The Science of Flipping - Episode 117: Myths Of Financial Security – An interview with Garrett Gunderson

Episode Date: March 9, 2018

document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab304d646", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/post/2931", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab304d6d6", {"title":"Episode 117: Interview with Garrett Gunderson","subtitle":null,"summary":null,"duration":"","poster":null,"chapters":"","transcripts":"","audio":[{"url":"https://audio.simplecast.com/49f13488.mp3","mimeType":"audio/mpeg","title":"AUDIO/MPEG","size":0}]}, "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); Best selling author and financial genius Garrett Gunderson talks with Justin Colby about the myths of financial security and strategies to gaining financial wealth. Get a Free Coaching Call with TSOF team. CLICK HERE TO FILL THE FORM. JOIN MASTERMIND  — APPLY NOW!!

Welcome to the Science of Flipping Podcast. I'm your host, Justin Colby. What is up? What is up, everybody? Back to the Science of Flipping Podcast. I am your host, Justin Colby. And if you're watching this on YouTube, if you're watching this on my website, you know I have a very, very special guest with me here. But before I introduce the man who we just spent several days on stage together, this is a podcast all about systems, tools, implementation, strategies to create the life by design through real estate. I've been real estate investing now for 10 years and it has created an incredible life for myself. And so I try to put out pure content about strategies to do real estate, about systems,

about tools, but I also bring in other experts in other fields to try to give you as much education and information that you can possibly have to really create a true business that you can create your life that you actually want. And so the gentleman I have on today who is widely known through his best-selling books, through CNBC, you might have seen him on CNBC or Fox News, Killing the Sacred Cow was an incredible book, my man. And so without further ado, my man Garrett Gunderson, what is up, dude? What's up, Justin? Good to connect with you, man. It's fun hanging out with you at the Find and Flip Summit, you know, backstage, just having a conversation, doing a little quick like on your phone and all that kind of stuff. It's awesome. Well, you're such a dynamic dude. And for those of you that were maybe a minute

into this recording, Garrett Gunderson is someone who is breaking all the financial myths. I think a lot of us out here have heard that same old stereotypical, what to do with your money and penny saved is a penny earned and all that. And what he really has delivered to the world now, not only just through his bestselling book, but through his podcast and CNBC and Forbes magazine and on and on, all the accolades he's gotten is he's really shattering what I think the population believes to be what is financial success? How do you really create wealth? And so I wanted him to bring them onto this show because if I have access to someone like

this who can really change people's lives simply through changing their strategy with money, I want you to have the same advantages I have. I don't want to hold anything back. Again, back to I continue to bring people on to give you guys, the loyal listeners of Science of Flipping, the same access, the same advantages I have through this podcast. So let's start there, dude, because you've really changed hundreds of thousands of people's lives through your teaching, whether you've been speaking on stage, which we were both speaking at the Find and Flip Summit or your books or your masterminds. I mean, you really have an incredible reach and you're changing that paradigm pretty

drastically, dude. Thanks, man. I feel like, you know, I was tired of following that paradigm myself. When I was a teenager, I started my first business and I won $5,000 being the young entrepreneur of the year. And I want to go invest that money. And as I started to ask people to invest, I got all sorts of different information and advice. And a lot of it wasn't that effective. And it didn't really apply that directly to me. And it wasn't going to lead to the road to riches because I'm talking to people who really weren't wealthy themselves.

They were just getting their information from the pundits and the media that go out to the masses. And in that journey, having a few bumps and bruises and trying to kind of navigate it, I just developed a major passion for this. Because, look, we all have gifts and talents. We all have things that we do. But if we don't get money handled in a proper manner, especially personal finance, which is typically boring and like people just neglect it because

they don't want to be told by someone to just hand their money over and hope for the best over 30 years and just accumulate. Like I realized the amount of pain and suffering that comes about from that misinformation. And so I like to point out those myths. So people kind of have a code of success. They can think more clearly for themselves, navigate the kind of landmines that are out there that kind of throw people off in their finances and bring some energy to this topic. Yeah, there's no doubt. I mean, listen, I was telling you and I were sitting backstage and we were just talking like you've been able to take a topic that will say what it is. It's fucking terribly boring, right? I mean, shit. I hate talking to my accountant and my well-stressed,

