01:15:59.505
funding and closing on deals.

01:15:59.705 --> 01:16:05.145
So, my system is I put the
same crap in every house.

01:16:05.145 --> 01:16:07.945
Then, don't have to make the
decision more than once. Right?

01:16:07.945 --> 01:16:10.830
Now, it's beautiful crap,
Mealy, it's beautiful.

01:16:10.830 --> 01:16:13.470
Mealy goes to their parade of
homes every year and picks out

01:16:13.470 --> 01:16:14.830
the most beautiful crap.

01:16:14.830 --> 01:16:16.110
But then,

01:16:16.110 --> 01:16:18.830
that's what goes in the house
for the rest of the year.

01:16:18.830 --> 01:16:19.070
Right?

01:16:19.070 --> 01:16:22.110
In every house we do and it saves
me time and it saves me money.

01:16:22.110 --> 01:16:25.030
It saves me time because I
only have to make the decision once.

01:16:25.105 --> 01:16:27.265
It saves me money for
a couple of reasons.

01:16:27.265 --> 01:16:28.945
I can now buy in bulk.

01:16:28.945 --> 01:16:31.505
I know that, you know, I get
a discount when I buy in bulk.

01:16:31.505 --> 01:16:33.105
If I you buy a box of tile,

01:16:33.105 --> 01:16:37.105
it's going to cost you less per
tile to buy a pallet versus a box.

01:16:37.105 --> 01:16:37.585
Right?

01:16:37.585 --> 01:16:40.505
So, buy the pallet because we
know it's going to thirty houses.

01:16:40.760 --> 01:16:44.040
Buy the paint in bulk, buy
all the thing, and the waste.

01:16:44.040 --> 01:16:45.560
Any waste I have from house one,

01:16:45.560 --> 01:16:48.280
I can just roll into house
two, and so on and so forth.

01:16:48.280 --> 01:16:51.000
I only have one house of
waste at the very end.

01:16:51.000 --> 01:16:53.120
So, it saves me money.

01:16:53.240 --> 01:16:55.920
Now, how you record your system

01:16:56.715 --> 01:16:58.475
is very important.

01:16:58.475 --> 01:17:01.115
This is probably the
biggest secret to systems.

01:17:01.115 --> 01:17:02.475
It's how I don't know
if you guys are ready,

01:17:02.475 --> 01:17:03.755
it's a big secret.

01:17:03.755 --> 01:17:05.835
I don't if you're ready.
Are you ready for it?

01:17:05.835 --> 01:17:09.555
You guys ready for this biggest
secret? Okay, write it down.

01:17:12.250 --> 01:17:13.930
No. That's the
secret. Write it down.

01:17:13.930 --> 01:17:14.970
If you have a system,

01:17:14.970 --> 01:17:16.730
write it down because
you can make copies.

01:17:16.730 --> 01:17:16.890
Right?

01:17:16.890 --> 01:17:18.090
If it's just stored
in your head,

01:17:18.090 --> 01:17:21.210
your contractors still have to
call you to access it or your

01:17:21.210 --> 01:17:23.610
property managers or whoever
you who you're delegating to

01:17:23.610 --> 01:17:24.810
have to call you to access it.

01:17:24.810 --> 01:17:27.265
If you write it down, you can
make copies of the system.

01:17:27.265 --> 01:17:30.705
And then, they call you and use your
time to ask you what color of paint

01:17:30.705 --> 01:17:33.305
you want, even if you
know it, don't tell them.

01:17:33.345 --> 01:17:36.825
Train them. It's in the system.
Just look in the system.

01:17:37.105 --> 01:17:37.505
Right?

01:17:37.505 --> 01:17:39.025
Then, they'll remember
next time I go, oh,

01:17:39.025 --> 01:17:41.105
I gotta call Mitch. I gotta ask
him what kind of tile he want.

01:17:41.105 --> 01:17:42.705
Oh, he's just gonna tell
me, it's in the system.

01:17:42.705 --> 01:17:43.960
I'll check the system.

01:17:43.960 --> 01:17:46.120
And, I could be spending that time
that I would have been talking

01:17:46.120 --> 01:17:48.520
to them, finding, analyzing,
negotiating, funding,

01:17:48.520 --> 01:17:49.960
and closing on deals.

01:17:49.960 --> 01:17:52.640
Right? Which is how
our net worth goes up.

01:17:52.760 --> 01:17:56.375
So, the better you
get at systems,

01:17:56.375 --> 01:17:58.615
and this is a process, it's
not just a switch you'll flip,

01:17:58.615 --> 01:17:59.735
but I got good news for you.

01:17:59.735 --> 01:18:02.455
You're not the first person to think
that flipping a house is a good idea.

01:18:02.455 --> 01:18:04.535
You're not the first person to
think that buying and holding a

01:18:04.535 --> 01:18:07.175
rental property and collecting
cash flow is a good idea.

01:18:07.175 --> 01:18:09.335
People have become
have come before you.

01:18:09.335 --> 01:18:11.135
People have come before me.

01:18:11.740 --> 01:18:13.180
Our Renatus instructors,

01:18:13.180 --> 01:18:17.420
these are people who do way
more deals than I do and they

01:18:17.420 --> 01:18:18.780
already have systems in place.

01:18:18.780 --> 01:18:21.420
All you have to do is come
in and learn them and start

01:18:21.420 --> 01:18:23.140
applying them in your business.

01:18:24.745 --> 01:18:27.545
In fact, my my my
first template,

01:18:27.545 --> 01:18:28.665
my first flip template,

01:18:28.665 --> 01:18:30.905
like the paint colors and
the dial and all that,

01:18:30.905 --> 01:18:32.025
I didn't want to design it.

01:18:32.025 --> 01:18:33.865
I learned how to create a
system from the instructor.

01:18:33.865 --> 01:18:36.505
I'm like, I don't want I don't
want to have to go do the thing.

01:18:36.505 --> 01:18:39.025
My mentor is like, oh,
here, just use mine.

01:18:39.180 --> 01:18:40.620
How awesome is that?

01:18:40.620 --> 01:18:42.780
Being surrounded by people
who are already doing it,

01:18:42.780 --> 01:18:45.860
that I could just plug into these
systems and start using them.

01:18:45.900 --> 01:18:51.075
But, once you understand those two
main currencies, how to protect,

01:18:51.075 --> 01:18:54.435
how to raise the capital
and how to protect the time.

01:18:54.435 --> 01:18:55.555
You can't make more time,

01:18:55.555 --> 01:18:57.875
you just have to protect
the time you have.

01:18:57.875 --> 01:19:00.115
Right? We can we can
raise more capital.

01:19:00.115 --> 01:19:01.995
We can't raise more time.

01:19:02.755 --> 01:19:05.035
Once we have those
two things down,

01:19:05.560 --> 01:19:08.120
you could build a bang in
real estate investing empire.

01:19:08.120 --> 01:19:10.600
I mean, this thing, you could
get this thing humming. Right?

01:19:10.600 --> 01:19:13.160
But, it's not just
about building wealth.

01:19:13.160 --> 01:19:15.680
There's a crazy
statistic out there.

01:19:16.680 --> 01:19:19.080
It's something like ninety
percent of people who win the

01:19:19.080 --> 01:19:24.395
lottery are bankrupt within a
decade of their lottery winning.

01:19:24.595 --> 01:19:25.475
Isn't that crazy?

01:19:25.475 --> 01:19:27.315
These people win like hundreds
of millions of dollars and

01:19:27.315 --> 01:19:28.675
they're bankrupt
within a decade.

01:19:28.675 --> 01:19:30.035
You know why?

01:19:30.035 --> 01:19:32.155
Because they never
learned how to keep it.

01:19:32.930 --> 01:19:35.970
I had a mentor one
time, she told me,

01:19:35.970 --> 01:19:39.650
you have to build a big
fence for the fat cows.

01:19:39.650 --> 01:19:41.650
And, I looked at her like she
was crazy because I didn't know

01:19:41.650 --> 01:19:42.930
what the heck she
was talking about.

01:19:42.930 --> 01:19:45.810
Right? What do mean build build
a big fence for the fat cows?

01:19:45.810 --> 01:19:48.325
But, it's kind of
clicked over the years.

01:19:48.325 --> 01:19:52.085
If you're building if if if
you're going to buy some fat cows,

01:19:52.085 --> 01:19:55.365
should we build the fence
before or after we buy the cows?

01:19:55.365 --> 01:19:56.525
Before.

01:19:57.285 --> 01:19:59.310
And, the fat cows
are our assets.

01:19:59.310 --> 01:20:00.910
It's the wealth
that we're building.

01:20:00.910 --> 01:20:02.750
It's the empire we're
building. Right?

01:20:02.750 --> 01:20:06.550
Well, the big fence is the
keep your wealth skills.

01:20:06.750 --> 01:20:09.070
You have to understand
how to structure.

01:20:09.070 --> 01:20:12.750
The average American will spend
a third of their lifetime income.

01:20:12.750 --> 01:20:14.045
This is average. Right?

01:20:14.045 --> 01:20:17.165
Average Americans will spend a
third of their lifetime income

01:20:17.165 --> 01:20:18.925
on taxes.

01:20:18.925 --> 01:20:21.965
The average American will
spend a third of their lifetime

01:20:21.965 --> 01:20:25.045
income on interest.

01:20:25.085 --> 01:20:27.205
How many thirds
are we at so far?

01:20:27.700 --> 01:20:31.380
So, means that anything you've
ever spent money on outside of

01:20:31.380 --> 01:20:33.300
taxes or interest,

01:20:33.300 --> 01:20:35.540
you've done with the last
third of your income.

01:20:35.540 --> 01:20:37.019
No

01:20:37.460 --> 01:20:40.300
wonder, most people
feel broke all the time.

01:20:41.775 --> 01:20:43.775
There are two things that
are certain in this life,

01:20:43.775 --> 01:20:45.895
death and Taxes.

01:20:46.015 --> 01:20:46.335
Yeah.

01:20:46.335 --> 01:20:49.375
Let's talk about taxes for what
is the secret that the wealthy

01:20:49.375 --> 01:20:53.535
that know about taxes that apparently
we weren't taught in school?

01:20:53.535 --> 01:20:55.660
Because, what we were taught
in school was go to school,

01:20:55.660 --> 01:20:59.180
get good grades, get into a good
college, get a degree, get a job.

01:20:59.180 --> 01:20:59.740
Right?

01:20:59.740 --> 01:21:01.580
And, in that job, if you
do pretty well at it,

01:21:01.580 --> 01:21:03.260
you'll make about a
hundred grand there.

01:21:03.260 --> 01:21:03.580
Right?

01:21:03.580 --> 01:21:06.940
And, the first thing they'll
take out of that check, taxes,

01:21:06.940 --> 01:21:08.385
before you even see your money.

01:21:08.385 --> 01:21:11.105
They'll take on average a third,

01:21:11.105 --> 01:21:12.705
thirty to thirty three percent.

01:21:12.705 --> 01:21:15.665
So, the government takes thirty
thousand dollars right off the

01:21:15.665 --> 01:21:18.985
top, you're left with seventy
cents on the earned dollar.

01:21:19.265 --> 01:21:22.145
And, you know, if you've got a mortgage
and a couple of car payments and some

01:21:22.145 --> 01:21:25.040
cell phones and some kids, all
that stuff is really expensive,

01:21:25.040 --> 01:21:28.320
you've probably spent all of
it by the end of the year.

01:21:28.320 --> 01:21:29.479
Right?

01:21:29.840 --> 01:21:33.280
Now, the thing that the wealthy
understand is that it comes

01:21:33.280 --> 01:21:35.720
down the big secret,
it's one thing,

01:21:36.565 --> 01:21:40.165
It's deductions. That's
it. It's deductions.

01:21:40.165 --> 01:21:41.525
It's write offs.

01:21:41.525 --> 01:21:46.005
That's all. That's the big
secret of the wealthy. Okay?

01:21:46.005 --> 01:21:50.645
And so, how the wealthy leverage
that is they recognize that the tax

01:21:50.645 --> 01:21:54.130
code applies differently to
business owners than it does to

01:21:54.130 --> 01:21:56.090
w two employees.

01:21:56.370 --> 01:21:58.930
Business owners let's say a
business owner who makes the

01:21:58.930 --> 01:22:01.010
same amount of
gross income here,

01:22:01.010 --> 01:22:03.570
a business owner who makes a
hundred grand just like our w

01:22:03.570 --> 01:22:06.295
two employee does
not pay taxes first.

01:22:06.295 --> 01:22:09.415
They get to take something
called deductible expenses first.

01:22:09.415 --> 01:22:11.495
And, I know when I say
deductions, you know,

01:22:11.495 --> 01:22:14.215
so some of you might have a
vague idea of what that means.

01:22:14.215 --> 01:22:17.175
You mean, like, I could write
off my home office, check.

01:22:17.175 --> 01:22:20.455
Could deduct some mileage
for business, check. Right?

01:22:20.455 --> 01:22:22.335
Deduct the cell phone, check.

01:22:22.430 --> 01:22:23.790
Maybe Internet, right?

01:22:23.790 --> 01:22:25.550
We think very one
dimensionally about it, like,

01:22:25.550 --> 01:22:28.950
it's just these these single
things that we could check off.

01:22:28.990 --> 01:22:31.070
There's a list at the
IRS of, I don't know,

01:22:31.070 --> 01:22:34.270
about twenty two hundred
possible deductions and next to

01:22:34.270 --> 01:22:38.725
each deduction is a key to
unlock that deduction and the

01:22:38.725 --> 01:22:41.405
key is an action
that you have to do.

01:22:41.445 --> 01:22:44.645
And, if you do that action,
it unlocks the deduction.

01:22:44.645 --> 01:22:46.405
But, here's the catch.

01:22:46.405 --> 01:22:47.525
They don't just give it to you.

01:22:47.525 --> 01:22:49.285
They don't show up at your
doorstep like Publishers

01:22:49.285 --> 01:22:52.150
Clearing House like, you
got a deduction. Right?

01:22:52.150 --> 01:22:56.231
You have to you have to
know that the thing you did

01:22:56.231 --> 01:23:01.030
unlocks the deduction and you have
to claim it at the end of the year.

01:23:01.030 --> 01:23:02.950
If you don't know that
the thing you did,

01:23:02.950 --> 01:23:05.590
there's probably a lot of you
that are doing things that

01:23:05.590 --> 01:23:08.430
would unlock deductions, you
just didn't know to claim it.

01:23:08.665 --> 01:23:10.265
And, they're not going
to come tell you.

01:23:10.265 --> 01:23:12.665
Now, if it's the other way,
if you're claiming too much,

01:23:12.665 --> 01:23:14.185
they will be sure to tell you.

01:23:14.185 --> 01:23:14.505
Right?

01:23:14.505 --> 01:23:18.105
The IRS will let you know
through an audit that you're

01:23:18.105 --> 01:23:19.945
you're claiming too
many deductions.

01:23:19.945 --> 01:23:23.570
So, don't do that either.
But, it's important.

01:23:23.570 --> 01:23:27.170
This is why knowledge is so important
if we understand the strategies.

01:23:27.170 --> 01:23:29.810
We also need to understand that
it's not just one dimensional.

01:23:29.810 --> 01:23:33.650
We can actually create like
multi layered strategies

01:23:33.650 --> 01:23:37.010
to be able to write off things
we normally couldn't write off.

01:23:37.010 --> 01:23:40.755
For example, how many of
you have kids at home?

01:23:41.035 --> 01:23:42.315
Yeah. Yeah.

01:23:42.315 --> 01:23:45.835
I got I got a seventeen year old
daughter who loves volleyball.

01:23:45.835 --> 01:23:47.355
Volleyball is expensive.

01:23:47.355 --> 01:23:49.755
If you got kids in sports,
that's not a cheap thing.

01:23:49.755 --> 01:23:50.715
Right?

01:23:50.715 --> 01:23:54.950
So, I learned something
from an instructor,

01:23:54.950 --> 01:23:58.430
Patrick Munson, right
from this stage.

01:23:58.950 --> 01:24:01.830
He said he told me
something I didn't know.

01:24:01.830 --> 01:24:02.790
He said, you know,

01:24:02.790 --> 01:24:06.510
child labor laws don't
apply to your own kids.

01:24:09.435 --> 01:24:11.035
They only apply to other kids?

01:24:11.035 --> 01:24:14.075
Like, can't hire your kids,
but I can slave labor my kids?

01:24:14.075 --> 01:24:16.235
It's like, yeah,
one hundred percent.

01:24:16.235 --> 01:24:18.635
I mean, could you got
you want to pay them,

01:24:18.635 --> 01:24:19.675
so not slave labor,

01:24:19.675 --> 01:24:23.120
but you can hire them from zero up
until they're eighteen years old.

01:24:23.120 --> 01:24:25.120
As long as they're
dependent on your taxes,

01:24:25.120 --> 01:24:26.480
they live in your household,

01:24:26.480 --> 01:24:28.960
you can hire them in your
business and you could pay them

01:24:28.960 --> 01:24:32.360
up to fourteen thousand
dollars a year tax free.

01:24:32.880 --> 01:24:34.160
Man, when I learned that,

01:24:34.160 --> 01:24:37.720
my seventeen year old daughter became
the vice president of shredding paper.

01:24:37.875 --> 01:24:38.275
Right?

01:24:38.275 --> 01:24:40.675
I hired her in my business,
paid her fourteen grand a year.

01:24:40.675 --> 01:24:44.275
My son, my fourteen year old son became
the director of taking out the garbage.

01:24:44.275 --> 01:24:45.635
Like, have to give them jobs,

01:24:45.635 --> 01:24:47.715
but they actually have to do
the jobs and then we actually

01:24:47.715 --> 01:24:48.435
have to pay them.

01:24:48.435 --> 01:24:51.315
So, the money transfers from
the business into their bank

01:24:51.315 --> 01:24:53.900
accounts, but it's tax free.

01:24:54.820 --> 01:24:58.580
Then, it comes time to buy
it's like when it comes time to

01:24:58.580 --> 01:25:01.140
paying for my daughter's
volleyball, well,

01:25:01.140 --> 01:25:03.220
she's got a job,
make her pay for it.

01:25:03.220 --> 01:25:07.425
And now, instead of
paying for volleyball with

01:25:07.425 --> 01:25:09.905
a value of seventy
cents on the dollar,

01:25:09.905 --> 01:25:12.785
because I paid taxes
off of the gross.

01:25:12.785 --> 01:25:13.265
Right?

01:25:13.265 --> 01:25:16.385
My daughter now has tax free
money in her bank account,

01:25:16.385 --> 01:25:20.505
she pays for volleyball
with pre tax dollars.

01:25:20.950 --> 01:25:23.670
Hundred percent of the
value is still there. Right?

01:25:23.670 --> 01:25:27.350
That's the same net
effect as a write off.

01:25:27.350 --> 01:25:29.590
I just wrote off volleyball.

01:25:29.590 --> 01:25:32.630
We have them do it with school
supplies, not tax deductible,

01:25:32.630 --> 01:25:34.230
but because of the strategy,

01:25:34.230 --> 01:25:36.670
now we're paying for
school supplies with

01:25:36.965 --> 01:25:39.845
pre tax dollars, same
as writing them off.

01:25:39.845 --> 01:25:40.885
Even the breakfast cereal,

01:25:40.885 --> 01:25:42.805
Meily and I don't eat
breakfast cereal, the kids do.

01:25:42.805 --> 01:25:46.085
So, we make them buy their
own breakfast cereal. Right?

01:25:46.085 --> 01:25:48.325
Now, we're good parents,
we're smart parents, like,

01:25:48.325 --> 01:25:50.565
I know that if I give my
fourteen year old son a debit

01:25:50.565 --> 01:25:52.290
card with fourteen
grand behind it,

01:25:52.290 --> 01:25:54.690
tomorrow I will wake up with
fourteen thousand dollars worth

01:25:54.690 --> 01:25:55.970
of Fortnite add ons.

01:25:55.970 --> 01:25:56.610
Right?

01:25:56.610 --> 01:26:01.010
So, I'm going to keep that debit card
and when it comes time for him, you know,

01:26:01.010 --> 01:26:04.370
needing something like school
supplies or field trip or

01:26:04.370 --> 01:26:06.585
sports or whatever, I'll
pull the debit card out,

01:26:06.585 --> 01:26:09.305
I'll pay you know,
we'll we'll pay for it,

01:26:09.305 --> 01:26:11.265
but using his money.

01:26:11.705 --> 01:26:14.665
So, there's there's sorts
of strategies you can do.

01:26:14.665 --> 01:26:15.785
We got we got a
little bit of time.

01:26:15.785 --> 01:26:17.705
I'll I'll share a couple
of the strategies here.

01:26:17.705 --> 01:26:19.400
So, you guys are going to
think we're awful parents.

