Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
00;00;00;00 – 00;00;34;21
Unknown
The first property that you get under your belt, that’s the most significant one is like, Man, I never thought I could get that done. And going through that process and learning that it’s not magic and learning that this is actually quite powerful. And when you’ve own that property, that one property for 5 to 7 years and seeing and experiencing what that did for you, you just realize that this one property increased your income by $1300 to $800 per month and that is the power of one.
00;00;34;23 – 00;00;56;00
Unknown
What would your life look like if you could replace all of your working income with simple and conservative investments that could do it for you? Over the last 13 years, we’ve helped thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their work income with real estate investment income.
00;00;56;03 – 00;01;18;08
Unknown
Each week we’ll be pulling back the curtain on the INS and outs of real time retirement based real estate transactions that will transform your financial future even if you have no real estate experience. This is replace your income with me. Kevin Clayson and Steve Earle. All right. Well, hello, everybody, and welcome to replace your income with Kevin and Steve.
00;01;18;13 – 00;01;34;11
Unknown
Steve, you’re checking your phone. We’re trying to do a podcast here. I mean, you get an important text. What’s going on over there? I tell you what, it just never it never ends really. Like, I know it never does. And today, my daughter in the middle of the day, she was she has a it’s okay. Look, I’m a trigger warning, okay?
00;01;34;11 – 00;01;52;16
Unknown
I’m going to offend some of you out there just so you don’t know if you haven’t been able to perceive it. I tend to. This is not a political discussion, but I tend to lean a little bit more conservative. Right. And my daughter, she and I have a lot of discussions. And so, you know, she has you know, I always give her the facts and let her kind of pick her own path.
00;01;52;20 – 00;02;17;21
Unknown
Well, she’s she kind of thinks a lot like I do. And she has this teacher who let’s just say, does not have the same sort of ideas that maybe we do about, you know, freedom, liberty, things like that. And so she was texting me. She’s like dad, she’s like texting me all of these things that her teacher’s trying to get her to do to write a senator and complain about this, that or the other, that my daughter totally disagrees with.
00;02;17;26 – 00;02;40;08
Unknown
And so that’s probably what was happening with you. Did you have a family member who was trying to get you to text or email a senator to take a political position? Is that what that was? Steve I can definitively say no. Okay. Oh man, it’s so fun. I love I love having this conversation. Guys. We are going this is going to be a continuation of the last podcast.
00;02;40;08 – 00;02;59;00
Unknown
So the last podcast we started the jump into the micro wins two millions mindset. The principles in the book you heard us talk all about if you have not listened to the last episode where we do the first like three, I think we only got to the first three chapters of micro wins to millions of what the principle is and what the real estate application of the principle is.
00;02;59;02 – 00;03;31;29
Unknown
Go back and listen to that episode. It’ll give you a great foundation for what we’re going to do. So today we are going to continue the discussion and to give everybody a preview of what is in micro wins two millions. And for those who just to catch you up previously on replace your income with Kevin and Steve can like skip the the you can skip the intro yes you get or you could skip the you could skip that the recap but we talked about the fact that the book is 12 chapters, 12 principles.
00;03;32;05 – 00;04;01;10
Unknown
Each chapter has a principle. And then inside of each chapter we have a general application of that principle to life, success, business, family, whatever. Then we have the second half of the chapter, which is the real estate application of that principle. So it is a principle based approach to generating economic independence through simple and conservative Moneyball real estate, as well as just a mindset and a philosophy on achievement and achieving goals and setting goals and creating success.
00;04;01;17 – 00;04;32;09
Unknown
And so we are going to go through chapters four through 12 today on this episode and the first three chapters where Chapter one Stacking Micro wins chapter to celebrate the journey, not the arrival. Chapter three Reframing Progress. And Now this is Chapter four, where we are going to talk about the power of leverage. Now, this was an interesting chapter, Steve, because when a lot of people think about leverage, especially in our world, you think that that just has to do with the mortgage.
00;04;32;11 – 00;04;54;23
Unknown
The reality is and to be totally honest, like we know people have maybe some feelings, they feel some kind of way about leverage when it comes to good debt, bad debt, whatever that is. But if you think about it, we are all leveraging all of the things all of the time. And I think we need to switch our mentality about whether or not leverage is a good or bad thing.