I'm like, oh, kill me, right? But reality is when you make money, you got to do something with your money, right? And your money can make money. And that's the idea is how does your money make money, right? Even if it's $5, I want that $5 to be $5.50, right? That's what I'm looking for. So, you've been able to take something and, you know, I love killing the sacred cow as a book, give give them, you know, we're gonna talk about where they can find you and all that. But what would you say, you know, five minutes into this interview, where would you point them? What books should they read? What of yours do they need to go get start learning more about your teachings immediately? I mean, if they go to wealthfactory.com forward slash podcast,

I put together some pretty instrumental tools like my other books, What Would the Rockefellers Do is included in that, as well as a PDF of Killing Sacred Cows, if they actually haven't dove into that yet, as well as some cash flow guides. Because most finance is about taking money from you. I want to start with putting more money in their lives. I think there's kind of three main tiers. Number one, keep more of what you make. Number two, make a lot more money. And then number three, have your money make money. And if you have all three, you're gonna have a lot more wealth than just having one of the three or two of the three, which most people miss out on that full trifecta. So I begin with cash in your pocket. Where can you save tax? Where can you restructure

loans and save interest? Where can you find non-performing fees or unnecessary risk with your investments? And where can you save money on insurance without sacrificing coverage? That's the kind of tools that I've thrown together that they'll get over months time to really kind of get financially more enlightened. Yeah. No, I love it. And so, you know, I have everyone from maybe a newbie entrepreneur, newbie investor to people who are crushing it and making millions of dollars listening to this podcast, right? And they're all over the world, right? I have people literally from New York, San Diego to international. Let's start with kind of a level of things. Maybe let's start with a good strategy for someone who's just getting started. Maybe they make a little money,

maybe they're employed, right? What would be your first piece of advice? Just kind of simplistic. Here's some things you should start looking into or doing immediately, even if you have a job now or you're just becoming an entrepreneur. What's that one piece of advice for that level of person? Look, you're going to have to invest in yourself, in your skill set, in your knowledge, and the people that you associate with. So having a structure to do that on a regular basis, not just thinking about investings as products, stocks, bonds, or even real estate, but instead thinking of it as your mentality, your mindset, and how can you build your mental bank account so that you're more informed. Because we're going to see so much ignorance taxed on people where wealth gets transferred to those that are more in the know versus those that are less in the know. And too many people think that investing is a game of luck or just a game of discipline

or even a game of like structured savings. The reality is it's a game of knowledge. It's a game of ability. And so if people don't start investing more towards that, they're going to find themselves in a rude awakening where other people have invested that way, created strategic advantages and therefore get their hands on a lot more money. So invest in yourself. The second thing is start building up liquidity.

As you're making more money, maybe it's because of a side hustle, maybe it's because your business is growing, make sure that you're setting some aside and paying yourself first. It's not about budgeting and constraint, it's about automation so that you're setting some aside and paying yourself first. It's not about budgeting and constraint. It's about automation so that you start building up this liquidity. And through liquidity, you're going to have more peace of mind. You're going to have an opportunity fund

when the right opportunities present themselves. You can capitalize and take advantage of it. Where most of the world, they invest and lock their money up into things that they can't touch to other 59 and a half. Or they're investing in things they don't have an exit strategy for, that don't provide them cashflow today, or that don't increase their knowledge. And therefore, that's gambling, not investing. And unfortunately, most of the masses have been lulled into doing that. And that is following the herd. And it's been a failed financial experiment with billions of dollars of marketing, convincing people to separate themselves from their money. Stop doing it. Start building liquidity. Start investing in yourself. I love it, dude. You know, there's two things, a lot of things I want to say

right away. First of all, you may be friends with them, know them, but Mike Malkowitz, profit first. Yep. Absolutely. I mean, if you're a fucking entrepreneur, dude, get the book because this, you just mentioned it is a game changer. If you're going to go make money, make sure you're paying yourself. Make sure you're making money. It's one thing to have, you know, have a business that makes 250 grand a year. But if you're making 50 grand a year, what's the point? Right. Go get a job somewhere. I mean, being an entrepreneur is difficult, right? I've been on this path now. You have to work. You have to grind. You need tenacity. You need to fail.

