Epic Real Estate Investing - Ringside with Dave Ramsey: The Controversial Call That Sparked a Debate | 1269

Episode Date: June 8, 2023

Prepare for an adrenaline-filled episode of the Epic Real Estate Investing Podcast! This high-octane installment explores the high stakes world of real estate investing from multiple perspectives, promising to keep you on the edge of your seat from start to finish. First, we wade into the hotly contested waters of real estate finance, directly challenging the advice of personal finance heavyweight Dave Ramsey. In an explosive replay of a live call, we dissect the debate around using debt to finance property purchases. Could his cautionary approach be misguided, or is there merit to his anti-debt mantra? This deep dive promises to make you question everything you thought you knew about property investment. Then, we pull back the curtain on the latest mortgage programs designed to help investors triumph in a challenging high-rate environment. We'll guide you through the intricacies of the Float Down and Refinance Guarantee Programs, and assess whether these could be game-changing tools in your real estate arsenal. Finally, we'll transport you back in time, unveiling the ancient money rules that powered the world's most formidable family dynasties, from the Rockefellers to the Rothschilds. With the help of historical analysis and deep research, we aim to arm you with knowledge that has stood the test of time. This electrifying episode of the Epic Real Estate Investing Podcast promises a no-holds-barred exploration of finance, wealth, and the art of real estate investing. We're set to deliver a knockout blow to financial ignorance, and reignite your journey to financial freedom. Ready to enter the ring? The bell's about to ring! Hit play now. P.S. Whenever you're ready... here are 3 ways I can help you become the healthy, wealthy, beast of an investor God designed you to be: 1.    Become an Epic community member at “Epic Real Estate Investing.” One of Mercedes’ and my favorite things to do is share with investors real estate trends, interesting guests, and housing market news. We do it every week, and you can listen in by subscribing to Epic Real Estate Investing on Apple Podcasts - Click Here. Or WATCH HERE on YouTube. 2.    Become an Epic partner (I'll pay you) If you want to go deeper and further as a real estate investor, looking into my partner program to help you get your first deal might be the move... take the first step here for free. 3.    Work with me One-on-One If you'd like to work directly with me on your business... meet me here, answer some short questions, and we'll hop on the phone to brainstorm some cool ideas for you and your market. Also...check these out :) FreeEntity.com (Need an LLC? Get one for almost FREE) DealEngineer (Most powerful data for finding motivated sellers) TrueProfit.net (Less stress and greater profits for your real estate business) Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Ladies and gentlemen, real estate fans across the globe, lend me your ears as I bring you the next power-packed episode of the epic real estate investing podcast. In our first segment, we'll throw a hard hit and left hook at the age-old debate. Should you use debt to buy real estate stepping into the ring as financial guru Dave Ramsey with his stern warnings and risk-averse advice? But is he right? Or is he throwing you off the winning path? We'll analyze a live call that leaves Ramsey suggesting his caller, and possibly you, may be an idiot for considering debt. Do you agree or disagree? We're going ringside to decide. Round two keeps the excitement alive as we unveil the secret weapons that can help you outsmart the market, two new mortgage programs. Step into the octagon of real estate as we explore the float-down and refinance guarantee programs. Will these groundbreaking techniques become the new champion of investing in a high-rate-rate-investing? environment. Tune in to witness this clash of financial titans, and for the grand finale, we've

uncovered the mysteries of wealth that could catapult you to the elite ranks. We're digging deep into the past to reveal the ancient money rules that the rich don't want you to know. How did the great dynasties, the Rockefellers, the Vanderbilts, the Carnegie's, and the Rothschilds, amassed their staggering fortunes without today's technology. It's a fascinating journey down the rabbit hole. And the revelation may just be the knockout punch to poverty. So brace yourselves and get ready for a bone crushing episode of the epic real estate investing podcast that promises to leave you at the edge of your seats. The fight for financial freedom is about to get real. Are you ready? The bell's about to ring.

Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go, let's go. Let's go. Hey, Rockstar, I just saw this. I've owned over 2,000 pieces of real estate in my life.

I've got several hundred million dollars for the real estate today. Dave, Debtbuster Ramsey, the gift that keeps on giving. You know, he's advising a caller right now on using debt to buy real estate and suggested that his caller is an idiot, too. Yeah, good stuff coming. I've owned over 2,000 pieces of real estate in my life. I ain't buying it. I mean, I smell a rat. If you can prove me wrong, I'll apologize, but the, nah.

I've got several hundred million dollars for the real estate today. Several hundred million. That would be at least three times, right? Isn't that what several means? Yeah, dictionary says it right here. More than two, but not many. So at least $300 million worth of real estate. Now, moneymade.io says Dave has a net worth of only $200 million.

Wealthy gorilla confirmed that and so does Celebritynetworth.com. Now, I don't know how they come up with their numbers, how they figure that out, but if they're right, Dave's embellishing a little bit. If I was on TV every damn day, man, you know how rich I would be? Dave's worth about 50 million bucks. Okay, that's what my plane costs. He ain't buying a plane. If that's true, Dave is embellishing a lot.

By the way, per celebrity.fm, there's no evidence of Ramsey owning a plane. So for him to be worth $200 million and own $300 million of real estate, he'd have to be carrying debt on that real estate for both of those statements to be true. And we all know how Dave feels about debt. I don't borrow money, period. So no debt on that real estate. So I live 100% debt free. No debt, period. Now, I don't hate Dave. I don't even know him. But when you speak in superlatives with so much conviction, you open yourself up to a lot of criticism. But here's what this is really all about when using debt to buy real estate. There are two ways to do it. Here, listen. One thing I know for sure is if you tell me the renters are going to pay the payments for you, that tells me you've never managed rental property. That's a flagrantly bold statement. Dave knows for sure that if you tell him that renters are going to pay the payments,

for you that you've never managed rental property. And I just couldn't make sense of that. The 2,000 pieces of property he said that he owned, I mean, if he referenced those properties in this context, that have to be rental properties, right? His point wouldn't make sense if they weren't. And if he didn't collect rent from 2,000 tenants, what was he doing?

If half of those tenants didn't pay, he didn't know what he was doing. If just one quarter didn't pay, he was just doing it flat out wrong. If just an eighth of his tenants did not pay him, he's not the person you want to take real estate advice from at all. Dave Ramsey got his real estate license at the age of 18 and began investing in real estate in the early 1980s. He'd buy properties, fix them up, and then flip them for a short-term

profit. So he was flipping properties. No tenants there. So what do most investors do when they finance real estate flips is that they take out short-term loans to save money? The term for these types of loans is typically one to three years. And there's not much risk there because the investor will finish the flip way before it's due and pay off the loan. But if things don't go as planned as they can, you've got some cushion with that one to three year period. Or you could do what Dave Ramsey did, which was 90-day loans. These loans are so risky that banks, they don't even do them anymore. Debt is an expert's tool that anyone has access to, but you must know how to use it expertly.

