Epic Real Estate Investing - The Cashflow Ninja M.C. Laubscher | 256

Episode Date: April 17, 2017

Epic Real Estate Investing shares the mic with The Cashflow Ninja M.C. Laubscher. Get a glimpse into the world of Valhalla Wealth Financial and learn how you can reclaim the banking function in your life. Develop a plan for building your financial freedom, then begin to grow and manage your wealth across generations. It’s time for some new investment strategies for generating cash flow on top of savings! ______   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

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Hello and welcome. Welcome to Epic Real Estate Investing. This is the place where I show people how to escape the rat race using real estate. And if you're just getting started and or you're looking for new and creative ways of making money in real estate, I've put together a free course just for you, including a checklist on how to find motivated sellers, property owners that are willing and able to sell you their property at a discount. So to access that free course, you can go to free real estate investing course.com. Just exactly what it says, exactly how it sounds, no funny spellings, no hyphens, no weird forward slashes, nothing like that. Just go to free real estate investing course.com.

All righty, so I got a fantastic show for you today. I'm broadcasting live from Las Vegas. And if you happen to be in town this week, let's hook up. I'll be at the Sin City Ria this Thursday, April 20th, with my good friend, Omar Merced. And this will be a meeting like no other. There's no sales pitch. They're not trying to get business from you there. We're just going to be talking about the good, the bad, and the ugly of real estate investing. And I like to steer you toward the good.

I don't, I don't, you know, I want to steer you towards what works. I don't know why people are so in love with the horror stories. I mean, I've collected several over the years. I mean, it happens. And I'm sure I've got some more in my future. It's just the nature of the beast. But what a powerful beast it is when it goes right. And if you get educated enough to make your own decisions

and not rely on other people's decisions, then it's pretty tough to lose in this business. Okay? So anyway, I'm just got a little sidetrack there. There might be some conversation about the bad and the ugly, but I'm going to talk about the good because it's a good business. It's a good investment class. And it's a good life.

So come down this Thursday, to the Sin City Ria. There venue only hold 60 people, and for more information on that, go to meetup.com and then search SinCity Ria, just like it sounds. So that's this Thursday, April 20th. And then April 29th, I'll be the keynote speaker at the third annual RRII Barcamp, hosted by Thrive RIA in San Ramon, California. And for those of you who are unfamiliar with REI Barcamp, but the concept is kind of like

an unconference. There's no formalized presentations. Instead, Barcamp participants decide the topics to be. discussed at the bar camp and then real estate investing pros they lead discussions about those topics. So whether you're a newbie or a season investor, you'll love REI bar camp and you'll walk away feeling more confident and inspired than you did walking in. That's a guarantee. So save the date there for that's April 29th, 2017. And lastly, lastly, I promise, May 24th through the 26th, the Epic Intensive is back. This year's or this quarter's theme, weapons of mass production. The

seats are almost gone, by the way. And for those of you that make it in, I'm going to give you the highly potent tools, methods and resources that every real estate investor can use to find more motivated sellers, buyers and lenders in as little as, get this, 60 seconds. Even if you think you've heard it all before, that's right. I'm going to show you a couple techniques of which will have you leaving the event with real leads. And with these weapons of mass production, now at your disposal, after you leave, you'll find more deals, cash, more checks, and finally start calling the shots in your life. And that sound exciting? May 24th through the 27th. go to epicintensive.com and see if there's anything still available.

It's been a hot ticket this quarter. All right. So had a great question come in. And I have determined it to be a great question because I get it all the time. So it must be a great one. And that question is, how do I pick a good market to invest in? I mean, after all the old real estate saying goes location, location, location, right? Should I work in my own backyard?

Should I work virtually? You know, we are humans. And it just kind of always seems the grass is always green. on the other side, and that just causes a lot of confusion for people when they're trying to pick their market. And, you know, there are countless questions to consider as well. You know, how many people live there? I like cities with at least 500,000 people, but that's me. Some like more. Some are very okay with less. I want to know, is the population growing or is it shrinking? That's a very important consideration when you're looking to buy and hold. You know, what you really want to see

