Epic Real Estate Investing - Safe is the NEW Risky - Epic Wealth Wednesday | 278

Episode Date: June 28, 2017

Epic Wealth Wednesday spills the beans on what actually makes a “safe” investment. Get the plan to escape the race with new strategies for leveraging your resources, limiting your liabilities and building money-making assets. Put this plan to work to beat inflation, manage your purchasing power and build your investment portfolio for long-term growth. It’s a clear path that anyone can follow. Don’t wait. Seize this opportunity to achieve Epic Wealth today! ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

Today's episode is sponsored by Credit Bump, a new fast and simple way to get up to $150,000 of revolving lines of credit. Use the funds for anything you need. Startup costs for your business, capital expenses, product development, inventory, marketing, promotion, creative real estate acquisitions and strategies, anything your business needs. They have a 60-second online application. It's a soft inquiry, meaning the application process will not impact your credit score in any way. There are no upfront fees. Interest rates are as low as 0% for the first 12 to 18 months. If you opt in for their credit consulting, you'll learn how to extend your 0% interest rates, far and beyond that, build corporate credit and so much more. The approval is based on your credit score and your stated income.

And if you're pre-approved and you don't receive at least $50,000 in funding, you don't pay a cent in fees. Through their service, I've helped members of my Epic community receive more than $13 million of funding in the last six months. They've got top-notch customer service. Credit bump has an A-plus rating with the Better Business Bureau. In short, you're in great hands and you've got nothing to lose. Go to creditbump.com.

Creditbump.com. That's creditbump.com. And now, back to creating your epic wealth. Money. Wealth. Those are both very personal issues. And the perceived risks associating with increasing wealth with making money often become a hindrance for many people.

The risks are the scary part, and it stops people from ever taking that first step. So I just want you know, for the most part, though, without risk, there is no reward for the most part. So if you want the reward, you'll have to take some risks. There's no such thing as a guarantee in life. Nothing is guaranteed. However, risk can be virtually eliminated with education and planning.

and with that education and planning, you can develop a rather safe and comprehensive investment plan of which once in place will establish a clear, direct path to your desired result, alleviating all fears. So you can keep your actions focused on the end result and keep progressing forward. You know, in today's fast-changing world, I mean, things change so fast.

Jobs that are, that people are applying for today didn't even exist five years ago. Stuff changes so fast. And just, I'm saying that because plan it's safe. safe is probably the riskiest thing you can do. Risk is the new safe. Now, with the shift into a new mindset, that mindset from making piles of money to creating streams of money and a whole lot of focused effort, I was able to exit the rat race in less than four years. I was able to create a monthly residual income that exceeded my monthly expenses. Thus, I didn't have to work. I still work,

but I didn't have to work. I was out of the rat race. Now, although I believe anyone can do this, it's become pretty obvious to me that just most people won't. I mean, my results, they are not the norm, but they are not extraordinary either. They're just not the norm. Anyone can do this. And as you take on real estate as your financial freedom vehicle,

I recommend creating a conservative, create a 10-year portfolio cash flow building plan. Go for a 10-year plan. Hey, if you knock it out in four years, which is very possible, great. fantastic, but create a conservative 10-year plan, and your plan should begin with the end in mind, as all plans I think should begin with the end in mind. So cast out a vision where you want to end up, picture it, and then just kind of work your

way back to where you currently stand. And then once that's established, all you've got to do is just take the first step and just don't stop until you get there. That's how simple this can be. So for example, envision 10 years from now, where do you want to be living? What do you want to be doing? and who do you want to be doing it with? Envision that.

Get a real clear mental picture of what that looks like 10 years from now. And then just put a monthly price tag on it. What's going to run you a month to live that life with that person in that location? So let's say your vision is going to run you $10,000 per month. That's your end goal in real estate terms, $10,000 per month in cash flow so that you can live your vision, whether you get up and go to work each day or not. You can still work if you want to. You just have the option not to. So just before you reach your $10,000 monthly cash flow goal,

what milestone will you have had to have hit? Just before you hit $10,000 a monthly cash flow, what milestone would you have to have hit? Let's say $9,000 a month of cash flow. It's really simple. And just before that, what you have to hit? What milestone was there? $8,000 a month and so on.

