Epic Real Estate Investing - Financial Education - Ryan "Ry Guy" Burk | 938

Episode Date: February 24, 2020

In today’s episode, Matt is joined with an old friend, Ryan Burk, a green real estate investor and CEO of In & Out Investments. Tune in and find out why Ryan is a huge believer in passive income and financial education, how he treats debt in his business, what is greenhabbing, and many more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. All right, welcome to the epic real estate investing show. Really glad that you're here. If this is your first time here, glad you found us. If it's not your first time, welcome back. And thank you for sharing this with your friends and family. Love that about you. We wouldn't be here for 10 years now if it wasn't for that.

So thank you for doing that. I got a great show for you today. Got a very special guest. He's actually an old friend of mine. He was on the show probably eight or nine years ago, right? when we were just getting started. And we kind of lost touch and we've we've connected since. And he was crushing it back then.

And from what I'm hearing, he's doing even better now. So I wanted to be brought up to speed and catch up to what he's doing. He is CEO of in and now investments. It's a small family owned green real estate investing business where they teach investors how to increase their profits by at least 10% on every single deal that they do by implementing these green having. strategies, these green-having strategies that they've created. And so I thought that's a really cool angle.

Let's talk about that. And he's also up in central California where the median household prices is a little bit higher than the rest of the country. So there's some nuances there on how to succeed in a higher net worth market. And so we're going to talk all about that. So without further ado, please help me welcome to the show, Mr. Ryan Burke. Ryan, welcome to the epic real estate investing show. Welcome back.

What's up, Maddie. Thanks for having me, bro. It's good to be back, man. It's good, man. I want to let you know, bro, how proud I am of you, man. Just, you know, how we originally met. And we were both kind of getting into real estate at the same time. Right.

And kind of cool. You were even at my wedding, bro. I know. You even showed up on the back end in Mexico. Right? Yeah, I felt kind of weird doing that because I wasn't actually invited to the wedding. But I was invited by one of your guests. And so I was like, well, that's kind of weird.

And she said, no, just come, just come. And it turned out that was a really good play because it's turned out into the best 10 years of my life with Mercedes. That's pretty cool, man. Yeah, if she wasn't your wife today, I might still be a little upset about that, bro. But since you guys are married, you got a child, the whole deal, it's all good, man. It's all good. So thanks for accommodating me and be cool about it. Of course, man.

And congrats, bro, and all your success. You guys deserve it, man, for sure. Thanks, partner. So, Ryan, when we talked in last, when you last time you're on the show, You were doing a lot of virtual investing and investing outside of the state and doing really well. You had a turnkey operation. You're doing your own stuff. And then, you know, we kind of lost connection or lost track of each other.

And so bring me up to speed. What's been going on since? Oh, man. Lots of being going on, bro. But do your best. Yeah, man. So, yeah, the last decade's been really amazing. It's really cool to be able to look kind of back on over a decade.

and really reflect on how far we've come and how much we've learned, not really just even about real estate investing and financial education, but really just ourselves in general and going through personal growth and personal development and having challenges and struggle and going through darkness, but just realizing that all of that is where all the lessons are. And ultimately, darkness always leads to the light, right? And so it's been really good, man. Back then, I was down in Southern California, I believe.

I was living in Southern California. And I was investing across country at a virtual kind of system set up in the Midwest, where I was really marketing to international investors at that time coming in from UK, China, Australia, stuff like that. This was like, you know, kind of right in 2008 to 2011 when the market had bottomed out, And especially in the Midwest, you can get houses so cheap that, you know, international investors were coming in and buying huge bulk. So that was kind of my opportunity to, you know, learn internet marketing and put myself out

there to where I kind of figured, hey, if they're going to buy large bulk, you know, they might as well buy for me. And so that was, you know, that was like a four, I think I had like a four or five year run. I did a couple hundred transactions where I was basically just wholesaling turnkey properties to these international investors. And my wife is from Northern California. And so once she got pregnant, it was time to kind of move close to family.