is a net positive migration where the number of people moving into the city is more than the number moving out. It's a pretty good indication that the city has something to offer to attract more potential tenants. And you want to know what's the unemployment rate? I mean, if you have tenants, they got to have a job, right? If people don't have jobs, they can't pay much for rent. So look for diversified industries, look for Fortune 500 companies like anchor companies. The more, the better. You want to know about crime, how much crime is there. I mean, it's a little tough to discern, though, by searching on the internet. I mean, every market is made up of smaller microcosms and has both high and low crime areas. But the internet in all the

all the different resources out there, they kind of push it all together and just make the city look either bad or good. Most of them look really bad. I mean, I live in Los Angeles in a very beautiful part of Los Angeles, but there's a guy that works for us. Miguel, he works for LAPD, and he said, God, if you knew what it was going on, if everyone in your neighborhood knew it was going on just a mile from their house, they would, they probably wouldn't live there anymore. That's how crazy it gets, and that's how the crime can be really disguised in an area. But I've been here and having out a problem, my entire life. So be careful when you're the research and crime rates. In the majority of the country, the crime rates, they vary from neighborhood to neighborhood and even street to street.

And then all these other questions, is it land friendly, landlord friendly, how much are property taxes? Do more people own or rent? What's the price to rent ratio? Are there a lot of vacancies? How do all of these numbers compare to the national average? How many homes are on the market? How many transactions are taking place per month? What else? How long is it taking for houses to sell? Are sellers getting their asking price? Who's buying all these houses? What's going on there, right? And there's nothing wrong with asking these questions and getting answers for them. I mean, there's an endless amount of them. And there's nothing wrong with asking them all. You should. You should. It's very prudent to do so. The problem is, what do you do with the answers

once you actually have them? And how do you know when you have enough answers? And that big potential problem here is you just get stuck via analysis paralysis. And I like to err on the side of imperfect action, imperfect action, as opposed to perfect inaction. In other words, You can't steer a parked car. You've got to get going and then you can correct the course. You know, here's the thing when it comes to deciding which market to work in. The best market to work in is the market you'll actually work. That's the best market.

And the market that you'll actually work, you'll work consistently and work with persistence. And here's why. You know, as real estate investors, we make our money when we buy, right? We make our money when we buy real estate. Old cliche, meaning we have to buy at a discount. And with 95% of all transactions happening in the public forum known as the multiple listing service, the MLS, all of these transactions are happening in the neighborhood of retail value. 95% of the transactions out there are not being sold at a discount. And yes, I know there are exceptions.

Some of you find deals on the MLS. And in addition to this, it depends on your goals. But you know what I'm here. We're looking for the 5% of deals that are sold at extreme discounts. Okay, those are the ones we're looking for. We're not looking for people that want to sell, like in the MLS, but we're looking for people that need to sell. And people that need to sell, or they need to sell due to some sort of distress. Okay, and that's what you're looking for.

You're really looking for distress. You're looking for problems. And there are three types of distress you're looking for financial distress, personal distress, and property distress. And what that basically means, the distress is just life happens to people. And it happens to people in every market, every neighborhood, regardless of their financial or socioeconomic, economic status. And with that being the case, what we teach here on the show and in the Epic Pro Academy will work in any market.

And what we've refined over the year that, over the years, actually, we've dialed it in in such a way. Even I am bringing a good portion of my business back to California, just because that's, we know what it does and it works in any market. And I do a lot of investing virtually. And I walk out of my house every day. I say, wow, there's houses right here. Why am I going three states over to do this?

So anyway, you can go really deep into market analysis and try to zero in on the perfect spot. Or you can start making some money right now and make some adjustments along the way. So here's what I recommend. Make sure there are houses in your market. That's number one. Make sure there's houses in your market. Make sure that there's people that actually live in them. And as a guideline, try to stay within 60 miles of your primary residence, focus on three bed, two bath, single family residences.

I like to look in your blue collar neighborhoods. or neighborhoods just under the median price point, there's typically going to be more turnover there. That's why, of which that translates to more opportunity for you. And identify people in the three areas of distress that I mentioned before. There's financial, personal, and property distress. And create your message that demonstrates that you can cure or improve their distress. And don't forget instructions on how to contact you for that cure.

Then just deliver that message to your distressed audience and automate that delivery as much as possible. And when they contact you, just interview them to see if you actually can alleviate their distress and solve their problem. Pretty darn simple. Very basic. The point being is, when we're talking about markets, is you solve people's problems. That's what you are. You're a problem solver. And people with property experience problems every day in every market. That's the key point. You're looking for people with problems and people with property experience problems every day in every market. There'll never be a shortage of problems for you to solve. Real estate investing works in every market of which there is real estate.