00;04;54;23 – 00;05;22;23
Unknown
The principle we talk about in the book, the general principle, is seize given advantages to maximize results while minimizing effort and the reality. See, guess what we’re leveraging right now? We’re leveraging somebody’s brain that thought about how to construct a chair, somebody’s brain that thought about how to market and sell the chair. We’re leveraging somebody’s abilities and expertise to create a microphone and a laptop and a camera.
00;05;22;27 – 00;05;48;11
Unknown
And this desk and engineer and construct our building and the clothing that we’re wearing. Like we don’t we are constantly leveraging the expertise, the resources and the effort of others, and it becomes incumbent upon us to take all of those gifts that we’ve been given and deleverage them. So that we can maximize efficiency, maximize results while minimizing our effort.
00;05;48;11 – 00;06;08;12
Unknown
Right. But I don’t think that I hadn’t even really thought about leverage in that way until we really dived in and started to write it in the book. Yeah. So the the real estate application of this principle is like utilizing leverage in the form of a 30 year fixed mortgage to you know, take a smaller amount of money to buy a larger asset.
00;06;08;18 – 00;06;38;06
Unknown
Right? It’s something that very few investments have the ability to do if you’re going to buy a stock in the stock market and you want to spend $100,000 on Bitcoin, then you got to put $100,000 down where with real estate you want to buy a $300,000 home, you’re going to put 25% down. Right. And so you can take that, but you’re still going to earn appreciation and receive all the benefits of a $300,000 asset, which is incredible.
00;06;38;06 – 00;07;11;22
Unknown
What else allows you to do that? It’s it’s powerful When used the right way. Right? Because you can also over leverage. Yes, you can over leverage. I mean, you can overdo anything, including over leveraging. And you put yourself in a precarious position. You put yourself in a situation where you put yourself at undue risk. And so there are some as part of the principle is understanding how to mitigate that risk and how to utilize in a very in a in a proper way that leverage opportunity, because it will allow you to get ahead a lot quicker.
00;07;11;28 – 00;07;31;16
Unknown
I mean, that’s just, you know, and we use leverage all the time in real life. We just don’t maybe look at it that way. And so we’re saying here’s how to look at it when it comes to real estate. And so that is chapter four principle for chapter five. Principle five is something we call success mapping. And the general principle is always start where you are.
00;07;31;19 – 00;08;05;05
Unknown
And I know that may just seem like I mean, maybe that just seems kind of a given, but there’s so many people who create plans and they don’t start their path in their plan from where they currently are. They started in the future, like, for example, okay, here’s just a really big example. Use a real estate example because the real estate application is the best way to achieve your desired income replacement goal is to create a personal game plan, establish what you’re working with, determine what you are wanting to accomplish in the long run.
00;08;05;10 – 00;08;29;02
Unknown
Then reverse engineer the path from here to there and take your first step forward. So, Steve, we have conversations with people all the time that are like, Yeah, I want to get into real estate. And they go, You know, when I have X amount of dollars. Okay, So then what’s your plan to get X amount of dollars? Well, you know, hopefully, you know, any time they say hopefully, you know, that that’s not that is not success mapping.
00;08;29;04 – 00;08;48;19
Unknown
That is not creating a starting point from where you are and knowing where you want to get to that is simply having hope that one day you’ll be able to get to the starting point. So the whole focus of this chapter in life and in real estate is figure out where you are and start a path from that precise moment.
00;08;48;19 – 00;09;02;20
Unknown
So we talked about it on the podcast. Before we talk about it in the chapter, you know, I had a friend once use the analogy of a mall map, right, where it’s like you go to a mall and you have the little you are here. Star and you look at where you want to go to on the mall map.
00;09;02;20 – 00;09;22;08
Unknown
If you’ve never been in that mall, and then you can create a path from you are here to where you want to go. Well, so many of us forget to start with, you are here. And that’s really what the point of this chapter is, is you’ve got a success map starting from where you are. Yeah. So the real estate application principle is locating and investing in purchase worthy properties time and time again.
00;09;22;10 – 00;09;55;13
Unknown
It takes a tremendous amount of knowledge and expertise performed during quiet yet continual applied and arduous effort. Yeah. So that’s. Yeah, so that’s principle six, right? So principle six is success is earned not given. And what Steve just talked about, the real estate application of that and the focus here is that, you know, we wanted to make the point that so often success is only visible once it achieved because you’re forgetting to celebrate and acknowledge micro wins along the way.