My family's kind of scattered and her family's up here in Northern California, up in the Bay Area. So we moved up to Sonoma County about eight years ago. And so gave me an opportunity to kind of reinvent myself. I wanted to kind of lay down my roots more in my backyard. versus just like virtual systems. And it was just a great time to do it because the market had bottomed out. And it was just starting to climb. So I kind of wanted to ride that out. And so I started

basically just fix and flipping houses and fix and flipping a lot of houses up here in Sonoma County. And then from there kind of saw the opportunity and moved down kind of my business down to San Francisco, which is about an hour from me, really just because, you know, the profits are so. so much larger than up here in Sonoma County. And then the opportunity presented itself where San Francisco, with the tech boom and the market growing, just started blowing up so insanely that, you know, right now the median sales price is $1.5 million. That's for a starter home with no off-street parking and no yard. So what that's done is that's created a ton of opportunity in Berkeley and Oakland because everyone's getting squeeze into these areas. And for $1.5 to $2 million,

and you can't really buy much in San Francisco, but in Oakland and Berkeley, you can get a beautifully remodeled house. And, you know, backyard. Driving distance and stuff, right? Yeah, within driving distance. And really, too, we've been hugging, like a lot of these neighborhoods,

they hug the Bart, which is that transit system that goes right back into the city. So they can basically be within five, ten minutes, go walk or park their car at Bart, and then, bam, they flow right into the city. There's no traffic. there's large opportunities there. So we started doing, you know, lots of deals in those areas.

And then we got to the point where we were experienced enough and we had large enough construction crews that we started doing just large additions and new constructions. And then we got into a mini subdivision, which I'm actually about to be exiting in about 45 days, which would be a total of almost five years, bro, that I've been in this thing. So I'm really excited to get out of this thing. And in the last three years, we really switched our focus as well to commercial.

So I've been involved in some large syndicated deals, part of over 700 doors right now and just collecting cash flow and leveraging all the capital expenditures and depreciation off my flipping income to get to a point where a lot of people don't realize if you know what you're doing and you're leveraging commercial and the cash flow of commercial, but you're using that and the depreciation against your active income with flipping, you can pay little to no taxes, even though you're making a ton of money every year. You can get to the point if you know where you do,

we're not paying any taxes on that money through all your depreciation. So pretty powerful strategies going on. Nice. Sweet. So a lot of stuff to pick apart there that I'm interested in. First thing is you made this transition from a virtual business to going into your own backyard. I guess one would be, my first thought would be why.

And the second thought, what have you noticed the differences between the pros and cons of both? So the one thing I noticed with the virtual business is it's really sexy to talk about. But it's definitely, it can be a little stressful sometimes, you know, just having, like, remote controlling things and building a team that you can't really oversee and manage the way you'd want to if you were there. And just one thing that I learned was that no matter how good your team is, for a lot of people, it's just human nature to take advantage of situations. And if you were there being able to manage the situation,

they wouldn't really take advantage. But because you're not there, whether you realize or not, you become less of a priority in the day over other things that maybe they can do. And so because of that, what happens is, you know, your customers can feel the brunt of that. And what I started noticing was just that because I wasn't there all the time, there's situations that were happening that were out of my control, that if I was there, I'd have a lot more control,

that were affecting my customers and the way that the customers felt about me and felt about our product. And it just got to the point where I just realized I didn't want to, I didn't want to be out of control of my customer experience. I wanted to be in control of my customer experience. And I also decided that I didn't really want to have customers anymore because dealing with international investors, that's your customer. But building a fix and flip business, you know, realtors are selling your house.

And I'm a realtor. I sell my own houses, but I'm dealing with someone else's realtor. So I'm not really dealing with customers. So that's one of the pros is that you're not really dealing with customers. You're just dealing with the realtors, which is obviously a huge benefit. another pro is that you're in control of the experience, the timelines, and the profit per transaction is just so much larger here where I live in California than in the Midwest.

So that's obviously a pro for me as well. Right. Sweet. So yeah, speaking of profits and working in a much higher net worth market than what the Midwest would offer. What are the different dynamics when it comes to finding deals based on you know, 50,000, $100,000 houses compared to $1 million houses? So that's what's interesting about this industry. There's always so much fear based around price point, right? And what you'll notice is that it all comes down to financial education. It all comes down to having good

mentors around you because the whole idea is like fear becomes present because you don't know what your next move is and that and that's okay because we all live with two million year old brains that's our biggest challenge our brains were designed to outworm predators and survive and always feel like we have to be able to predict what's going to happen next you know our brains weren't designed to actually be happy in 2020 that's a choice that we can choose to rewire but ultimately even if you don't know what your next move is, if you can surround yourself with good, solid people that do know what your next move is.