There's real estate there because of a real estate investor. That's how the real estate got there in the first place. So it works in every market. The very best market for you to work is the one you'll actually work, work consistently and work with persistence. So don't overthink it. Great question. I love it. I get it all the time. Just don't overthink it. Get started and make adjustments along the way. Imperfect action beats perfect inaction every time. You can't steer parked car. And the consistent and persistent effort you put into a market is as important. Understand this. The consistent and persistent effort that you put into a market is as important, if not more important, as the market itself. Consistent and persistent hustle in any market

beats the best market without the hustle. Make sense? I mean, every time. So using the daily success report, it's the epic way. It's what epic or what keeps epic investors that people inside the Epic Pro Community, working the right activities, working them consistently, and with persistence. So if you like a copy, you can rip off ours and use it in your market. Go to DailySuccessReport.com and pick up a copy of it there for free. It's the greatest gift you'll receive all day, maybe all year, and you can get a copy of that at Daily SuccessReport.com. I've got another gift for you today.

On the phone, a new friend of mine. A lot of domain names today, by the way. Hopefully you had a pen and paper. Well, it's good. It's on audio. You can always go back and listen. but I got another gift for you today. No domain name here, well maybe later, but no domain to really receive the whole benefit of the gift on the phone today.

A new friend of mine, he's a wealth strategist, educator, and financial freedom fighter. Boy, he already sounds like a guy after my own heart. He is the founder and president of Valhalla Wealth Financial. He'll correct me later if I pronounce that incorrectly. Vahala Wealth Financial and host of the popular business and investing podcast, Cashflow Ninja. and his mission is to help as many people as possible, eliminate the control banks and financial institutions have over their lives by building their wealth in a variety of ways outside of Wall Street.

He just gets better and better, right? He believes the best way to achieve this in the information age is by reclaiming the banking function in your own financial life through structuring an efficient cash flow management system and creating and building assets that provide multiple streams of income. And he continually challenges. I like best about him. He continually challenges existing societal belief systems and misinformation around concepts such as money, saving, investing, and wealth and retirement. So, without further ado,

please help me welcome to Epic Real Estate Investing, Mr. MC Lobster. MC, welcome to the show. Matt, thank you so much for having me on. Honor to be on your show. Yeah, glad to have you here. And, you know, we just met a few days ago and seemed like to be clicked. And I was just like, wow, you think of all the same things that I think of. We've got a mission very much in alignment. So come on the show and see if I can learn something and see if the audience can learn something that we haven't talked about already before.

There's always something to learn. So I'm excited to have this conversation with you. Thanks for being here. Same year. Very, very excited to have it on and it's been a fantastic experience meeting you in our discussions and look forward to talking with you some more today.

For sure, for sure. Help me pronounce your company. Is that Vahala? Did I say that correctly? Yes, Valhalla wealth financial. So the Viking heaven, if you will. Okay, very good. That's what Valhalla means or has a connotation?

Yes, so a little bit. I'm a pretty big fan of Nordic history and folklore. So it was quite a good fit to jump into this industry that I'm in, the financial industry and obviously investing and so forth. So we're going to need some of that Viking courage and spirit. to attack all of these, yeah, all of all of this information that's out there that's misinforming a lot of, a lot of people. Got it.

I, it's a very unique interest and I'm intrigued. And I hear maybe a little bit of an accent. Where are you from, MC? Yeah, so I'm originally from South Africa, born and raised. I grew up in South Africa in a very, very interesting time in the country's history. I was in high school when Nelson Mandela was released from prison. And actually during high school, the country had its first democratically democratic election where Mr. Nelson Mandela became the president, the first democratically elected president of the country.