00;09;55;16 – 00;10;14;00
Unknown
And there are so many we were just before we jumped on and started to record this podcast, we were just talking about something that you’re working on. I was talking about something I was working on. You were up super early this morning working on it. I was here at the office late last night working on it, and nobody except everybody listening to our podcast right now knows that we were doing those things.
00;10;14;02 – 00;10;38;01
Unknown
But the reason that we were doing them is because sometimes it’s work done in the dark that will eventually be recognized in the light, meaning there are things that will be required that you may not understand or see. And this when we look at the book Do Chapter six is where the meat and potatoes, like everything leading up to chapter six in the book, is like the appetizer, right?
00;10;38;01 – 00;11;04;15
Unknown
It’s delicious. It’s really yummy. You know, maybe you have some kind of fruity little drink with it and you’re like, This is fun. I like it. I’m enjoying it. But then chapter six is Meat and freakin Potatoes, Man. Chapters six, seven and eight. They are the heart and soul of the real Moneyball real estate formula, where we are literally pulling the curtain back and giving you every bit of our secret sauce and formula that you could ever possibly want with the intention.
00;11;04;15 – 00;11;23;29
Unknown
Steve We wrote it this way so that if somebody were to take this book and read this book and use it as a guide, they could literally go and try to duplicate what we do. The reason why we don’t mind putting that in the book is it’s taken us 15 years and we are still figuring it out to get better and better at it.
00;11;23;29 – 00;11;42;14
Unknown
If somebody were to read it and just try to go do it on their own, listen, good luck, but we want to give it to you. It’s right there. Yeah. And it’s kind of like, you know, with our clients, we don’t have them sign, like, a noncompete agreement. Yeah. Or with the real estate agents that we’re working with, we don’t, like, have them sign like, a 15 page nondisclosure agreement so they won’t take our secrets and go do them themselves.
00;11;42;14 – 00;12;10;24
Unknown
Right. It’s like there’s more to like the formula than words on paper. It’s how everything is put together. It is the the content, it’s the application, it’s the execution. Right? And so with everything that we have that we do is we’re pretty much an open book and we’re happy to share that. And a lot of times all of the time, quite frankly, when people see what it is, what we do, how we do it and so on, they’re like, I’m so glad that you’re doing this.
00;12;10;24 – 00;12;33;05
Unknown
This is fantastic, because if I were to have to deal with all of these different things, I just simply probably would be paralyzed and I would move forward. That’s right. Right. So and it’s kind of who not how a little bit too it’s like, okay, so we can tell you all of this stuff. You still have to go find a whole team of people that could do it in an effective way that have your best interest in mind.
00;12;33;05 – 00;12;48;22
Unknown
Good luck with that one, too. Right. And so that’s why we can kind of unlock it. And we will say just briefly, we don’t we don’t I don’t think we I’m trying to think I don’t think we wrote any stories in the book about, you know, clients that maybe thought they could go do it on their own. Maybe we did, I don’t remember.
00;12;48;28 – 00;13;04;20
Unknown
And they go try. And then what do they always do? Like 100 times out of 100, they come back and they go, okay, you’re right. That was really hard. I can’t do it on my own. And that we’ve had people that think, Oh, I’ve done so much real estate, I have so much experience and success and I am so informed and know so many things.
00;13;04;24 – 00;13;19;25
Unknown
And if they try to replicate and duplicate Moneyball real estate on their own, they may experience minor successes, but then they always come back. But we also have individuals who literally have done it on their own and have done it for many, many years. And when they come across us, they’ve been like, This looks like maybe a better way.
00;13;19;25 – 00;13;39;11
Unknown
Yeah, because now I don’t have to be the one doing it, all right? And so they get to enjoy all of the fruits and benefits of, of, of investing in real estate at a distance and utilizing all the things that we do. And they were successfully doing it. It’s just that this is a more simple and efficient way for them to continue to invest in real estate.
00;13;39;12 – 00;14;06;27
Unknown
That’s exactly right. So that is principle six. Success is not Earth. Excuse me. Success is earned, not given. And that brings us to principle number seven, the next course of the meat and potatoes of the book, which is this idea of keeping proper perspective. Now, I know that keeping proper perspective may not sound like meat and potatoes. The general principle is we want you to shift your view to reveal success.
00;14;06;27 – 00;14;33;06
Unknown
Now, there’s some really good stories here where we talk about you have to be able to put success in a context that you can sort of understand it, but where we really dive into the meat and potatoes of this chapter is the real estate application, which is choosing the appropriate investment boils down to maintaining the correct perspective. Concentrate on selecting the right markets, which in turn leads to the right property.