You need to get back up. You need it, right? Yeah, you're going to get some scars. You're going to make some mistakes. You're going to lose some money. But at the same time, you're going to gain some knowledge, and you're going to continually have opportunity as long as your vision is greater than your circumstance. That's the key to entrepreneurship. You have to have a vision that compels you that you'll deal with the minutia. You'll deal with the issues because I believe entrepreneurs should be paid extraordinarily well because we deal with an amazing amount of things as time goes on.

There's no doubt. And if you're out there thinking, oh, I want to be just, I want to be like you or Garrett, I want to be like, like, listen, dude, you're going to, you're going to have to fight. You got to have a lot of fight and you to get to where we're at. You're going to have a lot of failures. You're going to have a lot of difficulty. And every time you're gonna have to fight. You got to have a lot of fighting you to get to where we're at. You're gonna have a lot of failures. You're gonna have a lot of difficulty. And every time you're gonna have to get back up and say, fuck it, I'm going to keep going. That's the mentality every time, right? So that's resourcefulness, right, man? I mean, it's just being resourceful, regardless of the amount of resources you have, there's ways to be resourceful. If you have nothing to your name right now, what you've got is the ability to hustle.

And you can go work for someone that's intelligent, that is in a place that you hope to be for free, just to gain knowledge, just to build relationships. If you've got a lot of money, well, now it's time to do the same things you did in your business with your finances. Build an amazing financial team. The rules are different at different phases of life. And what gets you to one stage won't get you to the next. It might be the very trap that prevents you from getting to the next. But I'm here to tell you that it's about resourcefulness. And it's about human ingenuity. It's about innovation. It's about hustle. It's about value creation. And everyone else that tells you it's about the money you have, or the privilege, or where you were born. I think the harder thing, the harder road to wealth

is inheriting money and growing that and keeping it over having nothing and coming from nothing because you build up a totally different level of resilience. Oh, completely. I mean, listen, I didn't come from money, so I can't truly, educatedly speak on that subject because I didn't, but I mean, I can just imagine, like I fought for every penny I've ever earned.

And if I was just given it and then I had to figure out a way to grow it, I think that's way harder, right? To me, it seems way easier, even though this shit has not been easy to be able to just grind and fight and keep going. Whereas if it's given to you, you kind of rest on your laurels. I couldn't agree with that shit more, man. That's that. So another thing I wanted to talk about, what were the three you said, um, grow your money? What were the top three? Yeah. You want to keep more of what you make, keep more of what you make, make more money. Yeah. And you want your money to make money. So it's all three. I love number two because the other two to me are a circumstance of making more money. Yep. You get to keep more of what you make, um, because you are a circumstance of making more money. Yep.

You get to keep more of what you make because you're making more money, right? And so I love my motive on these shows, on this episode. Man, go make more money because then you have the options of everything that you teach, right? You and I are talking about how we're putting money in the life insurance plans with different buckets and all the different strategies. You know, I was kind of giving you my book. You have these options, but if you're not willing to go make more money and work harder and dig deeper, then you're not even going to have the options to keep more of what you make. Well, you're barely making enough to get by. Almost impossible, right? I can already hear people listening to this episode. Well, I live paycheck to paycheck, right? How am I supposed to keep more? Dude, go make more fucking money. Go do a side hustle, be a bartender at night, whatever, be an Uber on the weekends.

Here's the reality. Life now has given us so much opportunity with Ubers and these Airbnbs. Go rent your house out on an Airbnb for a weekend, triple what your mortgage would be in one weekend and keep that money and go, then go invest it. Then go do these strategies, right? I mean, we're in a time that is just incredible. I'm 36. How old are you? I'm 39. If there's people out there that are older than us, they know that there's nothing been like this in history, right? It's not about brawn anymore. It's not about royalty and blood anymore. It's simply about brains.

