Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
Now look, home runs win games too, because you get runs. It’s a quicker way to get there. But listen, if I told you you could have 14,000 singles or 1300 home runs, which would you choose? My guess is you’d probably take the 14,000 singles. It’s more frequent, it’s more duplicatable. It’s more reasonable for people to be able to achieve those things, and that is the whole idea behind the Moneyball mind and the Moneyball mindset.
What would your life look like if you could replace all of your working? 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.
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 Earl. Well, hello everybody and welcome to Replace Your Income with Kevin and Steve.
Good morning, Kev. How’s it going? Good man. What are you doing? Recording some podcast. Just hanging out. Just hanging out. Just talk with you and getting ready to record One of the best podcasts ever, ever. I was at home this morning with my kids. We’re recording this right at the end of December, and so we’ve got a couple cousins that are over.
For just for fun. Like they’re just staying with us. And I told ’em I was gonna go to work. I was like, Hey, I’m gonna go in and record some podcasts. Do you guys wanna come? And they were like, No. And I was like, I thought kids would think that podcasting is cool. They were like, it was like nothing. It was like, who cares that you’re recording a podcast?
And Steve, I want you to know, I think it’s pretty cool that we get to record podcast. Three years ago, I didn’t even know what the word meant. So , You know what I’ve realized? I don’t know if you guys listening if you’re like this, but literally I almost exclusively listen to podcasts now. Like pretty much the only time that I listen to the radio is if I don’t have a new podcast to listen to in my truck.
I, That’s literally it. Yeah, it’s like, I almost all of my listening, whether it’s music and news and information and sports, I pretty much listen to all of it on podcast. Well, it’s pretty awesome when you think about it that you can actually choose the subject that you wanna listen to as opposed to like turn on the radio and see what they happen to be talking about.
Yeah. And then you just kind of like, I guess, decide that it’s like I’ll let them make the decision for me. Yes. So it’s pretty cool like that on demand. You can have this ready to go and Yes. You know what else is kind of cool about it is like you can know a lot about a person. If you look at their top Listen podcast, like you can know what they’re really interested in and who they really are.
You know what I mean? Oh yeah, absolutely. That, that is 100% be like, you know, they could pretend that they’re like all high brow and educational, but like they only listen to like trash, like pop culture podcast. You’re like, Hey, I know who you really are. I know who you really are. No, it’s funny cuz I think about that sometimes.
I’m like, I look at my podcast lineup, I’m like, is this a good reflection of who I am and what I listen to and most of my podcast. It’s like politics, sports, us, and like business, right? Yep. Like that’s pretty much my top list. So, you know, it is a good reflection. So we’re glad. We hope that this podcast is on your top.
Listen to podcast cuz we appreciate you guys so much and we’re always so thankful to be able to connect with you. And to have you guys come and listen and, uh, we hope that you continue to refer the podcast. If you ever hear something that you like or you hear something that you despise, we’re good with it.
Either way, just share it with others because we wanna help the podcast grow. It’s continued to grow. And, uh, you know, we’re so thankful for all of you in helping us do that. And hopefully Steve. 2022 will bring incredible lineup of podcasts, some of the best topics ever. And we’re gonna kick that off with revisiting a topic today that we talked about a couple years ago when we started the podcast.
So when we started our podcast, we did our first five episodes and we called them our foundation episodes, and they were kind of like, Those things that are, are maybe the most important for us to really address and say, Here’s who we are, here’s what we do, here’s how we look at the world, and one of those that we talked about, and we talk about it from time to time on the podcast.
Why we think that real estate always wins, and, and I wanna say that again. In our opinion, we think that real estate always wins. Wins against what? Listen. We would rather have real estate than stock. We would rather have real estate than index funds. We would rather have real estate than cryptocurrency, even though you and I both have good friends that have completely crushed it in crypto and will circle back and talk about that.
We would rather have real estate than almost any other investment class out there simply because of the things that it does. And you said something before we jumped on Steve, which was, Real estate is multi. Dimensional. And that is one of the reasons we think real estate always wins. So we wanted today to talk about that.
Why does real estate always win? How is real estate multidimensional? How does real estate give us multiple ways to generate income and generate growth more than just one way, which is like the market goes up or whatever. Yeah, and we totally get that. We’re kind of like preaching to the choir here that most people listening to this are pretty similar, like-minded.