And I've been there before and are willing to hold your hand through the processes. You don't have to know what your next move is. You just have to be confident in your mentors and moving forward in that. And as I started just studying more and diving more into curriculum and just having more and more mentors in my life, what I realized is it's not,

It's the same thing raising $50,000 as it is raising $2 million. In fact, it's actually easier. I found it's easier to raise larger amounts of capital because you're dealing with people that have large amounts of capital. A lot of times you're raising capital 50,000. It's someone only has $70,000 in their bank account. Right. And they want to put $50,000 in the deal, you know, and that's kind of their whole life

savings versus you're raising capital from someone, you're raising a couple million and that's because they have a large net worth, they're not as emotionally attached to their money. But what I notice is that it's the same process, it's the same systems, it's the same checklist that I would be using to raise capital at a small price point or a high price point.

And what's unique is that profits will always tie into price point. So the higher the price point, the higher the profit. And so that's the beauty. Once you learn systems, you can operate in any price point and any profit margin. And once you learn construction, nothing's too big because it all comes down to steps, standard operating procedures, and checklists that you would be using to get through a small project or to get through a large project. So really, it's just, you know, it's kind of the same.

It's the same processes, which I'm sure you found out as well in a lot of your deals, right? Totally. Yeah. I wish one of my bigger regrets was not playing in a bigger arena or a bigger market earlier because that's exactly what I've noticed. Yeah, man. So you're making this transition now. So I follow on Instagram.

What's the Instagram tag? My Instagram is R-G-G-U-Y-B-R-K-R-K. Right. Cool. Yeah, I've been kind of keeping track. of you and watching what you've been doing through there. And, you know, you're, flipping all these houses in some of the most beautiful country in the whole, in the whole world, Sonoma and wine country. And now you kind of mentioned that you're going to make this transition

from those residential into commercial or the single family into commercials. So what's, what's inspired that? So again, you know, it's all, it's all phases in our life, right? So for me, I had to get to a point where I had to generate capital. I had to generate capital or put myself in a position and create a platform to gain more passive income. For me, my end goal was always passive income, right? I always wanted to have money coming in that I wasn't trading any time for in real estate. But I had to generate capital to be able to get into the passive income.

So what it is is that the active income from flipping really becomes, fuel and becomes investment capital for the passive income for the long term. And, you know, there's way less work in the passive income than there's in the active income unless you're doing value ad where you're buying way below market and remodeling and teneting, which I'm still doing because that's where you add all the value. But ultimately, the beauty that a lot of people don't realize about passive income is actually taxed at the lowest bracket. So if someone's listening to this podcast right now and they're a W-2 employee or their, you know, self-employed business owner. So they're paying, you know, federal taxes.

If they live in a state where there's state taxes, they're paying state taxes, but they're also paying FICA tax, right, which is Social Security and Medicare. So you've got, if you're W-2, what's happening is you've got 7.65% coming out of your paycheck, every paycheck. And then your boss is also matching that 7.65. So it's a total of 15.3% being paid to the IRS of the income. But if you're self-employed, you're paying both sides, self-employment tax. But what's really unique about passive income is it's not subject to FICA tax. So you instantly drop your tax bracket by 15% as someone who's getting taxed self-employed, which is amazing, right? Because at the end of the year on your tax return, you know, you have to put where that money comes from.

Is it active ordinary income? Is it short-term capital gain? Is it long-term capital gain? Is it distribution? Dividend? Is it passive? And if it's passive, it's not subject to FICA. So I'm not paying that 15.3%.