Now, loose lending practices in the 1980s made this extremely attractive for real estate investors because you can buy a property for cheap, fix it up, and flip it within 45 to 60 days, pay back the 90-day loan, and you are done. So once the deal closes, you've paid off the loan, you've made your money, and it's on to the next one. This is how Dave Ramsey was able to make a substantial amount of money in his early 20s, and much of this was due to speculated real estate investments. Don't speculate. Don't gamble.

We don't advocate that here. and certainly don't use debt like Dave if you do. Using debt to purchase income property is not this. I mean, if that's what he did, no wonder he hates debt so much. I mean, but was it the debt's fault when things went south for him? Or was it Dave's?

Dave Ramsey invested in a real estate market that was fueled and inflated by investors seeking tax deductions on 90-day loans looking to flip them for a quick profit. And that is, you guys, incredibly risky and incredibly stupid. When using debt to invest in real estate, don't be Dave.

One thing I know for sure is if you tell me the renters are going to pay the payments for you, that tells me you've never managed rental property. That tells me you've never done it. Actually, that statement more likely tells me that Dave has never done it. That's 100%. You are a novice at best, an idiot at worst. And I mean, that's the truth. Because anybody who's ever had a renter or been a renter, and I have both.

been a renter too, it knows that sometimes renters don't pay. True statement. Sometimes they don't. One thing I know for sure is if you tell me the renters are going to pay the payments for you, that tells me you've never managed rental property. Anytime you hear everybody or nobody or always or never. That tells me you've never managed rental property. You're being lied to. As when you're really an expert in your field, you know that first, there are always exceptions. In real estate, there's a bunch of them. I mean, there are a lot of variables. There are a lot of moving parts.

And every answer to a real estate question should really begin with, it depends. And second, the negative stuff that he's referring to, that resonates with us far more than the positive stuff. Far more. That's the stuff that we always remember. For example, at the peak of my portfolio, about 350 units. Oh, real estate investors, don't say pieces of property, by the way. That was another thing that fired off my BS detector.

I've owned over 2,000 pieces of real estate in my life. When I owned those 350 units, I knew that. the names of probably about 13 of my tenants because they were problems. They were always breaking stuff. They were complaining. They didn't pay their rent on time, if at all. I knew their names because I heard their names in the office all the time. And they were a moderate annoyance, but I didn't lose sleep over them because I had 337 tenants that were good ones, that were current with their rent. And because they were, I couldn't tell you any of their names. The more tenants that you have, the more insulated you are from the shitbirds.

the mortgage payments are being made. So if Dave had those 2,000 rental properties, he should have been like, I don't know, six times more insulated than I am. And absolutely his tenants would be making the mortgage payments for him. Anyway, Dave went on to support his, that tells me you've never managed rental property with this. Sometimes there's cancer.

Sometimes there's car wrecks and job loss. Sometimes there's a pandemic. Sometimes dot, dot, dot, dot, dot, dot. These aren't false statements. I mean, shit happens sometimes. But sometimes doesn't bring your empire crashing down. And it's certainly not a reason to avoid real estate and then come down on your collar suggesting that he's an idiot.

And the more units that you own, the less that you feel those sometimes moments. That's the very thing that makes multifamily property investing so appealing. I mean, your risk is spread out across multiple units. It's one of the primary reasons people invest in them. And I don't know if you caught this, but he's making a case for his never statement with a bunch of sometimes statements.

I mean, if your spidey senses aren't tingling a little bit, I've got a bridge in Brooklyn I'd like to sell you. I could actually do that, by the way. Did you know that? Yeah, fun fact. It's called a quick claim deed. And what that does is it allows me to sell you actual title in a property that I may or may not own. That's right. No guarantee to a buyer that I even own what I'm selling with a quick claim deed.

And per my latest Google search, it's perfectly legal to do. By the way, I do have some up-and-coming swamp land in Florida for sale. Super cheap, too. It's five full acres of ocean front property for 10,000 bucks. That's it. It's the deal of the century. I mean, here's the deed right here. Send me 10,000 bucks and I'll just sign over all of my interest in the property to you. No, don't send me any money, but that's how the scam works. And it's legal. And that has nothing to do with Dave, by the way, just a spontaneous, teachable moment. Back to Dave. It's, you know, as if there's a perfect stream of every month, the rent is going to come on time or

early and you can pay your stupid little payment. So no, the monthly income stream isn't perfect. And it does take some time on your part to make sure that that stream flows. But for my 350 units, it was like, I don't know, maybe a four hour work month. It sure beats a 40 hour work week. No bosses, no work. By the way, if you'd like a copy of the four hour work month, it's a simple one pager to get your rental properties running smoother. I made it easy and uploaded it for you at the four hour workmonth.com. Now, I want to give Dave the benefit of the because I've never met him. There's more to the story, I'm sure. But when you say things like, that tells me you've never done it with emphasis on the never. Never? Never. That statement could steer

people away from the final frontier where they actually have a shot at creating epic wealth. That could hurt people. His advice may keep his audience safe, but they'll be just overbroke dealing with that job for the rest of their lives with zero chance of getting wealthy or even just financially independent. And that's the most ridiculous assumption. Actually, it's not a ridiculous assumption. If, and I mean if with a capital IF, it works out, the best years of your life are behind you. You've got one foot in the grave by that time.

And I think that's ridiculous. Because most people, they just don't make enough to save enough for Dave's plan to pan out. And then to be able to enjoy it while you're still young enough too. I mean, if you disagree with me or if you're even on the fence with what I'm saying, Call up Dave. Ask him what your real alternatives are. Like, especially if you're in your 40s or if you're in your 50s, ask him what sacrifices you're going to have to make to catch up so you can retire before the age of, I don't know, 70, if you even can. It takes a long time for compound interest to do its magic. Will you still be alive when the trick pays off? Compounding income producing assets, that'll get you there faster. It's the only way to make up for lost time. And if you use other people's money to compound those assets, it's five times faster than that. that. Hey, if you're okay with what Dave says, I'm okay with it. I mean, if you're happy with his plan, don't listen to me. I mean, with so many videos like mine that are anti-Dave, maybe I just fell into the trap to have given him more exposure. If you're not okay with what

he said, though, because you've actually done the math like a smart person, simple math. You've got to take your finances into your own hands. If you'd like some help, call me. Go to R-E-I-Aase.com and then we'll hop on the phone and hammer it out. We'll be back with more, right after this. Boarding for Flight 246 to Toronto is delayed 50 minutes. Ugh, what? Sounds like Ojo time. Play Ojo? Great idea.