So a very, very interesting time to grow up and went to university there and afterwards travel quite a bit. I ended up in the United States. I think I came here with a backpack, maybe a suitcase, about $500, a sense of humor and a sense of adventure. And I ended up playing in a rugby, a city-based rugby league, your National League, for a couple of years up until 2007. But always very, very passionate about financial education, history. I came across this little purple book, which your listeners might be quite familiar with called Rich Dad, Poor Dad. No, never heard of it.

my travels. Yeah, so I came across that when I started my travels and just piqued my interest. And that's the one that got me down the rabbit hole. And follow up with Mr. G. Edward Griffin's book, The Creature from Jekyll Island. And it kind of went from there. But yeah, then I worked in the real estate industry. I usually joke and say that I kind of fell into a mentorship. situation where I had a very wealthy investor that became a friend of mine in Chicago that through the network that I was in. I wasn't looking for it. I wasn't smart enough to know that I needed to find a mentor at that stage, trust me, but learned a whole lot about real estate investing, the business, how wealthy families manage, protect and grow their wealth

through our generations and indefinitely. So really, really insightful, studied that quite a bit. So I had some of my real estate background, spent some time in corporate consulting. And two and a half years ago, I started my own financial firm, as you referred to earlier, Valhalla Wealth Financial. And what we do is we do work with clients to build their wealth outside of Wall Street, outside of the system. We teach different strategies that include the infinite banking concept, for instance, is one of them.

And as you refer to, I also have a podcast called The Cash Flow Ninja. which we bring on very, very intriguing and interesting guests, such as yourself, to talk about creative ways of generating income and cash flow, because that's definitely the only way forward, especially in this new economy that we operate in. Certainly. What market are you in? Are you working nationally? How does that work?

I work nationally. So, Matt, it's quite interesting. I started my business, and I'm located in between New York City and Philadelphia. So New Jersey, New York and Pennsylvania was my region initially, but knowing what's going on and seeing what's going on and the enormous opportunity that we have to build virtual businesses that can operate and serve people globally and nationally. I expanded my firm nationally in the United States to operate in all 50 states. And through the podcast, I try to provide a financial educational platform to serve as many people. as I possibly clan globally. So we have listeners in over 150 countries right now,

so we've reached many people, and we continue to reach more and more people. Super, and you can service, through your services, people that doesn't matter where they live. Absolutely, so a lot of the consulting that we do is virtually. So far, the phone and a Skype, that's all I need to connect with people from around the world. And I had this kind of a vision of what I would,

I would like my company to be and how I would like to serve people and was actually put to the test. I just visited South Africa actually recently. And my business didn't skip a beat. I was still able to service clients, have calls to Skype, etc., which is kind of the vision that I had in my mind of, regardless of where I want and find myself in the world, I want to be able to reach out and provide value and serve my customers. Great. That's fantastic. What a luxury. It's super. That's what cash flow does for you, isn't it? Absolutely. And I mean, that cash flow is one of the, especially right now, we live in extremely

exciting times. Look at the two of us connecting and sharing thoughts and kind of ideas around our businesses and what we see out there. And I mean, we live in an extremely, extremely exciting time. The information age is just, you know, all you need is an internet connection. to get into the information age businesses, if you will, online. The amount of people that we can reach in service is unlimited. And the exciting things that's going on right now, you know, as real estate investors and as your listeners may know that, you know, we leverage is a very, very powerful word in investing. The amount of leverage that's available in the information age is unbelievable.

I just listened to a talk actually of Kevin Harrington. one of the original sharks just explaining what's going on. I mean, and one of the things that really, really had home to me is you were saying that how ownership was changing in the information age as well. And I believe the quote was, access to assets is the new ownership. And as real estate investors, we already aware and know that. But it's taken to another level right now. Just look at Airbnb.

I mean, all they have is access to other people's assets. And that's a form of ownership. for their business model, the same as Uber. Snapchat just did it recently by utilizing the Amazon's cloud to build their business on. So you don't even have to basically have all this upfront capital available to build your own cloud, like, for instance, like the Snapchat guys, but utilizing and accessing someone else's asset is a new form of ownership. It's remarkable, isn't it? Remarkable, isn't it?

I was already thinking about the next thing I was going to say. But it is remarkable. I mean, I think about, you know, you have a podcast. How much work and effort would it take on your behalf if you didn't have the airwaves of iTunes to share your message? It's unbelievable. You know, I started it and I kind of bootstrap my podcast started with, you know, I think my first headset was about $20 or something that I got on Amazon. I set up a hosting account. I recorded things on my computer.

computer and immediately I had access through a ton of platforms to start reaching people globally right away and connecting with people and many people can do this through blogs. I mean, YouTube, the videos and all the other channels. So there's many different platforms that you can do it. I just find that it's amazing to have people in certain parts of the world that I almost have never heard of that now listen to the show and we're able to reach them and share ideas and provide value for them. So it's quite, as we said, remarkable of the reach that you can have by starting something. And that's why I say to people too, you know, we live in a society that

we have this hyperbolic view and this huge view of everybody thinks that they have to quit their job and become, you know, Richard Branson by tomorrow, especially in the United States, we think of extremes, but even if you have, if you're still employed and love the work that you're doing, even starting something small online that you're passionate about and growing that is a fantastic way to start because it's just such a unique opportunity in this time that we live in, that regardless of where you live, this is definitely something that you should be considering doing. What would you say is your cash flow expertise?