01:26:19.400 --> 01:26:23.560
We have a rule in the Nelson
household, no family vacations.

01:26:23.560 --> 01:26:25.400
I know, aren't we awful?

01:26:25.400 --> 01:26:28.680
How bad. Right? Kids hate
us. No. They love us.

01:26:28.680 --> 01:26:31.080
Because instead of
family vacations,

01:26:31.080 --> 01:26:34.265
we take board of
directors meetings in

01:26:34.265 --> 01:26:37.185
either Anaheim or
Orlando each year.

01:26:37.465 --> 01:26:40.025
What's the difference between a
family vacation and a board of

01:26:40.025 --> 01:26:43.185
directors meeting where
your kids sit on your board?

01:26:44.105 --> 01:26:46.790
Tax write off. That's
what we call it.

01:26:46.790 --> 01:26:49.910
And, also, like, be legal,

01:26:49.910 --> 01:26:51.190
moral and ethical
about this stuff.

01:26:51.190 --> 01:26:52.630
We actually have
the board meeting.

01:26:52.630 --> 01:26:55.430
There's a little red picnic
table right next to the soda

01:26:55.430 --> 01:26:57.465
shop on Main Street
in Disneyland.

01:26:57.465 --> 01:26:59.785
We sit in the same spot every
time and I bring my phone

01:26:59.785 --> 01:27:01.305
because I know if
I ever get audited,

01:27:01.305 --> 01:27:02.425
the IRS is going be like,

01:27:02.425 --> 01:27:04.105
why are you writing
off so much Disneyland?

01:27:04.105 --> 01:27:04.425
Right?

01:27:04.425 --> 01:27:07.865
So, I set up a little tabletop
tripod and I film our board of

01:27:07.865 --> 01:27:09.225
directors meetings.

01:27:09.225 --> 01:27:12.185
And then, put them all on a ten
terabyte hard drive when I get home.

01:27:12.185 --> 01:27:13.680
So, if I ever get out
of it, I'd be like,

01:27:13.680 --> 01:27:15.520
here's ten terabytes
worth of our Disney trip.

01:27:15.520 --> 01:27:16.720
Good luck. Right?

01:27:16.720 --> 01:27:20.880
But but, somewhere on that hard
drive is a clip of one of our

01:27:20.880 --> 01:27:24.600
meetings and one of the kids
asked, mom, dad, we want a dog.

01:27:25.325 --> 01:27:27.965
And my response
was, you know what?

01:27:27.965 --> 01:27:30.965
Our home office needs
a security system.

01:27:32.445 --> 01:27:36.565
What's the difference between a family
pet and a home office security system?

01:27:37.530 --> 01:27:39.050
Tax deduction. Yeah.

01:27:39.050 --> 01:27:40.970
Now, can write off
the cost of the dog,

01:27:40.970 --> 01:27:43.850
I can write off the vet bills,
I can write off the grooming,

01:27:43.850 --> 01:27:47.250
I can write off the food,
it's all a write off.

01:27:47.690 --> 01:27:50.410
I don't have to change
the way I'm behaving,

01:27:50.410 --> 01:27:52.690
I just had to change
what was in here.

01:27:53.095 --> 01:27:55.415
Remember, the wealthy people
I had on the screen earlier,

01:27:55.415 --> 01:27:57.175
they're still human beings.

01:27:57.175 --> 01:28:00.295
They still do all the
things that human beings do.

01:28:00.295 --> 01:28:03.055
The only thing that's different
about them is what's in here.

01:28:07.540 --> 01:28:09.540
I had a student one time.

01:28:09.540 --> 01:28:13.140
I do this same workshop every Thursday
I have for the last ten years.

01:28:13.140 --> 01:28:17.700
Minimum of fifty times a
year. And and I love it.

01:28:17.700 --> 01:28:20.065
I'm gonna keep doing it
for another ten years.

01:28:20.065 --> 01:28:22.785
But we we usually
have a mastermind.

01:28:22.785 --> 01:28:23.825
Today, we did it before,

01:28:23.825 --> 01:28:25.745
but we usually have a
mastermind running at the same

01:28:25.745 --> 01:28:28.025
time in a different room.

01:28:28.225 --> 01:28:31.025
And all the students would normally
be in doing the mastermind.

01:28:31.025 --> 01:28:33.185
There's anywhere from a
hundred to two hundred people,

01:28:33.185 --> 01:28:35.145
two hundred students
in our in our group.

01:28:35.290 --> 01:28:37.850
And, it's, you know, I mean,
we have a culture here.

01:28:37.850 --> 01:28:39.290
And, the culture is you show up.

01:28:39.290 --> 01:28:42.010
We jokingly call Thursday
nights real estate church.

01:28:42.010 --> 01:28:43.210
Show up to the mastermind.

01:28:43.210 --> 01:28:45.930
Right? If you I mean, if
you got a miss, it's fine.

01:28:45.930 --> 01:28:47.770
But, you know, you
really should be here.

01:28:47.770 --> 01:28:49.450
If you're if you're gone
too many weeks in a row,

01:28:49.450 --> 01:28:51.115
we're going to send
the missionaries after you.

01:28:51.115 --> 01:28:52.435
But,

01:28:55.355 --> 01:28:57.675
one of the students came
in after this after this

01:28:57.675 --> 01:29:00.795
mastermind one time
and he said, Mitch,

01:29:00.795 --> 01:29:03.595
I'm not going to be He was he had
been in for like three, four months.

01:29:03.595 --> 01:29:04.635
He was already in
his first deal,

01:29:04.635 --> 01:29:06.395
had gone through the
first flip challenge.

01:29:06.395 --> 01:29:08.690
But he's like, Mitch, I'm not
going to be here next week, man.

01:29:08.690 --> 01:29:09.330
I'm sorry.

01:29:09.330 --> 01:29:10.450
I'm like, it's fine.

01:29:10.450 --> 01:29:12.610
Just make sure you're
coming back, you know.

01:29:12.610 --> 01:29:13.570
He's like, yeah.

01:29:13.570 --> 01:29:17.810
My wife is making me go up
and visit my mother-in-law.

01:29:17.810 --> 01:29:20.170
And, I could tell he was
kind of like, you know,

01:29:20.625 --> 01:29:21.425
irked about it.

01:29:21.425 --> 01:29:23.745
So, I kind of commiserate. I'm
like, oh, man, that's rough.

01:29:23.745 --> 01:29:25.985
I'm sorry. And, he's like, yeah.

01:29:25.985 --> 01:29:28.705
She lives all the way
up in Millat, Idaho.

01:29:28.705 --> 01:29:30.145
And, for those of
you on the recording,

01:29:30.145 --> 01:29:33.225
that's probably three
hours away, two hours away.

01:29:33.460 --> 01:29:34.740
And, I'm like, yeah, man.

01:29:34.740 --> 01:29:38.020
She's like, yeah, makes
me do that every quarter.

01:29:38.020 --> 01:29:41.780
It's like the worst part of it
is I can't even write it off.

01:29:41.780 --> 01:29:44.940
I said, woah. Wait. I'm
going stop you there.

01:29:45.525 --> 01:29:47.365
You you come here every week.

01:29:47.365 --> 01:29:48.965
You've learned how
to buy real estate.

01:29:48.965 --> 01:29:51.925
If you know that you're
making a trip to Millad,

01:29:51.925 --> 01:29:56.085
Idaho every quarter,
buy a freaking rental in

01:29:56.085 --> 01:29:57.365
Millad.

01:29:57.365 --> 01:30:00.450
Then, the trip once a quarter is
not we're going to visit grandma.

01:30:00.450 --> 01:30:03.730
The trip is I've got to go
check on my rental property.

01:30:03.730 --> 01:30:07.730
You drive past the rental property
and you say, you know what?

01:30:07.730 --> 01:30:09.170
Mom lives just
around the corner.

01:30:09.170 --> 01:30:11.570
It'd be rude if we
didn't stop and say hi.

01:30:11.570 --> 01:30:16.055
Right? The difference between those
two is a tax deduction.

01:30:16.055 --> 01:30:17.575
And, I would argue,

01:30:17.575 --> 01:30:19.895
the tax deductible way is even
better because now you have a

01:30:19.895 --> 01:30:22.215
rental in the lab
that's cash flowing.

01:30:22.215 --> 01:30:23.975
Right? Okay.

01:30:23.975 --> 01:30:25.295
So,

01:30:25.895 --> 01:30:28.295
business owners don't pay
taxes on their gross income

01:30:28.295 --> 01:30:30.070
like w two employees do.

01:30:30.070 --> 01:30:31.910
They get to take
deductible expenses first.

01:30:31.910 --> 01:30:35.270
And, if we have a strategy around
how to write off most of the

01:30:35.270 --> 01:30:37.070
things in our lives,

01:30:37.350 --> 01:30:40.310
like if we convert our pets into
home office security systems,

01:30:40.310 --> 01:30:43.805
and we convert our trips to go
see mom into I got a check on

01:30:43.805 --> 01:30:46.525
the rental, and, you
know, all of these things,

01:30:46.525 --> 01:30:47.165
all of a sudden,

01:30:47.165 --> 01:30:49.485
most of the things in your
life can become tax deductible.

01:30:49.485 --> 01:30:52.765
Now, I'm not saying write off
things you shouldn't be writing off.

01:30:52.765 --> 01:30:55.085
Be legal, be moral, be
ethical about all of it.

01:30:55.085 --> 01:30:56.860
If you can't write
something off, don't.

01:30:56.860 --> 01:31:00.460
What I'm saying is most things
you can write off if you change

01:31:00.460 --> 01:31:02.900
what's in here and
create some strategy.

01:31:03.340 --> 01:31:05.500
So, if we're writing off
most of the stuff now,

01:31:05.500 --> 01:31:07.020
business owners
don't like I said,

01:31:07.020 --> 01:31:08.540
they don't pay taxes
on their gross income,

01:31:08.540 --> 01:31:11.315
they pay taxes on what's called
their adjusted gross income or

01:31:11.315 --> 01:31:12.835
AGI, and that's a
simple equation.

01:31:12.835 --> 01:31:16.275
It's your gross income minus
your deductible expenses equals

01:31:16.275 --> 01:31:17.475
your adjusted gross income.

01:31:17.475 --> 01:31:20.195
A hundred grand minus seventy
grand equals thirty grand,

01:31:20.195 --> 01:31:22.675
and that's the number, the AGI,

01:31:22.675 --> 01:31:25.220
that's the number that that business
owner is going to pay taxes on.

01:31:25.220 --> 01:31:27.700
The government takes their
thirty to thirty three percent

01:31:27.700 --> 01:31:29.300
and one could argue,

01:31:29.300 --> 01:31:31.220
wouldn't you be in a lower
tax bracket at this point?

01:31:31.220 --> 01:31:31.460
Yes.

01:31:31.460 --> 01:31:32.740
But, to keep it
apples to apples,

01:31:32.740 --> 01:31:34.500
let's just look at it in
the higher tax bracket.

01:31:34.500 --> 01:31:37.220
The government takes ten
thousand dollars in taxes and

01:31:37.220 --> 01:31:40.060
you're left with twenty
thousand dollars.

01:31:41.875 --> 01:31:44.835
Who wants to save an extra
twenty grand on taxes this year?

01:31:44.835 --> 01:31:47.875
Okay. About half of
you. Cool. Alright.

01:31:47.875 --> 01:31:49.795
What's wrong with
the rest of you?

01:31:49.795 --> 01:31:52.795
Who's not going to raise their
hand no matter what I say?

01:31:53.235 --> 01:31:55.675
Okay. Alright. Got it.

01:31:57.000 --> 01:31:59.480
Nobody raised their hand
for the for the record.

01:31:59.480 --> 01:32:00.600
So, here's the thing.

01:32:00.600 --> 01:32:03.560
Here's why I love that twenty
thousand dollar number.

01:32:03.560 --> 01:32:05.560
My numbers are a little
bit different than this.

01:32:05.560 --> 01:32:09.000
But, even if this was me and I
was saving an extra twenty grand a

01:32:09.000 --> 01:32:11.985
year, twenty thousand dollars
represents a rental to me.

01:32:11.985 --> 01:32:15.185
Do you remember that subject to
strategy where Mahea used the

01:32:15.185 --> 01:32:18.225
previous owner's mortgage to
fund the deal that she worked on?

01:32:18.225 --> 01:32:21.665
That's the strategy I use to
buy every one of the twelve to

01:32:21.665 --> 01:32:24.025
fifteen rental
properties I buy a year.

01:32:24.760 --> 01:32:28.120
Because Fannie Mae and
Freddie Mac will only let any

01:32:28.120 --> 01:32:30.840
individual have ten
mortgages on their name.

01:32:30.840 --> 01:32:32.280
You can own as much
property as you want to,

01:32:32.280 --> 01:32:35.400
but you can only have ten
mortgages at a time on your

01:32:35.400 --> 01:32:36.880
social security number.

01:32:36.955 --> 01:32:39.515
And trust me, I've tried
thinking, oh, well,

01:32:39.515 --> 01:32:41.195
I'll just have my
business go up.

01:32:41.195 --> 01:32:43.115
They still want you to
personally guarantee it and it

01:32:43.115 --> 01:32:44.635
still counts as one when you do.

01:32:44.635 --> 01:32:46.875
Right? So, max it ten.

01:32:46.875 --> 01:32:49.755
If all I get is ten rental
properties and a single family

01:32:49.755 --> 01:32:52.320
rental averages four to five
hundred dollars a month in cash

01:32:52.320 --> 01:32:53.600
flow, a good one.

01:32:53.600 --> 01:32:54.160
Right?

01:32:54.160 --> 01:32:55.760
So, times that by ten,

01:32:55.760 --> 01:32:57.520
I'm capping out at
five grand a month.

01:32:57.520 --> 01:32:58.800
I don't know about you,

01:32:58.800 --> 01:33:00.320
but when I think about
retiring wealthy,

01:33:00.320 --> 01:33:02.240
the number is not
five grand a month.

01:33:02.240 --> 01:33:04.960
Keep adding zeros and commas
and I'll tell you when to stop.

01:33:04.960 --> 01:33:05.880
Right?

01:33:06.545 --> 01:33:08.945
So, I need something scalable.

01:33:08.945 --> 01:33:11.745
If the if the properties,
the rental properties that I buy,

01:33:11.745 --> 01:33:15.065
if the mortgages are in
everybody else's name,

01:33:15.505 --> 01:33:17.145
what's my limit?

01:33:18.705 --> 01:33:22.420
I love that number.
That's become my favorite number.

01:33:23.100 --> 01:33:25.540
Infinite scalability.

01:33:25.740 --> 01:33:27.980
Right? We could
scale it to the moon.

01:33:27.980 --> 01:33:30.060
I'm not saying don't
go get the ten.

01:33:30.060 --> 01:33:34.020
Absolutely, go get the ten but have some
other strategies so you're not capped at ten.

01:33:34.375 --> 01:33:38.375
There should not be a
ceiling in your scalability with your

01:33:38.375 --> 01:33:40.055
real estate empire.

01:33:40.055 --> 01:33:43.055
And, if there is,
the problem's here.

01:33:43.175 --> 01:33:46.335
Just elevate your knowledge that
will get you to the next level.

01:33:48.120 --> 01:33:49.360
So,

01:33:50.600 --> 01:33:53.240
with that said, these
are all just systems.

01:33:53.240 --> 01:33:53.880
Right?

01:33:53.880 --> 01:33:57.000
And, as you make the trek from
your employee mindset to your

01:33:57.000 --> 01:33:58.440
wealthy mindset,

01:33:58.440 --> 01:34:00.920
you will find that you start
using hundreds of business

01:34:00.920 --> 01:34:04.345
systems a day because it
allows you to do more.

01:34:04.345 --> 01:34:06.905
And, there are four systems that
are more important than any others.

01:34:06.905 --> 01:34:08.265
In fact, these are so important,

01:34:08.265 --> 01:34:09.465
we gave them their
own special name.

01:34:09.465 --> 01:34:11.305
We call these the four
pillars of wealth.

01:34:11.305 --> 01:34:14.945
And, the four pillars of
wealth are taxes, banking,

01:34:14.985 --> 01:34:17.185
business and real estate.

01:34:17.320 --> 01:34:19.960
And, when you learn to navigate
these four pillars of wealth,

01:34:19.960 --> 01:34:22.800
you can have anything you want.

01:34:22.920 --> 01:34:24.920
There's a reason why you look
at the wealthy and you're like,

01:34:24.920 --> 01:34:27.640
why is it that they seem to
have all the time in the world

01:34:27.640 --> 01:34:30.520
and all the toys and then they
just get to spend all their

01:34:30.520 --> 01:34:32.000
time enjoying their toys?

01:34:32.015 --> 01:34:34.495
While I'm here working
my fingers to the bone,

01:34:34.495 --> 01:34:36.335
barely making it every month.

01:34:36.335 --> 01:34:38.575
Well, it's because
they understand this.

01:34:38.575 --> 01:34:40.895
When you understand the
four pillars of wealth,

01:34:40.895 --> 01:34:43.055
you're going to have an
apartment building tomorrow if

01:34:43.055 --> 01:34:43.695
that's what you want.

01:34:43.695 --> 01:34:45.415
It's not just the assets,

01:34:45.760 --> 01:34:48.680
it's it also applies
to liabilities.

01:34:48.800 --> 01:34:51.760
When I was growing up, I had
a poster of my dream car.

01:34:51.760 --> 01:34:54.720
I love American cars and I had
a poster of a nineteen fifty

01:34:54.720 --> 01:34:57.480
eight C1 Corvette on my wall.

01:34:57.535 --> 01:35:00.935
It's over a hundred thousand
dollars at the time.

01:35:01.135 --> 01:35:03.615
And, of course, I
didn't buy it. Right?

01:35:03.615 --> 01:35:04.975
Because Corvette,

01:35:04.975 --> 01:35:07.375
a hundred thousand dollar two
seater car that can't even fit

01:35:07.375 --> 01:35:09.935
a bag of golf clubs
in the back, like,

01:35:09.935 --> 01:35:13.230
that's the most impractical thing
I could possibly spend my money on.

01:35:13.230 --> 01:35:14.190
That's not what
I'm going be doing.

01:35:14.190 --> 01:35:14.670
Right?

01:35:14.670 --> 01:35:16.150
We we

01:35:16.750 --> 01:35:20.590
have this tendency when we're
growing up and we're kids,

01:35:20.590 --> 01:35:24.430
we have big dreams, and we want
our means to match our dreams.

01:35:24.430 --> 01:35:27.585
And then, we hit about twenty and
we have to start our career and we

01:35:27.585 --> 01:35:31.025
start realizing how hard it
is to grow your means with the

01:35:31.025 --> 01:35:32.465
systems that we've been taught.

01:35:32.465 --> 01:35:36.465
And so, what happens instead is
we start shrinking our dreams to

01:35:36.465 --> 01:35:38.185
meet our means.

01:35:38.225 --> 01:35:41.250
And so, we settle. We
don't go get the Corvette.

01:35:41.250 --> 01:35:43.410
We buy the used whatever. Right?

01:35:43.410 --> 01:35:47.290
For a fraction of the cost
because we can't afford it.

01:35:48.370 --> 01:35:50.450
It's not that you
can't afford it.

01:35:50.450 --> 01:35:52.090
So, you have the wrong system.

01:35:55.545 --> 01:35:57.625
Eventually, bought my Corvette.

01:35:57.625 --> 01:36:01.065
In twenty sixteen, I learned
the four pillars of wealth,

01:36:01.065 --> 01:36:02.025
it just clicked for me.

01:36:02.025 --> 01:36:05.065
On my birthday, January
twenty fifteen or excuse me,

01:36:05.065 --> 01:36:09.025
January fifteenth twenty sixteen,
I turned thirty years old.

01:36:09.150 --> 01:36:12.990
And this had clicked, like,
a few days prior to that.

01:36:12.990 --> 01:36:16.110
I made the decision, I'm going
in and I'm buying my Corvette.

01:36:16.110 --> 01:36:17.390
And so, did.

01:36:17.390 --> 01:36:20.830
I was pointed to a shark gray
C7 Corvette on the showroom

01:36:20.830 --> 01:36:24.425
floor And since then, I'm
on my third Corvette now.

01:36:24.425 --> 01:36:27.385
I've driven for the last ten
years, I just turned forty.

01:36:27.385 --> 01:36:29.545
Ten years later, for
the last ten years,

01:36:29.545 --> 01:36:31.705
I have driven my dream car
every single day and my

01:36:31.705 --> 01:36:36.065
favorite part about it is I've
never spent a single penny.

01:36:37.950 --> 01:36:40.110
It's not about whether
or not I can afford it.