They think that real estate’s pretty good, pretty cool, but ke. We live real estate, right? Every day, all day. It’s what we do. It’s what we eat, drink, sleep, this stuff. But the one thing that all humans have in common is that we all forget. Yes. Right? We forget things. And so a lot of the things will, that we’re gonna kind of review and discuss with you today are things that you know, but I think it’s just gonna be a good reminder and a great way to start the.
And just reminding all of us of all of the great benefits that come from real estate in this concept of it being multidimensional. Well, and, and Steve, you and I are both pretty religious people and you know, I think about what we do at church and like we learn the same thing over and over and over again.
Right. It’s like the same scriptures and we talk about the same topics. And you know what always happens to me based on what’s happening in my life, I always get a different perspective. I always get a slightly different viewpoint based on what’s going on. And it always helps me to grow as a person. I was listening to, uh, I was actually listening to, I was shoveling snow this morning and I was listening to one of the sports podcasts that I like.
And this particular, it’s, it’s, I’ll give it a shout out. So locked on jazz. So David Lock, So I’m a, I’m a big basketball fan, so this is the Utah Jazz Podcast. David Locke, who’s the radio voice of the Utah. He does this daily podcast, right? And he just talks about what’s going on with the jazz. And he had been listening to a business podcast that was talking about like the top nine characteristics of the most successful people.
And what David Locke was saying is one of the players on the Utah Jazz Rudi go Bear emulates a lot of these, right? And Rudy has really grown as a player. But one of the most important thing that David Locke was talking about, and that is the reason we’re talking about this, is that. When we as humans, desire to grow instead of be perfect when it’s, there’s a commitment to just getting better.
When there’s a commitment to just learning a little bit more, to making a slight bit of progress, that is a characteristic of the most successful. I look at people that that desire to be perfect, have the perfect investment, hit a home run with real estate, be a perfect dad, be a perfect business person.
The people that strive for perfection largely fall short. And what it ends up doing is it ends up. Giving them a little bit of a, of a deficit mindset, right? Where they go, Oh my gosh, I haven’t reached my potential. My investment hasn’t reached its potential. And so instead of celebrating along the way and celebrating the little incremental growth and the little wins, they look at where they wanna get to and they look at the deficit of where they’re at.
And it actually can interrupt one’s progression. And so when we talk about topics like this, it’s one of the characteristics of the most successful, both of real estate investors and of humans. Can you get a little bit better? Can you learn a little bit more? Can you look at the world through a slightly different lens and understand something that you already know in a slightly different way?
Cuz if that little incremental growth can make you someone. Better, someone smarter, someone faster, someone stronger. That’s where people really make tremendous progress. And to this point, Steve, you and I eat, sleep, breathe, drink this stuff. We are writing a book on it right now. And even as we were talking about this podcast episode we were going through and going, Okay, well what are the things that we SuperDuper love about real estate?
How it always. We came up with a word that we’ve never quite related in a really profound way to why real estate is so amazing, and I think we should start with that because it is a concept that even if you have listened to all of our episodes, even if you have heard us talk about. All of the, the ways that we love real estate compared to other things.
This is one that you and I even in just talking about this with Holy cow, there’s a little bit of growth, there’s a little bit of evolution. So what were we saying before, Steve? What is one of the things that we love about real estate that you and I never really fully, I guess, given form to, in terms of this word and how we look at it?
Yeah, and so there, there are two words multidimensional. And the one that you’re referring to, I think yes, is duplicatable, duplicated. Yeah, the concept that, at least with the type of real estate that we do, it’s very duplicatable. When you’ve bought one home with Dun for real estate, you’ve bought a hundred mm-hmm.
because they’re all like, although every home is very different, every deal is slightly different. They kind of produce almost exactly the same results, and they’re managed almost exactly the same. And they’re found largely in, you know, all the markets that, that we’re in and across the country. Right. Like there’s a duplicatable.
To what it is that we do in terms of the real estate that we like to invest in. Yeah. And that is one of the keys, right? Hey, if you buy one, you pretty much know what the results are gonna be, regardless of the color of the house, whether it’s brick, whether it’s stucco, whether it’s, you know, siding. The end game is pretty much the same.
It is duplicatable. Yep. I can’t remember if we’ve talked about this on the podcast. Did you ever watch that movie called The Founder about McDonald’s? Yes. Okay. So do you remember the scene when the original McDonald’s, This is my favorite scene of the whole movie. The original brothers who started McDonald’s, they’re on a blacktop playground.