Yeah, so, Matt, what we do at Valala Wealth Financial is we teach a strategy. You said that very differently than I said it, and you did not correct me. So it's Valhalla? Valhalla, yes. Valhalla, okay, guys. It really rolls off your tongue much nicer than it does mine. Okay, Valhalla wealth financial. Go ahead.

What's your cash flow expertise? Yeah, so I think one of the things that our main focus and our core expertise and how we serve and help our clients is teaching a strategy. called the Infinite Banking concept. And what the strategy involves in is having your money, $1, do many different things at the same time. And it's also a cash flow management system that redirects cash flow within to your personal economy

and also helps you reclaim the banking function within your own life. Hence the term infinite banking. Now, the banking system is obviously one of the most powerful systems that's out there in the world, banks operate and own some of the biggest real estate, the biggest buildings, and they're extremely, extremely profitable. So we take some of the banking principles, and I'll just touch on, just quick, on a general idea of the principles that we have implemented of the banking system. So in the banking system, there's a deposit side where you deposit money in and you put money into the bank. It used to be because you could get just,

generate a pretty good return on the money that you put in the bank, that has changed a little bit in this environment. Just a teat. However, it's just a little bit, yes. And what it does, though, they do still provide value in the terms of online banking, you know, and cards, et cetera, all these other things that are value ads, and that's why people are still doing that. So you have the deposit side of the banking.

The other side of the banking is the lending side. And this is the very, very powerful side of the banking. So money that comes in, then they leverage and lend on the other side of their operations. And this is really where the powerful return comes in for the banking and where they make their money. So they don't necessarily just make it on the savings. They make it on the lending and then combining a little bit of both of those. They need people's savings to leverage it and lend it on the other side. and I'm not even going to touch into the fractional reserve banking side and component of it,

which, as your listeners might know, the banks are required to keep a certain amount of deposits as reserves. The bigger the banks are, the smaller the deposits that they are. But say, for instance, they just have to keep 10% of what they bring in and their deposits on the books. The rest, they can all lend out on the other side. And then there's a form of arbitrage between the two sides. So if we look at that kind of principle from just a big picture perspective, the people that really profit are the owners of the bank, which is the stockholders of the bank. So they profit from this operation that's set up.

What we do is we take the same type of principles to help people implement it in their own lives. actually utilizing dividend-paying whole-life insurance with mutual insurance companies. Now, some of your listeners might fall off their chair or their jaws might drop on the floor when I say dividend-paying whole-life insurance. I did as well, by the way. But one of the reasons that we utilize this with mutual insurance companies, mutual insurance companies have a very long-term range view on what's going out there. They're not listed on the stock exchanges and stock markets, so they don't have to operate in such a way to hit certain targets at the end of each quarter so that executives can get their bonuses. In a mutual insurance company, the policy

holders are the owners of the company, the shareholders. So the company is managed and run on behalf of the shareholders for you with a very long-term range and long-term view. Some of these companies have been around since the mid-1800s. They're extremely, extremely well-capitalized. A lot of them have millions, some of them have billions of dollars in excess reserves. One of the reasons that we funded, just like we fund a bank on the deposit side,

is the money that we fund in there, there's a life insurance, obviously, component of it. The way that we structure it on the infinite banking principles allows us to structure it in such a way to maximize your cash of value in these policies. They have guaranteed growth in them every single year. They also allow you to participate in dividends because as a shareholder of the company, you share in the profitability, which is paid out through dividends for you.