Yeah. If you're willing to invest in that, man. Like, dude, yeah, Demi is someone that works with my firm now. But when I first met her, she was renting out rooms in her home, Airbnb style, even though she had her room and brought her kids into her room, rented out the other rooms until there was enough cash flow that she can get a property. I then used that property to Airbnb that that was close to her existing property. And that created enough cash flow for her to invest in a yoga studio. Like so and then it trickles down. But man, what she started with was what she had. When I started my business at 15, I started in the garage of my parents' house

with their cleaning supplies to detail cars. I mean, I got my hands dirty. I got my elbows greasy. I was scrubbing tar and bugs. It doesn't have to be glamorous. Business doesn't mean that you're on the front cover of a magazine looking all GQ from day one. I mean, dude, you just take what you got in existence

and you start using it. Amen, brother. Amen, dude. This is a week ago forever. I'm getting all pumped up. And so let's go. I have two questions. I'm going to give them to you now, but I'll do one or two. One, the first question I want to ask again. Now we just kind of gave advice to maybe someone who's just getting going, making some money, potentially has a job. What's that piece of advice for someone who's in it? They're making quarter of a million. They're making a half a million. Where's that advice? Then secondly, after you answer that, I want to start diving into real estate and what your thoughts are, when to do it, when not to do it, what's the right moves. I know a lot of people are thinking about rentals right now, that kind of strategy. So let's first talk about the people

who are entrepreneurs already making some money. Let's go there. All right. When you're an entrepreneur, you're already making some money. I feel like tax is your low hanging fruit because you own a business. You get this massive tax advantage just by being a business owner. If you're in the know, if you know that it's there and what you can do about it, which most business owners make two major mistakes. They spend money to save money. It never makes sense to spend a dollar to save 30 or 40 cents. Number two, they defer taxes for the future. And I just think if you're a good entrepreneur, you're going to make more money in the future. Don't defer or delay where you might be in a higher tax bracket with less tax deductions. So here's the three things to do. Number one, you got to build a team, including

CPAs, maybe even tax attorneys, get bookkeepers to get your finances in order, and meet with them on a quarterly basis. Every three years, look back because you might be able to amend your returns and get that money back. Number two, when you own a business, expenses can be turned into tax deductions. I'm at my intellectual property company called Ripwater Headquarters today, which is actually in the basement of my house. Normally, I have Wealth Factory Headquarters, downtown Salt Lake, but you know what? That means I get a write-off on half of my utilities. I got a write-off of the painting of this place that we did a few weeks ago and the wall that I put in behind me. All that stuff becomes a write-off. It's a deduction instead of just an expense. Just like when I host events here 14 days a year, I get a write-off. I don't have to claim it as personal income.

Or when I host an annual meeting with my wife in places like Whistler or Italy or whatever, I get to write that off. Like there's so many expenses we have as business owners that become write-offs that a non-business owner couldn't write off. And the third thing is reclassifying income. Anytime you can turn your income into a passive income instead of active, less taxes, up to 15.3% less. Or if you can move your ordinary income into long-term capital gains, that might cut your taxes in half. So reclassifying income, turning expenses into deductions, and building a team to be proactive with them will mean that you're going to save a lot of taxes.

And what we find is that a business owner doing between a quarter of a million and a half million of revenue, they're overpaying their taxes $11,430. That's bottom line cash in their pocket by using the framework that I just shared and avoiding the mistakes that I told you to avoid. That's real money, dude. That is real money. Dude, I mean, you could build wealth with it or you could just have an amazing trip with it I mean 10 racks with it I don't know what you're gonna spend it on but better than giving it to the government and tipping them amen to that brother amen so man I just get so geeked up I even lost my train of thought about where I was gonna go with this