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Matt Terrio investor, tell us where the deals are. Today's property is in Birmingham, Alabama. And tell us what the numbers are. Picture this, a property that not only pays for itself, but begins putting money back into your pocket from the moment you acquire it. This isn't a fairy tale, but a real-life opportunity presenting itself in the form of a phenomenal turnkey rental. Nestled in the heart of the city, this modern gem built in 1984, has recently been transformed into a contemporary haven. Spread over a generous 1,932 square feet,

this radiant home is a masterclass in aesthetics and comfort. Each of its four bedrooms sports spacious walk-in closets, ensuring plenty of storage for the tenant's needs, promising them an organized and clutter-free lifestyle. This stunning home caters to both the interior and exterior life with not one but two full baths, a delightful front porch perfect for a morning coffee, and a vast, fenced-in backyard that serves as the perfect stage for unforgettable summer barbecues and heartwarming get-togethers. Imagine your tenant's contentment when they feel at home in a place so carefully renovated, from the lustrous hardwood floors that add a touch of elegance to the smartly positioned windows that usher in ample natural light, creating an environment

that is both invigorating and comforting. Location is equally strategic and attractive. Positioned a mere two miles from Chalkville Elementary School, and in close proximity to the highly rated Hewitt-Trustville Middle School and high school, it's an ideal setting for families. The prime location also offers easy access to downtown, dotted with various eateries, convenience stores, and grocery shops. With essentials being just a quick drive away and major interstates like I-59 nearby,

this home scores high on convenience saving time and energy for its busy residents. The house is currently leased at $1,395 per month, a testament to its appeal, and the steady cash flow it generates. As an investor, you'll not only benefit from an immediate return on your investment, but you'll also have the satisfaction of owning a piece of real estate that caters to the needs of families and singles alike, a property that tenants will want to hold on to for the long term. For more information on this property and others just like it, grab a free investor package from cashflow savvy.com. She's been helping busy professionals for more than a decade now

build passive cash flow with real estate so they could take their foot off the gas a bit and enjoy the good life. Let's raise our hands, unless you're driving, of course, for the turnkey girl Mercedes-Torres. Hello and welcome, welcome to the epic real estate investing show. My name is Mercedes Torres, partner in crime with Mr. Matt Terrio, who created the epic real estate empire. Today I'm going to do something a little bit different because, as you know, I usually introduce my guest. But this time, I'm going to do something a little bit different because my guests are so astronomical that they need to introduce themselves.

So without further ado, I often talk about behind every good property is an amazing team. And let me tell you, ladies and gentlemen, you cannot do this without an amazing team. Part of the amazing team is your lender. So I decided to bring one of the best lenders that I know in our industry called the Parham team. So ladies and gentlemen, from Highland Residential Morgia, team, please allow me to introduce Aaron Steli and Graham Parham from the Parham team. Gentlemen, welcome to the Epic Real Estate Investing podcast. Thank you so much.

Thanks for having us on. It's a pleasure, Resage. It really is. That was a great intro. Thank you. Intro, there was no intro. I'm going to turn it over to you. Tell us all about Graham and the Parham team.

Well, Aaron, I'll go first. And I'll let you come behind. You like to tell a story, so I'm going to tell one. So I was in corporate America for about 15 years, and I got tired of it, kind of like you did. And a buddy mine was working for a company called Washington Mutual, which we all remember back in the day. It was a great company for many years. So I jumped in, headfirst, you know, left my salary in my company car and made sense and jumped in on a straight commission basis. Fortunately, the gentleman that was a friend of mine, he was a top producer, and he just said, you know, this is no secret.

It's about people working with people. And I said, okay, well, I can figure that part out. And so I went out and asked one question to real estate agents at the time. And I said, what do you hate most about loan officers? And you know, the two common answers are they never return a call and they never do what they say they're going to do. Well, how easy is that, you know? If you can't do it, we'll tell them up front. But if you can't return a call, you don't need to view the business.

So I jumped in, managed to make it work. And I've been at it for about 26 years now. And over course, the time my business grew, and then in 1980, I believe it was, we had kind of a small quasi-refinance year, if you recall that. And so I got a call from a guy in California, San Jose. He says, I want to refinance in my property. He's no problem. And he goes, I'm going to give you 20 right off the bat. I'm going, cool.

So this was back in the day when we weren't paperless. And so I had to come in on a Saturday, and this guy owned 400 properties. And so I had to, it was about this thick, and I had to Xerox 20 miles this sick on a Saturday, laid them all out, submitted them to underwriting, got him close. He goes, good, let me give you another 20. And then his buddy called, another buddy call. Next thing you know, I'm getting flooded with all these calls, but this industry is a lot small that people think it is.

And everybody pretty much knows everybody. And so as much as I wanted to run away from the investment piece back in 2008, I got sucked back in, just got sucked back in. And then over the course of time, I was watching these tax returns come across my desk with all these, like this particular individual with this monster real estate owned. And I'm, well, what do these guys know that I don't? Nothing. They're just doing it. So I jumped in about 18 years ago and I actually bought my property from this guy that he had in Dallas and ended up making some money on it.

And then it's been smooth sailing ever since. So that's kind of our story. The fact that you got sucked in by investors is just a true testament of how amazing you are because it is really, really difficult to find that person that actually follows through. There's that old saying part of the journey is showing up. Man, if you show up and you do what you say you're going to do, you go a long way. I will absolutely say, grand, that that's your team. We call it close on time and not ugly.