And just kind of follow that all the way back to where you currently stand, where you are right now. Let's say you have $0.0 in monthly cash flow right now. now. So then your goal is to reach $500 a month of cash flow. That's it. Forget the rest and focus on just that $500. Then once you get there, you can then set your eyes on the next milestone. But for now, focus on the first milestone. In this example, that being $500 a month of cash flow. All right. So now that your plan and milestones are in place, what should be the first step? Well, the first step that just about anyone can take, regardless of where you want to end up, is to first look at yourself

and look at your current situation. Take an analysis of where you are right now. Take stock and what you're working with. You know, how are you doing on time? How much of it do you have available? How are you doing on knowledge? How much do you know? Or how much do you need to learn? And how are you doing on your finances? What are you working with there? Specifically, look at your finances in this manner. Identify all of your low yield assets or take into account all of your assets take into account all of them just kind of sort them in order on a piece of paper put the lowest yielding asset at the bottom and your best performing asset at the top so your best performing assets at the top and just kind of work your way all the way

down till you have your lowest yielding asset at the bottom and then your intent here is to move your low yielding asset to the top take it from the bottom and put it in the top and keep doing this until that that one that's at the top right now is actually at the bottom and then you keep on doing it. That's the essence of where you want to start. You want all high yielding assets on your piece of paper. And to get there, you'll start using, working, trading, and leveraging your low yielding assets. Use your low yielding ones first. Use those first.

Assets such as, you know, home equity. It's a very low yielding asset. 401k or other retirement accounts that you may have. your income, your relationships, they should all be leveraged for optimum return. Now, the majority of financial planners, they rail against cashing out retirement accounts. But I'll gladly and confidently argue that these types of funds can be utilized to successfully collect far greater returns and more quickly than they're getting right now, while also quickly recouping anything lost due to early withdrawal fees or tax penalties.

I'll gladly have that argument with any financial planner. So the first step of the process, preparing to invest. It typically takes some personal soul searching. And I understand, you're human. And it almost always requires a change in mindset, a shift in mindset, specifically from that of a saver to that of an investor. You know, stop collecting the piles of money and start creating streams of money. But once you've searched your soul and shifted your mindset and once your funds are available,

whether they're your funds or partner's funds and investors, funds, a lender's funds, or maybe just your own intellectual currency, the 10-year cash flow project can now be set in motion. So now that that second step, the first step is done, the second step is to buy that first property. You know, depending on the resources you do have available, just get your first property. Get that one under your belt. Perhaps two, but at least one.

And once that one or those two begin to bring in cash flow, This money should be reinvested to further the 10-year plan. Each time an investment property yields a return, whether it's all of the cash flow collected or the appreciation experienced on the property or maybe a combination of both, the process can then be replicated, and momentum can be built and increased

to achieve the financial goals that your vision is made of. So having a clear 10-year cash flow plan requires you to stay the course, but most importantly, it's getting that first and or second property into your portfolio. Once you get over that, that hurdle, momentum begins to build.

The track begins to level out, so to speak. And soon enough, you'll feel the wind at your back. You'll feel that and you'll be moving forward. Just get that first one out of the way and the momentum will happen. Now, what I'm suggesting here is not a get rich quick plan. No, that's not what's happening here. But rather, it's a get rich permanently plan. You know, 10 years may sound like a ways down the road.

but it's going to be here before you know it. I mean, think about it. Where would you be today if you got started 10 years ago? Think about what you were doing 10 years ago. Where were you? What were you doing? Who were you with? I mean, a decade can fly by, can it?

Would you get started today or not? The next decade is going to happen. It's going to pass. It's happening with or without you. The question is, where do you want to be financially once it does pass? or an even more powerful question may be, where will you be in 10 years if you do nothing, if you stay the course you're currently on?