so where is your piece of advice for because you're using terms that some people may not know, right? I mean, you know, where would they go to get the foundations of the things you're talking about? Where would you point them to get that, just the understanding of what these things are, the language you're speaking, that kind of stuff. Business owner or not, wealthy or not, I would tell them to text 801-503-9667, 801-503-9667 and put WWRD in the subject line. What would the Rockefellers do? That's the foundational book. That tells them what to start with. Even if they're not wealthy, what is it they could do that the wealthy do right now so they're making sure they're setting up a basic infrastructure that is their never fail them strategy where they can earn interest instead of pay it cut out the middle man so they can have their own banking system rather than be subject to the existing banking

system and it becomes seed capital for them when they find the right opportunities to start investing in so that's that's the starting point i mean that's a book that i want kids to read as young as they are or i don't care if someone's in their sixties, they can learn from that and start implementing it. I started doing some of the strategies in that book in 1998 when I was 19 years old. And those are the things that have always worked for me. So, I mean, I think that's, I think that's the foundation. Can they also, can they pick it up at like a Barnes and Nobles or a normal bookstore? Is it in those locations or is it strictly through you? It's a thousand bucks on Amazon if they want to get it there or they can just, you know, on me, they can grab a copy or they're handling and I'll send them to the physical copy.

There you go. Love it. Yeah. There's a copy right here, you know, right here in my drawer behind me. Boom. There's the book right there, you know? There you go. So yeah, we didn't put this book in the bookstores um simply we have five day weekend coming out and that'll be in bookstores everywhere so look for five that was awesome by the way i started screaming through that that was dude that's gonna be i started going in when you were on say i'm looking at the book it was that's gonna be an

awesome book bro i mean that book for people that are crushing it, you know if you're already crushing it, the book will have some review, maybe a few new ideas but for people that like aren't quite there yet and they want to think more like an entrepreneur and they want to know where to start and where to go and what the advantages are, it's pretty damn comprehensive for those people so I think it's really gonna impact the masses Okay. So now let's jump into my world, real estate, real estate investing, how to leverage your knowledge, your ability. I mean, we had a breakout room for you, right? At the find and flip event. There must've been 40, 50, 60 people. I don't, whatever the number was, but you were able to talk to them in a matter of fact

way of what they can do with real estate, the strategies. So let's start talking about real estate, when to do it, when not to do it, how to leverage that versus the other tools, all that kind of good stuff. So what I think people should do when it comes to real estate is if you're going to get into it, treat it like a business. Like if you think it's going to be something you just don't have to think about, you just grab a property, you're going to get your lunch eaten by guys like Justin that know what they're doing, that are educated, that are building systems. So I want to be really clear. We all have our own investor DNA. It's our core competencies, values, and drivers combined for where we're going to focus. People that diversify get spread thin. They get overwhelmed. They have too many things that could go wrong. And

unfortunately, they don't do what Andrew Carnegie did, which put all eggs in one basket and watch it like a hawk. So if you're going to invest in real estate, go for real estate. Don't try to go learn about options trading on the side. And then don't go learn about how to do stocks and bonds. And then go figure out tax liens in addition to your cash flow of real estate. Get really good at one thing, maximize it, build it before you go to the next thing. Some people get too caught up in multiple streams of income and they build streams that if one of them dries up, the other ones get neglected. Build a badass, powerful river.

And when that's crushing it, use that flow to go to the next thing. So if you're going to do fix and flip, that's totally fine. But get really, really good at that and get before you move into maybe cash flow properties. If you want to start with cash flow properties, that's totally cool. If you want to go to commercial properties, that's a little different animal. You know, if you're going to do single family housing versus four plexes, that might be different. Just get really, really good at one, really dial it it in and then maybe add one or two more but if you start you know like what I I'll give you my my pros and cons in real estate like at one time I did so well in real estate that I just figured well I might as well do

anything called real estate so I was doing REOs I didn't have good exit strategies on those I was doing was doing everything from one single families to duplexes and fourplexes. I even got into development. I don't know what the hell I was doing in development. That can eat your lunch going from a construction loan to long-term financing and oh, all these surprise expenses that come along or contractors don't do their job. It was more than a full-time job. So I just figured everything real estate was going to be good and I got distracted. I got diversified. So get really dialed in, focus, hone in. And I had too many properties all over the United States without eyes on the ground. So I was on flights