That's a great thing. Love it. Awesome. So how did you partner with Aaron? Because Aaron seems to be just a tad bit younger than you, Graham. Just a tad. Yeah, so I'll jump in. Yeah. So I joined up with Graham coming up now on eight years ago. And in fresh out of school, you know, hungry and kind of jumps into this world with two feet. And as Graham kind of elaborated, all we do are our bread and butter is working with investors. Sure, we help our clients with primaries as well. But our bread and butter.

is investors. We know the model. We understand the model. I now am an active investor myself, so I'm living and breathing it as well. Similar to Graham's story, it didn't take long being in this business, writing these loans, seeing these individuals time and time again that seemed to have it all figured out. And waiting was really the only thing that I eventually decided was hurting me before I jumped in and started becoming an investor as well. But being in this business, partnering with Graham, who has a great portfolio these days and understands both that loan officer hat, as well as that investor real estate hat, it's so, so critical. Doing these loans isn't as easy as applying, you know, to some online and you might not always get the best product

that fits your goals depending on what you're looking to do. So being in this business for a while, It's certainly something that we're invested in. We want our clients to perform well. We're always interested ourselves in scouring out markets and new inventory. So it's been a great ride. And we're just continuing to build and grow and help our clients the best we can. How lucky are you to learn from someone that's that experience, that knowledgeable, and like you get to grind it right next to him?

I tell you, I learned that way many years ago, 20 years ago. and it has been the core of my business. Parham team has that Graham has. It doesn't exist too much in this world. So congratulations, Graham. You created an amazing team and you got an amazing young partner that gets it. So let's dive into our podcast is all about creating financial freedom for others. I grew up really poor and I never wanted that life for me.

I definitely don't want it for our future, for the future. our country. So I spent a lot of time educating as much as possible. And right now, the number one complaint that I get about real estate and loans is how high the interest rate is. You can hear it in my voice that it drives me insane because I'm a little biased to it. But I really want your take, Graham, on what the interest rate is doing. What does it mean? And at the end of the day, does it even matter? So let's dive into that for a second. Aaron, I'm going to start a little bit off and then.

I'd love you to finish on that one. One of the things I'll say that, and I learned from that account that I did my first 20 loans with, is that, you know, being that he's got a portfolio of 400 loans and he's been investing since early 80s. He told me one time, he says, Graham, if you can find an investor rate below 7%, you're doing really well. because he's experienced those high rates of the teens back in the day the same way you and I did. And that's still true today. Okay. Yeah, the rates are elevated, but I think the market is starting to get better.

There are several different variables that go into rate, obviously credit score, property type, percentage of down pay, loan amount. But we're ranging somewhere between the mid sixes and probably the low sevens right now, depending on those variables. But, I mean, it's still a very good time to invest. one of the things that we're doing as a company is that we have a thing called a float-down program, which means that if you buy a property a day and you fund the loan with us, and at the lock period, we lock you in, and then we go to closing right before closing, if the market's improved a quarter of a point rate, we're going to let you float down to the new rate, which is something we just launched.

If for some reason the market doesn't improve between the clock date and the close date, we have a three-year guarantee that within the next three years, if the market does come back down to a palatable rate, we will refinancing and we will not charge any closing costs. So don't let these rates scare you because I was talking to another provider the other day, and they go, well, I'm dealing with the same cash flows I'm dealing with today as I was yesterday. It's like, it's no big deal. And we've seen some of your inventory Mercedes.

And you're still close to 1%. It's like, who cares what the rate is, you know? Yeah, a lot of borrowers. a lot of prospective buyers can get so stuck on those COVID rates that we saw for, you know, that two, two and a half year span. And those just simply aren't going to come around again. So playing this waiting game of, oh, let's see what maybe summer 2024 brings, maybe we'll be at four and a half percent. It's just not going to happen. The good news is everything is, is finally trending in the right direction. Has there been some uncertainty in the media the past

month or two with, you know, Silicon Valley Bank or the debt ceiling as of this week. Sure, and that, you know, only kind of hurts with some volatility as we kind of remain in that six to seven percent level. But what I persistently remind my clients of, and don't get this confused with pulling back and waiting for these rates to turn around, but the good news is, and the concept to keep in mind is that mortgage rates inevitably seem to always follow inflation levels. And as our inflation has jacked all the way up to 9.1% in June of last year, so about a year ago, that has come all the way down to 4.9% as of right now. So we're making progress. These mortgage rates are eventually going to follow those inflation rates down, that CPI data.

It's all been looking great. These new numbers that are coming out month over month are looking a lot better than they were last year. So everything's finally, you know, although we're still kind of at this level, you know, pinging back and forth and that six to seven percent for probably, you know, until we get to maybe quarter four, you know, maybe quarter one of next year is when we'll see these things start to turn around. But all these rate hikes that we've heard about for a year now are finally starting to, you know, it's a lagging effect. That effect is finally taking place. and we're feeling very optimistic in the mortgage world, especially now compared to maybe a year ago as far as rates are concerned. Yeah, you know, Aaron, you tapped on a really good point and you said, you know, the COVID rates.

I mean, rates were at a 2 and 3% for a very short period of time, I think maybe 3 to 4 months. It was because the world was experiencing a national pandemic, I mean, a world pandemic. And the reality is, in our lifetime, rates will never drop that low again. It is guaranteed that we will never get that low again. We just got spoiled. And I often share, you know, I started investing 14, 15 years ago. Rates were at a whopping 14%. So when I hear a 6.5%, 7%, I'll take it.

Because the reality is it's just a rate. But with that being said, Aaron, you mentioned, your float-down program and your guarantee program. That's worth clarifying. So say that to me one more time and share with our listeners exactly what the Parham team is doing to help with. Absolutely. And we're really pumped about this because it gives a lot of peace of mind. So the first one is the float-down option.

And what that simply is, there's no extra cost associated with it to lock it in or anything like that. what it is is if the market improves by a quarter percent from that the rate lock is going to span 50 days. If the market improves, say you're locked in at 7 percent. We get near closing. We're a week or two out from closing. The true market rates at 6.75 percent. We update that rate, float you down to 6.75 percent. No questions asked, no additional costs associated with it. You don't have to worry about going and shopping with another lender to maybe get that new, better market rate, we'll take you there right away. So that's huge. That's going to protect you. If rates go, you're locked in at that seven. So if rates jack up to seven and a half percent by

time we go to close, you're still protected at that seven. Again, no additional cost to keep it or anything like that. So that is a huge program. We just rolled it out this week. And we're pumped. Yeah. And you guys have a 50-day lock? Yeah. So we've got a 50 day. And we've got shorter. lock periods as well. If, you know, it's a short time crunch transaction, want to get maybe a little more aggressive with the pricing. But our, you know, our standard lock is 50 day. If it's a new construction, something like that, we do have an extended rate lock program as well that can go, you know, all the way up to a year. That's kind of a separate conversation. But yeah, generally,

our lock is 50 days. That gives us really aggressive pricing. And that way, you know, if it might be a turnkey property, still a couple weeks maybe away from completion, we're worried about rates. Let's lock you in now. You've got to that. the float down protection. So, you know, we're off and running, check the box on your lender, move on to the next box. On top of that, we've got the, you know, waiving our lender fees within three years. So how that works is basically the second program we're offering still applies to every single purchase we're doing right now, every single purchase transaction. When rates come down within the next three years, which we all know they inevitably will, and you want to

come back and refinance, maybe get out of that 7% down to maybe it's at 6 or 6 and a quarter percent, we're going to waive our lender fee. We can't control, you know, title, closing costs, things like that, but our lender fee, which is going to be about half the chunk of those closing costs on a standard refi, those are waives. We come back, replace you with a better rate, and send you on your way. So in this higher rate environment, lenders like us are offering great programs like this on the seller side. we've seen a little bit of comeback of seller credits, other things. The point is buyers are getting their power back right now. And if we want to sit and wait a year to buy, all that power is going to be lost.