01:36:40.110 --> 01:36:42.830
I have the mental capital to
be able to do it and it doesn't

01:36:42.830 --> 01:36:44.430
come out of my pocket.

01:36:44.430 --> 01:36:46.110
In fact, this is the
car I'm driving now.

01:36:46.110 --> 01:36:48.270
This is my third Corvette.

01:36:48.270 --> 01:36:50.735
This one was a hundred and
thirty five thousand dollars.

01:36:50.735 --> 01:36:53.375
And I'm so proud of the fact
that I've never spent any money

01:36:53.375 --> 01:36:57.615
to drive my my dream car that
this is my license plate for free.

01:36:57.615 --> 01:37:02.175
Right? Who wants
the strategy? Yes.

01:37:02.175 --> 01:37:05.010
Like, four of you? Seriously?
Who wants the strategy?

01:37:05.010 --> 01:37:06.210
It's not just cars.

01:37:06.210 --> 01:37:09.010
Can have you can have anything
you want with these strategies.

01:37:09.010 --> 01:37:11.410
Let me share just a simple
one, one that I started with,

01:37:11.410 --> 01:37:12.530
the tax strategy.

01:37:12.530 --> 01:37:15.730
I'm I I've graduated beyond
this strategy now, but oh,

01:37:15.730 --> 01:37:17.530
I didn't update that. Dang it.

01:37:17.585 --> 01:37:18.865
Well, it's a little bit
different this year.

01:37:18.865 --> 01:37:21.185
I think it's seventy two cents
per mile now that you can write

01:37:21.185 --> 01:37:22.305
off for business miles.

01:37:22.305 --> 01:37:24.065
This is as simple as it gets.

01:37:24.065 --> 01:37:25.985
This is the simplest
version of the strategy.

01:37:25.985 --> 01:37:28.145
I drive about twenty five
thousand miles a year because

01:37:28.145 --> 01:37:29.425
this is my daily driver.

01:37:29.425 --> 01:37:30.265
Right?

01:37:30.290 --> 01:37:33.730
So, if if I use some of the tax
strategies that I taught you to

01:37:33.730 --> 01:37:36.290
to make sure that most of
the things that I'm doing are

01:37:36.290 --> 01:37:37.730
somehow business related,

01:37:37.730 --> 01:37:41.650
even though I'm accomplishing some
some personal stuff along the way,

01:37:41.650 --> 01:37:43.810
that's a sixteen thousand
seven hundred and fifty dollar

01:37:43.810 --> 01:37:46.875
deduction on last
year's price per mile.

01:37:46.875 --> 01:37:47.515
Right?

01:37:47.515 --> 01:37:50.155
But, my Corvette
payment is twenty

01:37:50.155 --> 01:37:51.115
one hundred dollars a month.

01:37:51.115 --> 01:37:52.315
I did finance it.

01:37:52.315 --> 01:37:54.635
There's a strategy there I'm going
to share with you in a second.

01:37:54.635 --> 01:37:57.595
But, twelve months worth of that
payment is twenty five thousand

01:37:57.595 --> 01:37:58.715
two hundred dollars.

01:37:58.715 --> 01:38:02.450
That means I got to write off
sixty six percent of that thing.

01:38:02.450 --> 01:38:06.370
That means the post dollar cost
of my of my dream car puts it

01:38:06.370 --> 01:38:08.290
at about the price of a
mid range Honda Civic.

01:38:08.290 --> 01:38:10.610
Who would drive their dream car
if it was the same price as a

01:38:10.610 --> 01:38:11.890
mid range Honda Civic?

01:38:11.890 --> 01:38:14.690
Yeah, we all would. Right?
Get that G Wagon, man.

01:38:14.690 --> 01:38:15.455
That's awesome.

01:38:15.455 --> 01:38:18.415
Whatever it is you want,
Lamborghini, whatever.

01:38:18.415 --> 01:38:22.415
But and this is
like starter stuff.

01:38:22.415 --> 01:38:24.175
Like, there's a more
advanced strategy.

01:38:24.175 --> 01:38:26.375
As you start building

01:38:26.975 --> 01:38:30.920
wealth and and and start making
more money in your business,

01:38:30.920 --> 01:38:33.000
and your business starts to
make more than what the car is

01:38:33.000 --> 01:38:35.960
worth, you can start leveraging
some cool strategies.

01:38:35.960 --> 01:38:37.920
So, last year,

01:38:38.520 --> 01:38:41.080
my education business by itself,

01:38:41.080 --> 01:38:42.360
not even my real
estate business,

01:38:42.360 --> 01:38:43.840
my education business,

01:38:44.935 --> 01:38:49.015
just on ads, meta ads, that
had the Corvette in it.

01:38:49.015 --> 01:38:50.855
I sometimes didn't even
mention the Corvette,

01:38:50.855 --> 01:38:52.295
it's just in the background.

01:38:52.295 --> 01:38:53.495
Melee doesn't have this problem.

01:38:53.495 --> 01:38:56.375
Melee gets clicks. I don't
get clicks like Melee does. Right?

01:38:56.375 --> 01:38:59.850
They don't want to click on my if the
car if the car is in the in the shot.

01:38:59.850 --> 01:39:01.050
Like, what's that car? Right?

01:39:01.050 --> 01:39:02.690
They don't want
to click on that.

01:39:03.290 --> 01:39:05.690
Ads featuring the Corvette
brought a hundred and eighty

01:39:05.690 --> 01:39:06.570
seven thousand dollar.

01:39:06.570 --> 01:39:09.370
Meta gives you a really awesome
way to track all this stuff.

01:39:09.370 --> 01:39:11.130
A hundred and eighty seven
thousand dollars worth of

01:39:11.130 --> 01:39:12.525
profit into my business.

01:39:12.525 --> 01:39:14.845
The car out the door was a
hundred and thirty five grand.

01:39:14.845 --> 01:39:19.085
Did my business by
itself pay for this car?

01:39:19.085 --> 01:39:22.205
The business pillar paid for
the car and I leveraged it as

01:39:22.205 --> 01:39:24.045
marketing material.

01:39:24.045 --> 01:39:27.845
What percentage can you write off
of marketing marketing material?

01:39:27.860 --> 01:39:30.100
A hundred percent. Right?

01:39:30.100 --> 01:39:33.220
Now, you if your business is only
making forty grand and you go

01:39:33.220 --> 01:39:34.980
buy a hundred and fifty
thousand dollar car and, like,

01:39:34.980 --> 01:39:36.500
I'm writing it off as
marketing material,

01:39:36.500 --> 01:39:37.860
you're probably going
to get out of it.

01:39:37.860 --> 01:39:38.580
Don't do that.

01:39:38.580 --> 01:39:41.325
But, when your business starts
making significantly more than

01:39:41.325 --> 01:39:44.685
the cost of the car and you can
justify because of the profit

01:39:44.685 --> 01:39:46.725
to your business from it,

01:39:46.845 --> 01:39:49.005
now all of a sudden you've
got some strategies open up to you

01:39:49.005 --> 01:39:51.645
where you can start leveraging
some of those types of things.

01:39:51.645 --> 01:39:53.760
So, here's the thing,
grandma told all of us,

01:39:53.760 --> 01:39:55.520
the best way to if you're
going to buy a car,

01:39:55.520 --> 01:39:57.640
the best way to pay
for it is to pay

01:39:57.840 --> 01:40:00.240
Cash. Cash. Yeah.

01:40:00.240 --> 01:40:02.960
Pay cash. Right? And
grandma, she was smart.

01:40:02.960 --> 01:40:05.760
So, obviously, should
follow her advice. Yeah.

01:40:05.760 --> 01:40:06.760
What's your name?

01:40:06.825 --> 01:40:08.185
Lindsay. Alright, Lindsay.

01:40:08.185 --> 01:40:10.345
I got an investment opportunity
for you. Okay, Lindsay?

01:40:10.345 --> 01:40:13.065
You're gonna give me a hundred
and thirty five thousand dollars.

01:40:13.065 --> 01:40:16.025
So, I've got Lindsay's a hundred and
thirty five thousand thousand bucks.

01:40:16.025 --> 01:40:16.985
I'm gonna take it over here.

01:40:16.985 --> 01:40:19.590
I'm gonna invest it
for like five years.

01:40:19.590 --> 01:40:21.590
And, at the end of
five years, Lindsay,

01:40:21.590 --> 01:40:25.630
I'm gonna bring you back a grand
total of sixty thousand bucks.

01:40:25.990 --> 01:40:27.390
You in?

01:40:28.310 --> 01:40:31.030
That is better than no bucks.

01:40:31.030 --> 01:40:33.470
Losing half is better than
losing all of it. Right?

01:40:34.005 --> 01:40:38.365
Oh, no. Yeah. Grand
total. She's like, no.

01:40:38.485 --> 01:40:39.525
See, here's the thing.

01:40:39.525 --> 01:40:41.125
If I had followed
grandma's advice,

01:40:41.125 --> 01:40:43.525
paid a hundred and thirty five
thousand dollars cash for my

01:40:43.525 --> 01:40:45.365
car, drove it around
for five years,

01:40:45.365 --> 01:40:47.365
taking it back to the
dealership, turn it back in,

01:40:47.365 --> 01:40:49.125
they'd offer me
sixty grand for it.

01:40:49.125 --> 01:40:50.880
Is that a good investment?

01:40:51.800 --> 01:40:52.440
Nope.

01:40:52.440 --> 01:40:55.160
Think what that's what the
wealthy are doing with their cash?

01:40:55.160 --> 01:40:56.280
Nope.

01:40:56.280 --> 01:40:57.440
So,

01:40:58.200 --> 01:41:00.200
while we can we can love
grandma but we don't have to

01:41:00.200 --> 01:41:02.160
follow her financial advice.

01:41:02.600 --> 01:41:03.160
Right?

01:41:03.160 --> 01:41:06.355
If you only want to end up
as wealthy as grandma was,

01:41:06.395 --> 01:41:07.995
that's, you know,
that's what you do,

01:41:07.995 --> 01:41:09.275
you follow what grandma did.

01:41:09.275 --> 01:41:11.475
Now, if your grandma
was Gail Miller,

01:41:11.595 --> 01:41:12.875
then, you know, go ahead.

01:41:12.875 --> 01:41:15.155
But but, other than that,

01:41:15.515 --> 01:41:18.755
probably listen
to people that are

01:41:18.920 --> 01:41:21.320
a little better off
than grandma was.

01:41:21.320 --> 01:41:23.800
So, the wealthy obviously
don't behave that way.

01:41:23.800 --> 01:41:27.160
So, what I did is I did save up
the hundred and thirty five grand.

01:41:27.160 --> 01:41:30.360
When Chevy announced the
mid engine c eight Corvette,

01:41:30.360 --> 01:41:32.120
I was like, babe, I'm
going to the dealership,

01:41:32.120 --> 01:41:32.920
I'll see you later. Right?

01:41:32.920 --> 01:41:33.405
I was off.

01:41:33.405 --> 01:41:34.925
And, I put in an
order form, man,

01:41:34.925 --> 01:41:36.605
I checked every box
on that order form,

01:41:36.605 --> 01:41:38.285
that's how it was a hundred and
thirty five thousand dollars.

01:41:38.285 --> 01:41:38.925
Right?

01:41:38.925 --> 01:41:41.005
Fully loaded, I handed
it back to the sales rep,

01:41:41.005 --> 01:41:41.885
he did some math, he's like,

01:41:41.885 --> 01:41:43.165
that's going be a hundred
and thirty five grand.

01:41:43.165 --> 01:41:44.605
I said, how much
if I finance it?

01:41:44.605 --> 01:41:46.170
He said, twenty one
hundred dollars a month.

01:41:46.170 --> 01:41:48.810
I said, okay, perfect. How long
do I have before it gets here?

01:41:48.810 --> 01:41:51.850
He said, seven months. So,
I knew I had seven months.

01:41:51.850 --> 01:41:54.810
I went out and I identified two
fix and flips that I called the

01:41:54.810 --> 01:41:57.210
Corvette flips that
I knew, together,

01:41:57.210 --> 01:41:59.130
would make me a little more
than a hundred and thirty five

01:41:59.130 --> 01:42:00.505
grand that I needed for the car.

01:42:00.505 --> 01:42:02.825
So, I did the flips using
other people's money,

01:42:02.825 --> 01:42:04.825
hundred hundred
percent or excuse me,

01:42:04.825 --> 01:42:06.745
infinite rate of return for me,

01:42:06.745 --> 01:42:10.105
created the hundred and thirty
five grand out of thin air.

01:42:10.105 --> 01:42:10.345
Right?

01:42:10.345 --> 01:42:12.105
I took the hundred and
thirty five grand in cash,

01:42:12.105 --> 01:42:13.850
I stacked it into a briefcase,

01:42:13.850 --> 01:42:16.170
handcuffed the briefcase to my
wrist and walked it down to the

01:42:16.170 --> 01:42:17.770
dealership and bought my car.

01:42:17.770 --> 01:42:18.970
Right? No, I didn't.

01:42:18.970 --> 01:42:21.850
I took the money
down to Provo, Provo,

01:42:21.850 --> 01:42:25.770
Utah and I found a sixteen
plex that was in foreclosure.

01:42:25.770 --> 01:42:29.205
What had happened is this this
the owner of this sixteen plex

01:42:29.205 --> 01:42:33.725
didn't live in Provo,
lived in Arizona and

01:42:34.005 --> 01:42:35.285
thought that it'd
be a good idea,

01:42:35.285 --> 01:42:36.885
it's a good strategy
to save money.

01:42:36.885 --> 01:42:41.205
I was he was going to manage
it himself from Arizona.

01:42:41.205 --> 01:42:42.845
How do you think
that worked out?

01:42:42.960 --> 01:42:46.080
Not so good. Right?

01:42:46.080 --> 01:42:47.840
The property got into disrepair.

01:42:47.840 --> 01:42:50.320
It was about fifty
percent occupied.

01:42:50.320 --> 01:42:52.880
In fact, he started he lost so
many tenants that he couldn't keep

01:42:52.880 --> 01:42:53.600
up with the payments.

01:42:53.600 --> 01:42:57.105
He was a hundred and nineteen thousand
dollars behind on his mortgage.

01:42:57.105 --> 01:43:00.225
So, I had the same subject
to conversation with him.

01:43:00.225 --> 01:43:01.905
Today, the bank's going to
take this thing, if they do,

01:43:01.905 --> 01:43:02.705
they'll restore your credit,

01:43:02.705 --> 01:43:05.425
but I can save your credit if we
set up this subject to strategy.

01:43:05.425 --> 01:43:07.425
I'll immediately catch you up
on your hundred and nineteen

01:43:07.425 --> 01:43:08.545
and back payments.

01:43:08.545 --> 01:43:10.545
I will make your payment
every month on time.

01:43:10.545 --> 01:43:12.140
All you you have do is
turn the title over to me,

01:43:12.140 --> 01:43:13.500
you stay on as a credit partner.

01:43:13.500 --> 01:43:14.540
Put the contract in place,

01:43:14.540 --> 01:43:16.060
he was all for it because
it saved his credit.

01:43:16.060 --> 01:43:16.940
Right?

01:43:16.940 --> 01:43:18.700
Sent the hundred nineteen
thousand to his bank,

01:43:18.700 --> 01:43:20.620
caught him up, started
making the payments,

01:43:20.620 --> 01:43:23.260
used about twenty five thousand
dollars to fix up the property,

01:43:23.260 --> 01:43:24.855
got it in a beautiful condition,

01:43:24.855 --> 01:43:27.015
and rented out every
one of the rooms.

01:43:27.015 --> 01:43:28.455
And I'd done this
math ahead of time,

01:43:28.455 --> 01:43:33.175
but it cash flows about twenty five
hundred dollars a month, fully tenanted.

01:43:33.175 --> 01:43:35.655
Twenty five hundred dollars
is more than my car payment.

01:43:35.655 --> 01:43:39.270
So, I used the Corvette
money to buy the Corvette property.

01:43:39.270 --> 01:43:42.870
The cash flow is enough
to service the loan.

01:43:42.870 --> 01:43:43.270
Right?

01:43:43.270 --> 01:43:46.630
So, the sixteen plex creates
cash flow which pays for my

01:43:46.630 --> 01:43:49.350
Corvette, the Corvette property.

01:43:49.350 --> 01:43:50.790
Sixteen families in Provo,

01:43:50.790 --> 01:43:53.685
Utah go to work every single
day so they can make the most

01:43:53.685 --> 01:43:56.845
important check of the
month, the rent check.

01:43:56.885 --> 01:44:00.245
Sixteen rent checks go into one account
and out of that account come two things,

01:44:00.245 --> 01:44:02.885
the previous owner's mortgage
and my Corvette payment.

01:44:02.885 --> 01:44:04.605
Who pays for my Corvette?

01:44:06.460 --> 01:44:07.860
My tenants.

01:44:09.180 --> 01:44:10.860
Don't believe me?

01:44:10.860 --> 01:44:12.980
At the end of five years

01:44:13.660 --> 01:44:16.620
or if you're still having a hard
time connecting the dots there,

01:44:16.620 --> 01:44:20.140
after five years when the when
the when the loan is done on my

01:44:20.140 --> 01:44:22.685
Corvette, because
it's a five year loan,

01:44:22.685 --> 01:44:26.445
I will have a paid for car that I've
gotten to drive the entire time.

01:44:26.445 --> 01:44:30.045
I will still have the cash
flow from the sixteen plex.

01:44:30.045 --> 01:44:33.965
I'll still have the asset
itself and I will still have

01:44:33.965 --> 01:44:36.405
the hundred and thirty
five thousand dollars.

01:44:37.610 --> 01:44:40.610
Where's the hundred and thirty
five thousand dollars at?

01:44:40.810 --> 01:44:44.330
It's equity in the
property. And, equity grows.

01:44:44.330 --> 01:44:47.290
It doesn't shrink like
cars do, right, in value.

01:44:47.290 --> 01:44:49.250
Real estate grows in value.

01:44:49.925 --> 01:44:53.485
Does anybody not understand
how my Corvette was free?

01:44:54.645 --> 01:44:57.445
Pretty dope, right? You
can apply this to anything.

01:44:57.445 --> 01:44:59.685
You want a jet? Go
buy a jet. Right?

01:44:59.685 --> 01:45:02.085
Just make sure that you have
an asset that pays for it.

01:45:02.085 --> 01:45:03.485
Not your time.

01:45:03.700 --> 01:45:06.660
That is the biggest
mindset shift of the night.

01:45:06.660 --> 01:45:09.220
Not your your time doesn't
pay for the things you want.

01:45:09.220 --> 01:45:10.900
Assets pay for the
things you want.

01:45:10.900 --> 01:45:16.060
Your time should be used
acquiring assets. Got it? Okay.

01:45:16.905 --> 01:45:20.865
Now, with that said, and
understanding this strategy,

01:45:20.905 --> 01:45:23.065
how can you start doing this?

01:45:23.065 --> 01:45:25.305
The coolest part of everything
that I've shared with you

01:45:25.305 --> 01:45:28.025
tonight is that you do not have
to be wealthy to start doing this.

01:45:28.025 --> 01:45:30.530
You don't have to be wealthy
to start buying real estate.

01:45:30.530 --> 01:45:33.650
You don't have to be wealthy to
start right taking deductions

01:45:33.650 --> 01:45:36.249
and paying your kids
and all the things.

01:45:37.170 --> 01:45:40.290
We have this weird thing about
our brains where we think, oh,

01:45:40.290 --> 01:45:42.290
one day when I
magically wake up rich,

01:45:42.290 --> 01:45:44.255
like I'm going to start
acting like a wealthy person.

01:45:44.255 --> 01:45:46.335
Doesn't work that
way. That's backwards.

01:45:46.335 --> 01:45:48.415
If you want to become
a wealthy person,

01:45:48.415 --> 01:45:51.815
you have to start doing
wealthy person things

01:45:52.095 --> 01:45:56.735
because your life is the
result of the actions you take.

01:45:56.735 --> 01:46:00.020
If you continue
tonight after tonight,

01:46:00.020 --> 01:46:03.140
if you continue to do
average person things,

01:46:03.140 --> 01:46:07.580
the results you will get down the
road are average person results.

01:46:08.900 --> 01:46:12.820
If you start immediately
doing wealthy people things,

01:46:12.820 --> 01:46:14.540
you won't be able to help it.

01:46:15.915 --> 01:46:18.555
The more wealthy people things
you do will just lead you to

01:46:18.555 --> 01:46:20.835
becoming a wealthy person.

01:46:21.675 --> 01:46:23.475
It's your actions.

01:46:26.395 --> 01:46:28.355
So, start taking the actions.

01:46:28.750 --> 01:46:31.310
Surround yourself with the
resources that you need to go

01:46:31.310 --> 01:46:35.750
out and start doing this
stuff, the capital, the relationships.