all the time. I like to saturate, like get really clear about a market, maximize that before you move on to the next thing. That's my number one piece of advice in real estate. No doubt. It's funny. You and I have a very similar developing story. Developing almost literally took us under, dude. It was a $400,000 bath we had to take just to get out of it because we were like, now don't get me wrong. If we could have hung in a little bit longer and dealt with the bullshit, we probably would have come out pretty nice. But dude, when I tell you, I mean, you get it. It was brutal with the development, you know, the contractors, the city, the superintendents, the blah, blah, blah, blah, blah, crushing. Yeah. The other mistake I made in real estate

is I confused. I thought it was talent when it was timing. So like I did a lot of deals up front that just crushed. I wasn't doing the research to find the deals they were coming to me because people knew I was in the financial game you know I was doing some real estate so I just got involved in more than I could you know handle to a certain degree because the first ones were so rich and so good that I thought dude I am freaking brilliant I got everything I'm Midas and then I overextended myself at one time. And then all of a sudden, I'm dealing with like more than full time efforts on all my real estate projects. If I would have just stuck with, you know, single family and duplexes where I really

had some decent knowledge and a good support team, that was totally different. When I extended myself into commercial properties, and building them from scratch, that's where I found, man, we did not manage our costs very well. We didn't manage our crews very well on the timing. And so everything by the time it was done, all of a sudden our cap rates weren't what they were projected to be because we spent an extra seven figures on the stupid thing because we wanted to be pretty. I mean, be careful on those things. Totally. So let's attack buy and holds, rental properties as the investment. It's a tool that a lot of people made a lot of money off of, have created a lot of wealth and others have not.

Yes. So what's your thoughts on the buy and hold strategy? Let's let go of timing because timing plays into that. Like right now, Phoenix is not the best buy and hold area. You know, six years ago crushes it, right? So let's not talk about timing, but let's talk about the strategy of wealth and financial, your world. What's your thoughts on the buy and hold strategy? What I liked about buy and hold is the cashflow aspect of it. And my belief is you want to create economic independence, enough recurring revenue coming in from those rents to cover your lifestyle expenses, because now you have every active dollar of income you earn can go towards building more assets. It's

a killer advantage. So when it comes to buy and hold, a few of my general rules are I like to make money on the buy. So can I get the right deal with the right cash flow right out the gate? I don't want to be at a break even or less. I want to take into consideration vacancy rates. I want to take into consideration people gravitating towards a hot market that might be driving prices up due to speculation, not due to actual rents. So to me, I'm going to look very heavily at the cash flow and what that looks like versus, you know, like when I bought in Vegas at one time. I mean, Vegas was back in the mid to like 2004, 2005 timeframe. Like there were so many people just buying that they were going to squat on the thing and then they were just going to, you know, sell it six to 12 months down the road for an appreciated value until one in three homes

are up for rent and you're renting it for a third of what the mortgage payment is. That's terrible buy and hold type of strategy. Buy and hold might mean that the properties aren't the prettiest properties. They're not the most desirable locations in the world. But the bottom line is the price is so low on them that they're more recession proof because that's when more people are going to look to those properties if the market turns because they're not going to be able to afford their mortgage payment and they're going to have to bail and go somewhere else. So I think that there's certain parts of the market that might not be as visually appealing, but when we walk visual appeal, look at the numbers. Look if the numbers make sense right now and then you're going to be

in a much better position when you're holding through different economic changes. Do the math. It comes down to math, right? Look at the numbers. If the numbers make sense, make your best decision on whether you buy that deal. Would you suggest, who is it? Dave Ramsey has like a credit card snowball effect, right? He talks about how you can get down all your credit cards. Would you suggest something like that with buy and hold model where you buy three deals, you're putting all three of your profits, right, towards your first deal, getting that paid off, then you take your first two

and paying off your second one, right? The snowball effect really works. Would you suggest something like that or would you actually keep leverage on your buy and holds? So here's my recommendation. So you wanna do something called a cash flow index. You take your balance divided by the minimum required payment of any loan you have. Mortgages, credit cards, business lines of credit, car loans, student loans, whatever it is. You only want to pay extra to one loan at a time.