00;14;33;12 – 00;14;54;05
Unknown
Eliminate excuse me. Yeah. Culminating in the desired results. And this is where we talk about market selection in this chapter, and we talk about what dictates where you should be going, what are all the pieces, what are all the demographics, what are all the sort of measurables that you need to look at? And the reason why we say that requires keeping proper perspective.
00;14;54;12 – 00;15;20;12
Unknown
This is where we talk in the book about what you’ve heard us talk about on the podcast, a purchase worthy property, right, where you know, a real estate single or purchase where the property may not be the industry’s traditional definition of what makes a good deal. But we don’t really talk about it in terms of deals. We talk about the right property in the right market with the right set of conditions that produces the kind of desired results that ultimately allows you to go from 1 to 2 and from 2 to 4 and culminate in ten.
00;15;20;12 – 00;15;53;08
Unknown
That allows you to achieve some level of economic independence, and that requires an entirely different perspective than what the normal sort of real estate industry might. And that truly is a massive shift when people who have gone to real estate, education classes and seminars and that kind of thing, they get they receive a certain perspective and they they look at how real estate is perceived from, you know, from the perspective of the person teaching that that course or and in our perspective is very, very different.
00;15;53;08 – 00;16;23;09
Unknown
We were talking about it yesterday in our weekly staff meeting where our messaging is very particular. We are trying to attract to us like minded individuals who are willing to look at things from a long term perspective, individuals who are willing to look at things from a perspective that minimizes risk but maximizes gain and a perspective from which allows them through us to dive deeper into the amazing benefits that real estate can bring to the surface.
00;16;23;11 – 00;16;47;02
Unknown
Yeah, we were talking about this before we came in in terms of, you know, you know, accelerated pay off of mortgages and so on and of utilizing life insurance policies and using cost segregation and accelerated depreciation or bonus depreciation and being able to utilize self-directed IRAs and all of these different things that go way beyond and way deeper than I can find your house.
00;16;47;03 – 00;17;15;10
Unknown
That’s exactly right. And so it’s a perspective and it’s a shift in how to look at things where one property has the ability to change your life. It literally does. And and we look at it through that lens. So when we’re looking at property and we’re talking about keeping proper perspective, the perspective is a much bigger, longer term perspective, more than well, that, you know, I like the color of the paint, right?
00;17;15;10 – 00;17;34;13
Unknown
It’s so much. The other thing I would just say really quick before we move on is the other thing that in this shift of perspective is this concept of looking at what am I trying to accomplish when I’m buying real estate? Am I am I just looking at this very transactional and I want to get a property and I want to get it under my belt?
00;17;34;16 – 00;17;56;04
Unknown
Or are you making that purchase and making that decision to move forward in real estate with the bigger picture in mind, which is and you’ve said it multiple times on on the podcast, which is achieving economic independence through owning ten properties in this portfolio and looking at it at the bigger hotels like one. If I can only buy one property every 5 to 7 years, how do I stay engaged?
00;17;56;04 – 00;18;15;01
Unknown
How do I stay motivated? How do I keep things going in such a way that I don’t get distracted to chasing after the next shiny object that’s going to get me something more money more quickly, as opposed to seeing this bigger, brighter perspective of, at the end of the day, we can show people how to own ten properties in as little as ten years.
00;18;15;03 – 00;18;36;14
Unknown
That’s like it’s right. It’s something that it’s the perspective seems like it’s long, but we were just talking about how quickly time goes by. Those ten years or those 12 years go by like in the blink of an eye they do. This is really kind of Napoleon Hill 1 to 1 to I mean, for those of you who know Napoleon Hill or of Red and Pauline Hill, he always talks about having a debt, a definite purpose.
00;18;36;20 – 00;18;55;23
Unknown
And that definite purpose drives the action as opposed to the action sort of leading somewhere that you think might be a goal that you want to attain. And that’s really what we’re that’s part of that perspective. There’s one of my favorite stories in the book, too, where you that everybody should enjoy. It’s a story about Steve and his amazing wife going on a tandem bicycle ride.
00;18;55;23 – 00;19;15;25
Unknown
And you guys, I think maybe I can’t remember if we told that story in the podcast, but it’s in that chapter. And that brings us to the the other, the last course of the real meat and potatoes, which is Chapter eight, Principle eight, which is success is magically formulaic. And, and the general principle here is repetition creates significance.