Yeah. And they’ve drawn on the ground where the fry station is, where the hamburger station is, and they bring their employees and they practice choreographing around each. To do the job because they understood something before Ray Crock comes in and, and is it Ray Crock is that name? Yeah. Yeah. Um, you know, changes some things and decides to go with non milk milkshakes and all of that stuff that they kind of catalog in the movie.
What I loved about that scene with those McDonald’s brothers they were working on. Duplicated boldness, , but that’s what they were working on. I’ve always said this, I’ve always said that I love systems because systems increase predictability. Predictability minimizes and mitigates risk, Minimize and mitigated risk increases potential.
Benefit or profit or return. Right. And so I always love systems and it creates predictability. Yeah, predictability. Could you say that, You probably already said that systems increase predictability. There you go. and predictability then, you know, can minimize risk. Yeah. And, and, and so this idea of predictable and duplicatable, I never know if you’re supposed to say.
Duplicable or duplicatable? I say duplicatable because I’m not as smart enough to know any different, but, but I, then it makes more sense to me. But duplicatable real estate can be duplicatable if you put it into a system. This goes back to the whole thing that we’re putting in the book, right? Why do we like, The Moneyball mind.
Why do we like Moneyball real estate? Because you’re hitting singles. There are swing mechanics. There are ways that you can view the pitch as it’s coming. And if your goal is to just make contact and get on base, that is so much more duplicatable than knocking the ball 425 feet. Right? And think about it, if you think about home runs and you think about it from a baseball mentality, how often are people knocking?
I wish I could look up and. How many singles are there in any given season? I may try to as, maybe I’ll just kick the mic over to you and you can talk and I’ll try to look it up, . Cause I’m interested like how many singles are hit in any given major League baseball year versus how many home runs. And my guess is, There’s probably a massive disparage because it’s easier to duplicate a single than it is to duplicate a 400 foot homer over the center field fence or whatever the case may be.
And real estate is much the same. It can be predictable and duplicatable when you do it this way, which is why we love it cuz yes, there’s all the other stuff that we’ll go through. But this idea, you and I had never really considered that, that word duplicatable for real estate. That’s really what it is.
When our clients come back to us and they, you know, if you list to the last episode, hopefully you went and got. An annual and property and market review, and hopefully you even maybe initiated a refinance or the sale of one property to go get a couple more. But when you sell one and you go get two, it’s gonna be a duplicatable process.
From this standpoint. You are still gonna get pre-approved. You are still gonna look in a market that’s a three bed, two bath, two car garage. Type of market that’s probably in a suburban area that attracts a good tenant. You are still gonna go through a finance process. You are still gonna have, uh, the agent show you properties.
You’re still gonna have to get an appraisal. You’re still gonna find a tenant that’s gonna hopefully be an awesome tenant where you can cash with that property. You’re still gonna have an account executive. That’s holding your hand through that process. If you’re doing it through D FY and then you’re gonna get that property rented, you’re still gonna cash those checks, like that whole process.
It’s not like this, Well, on this property that I’m buying, I don’t know if it’s gonna be a $50,000 rehab or a $70,000 rehab. I don’t know if I’m gonna have to replace all the plumbing or if I’m just gonna have to replace the roof. Like in general, when you do real estate like this and it becomes duplicatable, it becomes more simple, more predictable, easier to handle, and to manage.
And that can create some incredible long term benefits, both for peace of mind, but also for the pocketbook. Yeah. So I’m gonna use the other version of the word. So do, do applicable. Do. Yeah. When, when you can do that, like, things become predictable and, and it becomes, you know, it’s just a very powerful way to invest.
Now the other word that we started talking about was, um, Multi, Multi, right? Yeah. The Faso. Multidimensional. Yeah. Multidimensional. And so if you wanna talk to that a little bit, like, and this is the part where I think, you know, most people listening today are very aware of all the different sources of revenue that come through ownership in real estate.
Yeah. So all the way from, you know, the net cash flow on a monthly basis to the appreciation to the depreciation, to the principal paydown that your tenants are making every single month to the appreciation and. That’s the, the multidimensional part of real estate, right. Where everything comes from. And I would add to that, just the different things that you can do with your real estate that you can’t do with other investments.
Most other investments are, they’re not multidimensional, that there’s just, you know, there’s one way to make money. And that’s if it goes up in value. Right. Well, yeah. There’s not all of these different aspects. That’s exactly right. And you know, You look at what, what generally happens with like index funds or with stock market stuff.