That's where Dave has it right. You only pay extra to one loan at a time that's where Dave has it right you only pay extra one note at a time but here's the least favorable loans to pay extra to amortize loans like mortgages because what happens is you're paying extra but your payment isn't going down so what you're doing is creating more equity jail for your dollars see banks love to lend money to you when you don't need the money when you need it they don't want to lend it to you all of a sudden you're trying to pay one of these mortgages down, it's taking a pretty long time to pay it off. My recommendation is you set up a separate account called a wealth capture account. It could be a money market, a savings, or even a checking account.

The money that you would have paid down towards these properties, put it into that account and get at least six months of liquidity of your personal expenses. The reason being, we're all in store for financial surprises and situations that could come up that if you have that cash, one, it's valuable when you need to go finance as seasoned money. So now they're going, oh, look, you've got good liquidity. Number two, if all of a sudden you have a vacancy issue or deferred maintenance issue or anything else that might be unexpected like your property manager embezzles from you or your bookkeeper whatever the hell might be and that shit happens yeah you've got some cash that gives you staying power

now it doesn't all have to sit in that account you might only need three months of that account what i like to do is do overfunded cash value insurance so I can get a better return in a longer period of time. It's not going to be better return the first or second year. By the third year or fourth year, I'm doing better in that cash value. It's protected from liability and bankruptcy. It's still available for future real estate deals, but it's going to outpace what the loans are typically going to cost me on the properties. So now I'm building it faster with tax advantage, keeping my tax advantage on the loan interest, keeping my tax advantage on the deferred growth inside of the plan. And then when I have enough cash, if I want to pay off a mortgage, I can pull

it all out at once, pay the mortgage off in its entirety. I had more liquidity along the way, I had growth, and then I can pay myself back that money into the policy to buy other properties. So I would do that rather than pay it directly towards the loans. Perfect. I love that. I love that strategy. And that's where we're going to wrap, dude. I mean, that's definitely hitting it right on the head with real estate, the strategies. I really appreciate your time, dude. You are super, super busy. We were just talking about trying to connect in Utah and I think I was gonna come out there in a week, didn't work out.

Thank you for coming to the Find and Flip event. You crushed it. Everyone loved what you had to say, dude. So let's just make sure everyone knows again where to find you, where they can pick up your stuff. I mean, obviously anything you can give is of huge value. So why don't you give them some areas to go and get some of your stuff?

Wealthfactory.com forward slash podcast will get you like up to a weekly resource. Something that gives you an insight from a short newsletter to a little guide to one of my books to a free webinar. I mean, probably every fifth or sixth thing that you get, you can buy something from us if you choose to, you know, just to be really transparent with how that works. We're building the relationship. And if it's good, great. If it's, if you're not opening it, then I don't know what to tell you.

You got to utilize this stuff. Or you can text 801-503-9667, 801-503-9667, put WWRD, and you'll get a copy of what with Rockefeller's doing. If you want a physical copy, pay us like seven bucks shipping and handling. We'll mail it out to you, and you can start diving into that book. And heck, you could even get a phone call with someone if you want to find out which chapter applies to you. Because if you're like me, I got more books than I'm ever going to be able to read.

So if someone can guide me to, hey, this one actually applies most directly to you right now, or hey, I'll just tell you what applies to you, that's one of the cool services that we offer. That's awesome, dude. That's rad. Dude, again, I appreciate you. Uh, I look forward to doing a bunch of business and connecting and doing some stuff with you here over the next 12 months or so. So thank you for being on. Thanks, Justin. All right, guys, that's it for the episode. Um, if this is your first episode and you happen to kill it right now with Garrett, there's a lot of opportunity on his side. Go and get his stuff.

And man, I'm telling you, you got to think like an entrepreneur. You got to think like an investor. And this guy can not only help you save more of what you got, make more of what you got, and then invest wisely. Get with this man. He knows what he's doing.

We're out of here. Peace.