You're going to be buying at a higher purchase price down the road. And it's just not going to work well when it comes to the math. Yeah. Let me tell you why I'm very familiar with the market. I'm very familiar with other lenders. Nobody. And I do mean nobody is offering what you guys are offering. This float-down program, never heard of it.

Love that you created it. I've never even heard of. We guarantee that we're going to give you the lowest rate and refinance you for free, basically. So that is amazing. Kudos to you. Let's take a spin on it just a little bit. And let's talk about how does a busy professional who understands the importance of real estate, what kind of preparation do they need on a financial level to understand if they

could afford to buy an investment property. Do you want to tap on that, Graham? I'll take that one. It's real simple. We look at three categories. Your credit, how much money you have and how much money you make, and it's all math after that. So what we do is we direct them to the application platform. It takes 10 or 15 minutes to fill it out. Once we do that, then we request income and asset documents like tax returns and bank statements. We get you approved in one day if the numbers work. And the way the numbers work is, we take whatever your monthly gross income is, we take whatever kind of debt load that you have, whether it be a car or credit card, some more other mortgages, and we do simple math.

And we come up with a thing called a ratio or a percentage. A lot of lenders will stop around 43, 44, maybe in 45. We still go all the way up to 50%. That is a hard stop. Most of the people that are like newbies, so to speak, that want to get into this, generally our top professionals, their credit is always really good. We ran in a study back during COVID. Actually, it was right after COVID.

And we looked back at the last, I don't know, 2000 loans that we closed, our average rate for Parwar is like 7.80 or 7.78. And the average LTV was like 75. It was incredible. But, I mean, that was our average client. But getting a lot of times where a lot of lenders, they won't give you credit on the subject property. We will.

Okay. What we do is when we run an appraisal, let's say the property is empty. So that's fine, because typically most of the management companies will rent the property at the average market rent analysis, which is given to them from MLS. So they go into the MLS program, they take a look at the average market rent. That's what the appraiser does. And then when he gives us the report, he says, here's the average market rent. We will give you credit on that rent, even though you don't have a tenant to go back toward those qualifying ratios. So we work a little bit different than some letters, but we're very user-friendly in the process. Got it. And what's pretty cool about what Graham just described is to kind of put it in layman's term for some of our viewers out there

is you're taking on this property, whatever new monthly debt is associated with it, we're basically wiping that clean with the income you're going to bring in from the property. So it doesn't hurt you. It's not like sometimes that income can even help get that. borrower over the qualifying hump. So there's lots of tools and tricks that we tap into on these investment properties. Yeah, 780, you know, nice down payment might be our typical client, but we have borrowers buying investment properties before they even bought a primary residence, you know, fresh out of college, maybe still and, you know, work with all types of clients. We understand these Fannie Mae investment guidelines. And it's a lot easier to qualify for these loans than,

then you would think a lot of times even easier than maybe even a primary residence. So there's no landlord history, anything like that that we require, make it very simple and easy for our borrowers. And that's great. And I'd like to add to that one of the things that Aaron mentioned about the landlord part, if we can qualify you for one property, we can qualify you for 10 because Fannie Mae allows us to go up to 10. What that means is since we have rental income coming in on each of the properties, it wipes out the debt. and it actually improves your debt to income ratio. You know, people a lot of times when they go online, they plug in,

I want to buy a half a million dollar property. Well, you and I both know that you're not going to buy a half a million dollar rental property is going to be somewhere else. But they do that, anticipate they want to buy that much in property. Well, then we kind of subdivide it. We'll typically come up with a kind of an average $150,000 just as a benchmark to get them qualified. Once we go through the exercise, you're qualified for this particular property at $150,000.

and the first answer or first question comes out of their mouths. Well, how many can I buy? 10. Okay. So it's really that easy. Yeah, I love it. You just prompted me to ask you a bunch of questions. So one of the questions that I want, that is a very common question, is what if I have a buyer that has less than perfect credit?

What kind of program do you have for them? And can you even work with that? Yes. We actually go down to 620 on credit. A lot of lender. will stop at 680, even 700, but we'll go down to 620. We are a Fannie Mae and Freddie Mac delivery of loans, okay? We use their guidelines only.

We do not have any overlays. A lot of the larger banks, some other type mortgage banking facilities during these difficult times, they have their own flavor for risks. So they may have a thing called an overlay. Well, you know, we kind of do want you to have a landlord experience. Well, that knocks them right out. because we don't require that. All kinds of little quirky things that these lending institutions come up with for their flavor

risk. All we care about is selling the loans. If you talk to our president, which is sales oriented, we're a sales company. You talk to the head of our operations company, the guy that delivers these loans to Fannie Mae. We're in the business to deliver loans, and that is correct. We're not an out-of-the-box thinker. We're a make-sense thinker. If it makes sense, we do the loan, we deliver it, we stand behind our decision.

I love it. Okay, so part of my listeners, most of my listeners, are business owners of some sort. What, you know, most business owners, they do the right thing and they write off a lot of their expenses, and then they report not as much. So what kind of programs do you promote for business owners? Do you have anything like that for them? We do. What we do is we try to approach it on a Fannie Mae basis, you know, the credit earnings and assets. And in fact, if they write their income down to a certain level that they don't qualify,

then we immediately convert them over to a thing called a debt service coverage ratio program, which instead of underwriting the individual, we're underwriting the property. Okay, we do pull the credit. We do take a look at their assets, but we don't take a look at anything as far as their income. We focus on the rental income on the property. And if the rental only income on the property suffices, it's basically between 75 and 125, or higher, that's the DSCR number, very similar to the debt to income ratio number. But if they're at least at 75 or higher, we can get them alone.