And because of all the tax write-offs and the capital expenditures and all the depreciation that comes along with, the passive income, you get to deduct that off your yearly income as well. So you're already starting out in a way lower bracket. And then from there, if you have enough depreciation, you can literally zero your income out. So like what a lot of people won't realize is, let's say that someone was earning a couple hundred thousand dollars a year in passive income, right? 15, 18 grand a month in passive income. But they owned enough assets that they had a couple hundred thousand dollars in depreciation. But depreciation comes off their yearly income. So for tax purposes, when they file taxes, they're showing zero income, which means they're paying zero taxes,

which is amazing, right? I'm paying zero in taxes legally. That's why, you know, this time of year with politics and elections, people go, oh, we're just going to tax the rich. Right. Well, there's different kinds of rich. There's rich people that are rich through active income. and through other things, but they never really focused on their financial education. And they don't understand the 80,000 page tax code handbook. And then there's rich, wealthy individuals that have financial education that understand the 80,000 page tax code handbook. And I always laugh because I say, you can't tax them no matter how hard you try because

they've learned how to zero out their income. And so they're not paying any taxes because they have financial education, which is super powerful. And then the thing I really love about that as well, Matt, is that, so I'm in the business of borrowing. My whole business revolves around debt. The more access I have to capital, the more money I make. Every time I borrow, I get paid, right? And that's kind of a unique model that is the opposite of what I was taught growing up as a consumer to stay out of debt and all these different things, right? And so what's cool is for borrowing purposes, because depreciation is a phantom expense when you're borrowing capital, even though I might zero out my income for tax

purposes, all of the lenders are putting that depreciation back into your income for qualification on loan purposes, which is beautiful. You get the best of both worlds. You still show your income to raise capital, but you're not showing income when it comes to the IRS and when it comes to taxes. That's awesome. You made that sound so much sexier than I have ever made it sound. It actually is one of the sexiest things.

It is. When you start making money, you start paying a lot more attention to that than you did to actually how you made it. For sure, man. For sure. It's one of my favorite things to talk about and know about. And what I'll also tell you is, man, it's, there's such a huge lack of financial education in this country, especially amongst investors and business owners.

they don't realize that they're overpaying in taxes and they don't realize that the system is actually set up for business owners and real estate investors, but you have to know how to leverage it and you have to understand all these things. You know, it becomes so apparent on our YouTube channel over the years where, you know, you introduce one little thing that's just outside of normal thinking and all of a sudden the trolls come out and it's, I don't know if they intend to be trolls or not, but you can just tell like, dude, you're not educated around this financially and you're scared of what I just said and you think it's some weird scam or something, but it's right there in the tax code.

You have access to this too, you know? Yeah, but you got to remember, dude, like even when you talk about the trolls, like whether they're meaning to be or not, like all of that's programming. And most people are programmed to be fearful and scarce. Yeah. And when it comes to money, they were raised in a household where typically the conversations they overheard as a kid, which is when your brain is the most developmental years of its life. It's when it operates in theta, which is hypnosis. And so the conversations they have is lack. They're hearing

their parents talk about lack of money, lack of finances, can't take a vacation because we don't have the money, can't have as good at Christmas. We thought you have money. You can't do this. You can't do that. So there's a lot of lack and there's a lot of scarcity. And it's all really just programming. And if you think about it, bro, it's really what it comes down to is there's two types of of people in this world. There's consumers and there's investors. And most people are not raised by investors to be investors. They're raised by consumers to be consumers. And so they're taught consumer strategies their whole life and they're getting consumer results. And so then what happens is all the sudden you take a look at an investor. Well, an investor is using 100% opposite strategies.

In fact, what I started learning as an investor from being a consumer, which, by the way, I'm just a recovering consumer at this point, right, turned investor. But what I started realizing is that what I've been taught as a consumer to get financially ahead and how to earn income and debt as an investor, it's 100% opposite. Like literally, what I was told not to do is what I actually do as an investor. And so it's an investor mindset versus a consumer mindset. And a lot of these individuals, they're doing the best they know how with the tools they've been given. And they're just doing what they were taught.

And the people that taught them don't even know why they taught that. They were just taught that same thing. But at the end of the day, what most people don't realize is, if you really want to be successful as an investor, you have to change your teacher. You don't want to continue to learn from a consumer. You want to start learning from an investor that's actually in a place that you want to be. You want to stop taking financial advice from people that are broke. And I'll just tell you right now, that was like the very first million dollar decision I made in my life was that I was done taking financial advice from people that are broke.

And there's different ways to look at broke. Like some people say, well, so-and-so told me this and they make $300,000 a year. So in my mind, that's good money. Well, that's great. But they probably have a job. And they make $300,000 because they trade time and they go to work for a job. And if that job was over tomorrow, that money's done. I didn't want to be in that position.