01:46:35.790 --> 01:46:37.630
Surround yourself with people
who aren't going to tell you

01:46:37.630 --> 01:46:40.310
you're crazy for
wanting something more.

01:46:41.635 --> 01:46:43.555
Surround yourself with people
who are doing the same thing

01:46:43.555 --> 01:46:44.355
that you're doing,

01:46:44.355 --> 01:46:47.995
who are going to support you and
push you along and mentor you.

01:46:49.155 --> 01:46:52.995
Plug in and learn the skills
to not only get the first deal

01:46:52.995 --> 01:46:54.795
done but every deal after that.

01:46:55.120 --> 01:46:57.600
Wouldn't it be nice two years
from now just like Mahea and

01:46:57.600 --> 01:46:58.720
Ron to look back and be like,

01:46:58.720 --> 01:47:02.200
we've done thirteen deals
in the last two years.

01:47:02.960 --> 01:47:05.800
Whereas before, two years
ago, we'd never done any.

01:47:08.185 --> 01:47:10.585
Get the education that you need to
be able to do the things you

01:47:10.585 --> 01:47:14.945
need to do with those properties
once they're once you bought them.

01:47:15.545 --> 01:47:17.945
The investor's secret network,
the first flip challenge,

01:47:17.945 --> 01:47:19.065
the Renatus education.

01:47:19.065 --> 01:47:21.145
Let's talk about that Renatus
education for a second.

01:47:21.145 --> 01:47:24.470
What an incredible what an
incredible education platform.

01:47:24.470 --> 01:47:27.470
We are standing in
the corporate studio

01:47:27.510 --> 01:47:28.550
for Renatus.

01:47:28.550 --> 01:47:30.550
Renatus is a Utah based company.

01:47:30.550 --> 01:47:33.790
They serve about twenty
thousand students nationwide.

01:47:33.990 --> 01:47:36.350
They've been in business
since twenty eleven.

01:47:36.725 --> 01:47:38.965
That's, what, fifteen years?

01:47:38.965 --> 01:47:42.965
In fifteen years, they've won
sixteen Best in State Awards,

01:47:42.965 --> 01:47:44.805
the Utah Best in State Award.

01:47:44.805 --> 01:47:48.485
One of those is to our
CEO and founder, Mr.

01:47:48.485 --> 01:47:50.045
Bob Snyder.

01:47:50.165 --> 01:47:52.245
Bob runs Renatus Debt Free.

01:47:52.245 --> 01:47:54.690
So, when he says lifetime
access to the education,

01:47:54.690 --> 01:47:57.410
he means lifetime
access to the education.

01:47:57.410 --> 01:48:01.330
And, I don't know if any of you
have ever tried to to get a Utah

01:48:01.330 --> 01:48:04.530
Best in State award before,
but it is not an easy thing.

01:48:04.530 --> 01:48:06.850
Especially, to get sixteen
of them in fifteen years.

01:48:06.850 --> 01:48:08.155
That's pretty incredible feat.

01:48:08.155 --> 01:48:11.595
It's an award winning education
and I think that those awards

01:48:11.595 --> 01:48:13.355
come for a very specific reason.

01:48:13.355 --> 01:48:16.635
Renatus does not pay their
instructors like professors.

01:48:16.635 --> 01:48:19.595
It's not a salaried position
where they stand up at the

01:48:19.595 --> 01:48:22.235
podium and read to you out of
a textbook every single day and

01:48:22.235 --> 01:48:23.110
that's all they do.

01:48:23.110 --> 01:48:25.270
These are practitioner
instructors.

01:48:25.270 --> 01:48:27.190
These are people who
are making their six,

01:48:27.190 --> 01:48:31.510
seven figures doing the things
in their business that we bring

01:48:31.510 --> 01:48:33.670
them in to teach you how to do.

01:48:33.670 --> 01:48:36.310
For example, the person that taught
me that there's twenty seven trillion

01:48:36.310 --> 01:48:38.055
dollars in retirement
accounts in this country,

01:48:38.055 --> 01:48:40.455
he gave me two questions, he
gave me access to all of it.

01:48:40.455 --> 01:48:42.215
His name is Matt Sorenson.

01:48:42.215 --> 01:48:46.055
Matt is the CEO and founder of
Directed IRA and Directed Trust

01:48:46.055 --> 01:48:46.455
Company.

01:48:46.455 --> 01:48:49.335
All he does all day long is
help people self direct their

01:48:49.335 --> 01:48:52.655
retirement accounts so that
they can go out and and invest

01:48:52.670 --> 01:48:56.110
in in alternate investor
retirement in alternate

01:48:56.110 --> 01:48:58.630
investments such as real estate.

01:48:58.750 --> 01:49:02.430
That's the dude you want to
learn that strategy from, not me.

01:49:02.430 --> 01:49:04.775
I'd just be repeating
what I learned from him.

01:49:04.775 --> 01:49:05.975
Right?

01:49:05.975 --> 01:49:07.895
Chris Wilson, this guy, I mean,

01:49:07.895 --> 01:49:09.495
I've done like six
hundred transactions,

01:49:09.495 --> 01:49:11.895
I might be an okay person
to learn from a little bit.

01:49:11.895 --> 01:49:14.135
Chris has done forty
thousand transactions.

01:49:14.135 --> 01:49:16.615
This is who I learned
the subject to strategy from.

01:49:16.615 --> 01:49:19.680
Thank goodness for Chris cause
he's allowed he's he's enabled

01:49:19.680 --> 01:49:22.160
me and empowered me with
knowledge that has allowed me

01:49:22.160 --> 01:49:24.560
to go out and buy hundreds
of rental properties.

01:49:24.560 --> 01:49:25.680
Garrett Gunderson,

01:49:25.680 --> 01:49:28.320
this guy has been on just
about every money talk show,

01:49:28.320 --> 01:49:29.680
famous money talk
show you can think of.

01:49:29.680 --> 01:49:31.125
He's a New York
Times bestseller,

01:49:31.125 --> 01:49:33.285
wrote one of my favorite books
that I actually read before I

01:49:33.285 --> 01:49:37.205
got the chance to meet Garrett
because he's a Renatus instructor.

01:49:37.205 --> 01:49:39.445
Garrett wrote
Killing Sacred Cows.

01:49:39.445 --> 01:49:40.325
If you haven't read that book,

01:49:40.325 --> 01:49:42.805
put it on your to
read list because that's exactly what

01:49:42.805 --> 01:49:44.085
we're talking about tonight.

01:49:44.085 --> 01:49:48.090
We create all these ideas,
all these sacred cows. Right?

01:49:48.090 --> 01:49:50.010
And, some of them we
don't want to let go of.

01:49:50.010 --> 01:49:51.930
I may have struck a chord
at some point tonight.

01:49:51.930 --> 01:49:53.530
May have touched on one of
those sacred cows and you're

01:49:53.530 --> 01:49:55.450
like, I don't want
to get rid of that.

01:49:55.450 --> 01:49:57.050
I don't want to get rid of I
don't want to stop contributing

01:49:57.050 --> 01:49:58.250
my four zero one ks.

01:49:58.250 --> 01:50:00.690
I've been told my whole
life that's the thing to do.

01:50:01.485 --> 01:50:03.565
We got to kill the sacred cows.

01:50:03.565 --> 01:50:06.325
They're what's holding you
back. Right? Read the book.

01:50:07.005 --> 01:50:10.445
Ron Williams teaches our Your
Most Valuable Real Estate class.

01:50:10.445 --> 01:50:13.165
So, that class is about your mind
and body and how important that

01:50:13.165 --> 01:50:14.800
is in in creating your empire.

01:50:14.800 --> 01:50:16.480
And and and to teach that class,

01:50:16.480 --> 01:50:18.800
we brought in a seven
times mister Olympia,

01:50:18.800 --> 01:50:22.240
seven times mister world,
seven times mister universe.

01:50:22.240 --> 01:50:24.720
These are the caliber of
instructors that Renatus brings

01:50:24.720 --> 01:50:27.560
in to teach all of the
various strategies.

01:50:28.235 --> 01:50:31.675
So, it's no longer learning how
to be average from average people,

01:50:31.675 --> 01:50:33.755
it's learning how to be
wealthy from wealthy people.

01:50:33.755 --> 01:50:36.475
There are forty two
practitioner instructors,

01:50:36.475 --> 01:50:38.475
all of them experts
in their field,

01:50:38.475 --> 01:50:41.475
teaching ninety different real
estate investing strategies.

01:50:42.130 --> 01:50:45.330
Again, we're learning
from the one percent.

01:50:45.330 --> 01:50:47.650
We're learning from the
wealthy how to be wealthy.

01:50:47.650 --> 01:50:49.730
So, what do we do in the first
flip challenge in the Investor

01:50:49.730 --> 01:50:53.525
Secret Network? Well, we have
weekly live group trainings.

01:50:53.525 --> 01:50:55.125
We meet up at least weekly.

01:50:55.125 --> 01:50:57.525
And, for those of you who are in
the Investor Secret Network and

01:50:57.525 --> 01:50:59.205
have looked at the
calendar recently,

01:50:59.205 --> 01:51:02.165
there's stuff going on every
day, multiple times a day.

01:51:02.165 --> 01:51:04.805
There's more stuff than
you could possibly attend.

01:51:04.805 --> 01:51:07.205
I'm I'm the leader of the
local community here and I can't even

01:51:07.205 --> 01:51:08.165
attend all the stuff.

01:51:08.165 --> 01:51:12.220
So, there's plenty for you to plug
into and to start to start learning.

01:51:12.220 --> 01:51:13.900
We have one on one
strategy sessions.

01:51:13.900 --> 01:51:16.780
We have ways to connect and
share deals and money and,

01:51:16.780 --> 01:51:18.540
you know, capital resources,

01:51:18.540 --> 01:51:22.260
relationships on both
online and in person.

01:51:22.275 --> 01:51:23.795
We have real deal house tours.

01:51:23.795 --> 01:51:27.075
In fact, we just had one
last week at one of Mahea's deals,

01:51:27.075 --> 01:51:30.435
one of Ron and Mahea's
deals in Salt Lake.

01:51:30.435 --> 01:51:32.195
They're going to crush
it on that one too.

01:51:32.195 --> 01:51:33.635
I think what your
profit was about what,

01:51:33.635 --> 01:51:34.995
ninety grand on that one?

01:51:34.995 --> 01:51:37.560
How how far out are
you before you list it?

01:51:37.560 --> 01:51:39.760
About eight Yeah.

01:51:40.040 --> 01:51:43.240
How cool is that? Right? Just
popping these things out.

01:51:43.240 --> 01:51:45.880
So, we meet up at
our students' deals.

01:51:45.880 --> 01:51:47.960
We're doing Allison's
in charge of it locally.

01:51:47.960 --> 01:51:50.000
How many we do in
about one a week?

01:51:50.175 --> 01:51:52.655
About one a week and we've
got we could probably do more than

01:51:52.655 --> 01:51:54.015
that with how many
deals are going on.

01:51:54.015 --> 01:51:54.335
Right?

01:51:54.335 --> 01:51:55.615
So, where every week,

01:51:55.615 --> 01:51:57.455
we're meeting up at
another student's deal.

01:51:57.455 --> 01:52:00.855
There are people in
this room, guests,

01:52:02.910 --> 01:52:05.870
who within ninety days will
you'll be in your first deal

01:52:05.870 --> 01:52:08.350
and Alison will be
calling you saying, hey,

01:52:08.350 --> 01:52:12.910
can we come do a house tour
at your at your fix and flip?

01:52:12.910 --> 01:52:15.710
And, that's cool because all of
us come and we show up and you get

01:52:15.710 --> 01:52:18.475
to show us all the cool ways
that you found it, analyzed it,

01:52:18.475 --> 01:52:19.675
negotiated it, funded it.

01:52:19.675 --> 01:52:19.915
Right?

01:52:19.915 --> 01:52:22.395
And then, we get to give
you ideas on, hey, you know,

01:52:22.395 --> 01:52:23.755
what if you did this
instead of that?

01:52:23.755 --> 01:52:25.355
And, you're like, I would
have never thought of that.

01:52:25.355 --> 01:52:26.795
So, we're here to
support each other,

01:52:26.795 --> 01:52:28.795
we're here to help
each other grow.

01:52:28.795 --> 01:52:30.955
VIP award ceremonies,
live studio training.

01:52:30.955 --> 01:52:32.355
Hey, does that look familiar?

01:52:32.700 --> 01:52:34.940
This dude right here,
Bridger Pennington,

01:52:34.940 --> 01:52:37.180
is a twenty six year
old millionaire.

01:52:37.180 --> 01:52:39.420
And, I'm actually I
just recently plugged,

01:52:39.420 --> 01:52:41.420
like logged back
into my education,

01:52:41.420 --> 01:52:43.820
thirteen years into my career,

01:52:43.820 --> 01:52:46.300
logged back into my education
so that I could watch Bridger's

01:52:46.300 --> 01:52:48.740
class on creating
private equity funds.

01:52:48.835 --> 01:52:51.475
You will need lifetime access
to this education because it

01:52:51.475 --> 01:52:52.755
will last you a lifetime.

01:52:52.755 --> 01:52:55.475
It will take you a
lifetime to get through it.

01:52:55.475 --> 01:52:59.155
You will continue to level
up and level up and level up.

01:52:59.155 --> 01:53:01.320
I'm learning how to raise
private equity so I could put

01:53:01.320 --> 01:53:03.720
twenty four million dollars
together to go do a big

01:53:03.720 --> 01:53:06.440
multifamily project in Ogden,

01:53:06.440 --> 01:53:10.400
something I would have never
thought to do thirteen years ago.

01:53:11.720 --> 01:53:14.040
We do field trainings,
mentoring team accountability,

01:53:14.040 --> 01:53:15.485
it all comes down to a system.

01:53:15.485 --> 01:53:17.245
We call this system
the four phase plan,

01:53:17.245 --> 01:53:19.965
it's the same system that
my mentor plugged me into.

01:53:19.965 --> 01:53:21.805
The four phases get
into your first deal.

01:53:21.805 --> 01:53:23.405
Once you buy that
first deal, great.

01:53:23.405 --> 01:53:27.005
We're through the the the first
three phases are designed to be

01:53:27.005 --> 01:53:29.280
a leapfrog of learning
and action steps.

01:53:29.280 --> 01:53:29.520
Right?

01:53:29.520 --> 01:53:32.000
And so, Meily and I became
the leaders of local community

01:53:32.000 --> 01:53:34.320
here, well, let's let's take
those first three phases,

01:53:34.320 --> 01:53:36.480
let's create a
challenge around it.

01:53:36.480 --> 01:53:37.760
Really, I mean, it
would be challenging,

01:53:37.760 --> 01:53:38.720
it's totally possible,

01:53:38.720 --> 01:53:41.040
but it'd challenging to do that
in ninety days, three phases,

01:53:41.040 --> 01:53:42.840
three months, that's
a phase a month.

01:53:42.975 --> 01:53:45.455
Going start in phase
one in the essentials.

01:53:45.455 --> 01:53:48.095
The Renatus Essentials library,
basically, you watch a class,

01:53:48.095 --> 01:53:49.855
go do the action steps.

01:53:49.855 --> 01:53:53.615
Your mentor and and peers
are there along the way.

01:53:53.615 --> 01:53:57.470
Renatus has a a staff
of coaches to help you

01:53:58.150 --> 01:54:00.310
attack those action steps
in an organized way,

01:54:00.310 --> 01:54:01.990
in a way that keeps you safe.

01:54:01.990 --> 01:54:02.550
Right?

01:54:02.550 --> 01:54:05.430
So, each one of these line items
is Renatus class that averages

01:54:05.430 --> 01:54:06.870
about seven hours.

01:54:06.870 --> 01:54:07.110
Right?

01:54:07.110 --> 01:54:07.990
So, you've got about, you know,

01:54:07.990 --> 01:54:11.150
eighty to one hundred and twenty
hours in each one of these libraries.

01:54:11.345 --> 01:54:14.065
But it starts with the
first half of this is,

01:54:14.065 --> 01:54:16.225
let's build a big
fence for the fat cows.

01:54:16.225 --> 01:54:19.745
Thirty of your lifetime income for
the average person goes to taxes.

01:54:19.745 --> 01:54:21.945
So, let's start
with tax and legal.

01:54:21.985 --> 01:54:23.425
So, that'll take you
about the first week.

01:54:23.425 --> 01:54:24.300
And then, the second week,

01:54:24.300 --> 01:54:26.140
third of your lifetime
income goes to interest.

01:54:26.140 --> 01:54:28.060
What we're going to leverage to
get into your first couple of

01:54:28.060 --> 01:54:30.060
deals, that means you're
going be paying interest.

01:54:30.060 --> 01:54:32.940
Let's minimize the amount of
interest that you're going to pay.

01:54:32.940 --> 01:54:35.420
That's the velocity
banking strategy.

01:54:35.420 --> 01:54:39.255
And then, the last half
of the month, month one,

01:54:39.255 --> 01:54:41.495
we're going be focused on the
last half of the Essentials

01:54:41.495 --> 01:54:44.215
library, a combination of
learning and action steps,

01:54:44.215 --> 01:54:45.655
watch a class, take some action.

01:54:45.655 --> 01:54:48.855
Those last six classes are
going to teach you five very

01:54:48.855 --> 01:54:52.200
important skills, how to find,
analyze, negotiate, fund,

01:54:52.200 --> 01:54:53.320
and close on deals.

01:54:53.320 --> 01:54:56.560
You will have those skills
within your first month here.

01:54:56.920 --> 01:54:58.680
Then, it's a matter of
going out and applying them.

01:54:58.680 --> 01:55:00.680
And then, as you start
applying them, well,

01:55:00.680 --> 01:55:03.080
let's learn how to systematize
those skills because we know

01:55:03.080 --> 01:55:04.360
that's how we
duplicate ourselves.

01:55:04.360 --> 01:55:05.925
It's not about
putting more time in,

01:55:05.925 --> 01:55:08.405
it's about being smarter with the
time that we have that we

01:55:08.405 --> 01:55:11.445
are putting in and systematizing
the skills that we're learning.

01:55:11.445 --> 01:55:16.085
So, the profits the profits
library will be month two.

01:55:16.085 --> 01:55:19.205
And, the profits library is going to teach
you business systems and automations.

01:55:19.205 --> 01:55:20.420
So, all those skills
you're learning,

01:55:20.420 --> 01:55:22.500
now we're going to put those in
the business systems and we're

01:55:22.500 --> 01:55:24.660
going to set them off to
run by themselves, right,

01:55:24.660 --> 01:55:27.300
with with as little input
from you as possible.

01:55:27.300 --> 01:55:29.700
And then, of
course, month three,

01:55:29.700 --> 01:55:30.900
it's kind of pick your poison.

01:55:30.900 --> 01:55:32.980
Since you get lifetime
access to the education,

01:55:32.980 --> 01:55:33.940
there's no fear of missing out.

01:55:33.940 --> 01:55:34.605
And, the good news is,

01:55:34.605 --> 01:55:36.365
if Renatus ever re
records a class,

01:55:36.365 --> 01:55:38.125
which they do about
three times a month,

01:55:38.125 --> 01:55:40.605
we were just doing
that today, right,

01:55:40.605 --> 01:55:43.405
you get access to the any
new classes they create.

01:55:43.405 --> 01:55:46.645
I paid for my education
thirteen years ago.

01:55:46.950 --> 01:55:50.390
And, the class that Nate and
Becky Lambert recorded today will

01:55:50.390 --> 01:55:52.150
just show up behind my login.

01:55:52.150 --> 01:55:54.310
I won't have to pay
anything extra for it.

01:55:54.310 --> 01:55:55.990
And, that applies to you too.

01:55:55.990 --> 01:55:57.990
So, we don't have to
have fear of missing out.

01:55:57.990 --> 01:55:59.990
Whatever type of deal,
first flip challenge,

01:55:59.990 --> 01:56:01.395
you don't have to
do a fix and flip.

01:56:01.395 --> 01:56:03.315
First flip challenge is going
teach you how to finalize,

01:56:03.315 --> 01:56:04.195
negotiate, fund and close.

01:56:04.195 --> 01:56:07.315
You choose what to do with the
deal after you've closed on it.

01:56:07.315 --> 01:56:09.155
And if it's going to be
a fix and flip, great.

01:56:09.155 --> 01:56:11.955
Then, spend month three, focus
on the fix and flip library.

01:56:11.955 --> 01:56:14.435
Also, eighty to one hundred
and twenty hours. Right?

01:56:14.435 --> 01:56:16.395
If you want it to be
a rental, perfect.

01:56:16.420 --> 01:56:17.620
Watch the buy and hold track.

01:56:17.620 --> 01:56:20.500
Or maybe you want to skip right to
apartment buildings, that's fine too.