I love it. All right. So we are a turnkey provider, cash flow savvy sales properties that generally the cash flow. But I am really focused on the other benefits that these cash flowing properties provide for you. So I often talk about depreciation, the appreciation. And then the amortization, the fact that a renter is paying your mortgage. So what type of loans and financing products are ideal for these turnkey investment properties? Well, that's interesting.

You should say that because Wall Street right now, they're just a hair bit conservative. And here's why. We briefly spoke about the pandemic earlier. Back in 17, 18, and 19, we were originating loans at a much higher rate than they were during the pandemic. but the guys on Wall Street, when they buy these mortgage-backed securities from Fannie and Freddie, they'd like to keep them all their books for, say, three to five years so they could make some money. That's why it's a 30-year fixed-rate loan. So consequently, what happened during the pandemic period, all those investors that bought those loans,

they had a thing called early payoff because everybody came back and refinanced those loans during the pandemic. Wall Street didn't make any money. It is what it is. So they recognize some of the things that are in place now during the inflationary period, knowing that we're going to hit that recession wall. And when that recession wall comes, fourth quarter, first quarter, the rates are going to come back down. So what's going to happen, the Wall Street buying these products now, mortgage back securities from Fannie and Freddie, knowing they're going to experience an early payoff, they're not juicing the rates as much as they normally would or giving as much margin.

You talk to any lender out there. As soon as we get our margins back, we're going to be able to play a lot better. sometimes that will affect the pricing in regards to, you know, what kind of margins they actually give. Wall Street doesn't like short-term products these days. I mean, there's a couple of people out there like credit unions and maybe some others that are kind of a flash in the pen that will offer a like a five-year arm. But they may only have it so many, they have so many on the shelf, and then they'll pull it out. Fannie Mae has never actually offered really good art products for investors. On owner-occupied, yes, on jumbos, yes.

But for investors, because of the adjustments that the investor rates have to experience, it just wipes out all the product. Yeah, we can get you the five-year arm. It may be a little bit less than the 30-year, but you end up having to pay like three and four points to get there. So the highest margin product out there still is the manila-flavored 30-year fixed rate. You know, I love the 30-year fixed rate because there's no guessing in it. It's 30 years. It's fixed. It ain't going nowhere. And for the next 30 years, you can bank on if you locked at a rate of six and a half, that rate is not going to change. But what changes is your cash flow because what happens every year, your rent increases. And then there's appreciation that I'm super conservative on. But to know that that rate is going to be at that same exact place for the next 30 years because I like to hold my properties forever.

I mean, that's like, it's not rocket science. You want to keep it that way because you want to always be able to predict what your rental is going to do for you. You talked a little bit about hedging just inflation itself, Aaron, and you mentioned that, you know, inflation was at a 9.1, we're now down to a 4.9. How do you feel, my opinion, is that buying and holding real estate is the best hedge against inflation? I mean, hands down. I can write a book about it. I've shared my opinion about that on this podcast, so I'm not going to go into my tangent again. But I'd love your take on what you feel holding real estate does in direct correlation with inflation. Sure, sure. Yeah. So, you know, again, these mortgage rates are closely going to follow that inflation with a big lagging effect. But even as this inflation cools down, it's still growing.

We're not going into a negative inflation rate by any stretch of the imagination. So when you see some maybe deceptive, you know, advertising in the media just on kind of mainstream news about trying to kind of maybe spark some fear about appreciation, inflation, all these markets are still growing. It's just the levels that they've grown is slowing down substantially. And appreciation has gone down, but it's still growing. Inflation will go down and will continue to go down. They're kind of targeting a 2 to 3% is the Fed's goal for the inflation. So 4.9, we've made substantial progress from that 9.1. And it's nothing to overthink, in my opinion, as far as, well, maybe I should wait.

maybe I, you know, maybe I don't feel as good about, you know, holding this property for forever. I'd be curious to hear your take as well, Graham. Well, one of the things I do know, and history even tells you that during a recession, which is where we're headed, real estate always performs well. It's crazy. Regardless of where the race go, real estate always performs well. And, you know, I mentioned a question earlier, how the appreciations and all the markets that you're doing in, I haven't heard anybody going down.

I mean, they were going up, up up, have they flattened out? In some markets, yes, but they are not going down. And even some markets are still going up. It's crazy. So I think the market itself, throughout the whole United States, it's going to be extremely healthy. Yeah, some markets a little bit higher than others. I mean, you can't really judge California because their dips and valleys are crazy. But in those markets that you're in, as you call middle America, very stable.

That's the best place to go with your money. Yeah. And to kind of piggyback on that, you know, one more time. time, you know, as, you know, when we do enter quarter four and quarter one, when we do start to see a significant, you know, change in rates, that's only going to push these home prices all that up further because sellers are going to, that whole shift, we're in, you know, more of a buyer's market, so to speak right now. When these rates start to drop again, sellers are going to have more power, home prices are going to continue to push up. And, you know, on and on we go. Yeah. Graham, what do you say about those people? that are waiting for rates to drop the beginning of first quarter? What do you say to that individual that's waiting for that on the sidelines? Well, you know, basically what we just said earlier is that, you know, you're in a buyer's market.

You have some seller incentives out there that you didn't have a year ago. The appreciation is always going to be that way. Are the cash flows a little bit more narrow than they were back during the pandemic rates? Yeah. But as Aaron mentioned, you know, we're going to hit that. recession wall, the rates are going to come back down and we're going to offer that, you know, that free refinance, so to speak, with no closing costs. That's only going to improve their rates. If you sit on the sidelines today on your hands, you're making the wrong decision. This is probably

one of the best times to buy. It's not slowing me down. I've got 10 right now in process that I'm not slowing down. I mean, yeah, would I love to have a little bit better rate? And I'm not worried about it because I can always refinance. Yeah, for sure, for sure. You know, I just recently had a conversation with one of my potential buyers. And she has $30,000 in the bank and she didn't quite grasp that, okay, she has $30,000 in the bank and she could buy an investment property with that. But she was so worried about, okay, well, it's only going to give me about $200 in cash flow. And I started to explain to her, that's only one of the four other things that are happening

with that buying and holding of property. Like, you know, then I broke down what happens with appreciation. I broke down what happens with depreciation, the tax benefits. And then I broke down where, oh, my goodness, your tenant is paying the mortgage that Graham just got you. Like, don't just focus on parking the $30,000 and making $200 a month. But if that's what you're going to focus on, if it's parked in a bank account, at Bank of America or Chase Bank.