00;19;15;26 – 00;19;39;05
Unknown
Now, what we’re saying in this chapter is that sometimes something feels like magic only because we don’t know how the end result was achieved. I was just at my my niece’s house yesterday and she’s had a lot of health problems. And she was hoping to go to Las Vegas for her 30th birthday because she wanted to go see Criss Angel.
00;19;39;07 – 00;20;03;16
Unknown
And Criss Angel is awesome. I’ve seen his show in Vegas. He’s used to have a show on some network called Mindfreak. I mean, the dude’s an amazing magician, but she and I were talking about his show and, like, he does these massive tricks that you’re like, Holy cow, how is that possible? But almost more impressive are the close up magic where he’s doing a card trick or a coin trick or something and it’s right in front of your eyes.
00;20;03;16 – 00;20;19;17
Unknown
And and he does that as part of the show. And what’s interesting is when we see that, like you watch America’s Got Talent, you watch these magicians. And I love watching them because I’m always so amazed at it. Right. And you look at it and you go, how is that possible? Like we’ve all said it right. We’ve all watched magic.
00;20;19;17 – 00;20;37;05
Unknown
We know that it’s not actual magic. Like Harry Potter is just a book, not a real person. Right. Sorry if I offended anybody out there, but you just blew my mind, man. I You’re like, what? Yeah, that’s typical muggle thinking right there. See? So we look at magic and we’re like, Oh, my gosh, how did they do that?
00;20;37;05 – 00;21;04;25
Unknown
But all it is is repetition. And the best magicians are the ones that do the most incredible tasks so many times with so much repetition that it becomes this significant accomplishment that when others look at it, they perceive it as something that they can’t possibly imagine. And that is huge when it comes to personal success, repetition, create significance, doing the right things time and time again, over and over in the dark when nobody’s going to see it.
00;21;05;03 – 00;21;31;28
Unknown
And somebody doesn’t have to understand how you got there. But that repetition creates something that others can view. And from a real estate standpoint, oh my goodness. I mean, Chapter eight is where we literally, like break down exactly how we measure properties and how we created our property analysis and everything that goes in and all the numbers that we’re measuring and how we’re measuring those and what’s going on.
00;21;31;28 – 00;21;52;26
Unknown
So the real estate application of the principle is the best properties for long term wealth building are real estate, quote unquote singles that magically seem to create income replacement. Measuring the correct numbers inevitably lead to powerful results. And like one of the things we talk about is so often you hear out there like cash flow, what’s the cash flow?
00;21;52;26 – 00;22;08;06
Unknown
You know, what’s the what’s what’s the this, that or the other rate of return? Listen, if you are looking at real estate just through that lens, it is a short sighted approach and it’s not going to feel like magic. But when you evaluate it the right way with the right set of conditions and you look at the right kind of numbers, that’s when it becomes magic.
00;22;08;12 – 00;22;25;26
Unknown
That’s when our clients sit across from the desk, across a desk from us during a game plan review annually, and they go, Oh my gosh, I didn’t even realize what I’ve been able to accomplish because it feels like magic, because it doesn’t have to be seen. It’s the right kind of repetition that creates the significance that becomes visible and important for somebody.
00;22;25;27 – 00;22;44;12
Unknown
Chapter nine. We ready to move on? Yeah. Let’s go. So trust the experts to do expert level work. So the general principle is if you want something done right, don’t do it yourself. Kim, how long have we been saying that? I mean, like for like the entirety of, like, I think for 14 years, 364 days? Yes. It’s been a long time.
00;22;44;20 – 00;23;03;10
Unknown
And honestly, I got to say, like, this is something that has really, like, impacted my life because I’ve finally become and we’ve talked about on the podcast, I’m like secure in my lack of manliness, right? Like, I’m okay with it. Like I’m okay that I’m not going to, like, put in a new water heater. Like, I’m fine with it.
00;23;03;10 – 00;23;19;24
Unknown
You know, I I’m not going to do that. This is embarrassing. It’s sorry. Okay? It is. It is embarrassing. I’m just kidding. And my wife reminds me of that regularly. I’m just kidding. She doesn’t. But I do know that if I want something done right, I’m not going to do it myself. There’s certain things I can do and things that I can maybe do better than somebody else.