01:56:20.500 --> 01:56:24.500
Or commercial, you want to do storage
units or retail space or whatever it is.

01:56:24.500 --> 01:56:24.740
Right?

01:56:24.740 --> 01:56:27.620
Maybe you want to do short
term and mid term rentals, Airbnb's,

01:56:27.620 --> 01:56:29.015
VRBO's, doesn't matter.

01:56:29.015 --> 01:56:30.775
Whatever it is that you're
going to do with the property

01:56:30.775 --> 01:56:33.255
after you buy it, that's what
you'll spend month three on.

01:56:33.255 --> 01:56:34.775
And then, by the
end of month three,

01:56:34.775 --> 01:56:36.455
your goal is to get
into that first deal,

01:56:36.455 --> 01:56:39.455
have purchased that first
deal within those ninety days.

01:56:39.895 --> 01:56:41.495
Once that first deal
is out of the way,

01:56:41.495 --> 01:56:43.200
now we can focus on scaling.

01:56:43.200 --> 01:56:46.680
Let's focus on how to do two,
three, four of them at a time.

01:56:46.720 --> 01:56:48.640
That's how you're going
to build your empire.

01:56:48.640 --> 01:56:51.760
That's how you're going to build
true wealth, is by scaling.

01:56:51.760 --> 01:56:54.240
But, bringing look
at this studio.

01:56:54.240 --> 01:56:58.680
This studio must have cost Bob
millions and millions of dollars.

01:56:58.755 --> 01:57:01.715
And then, bringing practitioner
instructors into Centreville,

01:57:01.715 --> 01:57:03.555
Utah to teach these classes,

01:57:03.555 --> 01:57:06.995
pull them away from their
businesses, this is not cheap.

01:57:06.995 --> 01:57:10.555
It's not cheap to to put all
this together for you and for me.

01:57:10.690 --> 01:57:13.090
And, that's why there's a
price tag associated with it.

01:57:13.090 --> 01:57:15.330
And, I've already
shared that with you,

01:57:15.330 --> 01:57:17.090
twenty six thousand seven
hundred and eighty eight

01:57:17.090 --> 01:57:20.050
dollars for the
First Flip Challenge,

01:57:20.050 --> 01:57:22.610
the Investor's Secret Network
and lifetime access to the

01:57:22.610 --> 01:57:24.010
Renatus education.

01:57:24.325 --> 01:57:25.765
And, I don't know about you,

01:57:25.765 --> 01:57:28.325
but when I was sitting
where you are right now,

01:57:28.325 --> 01:57:31.445
watching whoever it was that
was that was talking thirteen

01:57:31.445 --> 01:57:34.965
years ago, the whole
time I was thinking,

01:57:34.965 --> 01:57:37.005
I didn't realize
it was so simple.

01:57:37.490 --> 01:57:39.330
I can do this thing
he's talking about.

01:57:39.330 --> 01:57:41.570
Like, I didn't realize the
tax strategies were so simple.

01:57:41.570 --> 01:57:45.490
Like, of course, I can do I
can ask people two questions.

01:57:45.490 --> 01:57:46.970
That's easy.

01:57:47.010 --> 01:57:51.370
All of it seemed like this is all
stuff I can do up until this point.

01:57:52.255 --> 01:57:53.295
Because in my head,

01:57:53.295 --> 01:57:55.775
was calculating how many hours
I would have to work at the

01:57:55.775 --> 01:57:58.575
Apple Store to pay
for this dang thing.

01:57:58.575 --> 01:58:01.855
And, it worked out to be like
nine months if working full

01:58:01.855 --> 01:58:04.375
time if I didn't pay taxes.

01:58:06.420 --> 01:58:09.820
And, that was the point where I
started backing away a little bit.

01:58:10.980 --> 01:58:14.500
Realizing that the path to my
dreams and the path to my goals

01:58:14.500 --> 01:58:16.300
was so simple,

01:58:17.860 --> 01:58:19.220
but this caused me to back away.

01:58:19.220 --> 01:58:20.615
Well, I got good news.

01:58:20.615 --> 01:58:23.015
That job money that you're
worried about parting with to

01:58:23.015 --> 01:58:25.695
pay for this, I don't want that.

01:58:26.535 --> 01:58:30.855
I just got done explaining
to you how using the four

01:58:30.855 --> 01:58:33.695
pillars of wealth, you can
have anything you want.

01:58:34.580 --> 01:58:38.380
Do any of you not understand
how my Corvette is free?

01:58:38.900 --> 01:58:41.220
There's a reason I shared that
story and it wasn't just to

01:58:41.220 --> 01:58:43.060
brag, maybe a
little bit to brag,

01:58:43.060 --> 01:58:46.140
but mostly so that
you understand

01:58:46.785 --> 01:58:50.625
that the way that you were
taught was not how to be wealthy.

01:58:50.625 --> 01:58:52.785
The way you were taught was
designed to keep you average.

01:58:52.785 --> 01:58:54.385
The wealthy
understand strategies.

01:58:54.385 --> 01:58:57.225
That's why they get
to have the things

01:58:57.745 --> 01:58:59.300
that we all wish we had.

01:58:59.300 --> 01:59:01.620
Is why we all desire to
be wealthy because of the

01:59:01.620 --> 01:59:04.100
lifestyle that they get to live
and the and the things that

01:59:04.100 --> 01:59:05.740
they get to enjoy.

01:59:07.940 --> 01:59:11.060
How many real estate deals like
the one I did in West Jordan

01:59:11.060 --> 01:59:13.500
would you have to do
to make this worth it?

01:59:15.305 --> 01:59:16.465
One.

01:59:16.825 --> 01:59:19.905
And then, the rest
is cream forever.

01:59:22.265 --> 01:59:26.185
How many tax years like the
one that I showed you would you

01:59:26.185 --> 01:59:28.225
have to have to
make this worth it?

01:59:29.340 --> 01:59:32.060
One one in a little bit,
like fifteen months. Right?

01:59:32.060 --> 01:59:34.260
And then, the rest is cream.

01:59:34.540 --> 01:59:39.220
I did save one of these pillars
for last, the banking pillar.

01:59:40.300 --> 01:59:44.505
And, I did it on purpose because
I saved a strategy that I find to

01:59:44.505 --> 01:59:47.625
be the most powerful
strategy of the night.

01:59:47.625 --> 01:59:48.745
I saved the best for last.

01:59:48.745 --> 01:59:50.745
This is called the
velocity banking strategy.

01:59:50.745 --> 01:59:53.305
And, I have three goals to
share with you while I share the

01:59:53.305 --> 01:59:55.425
velocity banking strategy.

01:59:55.465 --> 01:59:56.450
You will want to take notes,

01:59:56.450 --> 01:59:59.170
I promise you because this this
has the power of changing your

01:59:59.170 --> 02:00:01.010
life immediately
and it's so simple.

02:00:01.010 --> 02:00:02.130
It's awesome.

02:00:02.130 --> 02:00:05.250
First goal, I'm going show you how
to pay off your debt in a fraction of

02:00:05.250 --> 02:00:08.890
the time without having to get a raise
at your job or change your lifestyle.

02:00:09.315 --> 02:00:12.195
You don't have to cut back,
can keep Netflix. Right?

02:00:12.195 --> 02:00:13.795
While accomplishing
goal number one,

02:00:13.795 --> 02:00:17.035
I'm going to show you how
you can fund your first deal

02:00:17.235 --> 02:00:19.315
and other people's deals.

02:00:19.315 --> 02:00:21.035
You can be a lender.

02:00:21.315 --> 02:00:24.555
There's a lot of students
that come in and don't realize

02:00:24.650 --> 02:00:25.690
that they could be lenders.

02:00:25.690 --> 02:00:27.930
They end up being lenders
on other people's deals because

02:00:27.930 --> 02:00:30.250
they didn't realize they could
use their four zero one ks.

02:00:30.250 --> 02:00:32.410
They didn't realize that they
could tap into the equity in

02:00:32.410 --> 02:00:35.210
their home and leverage that to
be able to lend on real estate

02:00:35.210 --> 02:00:36.570
deals and make a profit.

02:00:36.570 --> 02:00:37.130
Right?

02:00:37.130 --> 02:00:40.295
So, I'm going to show you the
with that and goal number two and

02:00:40.295 --> 02:00:41.655
then goal number
three, obviously,

02:00:41.655 --> 02:00:45.335
is education pays for itself
which makes it effectively free.

02:00:45.335 --> 02:00:47.175
Everybody okay free?

02:00:47.175 --> 02:00:49.975
It makes a lot of sense if
it's free, right? Alright.

02:00:49.975 --> 02:00:51.415
Well, just like my
Corvette was free,

02:00:51.415 --> 02:00:53.095
we're going to
leverage a strategy.

02:00:53.095 --> 02:00:55.040
And that strategy is
gonna be velocity banking.

02:00:55.040 --> 02:00:56.480
So, let's dive in. Alright.

02:00:56.480 --> 02:00:58.000
So, let's talk about
banking for a second.

02:00:58.000 --> 02:01:00.880
Average American makes about
five thousand dollars a month.

02:01:00.880 --> 02:01:03.040
That's sixty thousand
dollars a year.

02:01:03.040 --> 02:01:04.720
And, when we get
paid at our jobs,

02:01:04.720 --> 02:01:06.240
we take that money
down to the bank.

02:01:06.240 --> 02:01:08.200
We deposit it into
what accounts?

02:01:09.625 --> 02:01:11.745
Checking and savings. Why?

02:01:13.705 --> 02:01:17.625
Because that's what we were told to
do and we never asked any questions.

02:01:17.625 --> 02:01:19.545
Here's what I don't like
about checking and savings.

02:01:19.545 --> 02:01:21.990
Your money has value
while it's at rest.

02:01:21.990 --> 02:01:23.110
While you're not using it,

02:01:23.110 --> 02:01:24.950
it's worth something
and it can do work.

02:01:24.950 --> 02:01:27.110
But guess who it's working for
while it's at rest if it's in

02:01:27.110 --> 02:01:27.990
checking and savings?

02:01:27.990 --> 02:01:29.830
The bank.

02:01:29.830 --> 02:01:31.990
Banking law says that they can
use the money that's in your

02:01:31.990 --> 02:01:33.670
checking and savings
while you're not using it.

02:01:33.670 --> 02:01:36.295
They can go out and extend
loans to other bank other bank

02:01:36.295 --> 02:01:38.775
customers and collect
interest on your money.

02:01:38.775 --> 02:01:41.175
And then, as long as, you know,
when you come and say, hey,

02:01:41.175 --> 02:01:44.255
need to withdraw one hundred dollars
they give you the one hundred dollars

02:01:44.775 --> 02:01:46.535
Do you guys know that?

02:01:46.535 --> 02:01:48.775
Banks using your money
while you're not using it.

02:01:48.775 --> 02:01:50.415
It's out working for them.

02:01:51.150 --> 02:01:53.870
So, we probably should take
a look at a way that we could

02:01:53.870 --> 02:01:56.590
recapture the rest work
energy of that money.

02:01:56.590 --> 02:01:58.670
The other thing I don't like
about checking and savings is

02:01:58.670 --> 02:02:01.990
it subjects us to what I
call cash fragmentation,

02:02:02.350 --> 02:02:05.385
where we live on a cash
basis and when we get paid,

02:02:05.385 --> 02:02:08.505
it's almost like that money just
explodes into our situation.

02:02:08.505 --> 02:02:11.225
We got money going to
checking and savings and retirement and

02:02:11.225 --> 02:02:14.025
kids college fund and mortgage
payment and card payment and

02:02:14.025 --> 02:02:15.545
credit card payments
and, you know,

02:02:15.545 --> 02:02:17.505
all it just goes
all over the place.

02:02:17.740 --> 02:02:19.820
And, cash fragmentation,

02:02:19.820 --> 02:02:22.140
these are average American
numbers that I just googled,

02:02:22.140 --> 02:02:22.860
but well, savings.

02:02:22.860 --> 02:02:24.620
I got tired of
slicing the pie here,

02:02:24.620 --> 02:02:26.300
so I lumped all the
savings together.

02:02:26.300 --> 02:02:29.500
But, that includes like four zero
one k contributions and savings

02:02:29.500 --> 02:02:31.665
account allocations, etcetera.

02:02:31.665 --> 02:02:34.865
But, if you add this up, it's
five thousand dollars in,

02:02:34.865 --> 02:02:37.025
five thousand dollars out
for the average American.

02:02:37.025 --> 02:02:38.145
That's a cash flow of zero.

02:02:38.145 --> 02:02:40.505
If this is a rental,
who would buy it?

02:02:41.745 --> 02:02:44.550
Here's the problem.
Cash flow is king.

02:02:44.550 --> 02:02:47.750
You know, we only think that cash
flow matters when it comes to rentals.

02:02:47.750 --> 02:02:48.710
It it that's not true.

02:02:48.710 --> 02:02:51.190
Wealth the wealthy
make a lot of times,

02:02:51.190 --> 02:02:54.310
the wealthy use systems that
are simpler than what we were

02:02:54.310 --> 02:02:55.910
taught as average people.

02:02:55.910 --> 02:02:57.990
Because the convoluted systems
we were taught were just

02:02:57.990 --> 02:03:01.765
designed so that other people
can take advantage of us.

02:03:01.965 --> 02:03:05.645
Wealthy, they focus
entirely on cash flow.

02:03:05.645 --> 02:03:08.045
Every decision they make
is based on cash flow,

02:03:08.045 --> 02:03:10.205
which is different than how you
were taught to bank because you

02:03:10.205 --> 02:03:13.810
weren't taught to make banking
decisions based on cash flow.

02:03:13.810 --> 02:03:16.890
You were taught, if you're
going to go get a debt vehicle

02:03:16.930 --> 02:03:20.450
to shop for something using a
metric other than cash flow,

02:03:20.450 --> 02:03:23.850
you were taught to shop
using interest rate numbers.

02:03:24.450 --> 02:03:26.650
But, the bank knows
a little trick.

02:03:26.985 --> 02:03:31.065
You see, we were we were taught
that we feel safe in loans.

02:03:31.065 --> 02:03:33.385
If you could if you're going go get
debt think about this for a second.

02:03:33.385 --> 02:03:34.745
If you're to go
get debt on a car,

02:03:34.745 --> 02:03:37.065
you're to put that on a credit
card or you're going to put

02:03:37.065 --> 02:03:39.665
that on a on a in a loan?

02:03:42.500 --> 02:03:45.540
Sure. Absolutely. Yeah.

02:03:45.540 --> 02:03:47.700
Or a HELOC or any kind
of line of credit. Yeah.

02:03:47.700 --> 02:03:51.020
HELOC's a credit card. Yeah.

02:03:51.620 --> 02:03:53.140
But, the answer is loan, right?

02:03:53.140 --> 02:03:55.060
You feel safer in a
loan in that case.

02:03:55.060 --> 02:03:57.340
That's just what we were
taught, we don't know why.

02:03:57.405 --> 02:03:59.325
Safer. We were told it's safer.

02:03:59.325 --> 02:04:02.365
Guys, credit card debt and
loan debt, they're both debt.

02:04:02.365 --> 02:04:03.805
If you stop paying on
either one of them,

02:04:03.805 --> 02:04:07.325
the bank will come take your stuff
and start destroying your credit.

02:04:07.325 --> 02:04:09.360
Equal risk. Right?

02:04:09.360 --> 02:04:11.120
But, here's the
thing, in a loan,

02:04:11.120 --> 02:04:13.360
they get to do a little something
crazy with the interest.

02:04:13.360 --> 02:04:16.480
They get to they get to do
something called amortization

02:04:16.480 --> 02:04:20.400
with the interest that
ends up costing you way

02:04:20.400 --> 02:04:24.995
more money than simple interest.

02:04:25.115 --> 02:04:28.834
Simple interest ends up being cheaper
even when the number is higher.

02:04:29.275 --> 02:04:32.195
Like this twenty one
percent credit card,

02:04:32.395 --> 02:04:35.435
if I'm going show you how using
this twenty one percent credit card,

02:04:35.435 --> 02:04:38.610
this this family will pay off
their house faster than in

02:04:38.610 --> 02:04:40.290
their six percent mortgage.

02:04:40.290 --> 02:04:44.890
And, it's because of a trick that
the bank uses called amortization.

02:04:45.250 --> 02:04:47.490
So, with that, when
you buy this house,

02:04:47.490 --> 02:04:49.570
we'll just we'll take a look at
this little house right here.

02:04:49.570 --> 02:04:51.125
Two hundred thousand
dollar mortgage,

02:04:51.125 --> 02:04:53.365
thirty year amortization
at six percent,

02:04:53.365 --> 02:04:55.285
gives them a payment of
about twelve hundred dollars.

02:04:55.285 --> 02:04:56.405
So, they buy this house,

02:04:56.405 --> 02:04:58.245
they move their family and they
make their first payment of

02:04:58.245 --> 02:04:59.285
twelve hundred bucks,

02:04:59.285 --> 02:05:00.965
and the bank sends back
a little statement says,

02:05:00.965 --> 02:05:03.125
thank you so much for your first
payment of twelve hundred dollars.

02:05:03.125 --> 02:05:04.165
Here's how we broke it down,

02:05:04.165 --> 02:05:06.600
two hundred and fifty went to
principal and nine hundred and

02:05:06.600 --> 02:05:07.800
fifty went to interest.

02:05:07.800 --> 02:05:10.720
Does that look like six
percent to anybody? No.

02:05:11.560 --> 02:05:16.080
But, because they've stretched the
amortization out across thirty years,

02:05:17.160 --> 02:05:19.925
if you do the math
backwards, it is six percent.

02:05:19.925 --> 02:05:21.845
But, you might call me and be
like, you said six percent.

02:05:21.845 --> 02:05:24.005
I don't understand. Why is
nine hundred fifty going out?

02:05:24.005 --> 02:05:25.525
Well and then, they'll
explain to you, well, know,

02:05:25.525 --> 02:05:28.405
it crisscrosses by year twenty
two and by the last payment,

02:05:28.405 --> 02:05:29.125
it's the inverse.

02:05:29.125 --> 02:05:31.845
You know, you'll make your last
payment three hundred and sixty months

02:05:31.845 --> 02:05:34.110
from now will be twelve hundred
dollars and nine hundred and

02:05:34.110 --> 02:05:35.710
fifty of it will go to
principal and two hundred and

02:05:35.710 --> 02:05:36.750
fifty will go to interest.

02:05:36.750 --> 02:05:38.030
So, it evens out.

02:05:38.030 --> 02:05:38.830
And, you're like, oh,

02:05:38.830 --> 02:05:40.350
I thought you were ripping
me off for a second.

02:05:40.350 --> 02:05:43.470
Right? But, here's what
here's the problem.

02:05:43.470 --> 02:05:47.670
What they don't tell you is how
the average American behaves.

02:05:47.675 --> 02:05:49.755
How many people do you know
that actually go the full

02:05:49.755 --> 02:05:51.795
thirty years on a term?

02:05:51.915 --> 02:05:53.435
What are we doing?

02:05:53.435 --> 02:05:56.715
We're either refinancing or
we're getting into new loans,

02:05:56.715 --> 02:06:01.380
means we buy a new house with a new
mortgage on average every seven years.

02:06:01.380 --> 02:06:04.620
So, this is what most
people look like.

02:06:04.660 --> 02:06:06.580
Their entire lives,

02:06:06.580 --> 02:06:09.300
they're paying mostly
interest on every loan.

02:06:09.300 --> 02:06:10.980
It's about a quarter of
the way through the loan.

02:06:10.980 --> 02:06:13.060
We go get a new car, quarter
of the way through the loan.

02:06:13.060 --> 02:06:15.305
We refinance our car, quarter
of way through the loan.

02:06:15.305 --> 02:06:17.705
Same thing with
mortgages. Right?

02:06:17.705 --> 02:06:21.065
Paying mostly
interest all the time.

02:06:21.065 --> 02:06:24.425
This is why a third of your
lifetime income goes to interest.

02:06:24.425 --> 02:06:26.265
Let's let's just take
a little snapshot,

02:06:26.265 --> 02:06:28.260
four year snapshot
for this family.

02:06:28.260 --> 02:06:30.980
Remember, this is a two hundred
thousand dollar mortgage at six percent

02:06:30.980 --> 02:06:33.220
interest, that's about
average right now.

02:06:33.220 --> 02:06:34.459
Right?

02:06:34.900 --> 02:06:36.980
Twelve hundred dollar forty
eight payments of twelve

02:06:36.980 --> 02:06:39.700
hundred dollars means that this
little family will pay fifty

02:06:39.700 --> 02:06:41.620
seven thousand
dollars to the bank.