If your next 10 years looks the same as your last 10 years, where will you be? Listen, whether you decide to leverage my team at cash flow savvy to do all of the heavy lifting for you, or you decide to leverage someone else's team, or you decide to build your own, whatever you choose, just get started with what and who you already know. Don't dismiss this message as one of those, you know, those feel-good moments.

Or one of those, that makes a lot of sense type moments. Or I'm going to get around to that pretty soon moment. Don't let it pass as one of those moments and then fail to take action on it. Don't let that happen. Regardless of how you get started, just, get started. And to get started, a good first step would be to go to cashflow savvy.com to download our investor package.

And the reason being is it contains a very simple tenure plan laid out in easy-to-read graphics that anyone can follow. So for anything else, just go get the plan. So you've got a starting point. But don't stop there. I mean, don't stop there. just looking at the plan. Note the first step in that plan and take it. You know, at the end of the day, we only have a dozen or so decades each to play with. It's all we got. And likely a few of those

have passed already. So which of those six that you've got to play with are you actually going to choose to create your financial freedom? Which decade are you going to do that within? Now, if you really don't want to wait a decade to reach your monthly cash flow goal, I get that. You know, meaning you're determined, how do I get there much faster? I don't want to take 10 years to do this if I can do it faster. How do I do that? Well, I'm going to share with you how to significantly accelerate your journey. How you can accelerate your journey significantly, and we're going to do that right after this.

If opening up your financial statement each month is about as exciting as watching paint dry, The Epic Wealth Fund may be the next investment opportunity for you. The Epic Wealth Fund invests in distressed real estate and shares the profits with its shareholders. If you're an accredited investor who has already enjoyed success elsewhere in their business or investing life, and you're seeking a broader exposure to real estate in your portfolio on a passive basis, the Epic Wealth Fund's executive summary is available for your review. Go to EpicWealthfund.com to review the fund's executive summary. Epicwealthfund.com.

Real estate investments involve a high degree of risk. Residential income and returns may vary and are not guaranteed. Past performance has no indication of future performance. Nothing herein shall be construed as investment, tax, legal, or accounting advice. And now, back to creating your Epic Wealth. When President Nixon took the United States off the gold standard in 1971, debt became the economic lynchpin. You know, today, the world economy can only function and it can only grow if people borrow money.

And what this did, in 1971, this completely transformed the strategy of how to create wealth. Everything changed. You see, your savings account at the bank, that's an asset to you. A very low yielding one, but it is an asset nonetheless. But it's a liability to the bank. because they have to pay you interest on that account. It costs them. They have to pay you.

So the only way for the bank to offset that liability and make money is to lend your money out at a higher interest rate than they are paying you to a borrower. Got it? So the world banking system operates on the fractional reserve system, which simply put means for every $1 you save in that account, the bank can lend. out $10, or $40 as they could in 2004, but they can lend out $10. And it's for this reason the banks love borrowers. They love borrowers.

They love when you park your money in their bank because it's how they make their money. See, an increase in the fractional reserve that increases money supply. In other words, they can print more money to lend. Conversely, if the fractional reserve is lowered, less money is available to borrow. The economy slows and interest rates go up. Got it? Okay. Yeah, we got it, man.

We got it. Thanks for the banking lesson. But how does that affect me? Good question. I'm getting to it. So with the government's ability to dictate the amount of money that can be printed, every dollar you save becomes subject to their mandates. You know, with more money being printed and debts unable to be repaid, the dollar becomes

inflated and the purchasing power of your savings is destroyed. The more your purchasing power is destroyed in this fashion, the less of an asset your savings account becomes. And when the rate of inflation exceeds the interest rate that you're receiving in that savings account, your savings account is no longer an asset. It's now a liability. You know, the last I checked, this is what I mean, the last I checked, the rate of inflation is right at 2.9%. The rate of inflation right now is at 2.9%. Now, when was the last time you saw a savings account pay 2.9%? It's been a very long time since I've seen that. Or even a money market account.