00;23;19;27 – 00;23;39;12
Unknown
And I’m going to spend my time and effort where I have my God given talents and gifts that I can apply successfully. Man is somebody else’s really good at something and they geek out about something that I don’t really want to geek out about. I’m going to let them geek out about it and do it for me. And that is super applicable when it comes to real estate.
00;23;39;16 – 00;24;04;04
Unknown
I mean, this is why Dunphy Real estate exists and the application of the principle from a real estate standpoint in chapter nine is rely on expert real estate teams to provide expert level real estate services for you. Concentrate on what you excel at, and let seasoned real estate professionals focus on their area of expertise, bringing their extensive knowledge to bear on your personal portfolio.
00;24;04;10 – 00;24;33;09
Unknown
See, this is how schoolteachers, dentists, doctors, engineers, plumbers, elected kitchens, marketers, software salesmen, software developers, computer engineers, computer programmers how all of them can create a massively successful real estate portfolio without having to be a real estate expert and spend their entire life consumed by real estate. Right? That’s what this is. That’s that is one of the greatest keys to success.
00;24;33;09 – 00;25;03;08
Unknown
I’m a big believer in specialization is what our society has become and the fact that you can tap into the expertise of other individuals to do things that expert level quality is is what truly defines our country. I think. No, you’re right in terms of like why as a country we succeed the way that we do, why we lead the world in so many different and so many different areas is because of the highest level of expertise.
00;25;03;08 – 00;25;33;10
Unknown
When somebody gets to become disproportionately expert at one thing and so terrible at something else because they get to do this thing for everybody else. Yeah. And because of that, people get to leverage that expertise and succeed in a way that they never otherwise could. I always like to kind of think of it as this is how busy and successful people can remain busy and successful in the thing they want to be busy being successful at, but still be able to add real estate to their life.
00;25;33;10 – 00;25;54;12
Unknown
Right? That’s that’s really what this is. Awesome. Okay. Principle ten. I love this one. Principle ten is do it now. We this is if there was a theme to the Replace your Income podcast, it’s probably this chapter, right? It’s do it now. The perfect time to invest is always when now now it’s always now. It’s never not now.
00;25;54;17 – 00;26;14;02
Unknown
It’s always now. But what if the market isn’t good? Okay, I have an answer for that. Invest now. What if it’s, like, just mediocre? Oh, yeah, No. Good question. Invest now. Yeah. Just so. I mean, I just barely put out a video right? Yes, it’s a great idea, but the market today, like, you can go to the YouTube channel.
00;26;14;02 – 00;26;36;16
Unknown
How how do people go to where you teach. Yeah. If you were to just search DFA y real estate in YouTube, it’ll get you to or done for you Real Estate USA. It’ll get you there as well. Yeah. DFI real estate or done for you Real estate USA. Either one will get you to our channel. Yeah. So if you do happen to go there, watch our five and a half minute video on the truth about the real estate market today.
00;26;36;19 – 00;26;56;18
Unknown
Because at the end of the day, like everybody thinks that like 84% of the world of our world in the United States thinks that today is a terrible time to be investing in real estate. And I completely debunked that myth in about five and a half minutes that actually today is probably one of the best times in the history of the country to be investing in real estate.
00;26;56;25 – 00;27;18;08
Unknown
And you know what? We can say that about almost at any point, at any part of this of the real estate market. Right. Whether you’re at the at the peak or the trough or whether you’re you’re you’re going sideways, it doesn’t matter when you invest right in the right markets with the right strategy, now is always the right time to be investing in real estate.
00;27;18;08 – 00;27;38;11
Unknown
It’s so true. We tell the story of Clement Stone, who had a massively successful life insurance business, and he had this phrase. He’d say it hundreds of times a day. Do it now. Do it now, Do it now. Because doing it now always, always creates a more desired result than the sort of, you know, pushing off of of doing the thing, you know, you should be doing.
00;27;38;16 – 00;27;56;19
Unknown
And if you go back and for those of you watching and listening, go read, listen to Spencer Meacham’s episode. He talked about that. He’s like, I tried to time the market like there’s no use in timing the market. If you are going to give your real estate portfolio time, the only reason you would want to time the market is if you’re getting in and getting out.
00;27;56;19 – 00;28;12;13
Unknown
And that is a very, very risky game. So the idea is that the best time to start investing in real estate was 20 years ago. We said that all the time. The second best time to start investing in real estate is today. Now was always the right time to buy. So go watch that video from Steve. You’ll get a feel for that.