I wanted to be in a position where I didn't have to work if I chose not to because my assets had enough income passively paying me so that I didn't have to go to work. And other people would go to work to pay my debt and pay my bills for me. And then I get the difference of cash flow. So for me, I realize it's not about how much someone makes. It's about where is the money that they're making coming from. Is it active income or is it passive income? And I wanted passive income.

So I decided I wanted to start surrounding myself with investors that had assets, that had passive income and model their success and really learn their strategies on how they did it. Amen, Ryan. I can say that all over again. I just keep on listening. I've been talking about it for 10 years here. And it's just great to hear it from another voice. It's speaking of that that, you know, there's a handful of people out there.

there. I mean, you have your, your, your, your, your disciples of kiosaki, Chris Krona is one, Jay Massey, who we both know is another. And, and obviously everything you're saying is right in alignment. But there's so many more people on, say, the Dave Ramsey, Susie Ormond, you know, school of financial education. Why do you think there's, there is so, Maybe I already answered it, but why there is so much resistance on the idea of passive income and getting your money to work for you rather than exchanging your time for it? I mean, just, I feel like it's so clear, especially when you extrapolate it and you do the math and you see what the results that it produces in your life. It's like, why would you want to do it any other way? But still, there's just kind of so few people out there really talking about it.

Well, like I said, bro, the biggest challenge that everyone has is that they're born with a two million-year-old brain. They're born with a brain that was not designed to operate today in 2020 and be happy. They're born with a brain that's a very primitive brain that basically was only designed for fight or flight and was all about survival fear. And so what happened was, you know, we lived in caves and we lived in jungles and we didn't take risks. And we had to play it extremely safe and we had to know what our next move was or else we would literally die. And we would watch family members die by taking too big of a risk by going out of the cave at the wrong time and getting eaten by a lion. You know, so it's really understanding like neuroscience and the brain and the mind-body connection and that basically your thoughts live in your head, but your emotions live in your body. and your emotions are stemmed by your thoughts.

Every thought you have has a correlating chemical that goes along with it. And it's either going to be a feel good chemical or feel bad chemical. So for most people, because the brain is wired to be negative, it's called negativity bias. If you research it in neuroscience, it's called negativity bias. Our brains are wired to be negative. For every negative thought, for every 13 negative thoughts your brain produces, it will only produce one positive thought. It only takes a millimeter of a second

for negative to go from conscious, from the prefrontal cortex, back to subconscious, back into the amygdala area, a millimeter of a second. It takes 16 whole seconds for positive to make the same transfer. So the brain is like Velcro for negative

and Teflon for positive. And if you understand these things, you really realize that fear is normal, But survival fear is what we were built for. Most people have a rational fear. And just because something's new or uncomfortable or they can't predict it or it's different, their body instantly goes into fight or flight because the brain gets nervous and it starts releasing cortisol.

So they can't help it. And cortisol is a survival chemical. And so when you start understanding these things, you realize, you know, if people aren't focused on these type of things, which I am 100% focused because that's the key to high performance living. you know, they just operate a certain way and they want to feel comfortable and they want to be able to predict what's going to happen next because that's how we stay alive. But ultimately, with real estate investing, you're learning how to trade risk for profit. And what I learned about debt, let's just

take this back to debt, right? Because you talk about Dave Ramsey, right? So my mentor, one of my first mentors taught me something very, very powerful. I think you're going to like this, bro. So he asked me, he said, he said, hey, Ryga, people call me Ryga, by the way. My name's Ryan, but people call me ride guy they have since before I can remember. He said, hey, how many sides to a coin are there? And I said two. He said, two, or is there three? I go, well, I don't know. Maybe there's three. He goes, well, there's three because you have heads, you have tails, and you have the edge. And what he told me is that true intelligence. will always lie on the edge because it's the only place you'll be able to see both sides of an issue. And unfortunately for most people, they grow up their whole life and they're only taught one side of an issue. So they create belief systems, create programs and personalities based on only having happy intelligence. He said, you can't truly make an intelligent choice on what's right for you in your life and what to truly believe until you can see both.

sides of the issue. And so something like debt, I was always taught debt is bad. Stay out of debt. Well, here's the thing. For consumers, they get, they go into consumer debts. So they borrow and then they use the money that they borrowed to acquire something that's going down in value. So it's not going up in value. It's going down in value. It's taking money out of their pocket every single month. And the only way they can service the expense of that liability is income from their job. So if something happens to their job, they're in trouble, and they have this asset that's going down in value. It's depreciating. It's not going up in value, right? Investing is completely different. Being in the business of borrowing, it's an art form.