The other part is it grows tax-free in there. So tax-free growth, and it is liquid through policy loans. So what we then teach is on the other side of it, you know, on the one side with the deposit side, we build up a nice nest egg that's growing predictably with certainty, guaranteed, access to dividends, tax-free. On the other side, you get to access your cash value through a policy loan, not from your own account, but from the general account of the insurance company. And yes, you do pay an interest to them, but just as a bank, there's a little bit of arbitrage and leverage involved. So what this in effect does for you is on the one side your money is growing safely predictable. tax-free. On the other side, you get to access that money and utilize it to invest in other

cash flow businesses, other real estate properties, and then redirect that cash flow back and to buy off the policy loans. So, for instance, if there's $100,000, for instance, that you have in cash value, you can borrow the $100,000 on the other side. At 5% is about the right right now. Now, if you invest in that at 12%, there's arbitrage between the amount that you borrow and amount that the return that you're getting. But while this is happening, on the other side, the deposit side, the money is still grown predictably and safely as if nothing's happened as far as markets correlation because it's not correlated to the financial markets. So we look at this as a vehicle that's outside of the markets. In 2000, the last financial crisis in 2008 and

for instance, these plans did not skip a beat. So once we've established that, Matt, we help educate and coach our clients through investing in real estate, investing in cash flow businesses, investing in agriculture, for instance, we have a partnership with a company that does coffee farm parcels and cocoa farm parcels offshore. We help our clients partner with the providers that teach them the cash flow gold and silver. So private lending is another one that comes up, and life settlements is a big business that we're involved in as well, where we utilize these cash values for our clients. So a lot of our clients build this as a financial foundation, and then they leverage the money, their existing money, and combine it with the money of others to invest in cash flow businesses and cash flow assets such as investment real estate. Got it.

I think. That was a whole lot. Yeah, sorry about it. Can we reduce that into like a simple, easy to understand elevator type pitch? Yes. Yeah, I would say the elevator, the elevator pitch is that we help our clients put their money into vehicles that is safe, liquid and growing tax free. And then we coach and educate them to employ this money that they've set up to invest in cash flowing businesses and assets. Okay. So if I heard you correctly, and I've heard a little bit about this over the years, and I've looked into a few different times.

So basically you're putting your money into a vehicle that's going to grow in some investment opportunity, and then you can also borrow that money and use it somewhere else to invest, but it's as if it never left the original investment opportunity. Is that correct? That is correct. So the same dollar in your personal economy, is doing many things at the same time. Right. Okay, so that's what I got. So the practical application for a real estate investor would be to, you know, put their money in this particular account and let it do what it does there. But they still have access to it to go on and run their regular real estate operations.

Absolutely. So if for real estate investors, they fund these policies and then they take a policy loan to purchase real estate outwashed. and pay themselves back, or they take a policy loan to combine their cash with the money of, for instance, a bank. And I think that's one thing that's also really important because we do teach people how to leverage existing assets, such as their savings in this regard. But when it really, really becomes powerful is when you combine that with the money, other people's money, combined it with that.

So that kind of, that's when you really start to grow and build wealth. Sure. At what point should a real estate investor, at what point in their wealth creation, their portfolio, their business operations, at what point does it make sense for them to look into this particular vehicle? There's a couple of clients that we work with. Some of them have access to capital already. So we can put this to work for them in some of these policies.

and then coach them through accessing that and investing in real estate. So if they do have access to large funds, the other ones and how I personally use it, because I've personally three of these plans, is for one of my real estate investments, I actually use it as a reserve account. So I took a portion of the cash flow from my real estate investment, and then I redirected it into one of these policies, and that's where it sits and builds for me. And as your listeners that are involved with the real estate will know, when it rains it poor sometimes with properties.

So the one year, I quite some upgrades that I needed to do, some improvements, some things that broke down. And I had my reserve account that I could utilize and fall to to pay for it right away. And then the increased cash flow that I then got from that real estate investment, because I made the upgrades, I could redirect that back. in and then pay off that policy line. So the money was growing in there because there's really three ways of purchasing something, right? You could just pay for it in cash and the money's gone. The second part is you can borrow money and you have this is, this is leveraging someone else's

money but you're paying them interest instead of earning interest in your money. Your money is you're paying him back. The third way is to fund something like this where you can leverage your own money. Your money keeps growing on the one side without it being accessed and you can leverage that to purchase something else. So that's just one of the things that we teach, you know, to come back to your question at what stage should they do it? I would say it's all relative. Every single policy is very, very specific to the goals of the clients that we work with. everybody has different goals, everybody has different horizons that they're looking at. Some clients start really young, some clients start really old.