00;28;12;13 – 00;28;37;00
Unknown
And we just talk about it at a high level. And honestly, one of the things that we do in this chapter that I really like Steve, is if you remember, we go through like three or four of the last major sort of, I don’t know, cycles of the real estate market. And we talk specifically about the strategy we adopted in each of those sort of cycles and how successful it was.
00;28;37;00 – 00;28;53;07
Unknown
And the interesting thing was there, every one of the cycles had its own benefits and negatives, but it always made sense to invest. So we’re literally like, I don’t care what’s going on. We’ve seen the worst of the worst and the best of the best. It’s always made time to buy if you get if you give it time, right?
00;28;53;09 – 00;29;13;06
Unknown
Yeah. So go to our YouTube channel, look for that video. And also take a look at some of the other shorts on a myriad of other subjects like this. Shorts are actually like really quite fun. They’re also are our podcast, Justin Hood. Our podcast producer is Justin Hunt. We need to come up with the name like Snerdley. Yeah, we could just call.
00;29;13;07 – 00;29;33;12
Unknown
I mean, we could just call him like Justin. Okay, let’s do our friend Jesse Kelly has Christmas, so he’s off camera. Rush Limbaugh had Snerdley where Just get Justin Never was this going to be all right? Jesse said He’s done a phenomenal job putting together like these little shorts, and they’re so fun to watch. Anyways, go go to go to our YouTube channel.
00;29;33;12 – 00;30;00;24
Unknown
Enjoy some of those. Yeah, Just in case you haven’t checked them out, go check them out. Roland, What’s the dad jokes? Okay. Chapter 11 is Principle 11 is beyond the Benjamins. Pursuing economic independence over wealth accumulation. And the general principle here is to live a life. Don’t merely chase a dollar. And the real estate application is real estate.
00;30;00;24 – 00;30;25;25
Unknown
Millions do not have to be the goal. But achieving your definition of economic independence should be kept. I just have to say on that, on that concept of achieving economic independence, everybody’s heard me tell the story about my son and buying his first property. I’ve never been that one. So here’s the reality. When he was in South America serving a two year mission, that one property created economic independence for him.
00;30;25;25 – 00;30;57;22
Unknown
Like literally the cash flow from that one property paid for his living while he was down in South America for two years. And so depending on what your definition of economic independence is, if you need $1,000,000 a year to live on, then you’re going to need a lot of real estate, right, to to achieve economic independence. But our typical client is a regular American who, you know, has more reasonable expectations as to how they plan to live out their life in retirement or before in retirement, for that matter.
00;30;57;24 – 00;31;19;12
Unknown
And and and defining your own level of economic independence will define how many properties you want to go after and what kind of cash flow you need to create. And, you know, we call the book micro wins to millions. Really it’s it’s it’s kind of the principle of like Stack micro wins and do it consistently over time celebrating as you go.
00;31;19;12 – 00;31;40;03
Unknown
And they will culminate in a big result micro wins 2 million sounds cool but it also is just this idea that you stack micro wins and it will create something big. Now, when it comes to real estate, yes, your economic independence goal may be different from mine or Steve’s, but the reality is if you and we talk about this in the book, we want to help our clients get to ten properties.
00;31;40;07 – 00;31;59;06
Unknown
If somebody is reading the book, we want them to think about how do I get to ten? Because if you get to ten, here’s the reality You will own millions of dollars of real estate. You will own over $1,000,000 in real estate, even if you just do simple conservative, single family homes, you will own more than $1,000,000 of real estate.
00;31;59;06 – 00;32;11;25
Unknown
Now it’s closer to 3 million. Yeah, exactly. So it doesn’t mean that you’re going to have, like, millions in the bank. It doesn’t mean that you’re going to have millions coming in. We talk about that in the chapter two is like when somebody says this thing of like, I want to be a millionaire. Like, what does that mean?
00;32;11;27 – 00;32;24;28
Unknown
Do you want to own a millionaire real estate? Do you want to have $1,000,000 of debt that has bought you assets? Do you want to have $1,000,000 sitting in the bank as if you have $1,000,000 sitting in the bank? You’re probably not smart because your rate of return is not going to be very good. Do you want $1,000,000 in the market?