See, as investors, I got educated and then I learned how to borrow and acquire things that are going up in value, not down in value. And instead of it taking money out of my pocket every month, It actually puts money in my pocket every single month. And unlike a consumer where the expense of what I borrowed is serviced by income from my job, as an investor, the expense of what I borrowed is serviced by the passive income of the asset. So the liability has an expense. But the asset, if we know what we're doing, has an income. And as long as the income from the asset is greater,

than the expense of the liability, I'm financially free. And I got money left over, and that's called cash flow. And so as I started learning this, I started learning the art of borrowing. And literally, bro, every single time I borrow, I get paid. If I want to give myself a raise, I borrow more money. Every time I borrow I get paid. Now, here's the thing, though. You look at the Dave Ramsey's.

You look at the Susie Ormond's. And basically, you see, I've spent the last decade of my life traveling around the country teaching people financial education and teaching people concepts, right? And people always ask me in my classes, you know, what about the Dave Ramsey's and what about this? And so what I always share with them is I say, okay, well, here's the thing. When you take a look at a Dave Ramsey, when you take a look at a Susie Ormond, do you think that the information that they're teaching is designed for consumers or do you think it's designed for investors? And then most people in the class say, well, it's designed for consumers.

I say, yeah. I say, so it's not about information being good or bad or right or wrong. I don't label it like that. It's not that what they teach is bad and what I teach is good or vice versa. It's just opposite. See, they teach consumers and I've spent the last decade teaching investors and entrepreneurs. So we're teaching a completely different type of person, completely opposite strategies that are seeking opposite results. So the information that they teach, I feel is very good. for a consumer that doesn't have financial education. It has no idea how to service their liabilities through passive income. But the information that I teach is designed for investors and entrepreneurs. So it's just opposite people, opposite information, if that makes any sense. Makes total sense. No good or bad. No good or bad.

Yep. And here's the thing, bro. Like, you have to have consumers to have investors. Like, who do you think pays all my debt for me? Right. It's all the consumers, right? And ultimately, who do you think buys your houses for overmarket value when you flip a house? It's the consumers. But you have to have investors to have consumers because we're the ones that provide them housing. We're the ones that provide them jobs as entrepreneurs, right? And things like this. So the world would not work without one or the other, but what your audience

has to choose is, who do I want to be? Do I want to be the consumer or do I want to be the investor? if they're saying, I want to be an investor, but their whole life, they've been taking financial advice from consumers and using consumer strategies, then they might want to consider changing their teacher and start learning a different kind of curriculum from a different type of, like I said, teacher that's actually doing what they would want to do. Here's what just popped for me. As an investor, with an investor mindset as an entrepreneur, I should probably be grateful for Dave Ramsey and Susie Orman.

For sure, bro. For sure, I mean, the thing is, dude, man, that's my daily practice is gratitude, man, because at the end of the day, like, if you're not grateful, if someone's upsetting you or you're resentful or you're angry or you're jealous, well, at the end of the day, like, if you really focus on doing the work and excavating, which we all have trauma, big or small, that's stuck inside our body, you realize that everyone else is just a mirror for you. And any trigger that you may get from that individual is an opportunity for you to do work on yourself. They're triggering something within you that really has nothing to do with them. And you may not even know where it's coming

from. So it gives you an opportunity to start asking yourself different questions in those moments and start doing some excavation and doing the work. And the thing is, if you really understand neuroscience, you'll understand that those low vibrating emotions, those motions that will be tested on a very low frequency like anger or fear or jealousy or any of these things, they're all linked to survival chemicals in your body. And survival chemicals will kill you slowly. That's what takes you out of homeostasis and takes your body from in ease to disease. That's what disease is. Your body's out of homeostasis, but things like gratitude and joy and love, those release chemicals like dopamine, serotonin, oxytocin, and those are the ultimate medicine. I don't care what's going on your life.