Is Chase Bank giving you $200 a month for that $30,000 sitting in the bank? And the answer is no. So who cares if the rates are 6.5% percent? If Chase is not going to give you $200 a month for parking that $30,000, why not get it from a cash flowing property that, by the way, you own, and is paying you in these four other ways? So I go off on my tangents. I just can't, like when I talk about it, I'm so passionate about getting people to realize that there's more than just the $200 a month and a higher interest rate.

But, Graham, I went into that tangent because you shared a story with me recently about when you did your tax returns just a little bit ago, and your tax preparer was pointing you through or helping you navigate your tax returns and you kept on saying, where's my refund? What's my return? Will you share that story with our listeners? Yeah, I mean, how I got, and me personally involved in buying real estate is that I was looking at these tax returns coming across my desk and they were making all this money. I said, all right, so I'm going to jump in. So I jumped in. This was 16, 17 years ago. So I built my inventory up and then my tax repair.

He says, your tax attorney is a monster return because of all the inventory. That's his way of saying, I'm going to charge you more to do in your taxes. But here or there, he's a very savvy. investor himself. So I know I trust him and he takes care of me. And so all I care about at tax time, because I zero my W zoos out or W9 or whatever it's called. So I know that I can get that little nest egg at the, you know, tax time. So what's my refund? What's my refund? He goes, well, take a look at how much you made on real estate last year. And I went, okay, then I shut up. You know, because that's what it's all about. That's what it's all about.

I mean, what it boils down to Graham is we're so used to condition to look out for certain things. In your case, you were looking for the refund. But you didn't bother to look to see what real estate made you. And that's what people worry about when investing into a cash flow. Yeah, they're looking at the cash flow, but they want that cash flow to be $500 a month. What the reality is we're not in that world anymore. And there's a good chance that we're probably not going to be there in our lifetime. So thank you for sharing.

So gentlemen, what advice do you have for busy professionals who want to start investing in turnkey real estate, but they aren't sure if they're a ready or B, if they could afford it? What would you say to them? Yeah, my take would be, you know, you can have that answer in a day from us and our team. And yes, a little bit of help will be needed from your side, some documentation, you know, just tax returns, bank statements, things like that. But if you've got that information handy, you know, put us in connection with your CPA, whoever. And we can get you that information. It is don't let the unknown of not knowing or maybe, you know, you might be thinking of,

maybe you had a bad experience when you bought your primary residence 10 years ago and or, you know, whenever you bought it. I would just say, don't let the unknown hold you back. We ask for an online application takes like five minutes to complete. It's literally who you are, where do you live, where do you work, what properties do you own? Give us that, give us some documents. That same day we're going to have back to you, hey, you can qualify for this, that, or the other. It's extremely easy. We don't stop there once we have you pre-approved as deals pop up here, there, nights, weekends, wherever you want, you know, an updated kind of rate scenario from us, or an updated estimate.

That's what we're here for. You know, communication is everything in this business. We have great communication behind the scenes with, you know, Mercedes and title companies and boots on the ground. But you as the borrower, don't be afraid to communicate with us and well and find out what you might be capable of. One of the things that I try to convince the borrower, because like you say, it's kind of an unknown for them. So they just kind of go, well, the reason why I never invested, I just don't think I can afford. I said, well, you won't know until you try it. And so I kind of give them a high level.

I said, okay, what do you do for employment? How much money you make? How much debt do you have from a high level? I'm going, I don't see any problem. Go for it. And on a high level, sometimes they say, well, I made $10,000 a year, but I got a huge mortgage or this, that, and the other. I said, well, that could be a bit of a struggle.

We may have to go a different direction, as we discussed earlier, the DSCR, but we won't know until we actually have the application in your documents. It's free. It doesn't cost you a thing to say yes or no. Yeah, that's so well said, well said. So I'm going to wrap up with this, Graham, just because I know you are a wealth of knowledge and have a lot of experience. But what is the one advice that you would give to that individual that is considering jumping in to turnkey rentals but are just scared? What would you say to them? Ask. Ask the questions. Okay. We have the answers. Mercedes has the answers. We have the answers. We have the answers. Don't sit back and think you can't do this. All you got to do is ask, give it a try. Most of the time, we're going to probably get you alone. Yeah, I love it. Love it. All right. So how does my

listener reach out to you and get a hold of Graham and the Highlands Residential Mortgage and the Parham team? How do they do that? Call my toll free number directed. 855-326-602 or hit us with an email at the Parhan team at Highlands Mortgage.com. Repeat that email one more time. It's the Parham team, T-H-A-R-H-A-M-T-A-M-T-A-M-D-S-Morghum. I love that. Anybody on-T-M-A-M-R-E-R-E-M-R-E-M-E-R-E-M-E-R-E-R-E-E-R-E-E-R-E-E-E-R-E-E-E-R-E-E-E-R-E-E. Very good, and they do respond relatively quickly.

I will put that in the show notes, my dear listener, but both of you, Graham and Aaron, Thank you so much for educating our listener and really showing them that creating financial freedom and their future is very, very possible. Thank you for joining us. And to our listener, thank you for being a part of our epic real estate investing show where cash flow is queen. Thanks for sitting tight while we pay our light bill. We'll be back right after this. Canada can be a global leader in reducing the harm caused by smoking. But it requires actionable steps.

Now is the time to modernize Canadian laws so that adult smokers have information and access to better alternatives. By doing so, we can create lasting change. If you don't smoke, don't start. If you smoke, quit. If you don't quit, change. Visit unsmoke.ca. Ever hear someone say, I have too much money? Me neither.

Let's get you some more. Back to the show. Hey, that Rockstar. Do you see videos like these in your feed? How to Make Money Fast? I built three $100 million businesses in nine minutes. Seven passive income ideas. How I make $67,000 per week.

How to buy a business with no money. When you buy a house for $0. Oh, that one was mine. Good video. True story. True story. I love money. You love money.

We want more, right? Well, this just popped up in my feed the other day. Stop working. The money will come by itself. The secret that allows you not to work. The proven way to wealth. This video is about John D. Rockefeller. You heard him?

Yeah, super rich guy. This video took me down a deep rabbit hole where I discovered the ancient money rules the rich don't want you to know. I need to know. And there were a couple of really good lessons in this one specifically. Don't be afraid to borrow, he said.