And I’m not saying that’s bad. I’ve got an awesome nephew who probably listens to this cuz I know his dad does. And he had an awesome post that was like, Thank you Elon Musk for paying off my Jeep. Right? Because he’d been really smart about when he got Tesla stock and that really grew and it did awesome for him, right?
But the point with that is like, If all I’m gonna do is buy stocks, I have to pick and choose winners, and I have to pick and choose winners at the right time so that I can get the right increase. And we could say the same thing for cryptocurrency, right? You and I have friends that have done very well in cryptocurrency.
We’re so thrilled for them. We love them. We’re so excited that they’ve been able to crush it. But they had to pick right? And they had to pick right at just the right time and then they had to write it for as long as they’ve rid it, right? I mean, you and I own some cryptocurrency. It’s not made us wealthy.
We haven’t heavily invested necessarily. But it’s also like you gotta pick just the right thing at just the right time and time it perfectly, and know right when to get out and write what to do. That is pretty difficult to duplicate because there’s so many factors that are outside of your control. Like, think about it.
Can you control when it goes? No. Can you control when it goes down? No. Can you control what the public is choosing to believe about any given cryptocurrency or any given stock, which is gonna have an impact on the stock price? No. But with real estate, because it moves so much slower. Real estate does not change value on a whim because the public opinion sways one way or the other.
So if I’m trying to time stock, I’ve gotta consider public opinion. I’ve gotta consider how much I’ve got in it. I need to know when I’m gonna sell. I need to know when I’m gonna buy. I need to make sure it’s the right stock. I need to make sure of all of these things, and then I gotta time it just right.
That’s my kidding. A home run. The wind has to be right. The pitch has to be right. Your swing has to be right and it’s gonna happen. Often than being able to hit a single, Cuz now the wind doesn’t really matter and the pitch may be a little wonky, but if you could just get that bat around or whatever that case may be.
And so when we look at the multidimensional aspect of real estate in this multifaceted way that we can make money, what’s cool is that multifaceted thing. It means that we don’t have to have everything line up just perfectly for real estate to still make money for us because real estate makes money in more ways than.
One of the ways is cash flow, but that’s just one of ’em, right? So in fact, we’re gonna do a podcast. I think it might even be the next episode. Cause we’ve been talking about this. Is it still worthwhile to buy real estate if you’re cash flow negative? Right. I would just pose that. Look, we talk a lot about if you’re cash flow positive, how important that is and why we like to be cash flow positive.
But here’s the question. What if your cash flow negative? Would real estate still make sense? Well, you’ll have to stay tuned and listen to that episode, but cash flow is one profit center, right? How much you’re collecting versus how much you’re spending in order to have that property. That’s one. Another one, and this is one that you and I talk a lot about, and I’m gonna let you roll on this a little bit, Steve.
You and I talk all the time about the value of leverage, leverage. I don’t know if people consider leverage as a profit center in real estate. We consider it as a type of profit center, or at least a center of being able to gain wealth and gain money in real estate. Why is leverage so important with real estate?
Yeah, Leverage is one of the, the biggest opportunities and profit centers in real estate. Or in any investment. It’s one of the things that makes real estate so unique. Like when you go to buy a stock, like if you buy a hundred thousand dollars of IBM’s stock, it’s gonna cost you a hundred thousand dollars and you’ll get a return on a hundred thousand dollars.
Whereas in real estate, you can buy a $200,000 asset with a $50,000 down payment, and you’re still gonna earn the increase in value on that asset. At a $200,000 value as opposed to the $50,000 that you put into it. So, you know, leverage is one of the greatest benefits and one of the, the greatest components that makes it a multidimensional investment.
So the power of leveraging and everybody listening today understands a, I think. The power of, of leverage. It’s the concept that you get to put in a fraction of what the value of that that investment is, but you get to reap the benefit on the entire value of, So cool. Yeah, I mean, that’s so cool. So you’re literally, And then here’s the other thing with leverage, right?
This is another profit center. So not only are you reaping the benefit of the full amount of the real estate that you own without having to put all of that money in, but even the money you put. It sits there in it’s pretty little basket and it just kind waits for you to come and pull it back out to go do real estate and the debt or the payment that you incur in order to leverage that real estate.