I don't care what ailments you have. If you're constantly focused on your dopamine drip and your oxytocin drip and your serotonin drip, that's the ultimate healing modality and you'll always be happy. And the huge breakthrough for all of this, bro, is when someone realizes this stuff, they realize they are the pharmacist. They are in control of the chemicals that they choose to release in their body. And by the way, those chemicals are just called feelings. And it only takes 90 seconds to take over your whole biochemistry. It's chemistry. It's quantum physics.

It's energy. So, like, we get to choose what we think and what chemicals we're going to release. And when we really learn that, now we get all the power back instead of saying, that person did this or this person made me upset or this, you have no power. But when you can say, hey, you know what? There's something that they did that triggered me. What is that? Can I do work on that?

What's emerging from this? What lessons can I learn right now from this? Your brain's going to start seeking and giving you different answers because now you're asking yourself empowering questions instead of disempowering questions. I know I kind of went off on a tangent, but I'm passionate about that shit, bro, because that's... No, I feel it. I feel it. It's high performance living, bro, right there.

And I'm grateful for you, Ryan, and I've missed you, bro. Thanks, buddy, dude. You and I had a nice little, when we first met, remember, and we sat down, we were kind of working together and have fun. And I'm grateful for you, too, bro. I am. I'm grateful. I'm always grateful for people like you that have focused so much. so much energy into helping people live a better lifestyle through getting financial education.

I mean, that's like, that's amazing, bro. And that's pure abundance right there because you understand the more people you help, the more people you teach, the better place the world's going to be. And the better the investing community is going to be because, you know, there's so many amateurs out there in the investing world. and they're all going to get squeezed out in the next collapse, guaranteed, because they're all just speculators anyways. But it's nice when you got professionals in the industry as well, like you, you know.

Well, thanks, bro. Appreciate it. For sure, bro. Yep, yep. You're always enlightening whenever we get to talk. And speaking of enlightening, what we actually wanted you to come on the show to talk about, let's shift gears to something new that I don't think too many people are even thinking about are conscious of is this thing called green having.

Tell me what this is. Greenhaving. So green having's been around for a long time. You know, I consider myself like a conscious capitalist, right? Or even like, man, it's kind of like, so for me, like my teaching style actually is I call it tree-hugging financial education. Right. It's like, and the reason I focus on these things is because my whole model and my education, my curriculum that I've been so focused on teaching is based around this concept.

Some people are so poor that all they have is money. That's all they have in their life. And life is so much bigger than just having money. And a lot of times people spend so much energy and time chasing money that all these other areas of their life go out of balance. And so, yes, you can be wealthy financially, but what about having wealth in your relationships? what about having wealth in your nutrition? What about having wealth in your mind and soul?

What about having wealth in your body and your fitness and all these different areas, ultimately? And so that's why I really like to, for me, it's, I call my business model. It's a for-purpose business model, right? So you've got for-profit, you've got non-profit, and then you have for-purpose. And a for-purpose business model is a business model where you're committing a percentage of income towards things that give you purpose, that you believe in, that you're passionate about. And it's not just making the earth a greener place, ultimately, which, you know, obviously our planet, mother nature and our planet is suffering more now than it ever has, but just all kinds of

things that you're passionate about. Like, we work with, you know, kids in Mexico and orphanages and single abused moms that are getting placed in homes and helping with first and last furniture, all these different things that real estate's allowed me to be able to do. From a green standpoint, green having is really just, there's two components to it. There's an energy component to it and there's a chemical component to it. So the energy component is making sure that you're utilizing strategies that tighten the envelope in a way that you're containing all of the energy inside the house. in a better way so that ultimately, you know, your bills can go down.

It's just a more efficient house in general. So it's more of a high performance house. And then, of course, from a chemical standpoint, most people don't realize how many chemicals are in construction products. And most people don't realize either that these allergies that they've been told by Western medicine and all this stuff for years, that they're allergic to this or that. A lot of people don't realize is they're allergic to these chemicals.

that are in their house, that are in these construction products that we're not supposed to be breathing in. And they're called volatile organic compounds, VOCs. So the chemical component is making sure that you're getting the chemicals out of the house using zero VOC products. So you're creating a higher performance home by tightening up the envelope and containing the energy in a better way. And then you're also detoxing or detoxifying the house through ridding the house. through ridding the house of chemicals. And so those are the two components. And because of that, there's premiums.