00;32;24;28 – 00;32;54;23
Unknown
Well, if you have $1,000,000 in the stock market, then it’s at the whim of the market. So does that make you a millionaire? Do you want to have $1,000,000 coming in every month, residuals every year, essentially, like so many people, put this big label of millionaire and they don’t even know what it means. And what we’re saying is micro wins the millions is the principle that a live a life don’t just chase a dollar, do the right things, and stack them one on top of the other and celebrate as you go and you will achieve results beyond what you thought was really possible.
00;32;54;23 – 00;33;16;09
Unknown
And then when it comes to real estate, you will own millions of dollars of real estate and you likely are going to be economically independent and that may be a couple hundred dollars a couple thousand dollars, couple of hundred thousand dollars. I don’t know. Everybody is different. But if all you’re doing is chasing the million dollar goal, when you don’t even really know what that means, you’re going to constantly be pursuing something that will likely let you down in the end.
00;33;16;11 – 00;33;43;22
Unknown
So that’s kind of the principle. Principle 11 Steve, wrap it up with principle. Principle 12 The Power of one How a Single Property Can Transform Your Financial Future. So the general principle is the potency of the power of one can reverberate through generations, creating a lasting impact. When you think about the power of one, meaning the first property that you get under your belt, that’s the most significant one.
00;33;43;22 – 00;34;10;15
Unknown
It’s like, Man, I ever thought I could get that done. And going through that process and learning that it’s not magic and learning that this is actually quite powerful. And when you’ve own that property, that one property for 5 to 7 years and seeing and experiencing what that did for you in terms of of net cash flow, the principal pay down the tax benefits and depreciation.
00;34;10;15 – 00;34;34;05
Unknown
And if you qualify as a real estate professional, the bonus depreciation that you can achieve through doing a cost segregation study and then of course appreciation, you put all those together, you figure out your month, your average monthly income, and and wow, you just realized that this one property increased your income by 1300 to $800 per month. Crazy.
00;34;34;05 – 00;34;49;17
Unknown
That is life changing for most power and for most people. And that is the power of one. Yeah, and it goes beyond that, right? It’s when we talk about this in the chapter, we did a podcast on this you we talk about the fact that that is the power of one with the property. But then look at the impact that you’re having.
00;34;49;19 – 00;35;08;02
Unknown
We did a podcast where we talked about teaching your children principles, right? What’s the impact that it’s having on them? What about the real estate agent and then the mortgage broker and and the property manager and the tenants and and the neighborhood? And there’s so many people who benefit so much more than even you will on one individual property.
00;35;08;07 – 00;35;32;06
Unknown
And that is a ripple effect that has tremendous implications. And just from a real estate standpoint, we talk about the fact that one property can absolutely change your financial life. It will have a ripple effect on more financial lives than you realize, including your own. And so we wrapped the book with this principle because we did a podcast on this probably a couple of years ago, I don’t know.
00;35;32;08 – 00;35;57;14
Unknown
And it was such an impactful conversation that we’re like, if people could just realize what the one choice to go get one property could mean for them and their families. They could understand the impact. If you listening could understand the impact that you will have on your financial life, on your kids, on your family, on everybody who helps you along the way.
00;35;57;21 – 00;36;18;29
Unknown
Like it is unbelievable. It is quite literally like dropping this boulder and it may not even have to be a big boulder. Think about it. You drop a small rock in the middle of a lake that looks like glass. Those ripple effects will spread all the way to the edge of the lake. That is what you are doing with your financial life and with the financial lives of many others.
00;36;19;03 – 00;36;37;07
Unknown
By just going and getting one property and getting off of the bench and getting to the plate and swing and swinging for a single and utilizing Moneyball real estate in micro, winning your way to millions. That is why we ended the book with this chapter, because we thought it was powerful. So there we go. Steve We did it.
00;36;37;07 – 00;37;08;16
Unknown
We did it. 12 principles spread over to Episodes. We gave you a little teaser for each one, but you’re going to have to get the book to get all the good, good, good. And we’ll have tons of content coming out, all kinds of videos, podcasts. There’s so much that we want to share with you about these principles, but we tried to wrap a couple decades of experience with clients and with real estate and with life success and achievement, and put it into a book that we honestly think can make a true, true impact on your life.
00;37;08;16 – 00;37;29;01
Unknown
So we can’t wait for you to read it. So that’s all we have for today. Thank you, everybody, for for hanging out with us. We hope this was enjoyable. Stay tuned. We have another awesome episode coming up next week. So we’ll talk to you then. See you. Take care.