02:06:41.620 --> 02:06:43.100
That's a quarter

02:06:43.915 --> 02:06:45.115
of what they borrowed.

02:06:45.115 --> 02:06:47.515
More than a quarter
of what they borrowed.

02:06:47.515 --> 02:06:51.835
It's also about a
quarter of their income

02:06:51.835 --> 02:06:52.555
during that time.

02:06:52.555 --> 02:06:55.395
It's a full year of
income during that time.

02:06:55.675 --> 02:07:00.820
And yet, the bank will only reduce
their debt by twelve thousand dollars.

02:07:01.340 --> 02:07:05.020
The other forty five thousand
dollars because of amortization,

02:07:05.020 --> 02:07:07.900
the other forty five thousand
dollars goes in the bank's

02:07:07.900 --> 02:07:10.500
pocket as interest.

02:07:11.445 --> 02:07:14.205
Does that look like
six percent to anybody?

02:07:16.405 --> 02:07:19.445
Do you want to see how to
calculate amortized interest?

02:07:19.445 --> 02:07:19.765
Okay.

02:07:19.765 --> 02:07:21.845
Hundred percent participation
on this one because this

02:07:21.845 --> 02:07:22.965
affects all of you.

02:07:22.965 --> 02:07:26.030
Promise? Alright. I'm
going to have you prove it.

02:07:26.030 --> 02:07:28.110
Everybody pull out
your supercomputers.

02:07:28.110 --> 02:07:30.430
And, we've all been told how
powerful these things are.

02:07:30.430 --> 02:07:30.750
Right?

02:07:30.750 --> 02:07:33.310
More powerful than the than
the computers that send the

02:07:33.310 --> 02:07:34.750
astronauts to the
moon in the sixties.

02:07:34.750 --> 02:07:34.990
Right?

02:07:34.990 --> 02:07:38.155
Pull out your supercomputers,
open your calculator and show me.

02:07:38.155 --> 02:07:39.515
Hundred percent participation.

02:07:39.515 --> 02:07:41.675
Raise your raise up your
let's see them. Come on.

02:07:41.675 --> 02:07:42.875
We're not going until
everybody has it.

02:07:42.875 --> 02:07:44.875
I'll keep you here till
midnight if I have to. Alright.

02:07:44.875 --> 02:07:46.915
Here's what I want you to do.

02:07:47.755 --> 02:07:48.395
Nothing.

02:07:48.395 --> 02:07:50.875
Because this isn't powerful enough
to calculate amortized interest.

02:07:50.875 --> 02:07:52.955
That's a crazy math that
they're doing to be able to

02:07:52.955 --> 02:07:54.870
charge you that kind of money.

02:07:54.870 --> 02:07:55.190
Right?

02:07:55.190 --> 02:07:56.870
The amortization is so nuts,

02:07:56.870 --> 02:07:58.390
you need like a database
and a spreadsheet.

02:07:58.390 --> 02:08:00.270
But, don't put these away yet.

02:08:00.390 --> 02:08:01.670
Put it back up in the air,

02:08:01.670 --> 02:08:05.350
show me if you have a
if you have a mortgage,

02:08:05.350 --> 02:08:06.230
put it back up in the air.

02:08:06.230 --> 02:08:07.470
I want to see it.

02:08:10.025 --> 02:08:13.145
Who has mortgages? Alright. Keep
them up. Keep them up.

02:08:13.145 --> 02:08:14.665
Okay. Alright. Here's
what I want you to do.

02:08:14.665 --> 02:08:16.265
People with mortgages,
keep them up.

02:08:16.265 --> 02:08:18.825
Everyone who doesn't have their hand
in the air right now, look around.

02:08:18.825 --> 02:08:20.185
Okay. Watch these
people's faces.

02:08:20.185 --> 02:08:21.360
This is what
nightmares look like.

02:08:21.360 --> 02:08:24.080
Lock into your brain,
how much you owe?

02:08:24.080 --> 02:08:25.680
How much you owe on
your mortgage? Okay.

02:08:25.680 --> 02:08:28.040
Nod at me when you
have it locked in.

02:08:29.040 --> 02:08:33.200
I'm not seeing anyone nod.
Yes. Okay. Good. Okay. Yeah.

02:08:33.200 --> 02:08:35.280
Maybe it's because I was
nodding and we were like

02:08:35.280 --> 02:08:38.935
equaling out the, you know,
the wave function here.

02:08:39.295 --> 02:08:43.055
Okay. Now, on your calculator,
type in your monthly payment.

02:08:43.055 --> 02:08:43.295
Okay.

02:08:43.295 --> 02:08:46.535
So whatever your monthly payment
is on your mortgage, type it in

02:08:47.295 --> 02:08:49.310
and times it by twelve.

02:08:49.310 --> 02:08:52.190
If we times our monthly payment
by twelve and hit the equals

02:08:52.190 --> 02:08:55.230
key, that will give
us our yearly payment.

02:08:55.230 --> 02:08:57.070
Right? Because twelve
months in a year.

02:08:57.070 --> 02:09:01.470
So, now, take your yearly payment
and hit the times key and times it

02:09:01.470 --> 02:09:05.775
by however many years you
have left in your mortgage.

02:09:05.775 --> 02:09:08.415
So, if you got a thirty year
mortgage five years ago,

02:09:08.415 --> 02:09:09.695
you have twenty five years left.

02:09:09.695 --> 02:09:10.335
Does that make sense?

02:09:10.335 --> 02:09:12.095
So, in that case, you
times it by twenty five,

02:09:12.095 --> 02:09:13.455
hit the equals key.

02:09:13.455 --> 02:09:15.935
So, times it by how
many, hit the equals key,

02:09:15.935 --> 02:09:18.255
look at the number, compare
it to the number in your head.

02:09:18.255 --> 02:09:19.415
How we doing?

02:09:20.090 --> 02:09:21.729
How'd you do?

02:09:24.250 --> 02:09:27.530
Anybody get double? Did you
get double? Oh, it's a double?

02:09:27.530 --> 02:09:29.730
Yeah. What's your
interest rate like three?

02:09:31.145 --> 02:09:34.265
Two and a quarter is the that's
what they taught us in school.

02:09:34.265 --> 02:09:34.825
Right?

02:09:34.825 --> 02:09:39.705
Two and a two and and
two point two five percent equals double.

02:09:39.705 --> 02:09:40.945
Yeah?

02:09:41.625 --> 02:09:42.745
I don't think so.

02:09:42.745 --> 02:09:44.905
That's not what we were
expecting when we went into this.

02:09:44.905 --> 02:09:46.430
Anybody get triple?

02:09:46.430 --> 02:09:49.190
It's alright. Don't be
shy. Who got triple?

02:09:49.470 --> 02:09:49.870
Yeah.

02:09:49.870 --> 02:09:52.590
If you got like a four to
five percent interest rate,

02:09:52.590 --> 02:09:54.990
you'll end up paying
triple on your mortgage.

02:09:54.990 --> 02:09:56.590
So, what's your name? Ralph.

02:09:56.590 --> 02:09:59.230
Ralph. Yeah. How do you
feel about that, Ralph?

02:09:59.230 --> 02:10:01.925
You excited to pay the bank
double what you borrowed when

02:10:01.925 --> 02:10:04.405
they told you two and a half
or two and a quarter percent?

02:10:04.405 --> 02:10:04.885
Yeah.

02:10:04.885 --> 02:10:07.925
But, this is the effect that
this little trick that the bank

02:10:07.925 --> 02:10:09.845
plays on us, amortization,

02:10:09.845 --> 02:10:12.165
this is the effect that
it has in your life.

02:10:12.165 --> 02:10:15.800
This is one of the reasons why
you get that feeling sometimes,

02:10:15.800 --> 02:10:17.400
like you're working your
fingers to the bone and you

02:10:17.400 --> 02:10:19.320
feel like you make more money
than you're actually getting to

02:10:19.320 --> 02:10:23.519
spend, it's because someone's
taken more than they should.

02:10:24.280 --> 02:10:25.600
Uncle Sam,

02:10:26.315 --> 02:10:27.115
the bank.

02:10:27.115 --> 02:10:31.395
Those are the two biggest
ones. We need strategies. Okay?

02:10:31.435 --> 02:10:33.435
So, now that we understand
amortized interest,

02:10:33.435 --> 02:10:36.475
it's not about amortized
interest, it's about cash flow.

02:10:36.475 --> 02:10:37.675
Cash flow is king.

02:10:37.675 --> 02:10:39.915
So, looking at this from
a cash flow perspective,

02:10:39.915 --> 02:10:43.210
when I'm paying a loan, like
this mortgage for example,

02:10:43.210 --> 02:10:45.290
my first payment
twelve hundred dollars.

02:10:45.290 --> 02:10:46.450
Right?

02:10:46.570 --> 02:10:48.330
But, two hundred and
fifty dollars of that,

02:10:48.330 --> 02:10:50.810
twelve hundred
dollars is principal.

02:10:50.810 --> 02:10:53.570
Shouldn't I get to like
reuse that principal somehow?

02:10:54.635 --> 02:10:57.915
But, I don't and alone
all of it disappears.

02:10:57.915 --> 02:11:02.035
A hundred percent of my payment
disappears from my cash from my cash flow.

02:11:02.075 --> 02:11:04.555
Now, think about this in
the in the same terms,

02:11:04.555 --> 02:11:05.675
but with a credit card.

02:11:05.675 --> 02:11:07.995
Credit card is an example
of a line of credit. Okay?

02:11:07.995 --> 02:11:13.790
If you have a maxed out credit
card and you make a payment,

02:11:14.950 --> 02:11:17.190
some of that payment will
disappear to interest but the

02:11:17.190 --> 02:11:20.231
rest of it opens up
room on the credit

02:11:20.231 --> 02:11:24.190
card that you can
use immediately

02:11:24.375 --> 02:11:28.255
at the gas station,
at the grocery store.

02:11:28.375 --> 02:11:30.855
Literally, the money that you
just used for the payment,

02:11:30.855 --> 02:11:34.334
you can reuse again
to buy more stuff.

02:11:34.535 --> 02:11:38.975
Right? So the
principle stays liquid.

02:11:40.350 --> 02:11:43.150
So, now, have to ask yourself,
if it's about cash flow,

02:11:43.150 --> 02:11:44.910
if cash flow is king
for the wealthy,

02:11:44.910 --> 02:11:47.710
would I rather be paying my
debt in a way where a hundred

02:11:47.710 --> 02:11:51.990
percent of my payment disappears
from my cash flow or only twenty one?

02:11:53.695 --> 02:11:55.455
Only twenty one percent, right?

02:11:55.455 --> 02:11:57.935
Twenty one percent and where
am I getting that from?

02:11:57.935 --> 02:12:01.135
So, the credit card percent
interest rates twenty one percent.

02:12:01.135 --> 02:12:02.255
The loan six percent,

02:12:02.255 --> 02:12:04.015
wouldn't we think we'd want
the lower interest rate?

02:12:04.015 --> 02:12:06.800
Well, not if it's going to not
if it's they're going to amortize

02:12:06.800 --> 02:12:08.720
and it's going to end
up costing us, you know,

02:12:08.720 --> 02:12:10.720
double to triple what
we ended up borrowing,

02:12:10.720 --> 02:12:12.640
that's not six percent anyway.

02:12:12.640 --> 02:12:16.480
So, let's go let's take a look
at the way that provides for more

02:12:16.480 --> 02:12:19.375
cash flow, the line of credit,
even though it's more interest.

02:12:19.375 --> 02:12:21.775
We don't make decisions based
on interest rates because

02:12:21.775 --> 02:12:23.855
interest rates
don't pay off debt.

02:12:23.855 --> 02:12:25.215
Cash flow does.

02:12:25.215 --> 02:12:28.055
We make decisions
based on cash flow.

02:12:28.335 --> 02:12:29.255
Okay?

02:12:29.480 --> 02:12:31.240
Two rules to this strategy.

02:12:31.240 --> 02:12:34.920
Rule number one,
consolidate your debt into

02:12:34.920 --> 02:12:37.440
simple interest lines of credit.

02:12:37.640 --> 02:12:40.200
So, a lot of you may have have

02:12:40.200 --> 02:12:42.935
friends or family members,
maybe you've done this yourself,

02:12:42.935 --> 02:12:45.735
where you went and refinanced
your mortgage to pay off your

02:12:45.735 --> 02:12:47.295
credit card debt.

02:12:47.415 --> 02:12:48.935
What did you just do?

02:12:48.935 --> 02:12:51.815
You converted your simple
interest debt into amortized

02:12:51.815 --> 02:12:54.615
interest debt and the bank
loves you for it because

02:12:54.615 --> 02:12:57.615
they're going to make way more money
on that amortized interest debt.

02:12:57.740 --> 02:13:00.220
A lot of times, what
the wealthy are doing,

02:13:00.220 --> 02:13:02.580
average people think is crazy.

02:13:03.100 --> 02:13:05.340
Do you want to know what a lot
of people in this room have done?

02:13:05.340 --> 02:13:07.740
They've refinanced their
mortgages into first position

02:13:07.740 --> 02:13:10.005
HELOCs. What's a HELOC?
It's a line of credit.

02:13:10.005 --> 02:13:13.045
Basically, a giant credit card
that's collateralized by your house,

02:13:13.045 --> 02:13:14.485
just like a mortgage is.

02:13:14.485 --> 02:13:17.845
But, what that does is it
converts the debt that's left

02:13:17.845 --> 02:13:22.005
into simple interest
debt and opens up the

02:13:22.005 --> 02:13:24.960
equity as a line as available
in the line of credit,

02:13:24.960 --> 02:13:26.880
just like the available
room on a credit card.

02:13:26.880 --> 02:13:28.640
What could you do with
that available room,

02:13:28.640 --> 02:13:30.920
that liquid equity
in your house?

02:13:31.440 --> 02:13:35.145
You could go fund your own deals
or fund someone else's deal.

02:13:35.145 --> 02:13:37.385
You could consolidate
the rest of your debt,

02:13:37.385 --> 02:13:38.985
eliminating the debt payments,

02:13:38.985 --> 02:13:41.385
put pay off the
car with the HELOC,

02:13:41.385 --> 02:13:43.945
consolidate that payment
into one payment.

02:13:43.945 --> 02:13:45.065
Right? Get rid of
the car payment.

02:13:45.065 --> 02:13:46.345
What happens to cash
flow when that happens?

02:13:46.345 --> 02:13:49.425
Cash flow goes up. We just
made a good cash flow decision.

02:13:49.600 --> 02:13:52.000
Consolidate all the
debt into one place,

02:13:52.000 --> 02:13:54.000
you have one payment and we're
now we're going to eliminate

02:13:54.000 --> 02:13:57.000
that payment because
with a line of credit,

02:13:57.040 --> 02:14:00.440
I can put my cash in there and
I'll still have access to it.

02:14:01.120 --> 02:14:02.960
So, if my debt is in one place,

02:14:02.960 --> 02:14:06.045
in in let's say a HELOC or
a credit card and I have one

02:14:06.045 --> 02:14:07.885
payment on all of that debt,

02:14:07.885 --> 02:14:10.365
but I put my cash in there
every time I get paid,

02:14:10.365 --> 02:14:13.645
two times a month, sometimes
three times a month,

02:14:13.645 --> 02:14:17.885
does my deposit of my check
count as as a payment?

02:14:17.885 --> 02:14:18.645
Yeah.

02:14:19.040 --> 02:14:22.640
And now, instead of storing it in
a checking account where the bank

02:14:22.640 --> 02:14:24.880
can use it while
I'm not using it,

02:14:24.880 --> 02:14:28.080
now I'm leveraging the fact
that the the money has value

02:14:28.080 --> 02:14:29.520
while I'm not using it.

02:14:29.520 --> 02:14:31.325
If I'm putting it into my HELOC,

02:14:31.325 --> 02:14:33.565
it lowers my debt
balance, not the limit.

02:14:33.565 --> 02:14:34.525
The limit stays the same.

02:14:34.525 --> 02:14:37.525
So, it opens up the full
room of my paycheck.

02:14:37.805 --> 02:14:39.565
But while I'm not
using that paycheck,

02:14:39.565 --> 02:14:40.765
it's lowered the debt amount.

02:14:40.765 --> 02:14:43.565
So, the amount I'm being
charged interest on is less.

02:14:43.565 --> 02:14:46.165
And then, as I need it,
I can pull against it.

02:14:46.170 --> 02:14:46.490
Right?

02:14:46.490 --> 02:14:49.370
So now, it's working for
me while I'm not using it,

02:14:49.370 --> 02:14:50.970
thereby charging me
less in interest.

02:14:50.970 --> 02:14:53.610
Now, this has a small
effect in just one month.

02:14:53.610 --> 02:14:57.050
But if you if you stack that
up across many many months,

02:14:57.050 --> 02:14:58.730
we get a huge effect here.

02:14:58.730 --> 02:15:00.490
So, just like I was saying,

02:15:00.490 --> 02:15:03.335
family deposits
their whole check-in,

02:15:03.335 --> 02:15:05.895
they don't have to budget for
a payment anymore because the

02:15:05.895 --> 02:15:08.615
whole check going into the credit
card counts as the payment.

02:15:08.615 --> 02:15:10.135
So, that money goes
back to cash flow.

02:15:10.135 --> 02:15:12.935
Also, I think we already talked
about the nest of the eggs thing,

02:15:12.935 --> 02:15:13.930
not the strategy.

02:15:13.930 --> 02:15:14.970
Don't hoard eggs.

02:15:14.970 --> 02:15:15.370
Right?

02:15:15.370 --> 02:15:17.450
So, stop contributing
to four zero one ks,

02:15:17.450 --> 02:15:20.410
stop doing the savings account
thing, velocity banking,

02:15:20.410 --> 02:15:21.450
that's what we're going to do.

02:15:21.450 --> 02:15:23.450
That puts fourteen hundred
dollars a month back into the

02:15:23.450 --> 02:15:24.810
average person's cash flow,

02:15:24.810 --> 02:15:26.810
add the six hundred dollars to
the fourteen hundred dollars,

02:15:26.810 --> 02:15:29.490
that's two thousand dollars a
month we pick up in cash flow.

02:15:29.705 --> 02:15:33.545
And, now, because that
cash flow is also our net

02:15:33.545 --> 02:15:36.905
debt pay down, that money left
over at the end of the month,

02:15:36.905 --> 02:15:39.145
five thousand dollars of income,

02:15:39.145 --> 02:15:41.465
we still have three thousand
dollars worth of expenses,

02:15:41.465 --> 02:15:42.825
there's two thousand
dollars left over,

02:15:42.825 --> 02:15:45.360
but that money is sitting on
top of the debt, we can use it.

02:15:45.360 --> 02:15:47.200
If this is their, let's
say, Discover card,

02:15:47.200 --> 02:15:49.440
they can still swipe that
Discover card and tap into that

02:15:49.440 --> 02:15:52.560
two grand if they needed to for an
emergency or an asset or whatever.

02:15:52.560 --> 02:15:54.240
But, while they're not using it,

02:15:54.240 --> 02:15:57.605
the net debt reduction is
their cash flow each month.

02:15:57.605 --> 02:15:59.205
So, if their cash flow
is two thousand dollars,

02:15:59.205 --> 02:16:02.085
that's how much their their debts
going to go down by every month.

02:16:02.085 --> 02:16:03.605
And, if they
continue to do this,

02:16:03.605 --> 02:16:05.205
two thousand dollar
net debt reduction,

02:16:05.205 --> 02:16:06.645
two thousand dollar
net debt reduction,

02:16:06.645 --> 02:16:09.125
twelve thousand dollar starting
point divided by two thousand

02:16:09.125 --> 02:16:12.605
dollars a month takes them six months
to pay off the the credit card.

02:16:13.770 --> 02:16:16.730
Making the minimum payment on a
credit card will take you seven

02:16:16.730 --> 02:16:18.770
years to pay off the card.

02:16:18.970 --> 02:16:22.330
What would have taken this
family seven years is zero cash

02:16:22.330 --> 02:16:23.610
flow per month.

02:16:23.610 --> 02:16:26.210
They just changed a little
bit of their strategy

02:16:26.315 --> 02:16:28.955
and on the same income without
getting a raise of their job,

02:16:28.955 --> 02:16:30.235
without changing
their lifestyle,

02:16:30.235 --> 02:16:33.195
they paid it off in six
months instead of seven years.

02:16:33.195 --> 02:16:35.755
And, they did it all while enjoying
a two thousand dollar a month

02:16:35.755 --> 02:16:38.515
cash flow instead of a zero
dollar a month cash flow.

02:16:39.420 --> 02:16:40.580
Now,

02:16:41.100 --> 02:16:42.540
once that credit
card's paid off,

02:16:42.540 --> 02:16:45.899
we saw this really expensive
amortized interest debt over here.