And that was the other thing, question. Actually, a client asked me today, well, does it make more sense for me when I'm younger or older to start these? And again, it's relative. When we're younger, we have a lot of time, right, but not as much money. When we're older, we have a lot more money, but not as much time. So it kind of balances itself out when you are older because of someone, for instance, is in their 40s, they're making at that stage more money and have access to more money than, for instance, a 21-year-old.

So it's all relative and it's all specific to your exact goals and what you want to achieve and your timeline and time horizon that you're looking at. Got it. All right. Let me ask it maybe a different way. What problem does this solve for somebody? I think the biggest problem that this solve is if we look at the way that most families structure their wealth plans, the wealthy, wealthy, wealthy families have a solid, solid financial foundation. And I think this is the problem that it solves.

A lot of my clients that I look at that come to me, yeah, there's some money into real estate. but then most of the money is in market correlated assets. So this is something that provides a couple of things for you. The first thing is it provides certainty, it provides security, and predictability in your financial life. So you're going to know exactly at what stage you're going to have what available. And if you combine that, like my wife and I, both of these policies, to combine for our family and our businesses, we know exactly where we're going to be in five years, ten years, and first. 15 years. The other part that it does it, it provides a bullet fund to capitalize on opportunities

because as real estate investors know, one of the biggest challenges that we have out there, especially if we're really, really active, is we come across a lot of opportunities. And we're always trying to find money for our deals and opportunities. So this eliminates a little bit of that. The other thing that it provides, too, is it really, really disciplined. you to become a very good investor and a discipline investor because there are different things at work. You're obviously earning a return on the other side, but you have to borrow at a certain level on the other side too at a certain rate. So when you evaluate investment opportunities, I know it did for me personally, I start to look at things in a very different light because

there's a lot of different things at work here. So I run it through my checklist then, which includes this system. And if it doesn't make sense, it's very easy. easy to say yes or no to certain opportunities. But I think the biggest part is a solid financial foundation because as a lot of real estate investors found out during the loss financial crisis, that access to liquid assets when they needed most becomes a very, very scarce resource.

Mm-hmm. Got it. Is there anybody that this is not a good fit for? Yes, this is not going to be the sexiest topic at the cocktail party. Right, I'm gathering that already. To talk about, no. So, and that's the thing.

This is not a get rich quick scheme. This is something that is a foundational core piece that we're missing because we're all trying to get that hot stock tip or that huge flip or that huge return somewhere. This is something that is a baseline that is the, the heart of a financial and a solid wealth plan for you. for you. So I think if you're if you're looking at quick returns and you're looking at trying to get you know that next hot stock tip, this is not this is not for you. If you're looking for a disciplined way to save money and really not just build wealth for your family, but build wealth for generations for your children's children and so forth and leave something behind and a legacy,

this is something that yeah, that's something that people can look at. Interesting enough too. I'll just, I'll just put throw this in there too, Matt. When you really study what the wealthiest families are doing, and sometimes people are saying, well, you know, it's not public, it's in family offices. I completely understand that and trust me. I had to search wide and far and try to get access to a lot of advisors that work with these wealthy families. But sometimes there are people in certain positions, like for instance, the Federal Reserve chairman that has to release what they're investing in and where their investments are at. So that's a pretty good indicator of what these folks are doing right at the top. And a lot of them, if you look at their financial

statements, are in insurance products such as these. Got it. Rather sophisticated, right? There's definitely some financial education involved. And that's the big thing is you should never ever put your money in something that you don't understand. You don't understand both sides of the coin and all angles of it. And that's what we try to teach. The podcast that I do as well isn't just about infinite banking. We look at every single thing because once my clients have their financial foundation set up, they're looking for other ideas and investments of how to employ their capital invest. And that's where we have folks coming to share all different types of ideas and strategies. So, but, you know, just as you are, Matt, I'm a lifelong learner. A lot of my clients are

lifelong learners. So, you know, we're on this journey together to try and grow and educate ourselves constantly and especially, as we mentioned, very, very exciting time to live in this information age, but things are changing so quickly that we're going to continuously going to have to learn, unlearn old habits and skill sets and relearn new. once. Speaking of change, what are you noticing in the market and how is it changing the way you do business? I think one of the biggest things that, that I, from a business perspective of how I do business is there's a, there's a, I look at him as a mentor, but someone that I follow online, actually, Gary, Gary Vaynerchuk, probably some of your listeners have heard of him. But he said