Even when you have money. Sounds familiar, doesn't it? You see, just because you have money, doesn't mean you have to use it to acquire property. He said, only the financially illiterate are afraid of debt. Richest guy in the world said that. More on what else he said in a minute. But that video, it led me to the Vanderbiltz, the Carnegie's,

and then to the richest family ever, the Rothschilds. How'd they get so rich? They didn't have the internet. They didn't have chat GPT or they didn't have deal engineer. How'd they do it? Well, as the good book says, ask and ye shall receive. Actually, Matthew 7.7 says, ask, and it shall be given you. And Abidam, the old YouTube algorithm placed this in front of me,

The Secret to Becoming Truly Rich with Rabbi Manus Friedman on The Kosher Money Show. Really good channel. Go check those guys out. They're cool. In this interview with Rabbi Friedman, it stopped me in my tracks and opened up a new reality for me about becoming truly rich, with ancient money rules that most have forgotten, or maybe they're just choosing to ignore them, or perhaps they're being protected. So whether you're flipping burgers, flipping sneakers, or flipping houses, these ancient rules of money, are something to consider. And we'll probably have you think at least at some point,

damn, I've been doing this wrong. I watched probably seven hours of video from a dozen or so different channels on the history of money. I mean, back to Adam and Eve. Adam. Yes, Eve. Through the rise and fall of empires,

massive economic shifts, and learned the strategies that the richest people use to pull through and make themselves even richer. I mean, what they did to make it, what they did to grow it, and what they do to keep it growing. Money, money, money. And I've got, I don't know, several pages of notes here.

It'd take me probably at least an hour to get through them all. So what I did is I put together a short list of these ancient money rules that the rich are still using today to make themselves richer, a list that you can steal and apply to your own legacy. Ready? All right. So these first two rules have everything to do with just how you look at money. For example, God made money to get us to interact with each other, to meet people we otherwise would not meet, to get us to come out of our caves.

I mean, if you go back far enough, and if you're paying attention today, money's immutable rules are really very spiritual. God's plan wasn't for us to follow the money, but rather follow where the money takes us. Because the only significant consequence of being rich or poor is that you'll meet different people along the way. Your wealth or poverty will take you to where you can do the most good in the world. And we will never be rich if we function as needy creatures. I mean, the only way to become rich is to function as if you're,

needed and then do noble deeds for those that need you and riches will follow. And that's a good question to ask yourself. Do you walk around leaning more towards the needy side or the needed side? I mean, there's some really good clues about your finances in that answer. Second money rule says money is not the goal. It's a tool to accomplish other goals. It's not even something to accumulate, but rather to create businesses and invest to produce a better quality of life. Even retirement isn't something to look forward to, but rather being active and productive is what you're to look forward to. Third money rule, start a business. Owning your own business, that's a money rule of the rich, and it always has been, because owning a business gives you control over the hours you work,

the income you produce, and your own self-fulfillment, and it allows you to help others and to serve God. In the Jewish faith, someone who works for someone else, their entire life, is considered to have been burdened with an unlucky destiny. Elon Musk once publicly proposed that instead of baby showers, we should host business showers. When a friend starts a business, we all come together, celebrate them, and bring resources for their business beginnings. Ancient rule number four, work hard. But not how you might think.

Being resilient and persevering through the challenges of running and building a business can present and recognizing that success is the only option, that's how most look at hard work today. But intertwined in the hard work concept has always been the smart work concept. And there are many layers to it, meaning each business or vessel that it was commonly referred to has its limits. By putting more time and energy into a business doesn't mean more riches will come out. Instead of stretching oneself to maximum capacity, stretch the vessel. Open a second store was an example. Spending more time and working harder in the one store when it takes you away from your family and life is not working smart. The bigger blessing doesn't happen with more of your time, but rather with more space that it's given to grow.

And if we go down another layer to working smart, and this showed up as having the most to do with whether or not you become rich. Ancient money rule number five, network. Make connections and increase the size of your community. Network. I tap that network. This money rule is as old as business itself, forming relationships and bonds within your community to where there's a strong sense to support and care for one another. Look after each other in the interest that each member of your community succeeds. An ancient money rule is to build up the people in your community.

And it was referenced more than once. It was here in Mark 1231, you shall love your neighbor as yourself. And as you're taking care of your neighbor, as you're taking care of your community, it is imperative that you take care of your reputation. That's ancient money rule number six. And this was in the Rockefeller story that I mentioned earlier. John D. was adamant about fulfilling his obligations, even if it hurt him to do so.

And because he did, banks stood in line to give him money. A good reputation, it opens opportunity. The Torah gives good guidelines about this, written 400 years before Christ, to be honest and treat employees fairly. That's in Leviticus, 1936. And to avoid dishonest gain, that's stressed in the Torah, which addresses exploitation, deceit, and avoiding undue greed or envy in business matters.

Maintaining justice in all dealings, including business, is a central tenet of the Torah. Ancient money rule number seven, be charitable. Charity and compassion, giving to the poor, that's a fundamental principle in Jewish law. And this was everywhere, in every period, in every region, in every fate. 10 to 20% goes to charity, depending on where you look, but the practice was universal and non-negotiable. It was a recurring rule over and over to give charitably in your community, to be happy for the successes within your community, to support businesses within your community, to encourage others in your community to do the same, because by doing so, it creates an environment

that breeds reciprocation, and with that, the community grows bigger and stronger, thereby empowering the community to break into markets much faster because it's working together. Collaboration over competition. And of course, there are the ancient money rules of frugality, saving, and being a skilled manager of your riches, take an advantage of low-interest loans to invest in what one knows, putting money to work by investing in real estate and business. These are all historically honored rules of money. But a prevailing pattern revolved around the importance of education and family. and passing down life's financial experience and wisdom to future generations, to keep the wealth growing.

And that's ancient money rule number eight. Teach your kids. Money holds a prominent space in the lives of the richest people's families, and their overall lives. And so it's discussed regularly, and the discussions they start early in life. For example, the five-char system, this is a modern practical method used to teach children

the historical rules of money about saving, spending, investing, and charity. Now, I'm starting this with my son, and it works like this. Each of the jars represents a different aspect of money management. First, there's the giving jar, where my son will put money to give away to help others, whether that be a charity, a religious organization, or a cause that he cares about. Second, the saving jar for the future, whether it be a big purchase that he's saving for or just general savings. Third, the investing jar. He'll use this money to make more money, stocks, a small business venture, or an income property.

fourth jar, education, money used for learning purposes like books, courses, school supplies. And the fifth jar, the spending jar, money for his wants, the toys, the games, the Roblox, the Candy, the golf clubs. So of all the ancient money rules that you just learned or were just reminded of, which one will you embrace first? And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. and when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them.

God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C-suite Radio Network.

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