02:16:45.899 --> 02:16:49.340
So, let's start pushing that over
into the line of credit so that

02:16:49.340 --> 02:16:51.899
we can, you know, in this case,
the family didn't get a HELOC.

02:16:51.899 --> 02:16:52.905
They're just doing
it out of their,

02:16:52.905 --> 02:16:55.386
we call this the Discover card,
we'll keep calling it that,

02:16:55.386 --> 02:16:57.306
out of their little
Discover card here.

02:16:57.306 --> 02:16:59.386
And, twelve thousand dollars,
that's a familiar amount.

02:16:59.386 --> 02:17:02.025
That's the that's the amount of
the cycle they did last time.

02:17:02.025 --> 02:17:03.306
So, let's just keep
that consistent.

02:17:03.306 --> 02:17:06.346
We know what kind of time timeline
that's going to keep us on.

02:17:06.346 --> 02:17:10.110
So, they balance transfer
twelve thousand dollars

02:17:10.110 --> 02:17:13.390
principal only out of the mortgage
and into the line of credit.

02:17:13.390 --> 02:17:15.310
So, you check the next day,

02:17:15.310 --> 02:17:17.550
the balance on the mortgage
went down by twelve thousand

02:17:17.550 --> 02:17:19.790
dollars and the balance on the
credit card went up by twelve

02:17:19.790 --> 02:17:20.950
thousand dollars.

02:17:21.275 --> 02:17:21.675
Right?

02:17:21.675 --> 02:17:22.795
So, same amount of debt,

02:17:22.795 --> 02:17:24.635
they just transferred the
debt over so they could do the

02:17:24.635 --> 02:17:27.515
strategy because you need a line
of credit to do the strategy on.

02:17:27.515 --> 02:17:30.435
So, they do the same thing.

02:17:30.475 --> 02:17:32.875
Same action, same numbers,
gives us the same results.

02:17:32.875 --> 02:17:35.840
It takes them six months to
pay off twelve thousand dollars

02:17:35.840 --> 02:17:38.320
worth of mortgage principal,
which if you remember,

02:17:38.320 --> 02:17:41.680
in the amortized loan would
have taken four years and cost

02:17:41.680 --> 02:17:44.160
forty five thousand
dollars in interest.

02:17:44.160 --> 02:17:45.360
Now, I did the math for you.

02:17:45.360 --> 02:17:46.480
Simple interest right here,

02:17:46.480 --> 02:17:49.545
twelve thousand dollars times twenty
one percent annual interest rate.

02:17:49.545 --> 02:17:51.625
It didn't take us a full year,
that's an annual interest rate.

02:17:51.625 --> 02:17:53.545
It took half a year. So,
we divide that by two.

02:17:53.545 --> 02:17:55.825
You can check my
math if you want.

02:17:56.984 --> 02:17:59.625
Look at the savings difference
and that's just on a two

02:17:59.625 --> 02:18:01.465
hundred thousand
dollar mortgage.

02:18:01.465 --> 02:18:03.705
My guess is some of you
probably have a much larger

02:18:03.705 --> 02:18:05.105
mortgage than that,

02:18:05.601 --> 02:18:07.761
which means the interest the
dollar amount of interest

02:18:07.761 --> 02:18:11.000
you're parting with
is astronomical.

02:18:11.761 --> 02:18:14.681
But, no one ever told us
to question these things

02:18:15.440 --> 02:18:17.360
because that's not what
we were subscribing to.

02:18:17.360 --> 02:18:17.601
Right?

02:18:17.601 --> 02:18:20.760
We were plugging in learning from
average people how to be average people.

02:18:20.975 --> 02:18:22.335
No more.

02:18:22.335 --> 02:18:24.975
You cannot know the stuff
that you've learned tonight.

02:18:24.975 --> 02:18:26.495
This is life changing.

02:18:26.495 --> 02:18:28.575
So, if we could pay off twelve
thousand if this family could

02:18:28.575 --> 02:18:30.415
pay off twelve thousand dollars
worth of mortgage principal

02:18:30.415 --> 02:18:32.735
every six months, that's
two cycles a year,

02:18:32.735 --> 02:18:33.630
they just keep doing this.

02:18:33.630 --> 02:18:35.950
The math works out
to be about seven,

02:18:35.950 --> 02:18:38.070
a little over seven years.

02:18:38.110 --> 02:18:41.070
This family will pay off their
entire thirty year mortgage

02:18:41.070 --> 02:18:45.070
without getting a raise of their
job or changing their lifestyle.

02:18:45.070 --> 02:18:47.149
So, we're now seven and a
half years down the road,

02:18:47.149 --> 02:18:49.265
they paid off the mortgage
and the credit card.

02:18:49.265 --> 02:18:50.784
Well, when they pay
off the mortgage,

02:18:50.784 --> 02:18:52.225
when you don't have
a mortgage anymore,

02:18:52.225 --> 02:18:53.345
you don't have a
mortgage payment anymore,

02:18:53.345 --> 02:18:54.944
that money goes
back to cash flow.

02:18:54.944 --> 02:18:59.984
And remember, the cash flow in the Velocity
Banking strategy is your net debt reduction.

02:18:59.984 --> 02:19:02.784
So, the amount we're reducing the
debt by each month just went up

02:19:02.784 --> 02:19:05.145
to thirty two hundred
instead of two thousand.

02:19:05.230 --> 02:19:08.271
So, we pay off this fifty thousand
dollar car in a fraction of the

02:19:08.271 --> 02:19:10.030
time, when we don't
have a car loan anymore,

02:19:10.030 --> 02:19:11.470
we don't have a car
payment anymore,

02:19:11.470 --> 02:19:13.390
that takes about six months.

02:19:13.390 --> 02:19:16.750
Within eight years, seven
years for the mortgage,

02:19:16.750 --> 02:19:19.270
six months for the credit
card, six months for the car,

02:19:19.545 --> 02:19:22.745
In eight years, this family
paid off thirty years worth of

02:19:22.745 --> 02:19:25.465
debt without getting
a raise of their job,

02:19:25.465 --> 02:19:27.226
without changing
their lifestyle.

02:19:27.226 --> 02:19:30.025
This is on average American
income numbers and average

02:19:30.025 --> 02:19:31.826
American debt load numbers.

02:19:32.070 --> 02:19:33.790
Mind's blown?

02:19:34.630 --> 02:19:36.950
Right? I told you what
happened again. It's fine.

02:19:36.950 --> 02:19:38.790
If you have this two hundred
thousand dollar house now

02:19:38.790 --> 02:19:41.830
that's paid off, they paid
it off in seven years.

02:19:41.830 --> 02:19:43.030
Real estate's leverageable.

02:19:43.030 --> 02:19:44.070
They could go down to the bank,

02:19:44.070 --> 02:19:46.605
they could get a giant two hundred
thousand dollar credit card.

02:19:46.605 --> 02:19:48.845
It's called a home
equity line of credit.

02:19:48.845 --> 02:19:51.885
They get a home two hundred thousand
dollar home equity line of credit.

02:19:51.885 --> 02:19:54.205
Remember how much I said the
average amount that I'm coming

02:19:54.205 --> 02:19:56.845
up with for a rental to catch
people up on their mortgages

02:19:56.845 --> 02:19:59.301
and do the subject to
strategy about twenty grand.

02:19:59.301 --> 02:20:03.860
That's ten properties that I could
buy with that two hundred grand.

02:20:03.860 --> 02:20:06.701
Ten rentals that I
add to my portfolio

02:20:06.740 --> 02:20:10.980
just with this one strategy
that you will learn

02:20:10.980 --> 02:20:14.781
in the first two weeks of
your lifetime experience here.

02:20:15.785 --> 02:20:19.986
One of our simplest yet most
powerful strategies that we teach.

02:20:21.065 --> 02:20:23.625
Ten rental properties added
to the portfolio and if they

02:20:23.625 --> 02:20:25.705
average four hundred dollars
a month in cash flow,

02:20:25.705 --> 02:20:27.305
that adds four
hundred times ten,

02:20:27.305 --> 02:20:30.110
that's four thousand dollars a
month that this family adds to

02:20:30.110 --> 02:20:31.630
the thirty eight hundred
dollars a month that they

02:20:31.630 --> 02:20:33.310
picked up by paying
off their debt,

02:20:33.310 --> 02:20:36.271
which pushed the total cash flow at
seventy eight hundred dollars a month.

02:20:36.271 --> 02:20:38.350
If seventy eight hundred dollars
a month is the cash flow,

02:20:38.350 --> 02:20:41.230
that's also the amount that the
debt goes down by each month,

02:20:41.230 --> 02:20:42.425
month after month.

02:20:42.425 --> 02:20:46.585
So, that pays off this
whole HELOC in two years.

02:20:46.585 --> 02:20:48.425
Eight years to pay off the debt,

02:20:48.425 --> 02:20:50.185
we acquired ten
rental properties,

02:20:50.185 --> 02:20:53.225
we paid back ourselves back for the
down payment of all ten of them.

02:20:53.225 --> 02:20:55.260
Within two years,
we're now a decade in.

02:20:55.260 --> 02:20:57.819
These families paid off on the
average American income without

02:20:57.819 --> 02:20:59.020
getting a raise of their job,

02:20:59.020 --> 02:21:00.620
without changing
their lifestyle,

02:21:00.620 --> 02:21:02.060
paid off the average
American debt load,

02:21:02.060 --> 02:21:03.100
acquired ten rental properties,

02:21:03.100 --> 02:21:05.420
paid themselves back for the
down payments on all of them,

02:21:05.420 --> 02:21:08.180
put their cash flow at
seventy eight hundred dollars a month.

02:21:09.755 --> 02:21:14.955
Very easy decision to to retire at this
point if that's what you wanted to.

02:21:14.955 --> 02:21:15.515
Right?

02:21:15.515 --> 02:21:18.315
Isn't it fun when we get to
make the decision as to whether

02:21:18.315 --> 02:21:21.681
we get to choose whether or not
we want to have a job anymore.

02:21:21.681 --> 02:21:25.440
It's no longer a requirement.
If you love what you do, great.

02:21:25.440 --> 02:21:28.040
Then keep doing it.
But, now it's a choice.

02:21:28.960 --> 02:21:31.080
You're out of the rat race.

02:21:31.440 --> 02:21:32.960
One strategy.

02:21:32.960 --> 02:21:36.235
Imagine if we just kept
adding strategies to this,

02:21:36.235 --> 02:21:37.755
how that could
change the future.

02:21:37.755 --> 02:21:39.915
Promise one, promise
two fulfilled.

02:21:39.915 --> 02:21:42.155
Promise one, I'll show you how to pay
off all of your debt in a fraction

02:21:42.155 --> 02:21:45.355
of the time with a very simple
strategy and it's so simple.

02:21:45.355 --> 02:21:46.315
Here's how simple it is,

02:21:46.315 --> 02:21:49.915
keep all of your debt and all
of your money in the same place.

02:21:49.915 --> 02:21:51.330
What you're doing is
way too complicated,

02:21:51.330 --> 02:21:52.210
don't spread it out everywhere,

02:21:52.210 --> 02:21:54.210
keeping all your money in a
bunch of different places where

02:21:54.210 --> 02:21:55.250
the bank can use it,

02:21:55.250 --> 02:21:57.569
keeping all your debt in in
different places where every

02:21:57.569 --> 02:22:00.449
new place requires a new payment
that's draining your cash flow,

02:22:00.449 --> 02:22:03.489
keep it all in the same place
and put your money on top of it.

02:22:03.489 --> 02:22:06.015
That's it. It's the whole
strategy, very simple.

02:22:06.015 --> 02:22:07.774
Pay off your debt in
fraction of the time.

02:22:07.774 --> 02:22:10.095
Same strategy, goal
number two fulfilled.

02:22:10.095 --> 02:22:12.175
How you can use that same
strategy to fund your own and

02:22:12.175 --> 02:22:13.055
other people's deals.

02:22:13.055 --> 02:22:14.095
Goal number three,

02:22:14.095 --> 02:22:16.175
how does that make the
education pay for itself?

02:22:16.175 --> 02:22:17.220
Well, in order to do that,

02:22:17.220 --> 02:22:18.500
I need to introduce
you to somebody.

02:22:18.500 --> 02:22:20.740
This is Dane and Paige Clark.

02:22:20.740 --> 02:22:24.340
Dane and Paige and I
all met on the same day,

02:22:24.340 --> 02:22:25.140
two thousand eleven.

02:22:25.140 --> 02:22:28.340
We all got hired to the Apple
Store on the exact same day.

02:22:28.340 --> 02:22:29.540
We became really close friends.

02:22:29.540 --> 02:22:32.636
We tended to have our breaks and our
lunches together and we, you know,

02:22:32.636 --> 02:22:34.875
we talk and we dream together
and we talk about one day when

02:22:34.875 --> 02:22:37.596
we're wealthy and what we're
going to do and all these things.

02:22:37.596 --> 02:22:38.675
And,

02:22:39.275 --> 02:22:41.835
we we got super close.

02:22:41.835 --> 02:22:43.755
Well, they got a little
closer than I got to them.

02:22:43.755 --> 02:22:48.301
But, they got married and had now they
have like fifty kids or something.

02:22:48.301 --> 02:22:52.181
I know it's a lot. But, that
was their first one, Liam.

02:22:52.940 --> 02:22:55.021
They got married
and I disappeared.

02:22:55.021 --> 02:22:55.820
In twenty thirteen,

02:22:55.820 --> 02:22:57.660
I just stopped showing up to
work because one day I woke up

02:22:57.660 --> 02:22:59.980
and I realized I made more in
that month doing real estate

02:22:59.980 --> 02:23:03.805
part time than I had an entire
year working at Apple full time.

02:23:03.805 --> 02:23:06.524
So, I went back to
sleep. I never called in.

02:23:06.524 --> 02:23:08.284
I probably am still on
the payroll at Apple,

02:23:08.284 --> 02:23:10.364
I just don't have any hours
for them to pay me for.

02:23:10.364 --> 02:23:11.525
But,

02:23:11.965 --> 02:23:13.245
it took about a year and a half,

02:23:13.245 --> 02:23:14.805
but Dane called me one day.

02:23:14.910 --> 02:23:16.670
He called me and said,
Mitch, where'd you go?

02:23:16.670 --> 02:23:18.590
We were having so much fun,
like we were hanging out.

02:23:18.590 --> 02:23:19.670
What happened?

02:23:20.270 --> 02:23:24.470
And, I said, oh, Dane.
Yeah. I'm retired.

02:23:24.910 --> 02:23:27.550
And, he laughed in my ear so
loud I had to pull the phone away

02:23:27.550 --> 02:23:28.910
because he knows I'm
kind of an idiot.

02:23:28.910 --> 02:23:30.235
Right? He's like,
you're twenty nine.

02:23:30.235 --> 02:23:31.516
We're talking about retired.

02:23:31.516 --> 02:23:34.716
I said, yeah. I never I
never ever need a job again.

02:23:34.716 --> 02:23:38.356
He's like, are you doing?
I said, well, real estate?

02:23:38.556 --> 02:23:39.436
So, what do mean?

02:23:39.436 --> 02:23:41.355
What what happens if all
your real estate goes away?

02:23:41.355 --> 02:23:43.530
Like, you'd need a job again.
I said, no, I wouldn't.

02:23:43.530 --> 02:23:46.011
You can take my money and
you could take my property. Sure.

02:23:46.011 --> 02:23:49.491
That all that could
go away potentially.

02:23:49.690 --> 02:23:50.891
But, I know how to do it.

02:23:50.891 --> 02:23:55.690
So, why would I go get a
job, I just start that over?

02:23:55.690 --> 02:23:58.290
Like, I'd never I
never need a job again.

02:23:58.605 --> 02:24:00.445
And, he got super quiet.

02:24:00.445 --> 02:24:03.725
He's like, oh, well, Paige and
I have gone the other direction.

02:24:03.725 --> 02:24:05.245
He said, you know,

02:24:05.245 --> 02:24:08.925
Paige is eight months pregnant
with our first Liam and she's

02:24:08.925 --> 02:24:11.165
still working full time
so that we can make it.

02:24:11.165 --> 02:24:12.570
She's working full time
at the Apple Store.

02:24:12.570 --> 02:24:14.649
I'm still working full
time at the Apple Store.

02:24:14.649 --> 02:24:18.330
And, I've even taken on a
part time job roofing so we

02:24:18.330 --> 02:24:21.370
can, you know, just have a
little extra spending money.

02:24:21.370 --> 02:24:23.250
And, I said, Dane,

02:24:24.170 --> 02:24:26.850
you've got red hair
and fair skin roofing?

02:24:27.315 --> 02:24:28.915
You've chosen a
better thing. No.

02:24:28.915 --> 02:24:34.115
But he's like, Mitch, can you
show me what you how you did this?

02:24:34.115 --> 02:24:34.755
I said, yeah.

02:24:34.755 --> 02:24:37.075
No problem. We got a
meeting. We got a workshop.

02:24:37.075 --> 02:24:38.436
The Creating Your
Empire Masterclass.

02:24:38.436 --> 02:24:39.315
It happens every Thursday.

02:24:39.315 --> 02:24:40.195
Come this Thursday.

02:24:40.195 --> 02:24:42.475
What are you doing next
Thursday you can't get out of?

02:24:42.480 --> 02:24:43.921
He said, well, I guess nothing.

02:24:43.921 --> 02:24:45.681
I guess I'm showing up
and hanging out with you.

02:24:45.681 --> 02:24:48.040
He came and he sat
in these seats.

02:24:48.561 --> 02:24:51.440
And by the end, which here
we are, we're at the end. Right?

02:24:51.440 --> 02:24:53.601
By the end, he came
up, he said, Mitch,

02:24:53.601 --> 02:24:56.160
all of the stuff
that you described,

02:24:56.160 --> 02:24:57.720
I can do all of that.

02:24:57.785 --> 02:25:01.945
Like, none of it seems so weird and
alien that I couldn't figure, you know,

02:25:01.945 --> 02:25:04.585
figure it out and continue
the process of learning and

02:25:04.585 --> 02:25:05.945
tackling it.

02:25:05.945 --> 02:25:08.745
But I'm scared to death of the
twenty six thousand dollars.

02:25:08.745 --> 02:25:12.785
If you can show me how to
put that together, I'm in.

02:25:13.030 --> 02:25:14.070
Said, no problem.

02:25:14.070 --> 02:25:15.910
I introduced him to
a relationship of mine,

02:25:15.910 --> 02:25:17.910
one of the members of the
community that we have,

02:25:17.910 --> 02:25:20.230
who was able to get him a forty
thousand dollar line of credit

02:25:20.230 --> 02:25:23.750
at zero percent interest for
twenty or for twenty four months.

02:25:23.750 --> 02:25:26.990
Guys, do you think velocity banking
is cool at twenty one percent?

02:25:27.045 --> 02:25:29.645
At zero percent, it's magic.

02:25:30.085 --> 02:25:32.605
So, Dane

02:25:33.445 --> 02:25:36.645
got this forty thousand dollar
line of credit, he paid off,

02:25:36.645 --> 02:25:40.005
he balance transferred the only
amortized interest debt he had left,

02:25:40.005 --> 02:25:43.480
paid off his car by
balance transferring the

02:25:43.480 --> 02:25:45.880
eleven thousand nine hundred
dollars he owed on it into the

02:25:45.880 --> 02:25:47.000
zero percent line.

02:25:47.000 --> 02:25:48.120
When he balance transferred,

02:25:48.120 --> 02:25:50.279
he made a cash flow based
decision because when he

02:25:50.279 --> 02:25:51.319
balance transferred that debt,

02:25:51.319 --> 02:25:53.800
what happened to his car loan
or his car payment, excuse me.

02:25:53.800 --> 02:25:56.879
It went away, his
cash flow went up.

02:25:56.955 --> 02:26:00.075
He got the title back in
the mail to his car immediately.

02:26:00.075 --> 02:26:00.955
Debt's still there,

02:26:00.955 --> 02:26:02.715
which he's going to work
away with the strategy,

02:26:02.715 --> 02:26:04.875
but he used the rest of the
line of credit to invest in the

02:26:04.875 --> 02:26:07.915
most important real estate that you
will ever invest in in your

02:26:07.915 --> 02:26:11.555
entire lives, and that's the
six inches between your ears.

02:26:12.580 --> 02:26:14.420
He bought his real estate
investor education,

02:26:14.420 --> 02:26:16.180
got on the first flip challenge,

02:26:16.180 --> 02:26:19.780
and started doing velocity banking
while going through the challenge.

02:26:19.780 --> 02:26:21.380
Renatus got paid,

02:26:21.380 --> 02:26:23.700
which means he had access to
the education and he was able

02:26:23.700 --> 02:26:26.340
to start doing
the the phase one,

02:26:26.340 --> 02:26:28.205
month one of the
first flip challenge.