something to me that was very, very, very important. He said in this new, that we're living in, we have to understand that we're a public relations company first. We're a media company. Every single person is a media company before they are in the business that they're in. So if you're selling shoes, you're a media company first. You have to put out content and information out there and provide value for others because that's the way that business has changed, right? There's so much information out there for clients and customers. How are you going to differentiate yourself. And the way that you do that is by providing value

and solving problems for them first before they even become a client. And that's all you gain an audience and then you have to consistently put out good content and provide value for them. So that's one of the ways that I see business is going. And I think if people don't realize that they are media companies first

before they are in the business that they're in, they're going to start to fade away. seen a huge landscape shift just in media. You know, the last election was a very, very good example of how things are changing and how media is changing. And there's not a lot of big corporations, to my surprise, that have actually caught onto this. And that is why the playing field is in many, many ways, level.

You would have never been able to compete against a lot of big, big, giant corporations. but if you understand what's happening and you see the changes that are out there, you can react because you're a little bit smaller, a lot faster that they can to capitalize on these trends. Right? Yeah. Fast is the new big, right? Absolutely.

Absolutely. And the other thing is to that speed, as you were saying, speed to the information and putting things out. I mean, in the old days, I mean, you look at the first videos and stuff, too, that people were putting out. It's all professionally edited. crafted and professionally shot with professional cameras. Many people right now can grab a smartphone, shoot a video, upload it on YouTube, and get some of them get like a million views of whatever

they're doing. So complete game changer. The axis is incredible. And in my opinion, that challenges us all to raise our game in whatever industry we're in and whatever business we're conducting. So there's a lot more competition and you're going to have to over deliver and provide more value than other people in your space to get, keep that, or not only get that audience, but to keep that audience. Right. What about the future MC has you most excited, the future of your business? What has you the most excited? I am extremely excited of keeping and growing my reach and then also looking at other. ways to solve problems. I think as you know Matt, when you start on this, you kind of have an idea of where you're going with your business. And then all of a sudden, the market starts to speak to you. And they start to demand things. So I had an idea in my mind of going in,

starting my business, and it's evolving quite remarkably. One of the one of the aspects that I'm really excited about is we're in the process of, yeah, we're in the, we're in the We're in the process of venturing and bringing on a couple of other items and products to offer to our clients. From the podcast perspective, very, very excited of partnering with a lot of companies outside of our space to provide even more value for my clients. So we're growing in a lot of different ways. We're expanding our reach. And, you know, I might be excited about something new next week. Things are changing so quickly and so fast, and I love it.

It's great. Yeah, no, definitely. Every day it's different. Someone just commented to me on one of the lessons inside the Epic Pro Academy. I did a lesson on how to reach more people through Zillow. And they reported to me that Zillow has changed everything in my video is completely irrelevant now. And I was like, okay, it was time to go redo that video. But yeah, you got no control.

You never know when they're going to change. I mean, Facebook does it all the time with their structure. There's always a new feature. but yeah, you got to be quick and nimble for certain. Hey, this has been a great conversation, very interesting. If any listener wanted to reach out to you, what would be the best way to do that? Absolutely. Info at CashflowNinja.com and Matt, actually, I would make a book available to them as

Nelson Nash wrote, becoming your own banker. If they're interested in furthering their education on this, because this is something that it's going to require you researching a little bit and reading up a little bit and educating yourself. So I'll make that available to any one of your listeners. They can reach out to me. Info at cashflow ninja.com. My website, cashflow ninja.com is for my podcast.

And through there, there'll be links to go to Valhalla because I know that's a little bit harder to spell. Yeah, right. Love the name, by the way. Cashflow Ninja. That's fantastic. Well, it's been an absolute pleasure. Let's do it again.

All the best to you and yours. Thank you, MC. Thank you so much, Matt. Thank you for having me on. And thank you for your listeners listening out there. It's been a pleasure. All righty, that is it for today. I'll see you a, let's see, what I'm going to see you next week.

Next week on another episode of Epic Real Estate Investing. God bless to your success. I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes, and share your thoughts. Thanks for listening.

We'll see you next time here at Epic Real Estate Investing with Matt Terry O. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.