And so knowing what you know now, what I just shared with you, any cash that you have in a savings account right now, or really an account of any type, any cash you have in any account, or any investment for that matter that's producing less than a 2.9% return, not an asset. It's a liability by being there. The inflation rate is gobbling up your money's. purchasing power. It's gobbling it up daily. All right. So that's what's going on. So what can you do about it? All right. So there's two things. One, either invest in commodities such as gold or silver, which really just hedges against inflation, meaning it preserves your savings, your cash is buying power.

It doesn't do too much for any, it doesn't do too much for growth of your buying power. No. Gold and silver, historically, they're defense strategies. It's playing not to. to lose. Not a whole lot of growth there. Number two, the second thing you could do, because you're becoming financially educated, use debt, other people's money to acquire assets. That's something that you can do. Specifically, you want assets that pay you more than what you have to pay on the debt.

Sound familiar? Yes. Now you're playing by the same rules as the bank. You've heard the expression. Success leaves clues. You've heard that right. Well, the bank is giving you a clue. If you want what someone else has,

then just do what they do in the manner that they do it. And there's a high likelihood you're going to get a similar, if not the same result. So if you want to get richer and wealthier like the banks consistently do, do what they do. Borrow money at one rate and invest in something that pays you back at a higher rate. Now you're playing the same game as the banks.

Well, you've heard the expression, the rich get richer. You've heard that one as well, yeah? Well, that's how it happens. That's how it happens in today's economy. That's what our financial world looks like today. All right, so pop quiz here. What is the difference between a liability and an asset?

Well, liabilities take money from you, and assets send money to you. See, most people confuse liabilities with assets, and instead of using debt to acquire assets, they use it to purchase liabilities and they just kind of throw themselves right into the fire without a lot of times not even knowing it. So if you're unsure whether something is a liability or an asset,

just ask yourself these questions. Does it make me money or increase in value? Does it make me money or increase in value? If the answer is yes, then it's an asset. Does it cost me money or decrease in value? The answer is yes, it's a liability. If you want to get rich, if you really want to get rich

and you want to get rich permanently, you must know the difference between an asset and a liability and how to use debt to your advantage. For example, did you know that the government rewards you for good debt? I mean, investors who buy, improve, and hold real estate

get two essential tax benefits. The first one being depreciation. It's a deduction for the wear and tear on the building. What's more is if the annual cash flow from your building is less than the depreciation, you can show a loss on your tax return and you can apply it to other income. You can actually show a loss on paper but a profit at the bank by using debt and the depreciation tax benefit in this fashion.

So that's one, depreciation. Second, amortization. It's the cost of borrowing money, such as loan origination fees, the points, and the interest. You're allowed to take this deduction even if the bank loaned you the money to cover the fees. Be aware, however, and this is really important, that while debt can make you very rich and make you very rich fast, it can also make you very poor. So how do you avoid hurting yourself? This is how you do it.

Start small. Learn how to manage real estate, learn how to manage tenants, and learn how to structure deals. Invest in a little bit of education and then just go deep with each asset before going wide. So start small and go deep. You see, it's the management of debt that gets people into trouble, not the use of it. You know, debt makes the world go round. And the government is here to reward you for using it as long as you use it in the way that they want you to. Using debt in the manner, the government wants you to use it is the first way that debt can significantly accelerate your road to creating epic wealth. Next week, we're going to go.

over the second reason as to why using debt can collapse the time frame on your epic wealth journey like no other. It's been a pleasure. I'll see you next week as we continue to create your epic wealth. If waiting for your investments to grow feels like waiting for pink to drive, there's a powerful secret your financial planner doesn't want you to know. You can accelerate your investments growth by two, three or even four times. That's bad news for Wall Street, but great news for you. We're cash flow savvy and we'd like to offer you free information that will show you how to take control of your investments and double, triple, or even quadruple their returns, and it's yours for free.

For the secret your financial planner doesn't want you to know, go to cashflow savvy.com. That's cashflow savvy.com. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.