02:26:28.205 --> 02:26:30.365
But, when he put his money in,

02:26:30.365 --> 02:26:33.245
his two paychecks because that's
what velocity banking says to do,

02:26:33.245 --> 02:26:34.925
put your money in the same
place you keep your debt.

02:26:34.925 --> 02:26:35.165
Right?

02:26:35.165 --> 02:26:38.326
Which has to be a line of credit
so you can access it again.

02:26:39.005 --> 02:26:42.445
How much did the bank take in
interest when he put his paychecks in?

02:26:42.445 --> 02:26:44.165
His three household paychecks.

02:26:44.890 --> 02:26:49.330
None. So, how much did his
education cost him that month?

02:26:49.449 --> 02:26:50.250
Zero. Okay.

02:26:50.250 --> 02:26:52.810
So, he went through month one of the
challenge and then he did it again.

02:26:52.810 --> 02:26:54.810
Month two, how much
did the bank take?

02:26:54.810 --> 02:26:57.210
None. So, his education
cost him nothing. Okay.

02:26:57.210 --> 02:26:59.896
And then month three,
bank takes nothing,

02:26:59.896 --> 02:27:01.975
so his education cost
him nothing that month.

02:27:01.975 --> 02:27:05.335
He was still able to use the
in fact, his cash flow went up.

02:27:05.335 --> 02:27:09.255
So he's actually net more
than than had he not done this

02:27:09.255 --> 02:27:10.775
because now we
learned the strategy.

02:27:10.775 --> 02:27:11.255
Right?

02:27:11.255 --> 02:27:13.870
So got through the challenge,
got into his first deal,

02:27:13.870 --> 02:27:15.310
bank's still taking nothing.

02:27:15.310 --> 02:27:17.710
He still has full
access to his check,

02:27:17.710 --> 02:27:20.071
plus doesn't have a
car payment anymore.

02:27:20.750 --> 02:27:22.271
Paid off or excuse me.

02:27:22.271 --> 02:27:25.350
Sold his first deal about
here, made like twenty grand.

02:27:25.455 --> 02:27:29.614
And, Dane wanted to do flips and seller
finance rentals like his old buddy Mitch.

02:27:29.614 --> 02:27:31.215
He wanted to follow in
my footsteps. Right?

02:27:31.215 --> 02:27:33.295
But, when he sold that first
deal and made twenty thousand

02:27:33.295 --> 02:27:35.375
dollars on his first flip, he
called me and he said, Mitch,

02:27:35.375 --> 02:27:36.695
I hate flips.

02:27:38.040 --> 02:27:39.480
I said, okay, Dane. That's fine.

02:27:39.480 --> 02:27:41.560
Sometimes, got to do the
strategy to realize like,

02:27:41.560 --> 02:27:43.720
you know, maybe this
strategy isn't for you.

02:27:43.720 --> 02:27:46.040
Good thing we're not as teachers
ninety different strategies.

02:27:46.040 --> 02:27:47.800
Let's pick another one. What
part of it did you like?

02:27:47.800 --> 02:27:49.720
He said, I loved
raising the money.

02:27:49.720 --> 02:27:50.840
He's like, I got this idea.

02:27:50.840 --> 02:27:53.080
I want to go out and just raise
capital like crazy and then

02:27:53.080 --> 02:27:56.905
lend it to other members of the community
so that they can go do their deals.

02:27:56.905 --> 02:27:59.225
And I said, Dane, that sounds
like a brilliant business model.

02:27:59.225 --> 02:28:01.065
Here's the Renata's
classes you should watch.

02:28:01.065 --> 02:28:03.145
Watch them and let's put
this together for you.

02:28:03.145 --> 02:28:05.145
And he won't watch those
classes and started building an

02:28:05.145 --> 02:28:06.360
incredible lending business.

02:28:06.360 --> 02:28:08.680
But, he still wanted to do
the subject to rental thing,

02:28:08.680 --> 02:28:10.040
so he's still working on that.

02:28:10.040 --> 02:28:13.720
And, about the time he paid off
his his debt in full, ten months.

02:28:13.720 --> 02:28:15.400
Ten months is not
twenty four months.

02:28:15.400 --> 02:28:19.040
How much did Dane lose out of his
paycheck to pay for the education?

02:28:19.400 --> 02:28:21.040
In that ten months, nothing.

02:28:22.016 --> 02:28:24.575
In fact, gained because he didn't
have a car payment anymore.

02:28:24.575 --> 02:28:25.535
Right?

02:28:25.535 --> 02:28:27.295
So, by the end of ten months,

02:28:27.295 --> 02:28:29.775
all of his debt was paid
off and he had a fully available

02:28:29.775 --> 02:28:31.855
forty thousand dollar
line of credit.

02:28:31.855 --> 02:28:34.495
They had fourteen months
left, a zero percent interest.

02:28:34.495 --> 02:28:37.870
He went and bought his first seller
financed property subject to.

02:28:37.870 --> 02:28:41.950
The owner was behind a little a
little duplex in Taylorsville.

02:28:41.950 --> 02:28:44.590
The owner was behind thirty one
thousand dollars in their payments.

02:28:44.590 --> 02:28:46.830
Dane leveraged the the zero
percent line of credit,

02:28:46.830 --> 02:28:50.189
caught the owner up, took over
the title, rented out one side,

02:28:50.189 --> 02:28:51.735
moved his family
into the other side,

02:28:51.735 --> 02:28:54.855
and what he was able to rent
the other side out for was more

02:28:54.855 --> 02:28:57.655
than what the previous
owner's mortgage payment was.

02:28:57.655 --> 02:29:00.136
Dane was getting paid to
live in real estate he owned.

02:29:00.136 --> 02:29:02.056
We call that real
estate hacking.

02:29:02.056 --> 02:29:04.230
It's a strategy we
teach here as well.

02:29:04.230 --> 02:29:08.070
Now, Dane lived in that
duplex from twenty sixteen

02:29:08.070 --> 02:29:10.150
until early twenty twenty three.

02:29:10.150 --> 02:29:13.231
About this time in twenty
twenty three, Dane called me.

02:29:13.271 --> 02:29:15.271
And I could tell immediately
what he was doing.

02:29:15.271 --> 02:29:17.814
He was trying to turn the
tables on me from that phone

02:29:17.814 --> 02:29:20.215
call we had had back in twenty
twenty five when I told him I

02:29:20.215 --> 02:29:21.975
was retired at twenty nine.

02:29:21.975 --> 02:29:24.015
He said, Mitch, I'm done.

02:29:24.295 --> 02:29:27.775
So, what do you mean
done, Dane? So, I'm done.

02:29:27.814 --> 02:29:29.294
He said, between

02:29:29.710 --> 02:29:33.550
my lending business and
my subject to rental

02:29:33.550 --> 02:29:35.510
portfolio business,

02:29:35.630 --> 02:29:38.510
my cash flow this month is
around eighty or around ninety

02:29:38.510 --> 02:29:39.310
thousand dollars.

02:29:39.310 --> 02:29:41.870
Excuse me. Ninety thousand
dollars a month in cash flow.

02:29:41.870 --> 02:29:43.110
He said, I'm done.

02:29:44.265 --> 02:29:45.906
Yeah.

02:29:47.785 --> 02:29:50.505
So, Dane, I said, okay,
well what does done mean?

02:29:50.505 --> 02:29:52.185
He said, I'm not coming
to Thursday's anymore.

02:29:52.185 --> 02:29:55.465
In fact, I paid I just
paid two million dollars

02:29:55.465 --> 02:29:58.610
cash for a ranch
in Weston, Idaho.

02:29:58.610 --> 02:30:00.210
This is a courtesy call.

02:30:00.210 --> 02:30:01.971
I'm moving my family
there as we speak.

02:30:01.971 --> 02:30:04.450
Forty six acres, my dream,

02:30:04.450 --> 02:30:06.690
retired at thirty
five years old.

02:30:06.690 --> 02:30:08.610
What an incredible
story Dane has.

02:30:08.610 --> 02:30:12.065
Look at that story arc from
working three jobs, pregnant wife,

02:30:12.065 --> 02:30:14.625
eight months along has to work
full time so they can make ends

02:30:14.625 --> 02:30:18.865
meet, to retired seven
years later on an incredible

02:30:18.865 --> 02:30:20.466
amount of cash flow.

02:30:20.466 --> 02:30:24.106
This is what I want for
every single one of you.

02:30:25.426 --> 02:30:29.490
Learning that concept
from you to always

02:30:29.490 --> 02:30:34.411
continue to reinvest in the
six inches between yours

02:30:34.690 --> 02:30:36.651
made all the difference.

02:30:38.130 --> 02:30:40.545
But I was just I
was so depressed.

02:30:40.545 --> 02:30:44.785
I would I would literally make enough
money working super part time roofing,

02:30:44.785 --> 02:30:47.905
and I would just I would sit
on the freaking couch and watch

02:30:47.905 --> 02:30:50.865
Netflix. And I was just like,
wait a second. Wait a second.

02:30:50.865 --> 02:30:52.305
Mitch said real estate.

02:30:52.305 --> 02:30:54.700
Saw you on Facebook doing real
estate deals and I was just

02:30:54.700 --> 02:30:56.460
like, I got an idea.

02:30:56.460 --> 02:30:58.460
And so I call you up
and I'm like, Mitch,

02:30:58.460 --> 02:30:59.820
I'm gonna buy a rental.

02:30:59.820 --> 02:31:00.940
Do you wanna help me out?

02:31:00.940 --> 02:31:03.021
And you kept on saying, dude
you need to get educated.

02:31:03.021 --> 02:31:05.980
And I remember your
laugh like like Dame,

02:31:05.980 --> 02:31:07.575
you're gonna hurt yourself.

02:31:07.575 --> 02:31:09.175
And it started sinking in like,

02:31:09.175 --> 02:31:11.016
oh I see what you mean educated.

02:31:11.016 --> 02:31:14.775
There's something to know about
this Yeah. That I don't know.

02:31:14.775 --> 02:31:16.535
It's not just
houses and tenants.

02:31:16.535 --> 02:31:20.375
And all of a sudden, I'm
I'm feeling like, man,

02:31:20.375 --> 02:31:23.255
I can I can I don't have
to have Mitch like behind

02:31:23.255 --> 02:31:25.801
my shoulder to
have a conversation anymore?

02:31:25.801 --> 02:31:27.281
Oh, man.

02:31:27.801 --> 02:31:31.801
Started buying houses and
buying houses and oh my gosh.

02:31:31.801 --> 02:31:33.521
Changed my life.

02:31:35.320 --> 02:31:38.681
I think to date, we have put to
work like fifty eight million

02:31:38.681 --> 02:31:40.495
dollars in real estate.

02:31:40.495 --> 02:31:42.575
That and that's that's
between my portfolio,

02:31:42.575 --> 02:31:44.895
that's between funding other
people's real estate deals.

02:31:44.895 --> 02:31:47.535
It's all about how
many people I can help.

02:31:47.535 --> 02:31:51.375
I have helped nine hundred and
sixty six people get into and

02:31:51.375 --> 02:31:53.221
actually make money
in a real estate deal.

02:31:53.221 --> 02:31:57.461
And now, I I I can't go longer than
like six months without being like,

02:31:57.461 --> 02:31:59.700
I gotta call Mitch and
just tell him thanks.

02:31:59.700 --> 02:32:01.940
Every person we we talk
about helping people.

02:32:01.940 --> 02:32:06.445
I hope every person that
that I helped down this path

02:32:06.445 --> 02:32:10.285
takes themself as seriously and
and invests in themselves the

02:32:10.285 --> 02:32:11.325
way that you have.

02:32:11.325 --> 02:32:13.725
That's my goal for every one of
them is that they become like

02:32:13.725 --> 02:32:14.965
Dane.

02:32:16.125 --> 02:32:21.021
My goal for every one of you
is that you become like Dane

02:32:21.021 --> 02:32:25.181
and like Mahea, and like
Christine, and Vivian,

02:32:25.181 --> 02:32:28.141
and Jeff, and Sam, Shanna.

02:32:28.141 --> 02:32:30.141
What an incredible
story, Shanna.

02:32:30.141 --> 02:32:32.141
I mean, you have done
absolutely incredible.

02:32:32.141 --> 02:32:35.215
Alison, the first
flip challengers.

02:32:35.215 --> 02:32:37.935
These are these are life
changing experiences for these

02:32:37.935 --> 02:32:41.495
challengers who started
as average people

02:32:41.614 --> 02:32:43.495
just like I did.

02:32:43.694 --> 02:32:46.734
But, made an
extraordinary decision

02:32:46.734 --> 02:32:49.375
and a sacrifice to put
themselves outside of their

02:32:49.375 --> 02:32:52.080
comfort zone to do
the things that they

02:32:52.080 --> 02:32:53.920
recognize would make a
change in their life,

02:32:53.920 --> 02:32:56.000
surrounding themselves
with the right people,

02:32:56.000 --> 02:32:57.840
learning the right skills,

02:32:57.840 --> 02:33:01.360
having the accountability and
systems to be able to implement

02:33:01.360 --> 02:33:04.520
those things even in
times when it got hard,

02:33:05.275 --> 02:33:08.276
and gaining knowledge
through education

02:33:08.315 --> 02:33:12.155
to go out and start making wealthy
decisions on a daily basis.

02:33:12.155 --> 02:33:13.675
It's a simple process.

02:33:13.675 --> 02:33:16.635
And, I know some of you might look
at this stuff and feel like this.

02:33:16.635 --> 02:33:16.955
Right?

02:33:16.955 --> 02:33:19.480
We're at the end of this thing
and if you're feeling like this

02:33:19.480 --> 02:33:22.040
after hearing all of
this incredible stuff,

02:33:22.040 --> 02:33:23.720
this probably isn't for you.

02:33:23.720 --> 02:33:27.000
And, at this point, you can
go. I thank you for your time.

02:33:27.000 --> 02:33:30.960
But, if you looked at this and
you're sad by what you heard,

02:33:37.115 --> 02:33:39.915
But also, there's a
handful of you, I'm sure,

02:33:39.915 --> 02:33:41.436
if you didn't get up
and leave already.

02:33:41.436 --> 02:33:42.955
Right? Some people
did and that's fine.

02:33:42.955 --> 02:33:44.835
We know how they feel. Right?

02:33:45.000 --> 02:33:47.880
But, if you stayed all the way
to the end because this two and a

02:33:47.880 --> 02:33:52.439
half hours of of strategy just
blew your mind like it did mine

02:33:52.439 --> 02:33:54.359
the first time I saw it.

02:33:54.359 --> 02:33:58.560
You're recognizing that
seed of, oh my gosh,

02:33:58.680 --> 02:34:01.039
I think this is what
I've been waiting for.

02:34:01.136 --> 02:34:04.655
Like, I've been waiting for somebody
to show me step by step what I

02:34:04.655 --> 02:34:07.096
need to do to make
these things happen.

02:34:07.695 --> 02:34:10.415
You're probably feeling like
this by the end of it. Right?

02:34:10.415 --> 02:34:13.375
And, if you're if this is you,
if you're my happy babies,

02:34:13.375 --> 02:34:15.300
like, you're you're
in the right place.

02:34:15.300 --> 02:34:17.540
We need to continue
this conversation.

02:34:17.540 --> 02:34:19.220
And, the way that the
conversation is gonna take

02:34:19.220 --> 02:34:20.100
don't worry, it's not tonight.

02:34:20.100 --> 02:34:22.180
We're sending you home.
Everyone's going home.

02:34:22.180 --> 02:34:26.420
But, we but, look, this was
tonight, this was one to many.

02:34:26.420 --> 02:34:28.819
Whether you're here live in
the studio audience or you're

02:34:28.819 --> 02:34:30.379
watching this on the recording,

02:34:31.045 --> 02:34:34.325
this had to be applicable
to everyone that watches it,

02:34:34.325 --> 02:34:37.845
which means it's not applicable
to any one individual.

02:34:37.845 --> 02:34:40.645
Right? If it applies to
everyone, it applies to no one.

02:34:40.645 --> 02:34:42.805
So, I want to continue
the conversation.

02:34:42.805 --> 02:34:45.845
And again, this is both available to
those in the live studio audience as

02:34:45.845 --> 02:34:49.630
well as those who are watching
this later on a recording.

02:34:49.670 --> 02:34:52.510
We want to continue the
conversation one on one.

02:34:52.950 --> 02:34:55.590
We'd like you to have a one on
one conversation with one of

02:34:55.590 --> 02:34:56.790
our five star mentors.

02:34:56.790 --> 02:34:58.069
They're the same rank that I am,

02:34:58.069 --> 02:35:00.306
so don't worry if it's me or
if it's another one of them.

02:35:00.306 --> 02:35:01.266
We're all, you know,

02:35:01.266 --> 02:35:05.306
we all we all are capable of
helping you through this process.

02:35:05.665 --> 02:35:08.545
The key to getting that
one on one conversation,

02:35:08.545 --> 02:35:09.985
it's not going to
cost you anything.

02:35:09.985 --> 02:35:11.346
It's absolutely free.

02:35:11.346 --> 02:35:12.705
We don't have credit
card machines,

02:35:12.705 --> 02:35:13.940
so don't worry about it.

02:35:13.940 --> 02:35:16.420
We're just going to sit down
and talk about how these

02:35:16.420 --> 02:35:18.621
strategies can apply to you.

02:35:18.740 --> 02:35:22.340
Now, the appropriate way to schedule
that one on one is to get back

02:35:22.340 --> 02:35:24.180
with the person who invited
you down and schedule that.

02:35:24.180 --> 02:35:24.420
Okay?

02:35:24.420 --> 02:35:27.380
And, as a gift for
scheduling that one on one conversation,

02:35:27.380 --> 02:35:29.766
I'm going give you a copy of
my four times number one Amazon

02:35:29.766 --> 02:35:32.005
bestseller, Mindset's
a Millionaire.

02:35:32.005 --> 02:35:33.846
We sell it for twenty
dollars on Amazon.

02:35:33.846 --> 02:35:36.165
I'm just going to give
you a digital copy of it.

02:35:36.165 --> 02:35:38.165
Immediately, when you sign
up for that one on one,

02:35:38.165 --> 02:35:41.566
you'll get emailed
automatically a copy.

02:35:41.700 --> 02:35:44.260
Now, during that one
on one conversation,

02:35:44.260 --> 02:35:45.380
we're going to go
through systems.

02:35:45.380 --> 02:35:46.500
We're going talk about systems.

02:35:46.500 --> 02:35:49.060
The first system we're going
talk about is the system we're

02:35:49.060 --> 02:35:51.700
going to use to get you in
and out of that first deal.

02:35:51.700 --> 02:35:54.340
I want to see you get into
that first deal in those ninety days

02:35:54.340 --> 02:35:55.846
during the first flip challenge.

02:35:55.846 --> 02:35:58.565
So, let's talk about every step you're
going to be taking along the way.

02:35:58.565 --> 02:35:59.686
There's no secret here.

02:35:59.686 --> 02:36:01.686
I'm going show you every step
you're going to take along the

02:36:01.686 --> 02:36:03.046
way to get into that deal.

02:36:03.046 --> 02:36:06.966
We're also going to be going through
your velocity banking strategy.

02:36:06.966 --> 02:36:09.525
You thought velocity banking
was cool on this little family?

02:36:09.525 --> 02:36:11.891
Just wait till you see it
run on your own numbers.

02:36:11.891 --> 02:36:13.730
Let's do a velocity
banking simulation,

02:36:13.730 --> 02:36:15.010
let's show you how that twenty,

02:36:15.010 --> 02:36:18.610
thirty years of debt that you think
you have is actually like six.

02:36:18.610 --> 02:36:22.450
Okay? Even including the cost
of getting into the education.

02:36:22.450 --> 02:36:25.811
So, if you can net save
yourself, you know, twelve,

02:36:25.811 --> 02:36:28.585
fifteen years of debt payoff
and hundreds of thousands of

02:36:28.585 --> 02:36:30.345
dollars of interest you
would otherwise paid,

02:36:30.345 --> 02:36:31.545
this thing pays for itself.

02:36:31.545 --> 02:36:33.025
Wouldn't you agree?

02:36:33.145 --> 02:36:34.505
Yeah. Okay.

02:36:34.505 --> 02:36:37.465
We're going go over the four
pillars of wealth and and lastly,

02:36:37.465 --> 02:36:40.024
we're going to dive into that
vault of trainings that Renatus

02:36:40.024 --> 02:36:43.210
has and we're going to show you what
it's like to learn from millionaires.

02:36:43.210 --> 02:36:45.609
Guys, that's all the time
we have together tonight.

02:36:45.609 --> 02:36:48.610
Make sure you schedule your
one on ones. Drive safe.