You can demand a premium for a high-performance house that's chemical-free. And there's also rebates that you can leverage from counties, cities, government, things like this, that you can get credits and tax credits and all kinds of things back on certain specific things that you're doing within the envelope of that house. So it's kind of a cool concept.

mindset, man. Got it. So increasing the ROI by 10%. So that comes through a combination, I guess, of the credits and being able to sell the property at a premium. Yeah. I mean, if you look at like just appraising in general, and there's three, you know, there's three different, there's three different ways to appraise a property, right? There's the, there's the sales comparable approach, there's the cost comparison approach, and then there's the income approach. Income approach. income approach is really straight through commercial. Well, if I'm decreasing expenses, I'm increasing income. So if I'm tightening the envelope and I'm decreasing expenses, I'm increasing income.

And because commercial, the value of the asset is based on the income. It's not based on the comps. Well, that means that the value of that asset is worth more because it's basically NOI divided by market cap rate. That's going to tell you the value. Well, your NOI is affected by your expenses. So you're able to force value by decreasing expenses. And then on the sales comparable approach, and this was done like, man, this has been around

for eight plus years where there's something in the appraisal industry, where appraisers are, they have to assign a higher value when they're appraising to green homes, the non-green homes. And that's a law that's passed in the appraisal industry. And what I noticed, you know, back in the day when I first started doing this is I had to educate appraisers on these things. And I had to tell them where to go research it and understand how to actually appraise a green home. Obviously, it's a lot more popular today. And it's a lot more popular where I live in the Bay Area than, you know, other areas in the country. So you don't have to educate them as much. But yeah, that's why you can demand it more of a

premium for that house. Mm-hmm. Mm-hmm. Got it. Yeah, I didn't even know that myself. I didn't know that was law. Mm-hmm. And then obviously, uh, off of the replacement approach. Are the materials more expensive to the VOCs that avoid? Yeah, the VOCs can be a little more expensive. Not much though, bro, especially nowadays. You know what I mean?

Especially nowadays. But again, my whole thing is, what kind of brand is someone creating and what do they want to be known for? And are they all about money? For me, I'm not all about money. Life isn't all about money. For me, I'm all about helping people.

I'm about creating a better environment for people and living within my purpose and serving in any way I can. So for me, I can still be profitable and spend a little extra money and make sure to get those chemicals out of the house and make sure that they have young kids and things like, you know, their kids aren't breathing all these things, especially in carpet, man. The padding underneath the carpet is so toxic if you don't understand these things. and kids spend their whole young lives on carpets rolling around, breathing these things in. So it is a little more expensive, but not by much nowadays.

But for me, it's, you know, it's about, I'm all about people first, profit, second. That doesn't mean I want to put myself out of business and have no profit. But I also want to do my part. And I want to serve at the highest level that I possibly can and help people in any way that I can. Awesome. That's what I love about you, Ryan. Good dude. Thanks, buddy.

Yep. Thanks, bro. I'm sure that you're resonating with the audience like crazy. I can feel the vibes coming through the speakers right now. If anyone wanted to reach out to you and get in touch with you, what would be the best way for them to do that? The best way would be on Instagram. That's probably the best way. I'm at R-G-G-U-Y-Y-B-U-R-K, B-U-R-K, R-G-R-K, R-G-G-R-K, that's my Instagram page.

Yeah, I'm on Instagram, I'm posting, I'm giving, you know, financial education. I'm also just hanging with the fam living lifestyle by design. That's always fun. And we recently just bought a farm as well, so I got a lot of footage of me on the farm, trying to be a farmer, but still really kind of learning it all, learning how to be a farmer. We just harvested some of our first batches of food. I ate it last night.

It was really good. But yeah, man, just living life, bro. Having fun. You can find me on Instagram. Well, that's simple enough. So, yeah, go to Instagram to Rai Guy Burke. And, dude, I got a whole page of notes here that could probably fill up another episode. So let's do another one again soon.

Sound good? I'd love to, man. Just let me know one. Okay. Sweet. All right. Love you, bro. Thanks for being here.

You two, brothers, say hello to Mercedes and everyone. And we'll talk to you soon, bro. Sounds great. Thanks for you. Bye-bye. All righty. So that's it for today. God bless to your success.

I'm Matt Terrio. Living the Dream. Thank you. The cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow.

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