It’s paid off by somebody else, right? Which that’s another profit center. So principle pay down, principle pay down. Sometimes I don’t think we realize how powerful that is, right? That like, Okay, I own this real estate. Somebody else is paying, effectively paying my mortgage. Okay? That’s the goal, right? So even if you’re not cash flow positive, but even if you just have somebody covering your mortgage payment that is dollars in your pocket pocket, there’s a couple hundred dollars a month that’s paying down the loan because the loan is amortized over 30 years.
So every month and every month it increases. So if in month 10, your principal pay down is a hundred dollars in month 11, your principal pay down is $102, and then $104. That’s right. And it continues to increase. So every single month, your principal pay down increases. That’s like making an investment again in the stock market of say, a hundred thousand dollars or whatever your down payment on house is gonna be.
And then every month. Like somebody else is like paying it down by a thousand dollars a month. Yep. Right? So at the end of the day, you still own that investment, but you own nothing on it. Well, dude, you got your money back. What? This is one thing that not a lot of people consider, So we’ve heard this for years, right?
That like, well, why would I invest in real estate when my employer matches my 401k contribution? Why do people like 401K contribution matching? It’s because somebody else is funding your investment for you. Somebody else is funding your ability to potentially be able to. Why don’t we look at real estate the same way, the same thing is happening somebody else.
And, and it goes even beyond that because look, the bank is funding your investment future, right? The bank is paying for 75 or 80% of your ability to secure the amount. Of asset that you’re buying the worth of the property. So you have the bank contributing 75 or 80% to your ability to acquire this asset.
Then you have tenants that are in there that are paying down what is owed on that property. So that is real dollar principle. Pay down benefit to you so you don’t just have one source 401k employer match. It sounds great. My employer matches my contribution. You’re contributing. The employer is contributing simultaneously and it’s tied to the market in real estate.
The bank is contributing. Your tenant is contributing. And guess how much you contribute to your real estate on a regular basis. Once that initial bit is done, you’re kind of done right, Like your, that money’s gonna come back to you when you go, when you sell the property. So every single month, you effectively have two people helping to fund your investment that you own.
That is worth way more than the money that came outta your bank account in the first place. So is that even better than an employee contribution match? I don’t know. Like run your numbers like an employee contribution match. It’s awesome. It’s free money. Like why would we say no to it? But I just want you.
Look, we always say you gotta look at the world through a different set of lenses, and this is a way that I don’t think a lot of people view their investment real estate, that somebody else’s funding. Your two others are funding your investment that you keep a hundred percent of the cash flow, a hundred percent of the tax benefit, a hundred percent of the appreciate, like you are the one that owns all the benefits of the real estate, but you’ve got somebody else funding it.
I mean, that is crazy, but that’s true. That’s what is so cool about leverage real estate in this. Kevin, we talk all the time about making data driven decisions. Yeah. And it, this is no different, right? So we’re talking about the different data points that you need to look at in your investments and whatever it is that you’re investing in and making the decision.
It’s like it’s good to be diversified. It’s gonna have a little bit here and a little bit there, but the question becomes, Where do you put the majority of your resources? Yeah. Right. And we’re making the argument, we’re making the case that real estate, you gotta consider real estate as the major source of where to put your resources for all of the reasons that we’re we’re explaining here.
So, so far we’ve talked about leverage, we’ve talked about the net cash flow, which principle pay down? Principle pay down, which is massive. And we’ve talked about the predictability and the duplicatable ness. Exactly. By the way, I looked it up as you were talking, so guess how many single. Guess how many hits were or singles were hit in 2020 in the Major league?
No idea. 14,439. Okay. Guess how many home runs? How many? 1,325. 1,300. 325? Yep. What is that? So that’s like less than 10%, right? 1,325 versus 14? 14. 14. 4 39. Yeah. That’s so. 9.2% of the time, okay? People hit a home run. So which one is, as opposed to 90% of the time singles were hit. So which one’s more games, right?
That’s what wins the games, right? It’s a dator net stacks up. Now look, home runs win games too, because you get runs. It’s a quicker way to get there. But listen, if I told you you could have 14,000 singles, Or 1300 home runs, which would you choose? My guess is you’d probably take the 14,000 singles. It’s more frequent, it’s more duplicatable, it’s more reasonable for people to be able to achieve those things.
And that is the whole idea behind the Moneyball mind and the Moneyball mindset. Now, what would be another interesting thing to, to look up of those home runs hit How many people hit those home runs, Meaning it takes a certain special kind of a person. That’s true hit. That’s true, right? A home run. And whereas like the rest of us.
Schmucks out there. Yeah. It’s like if we , if we relegated ourselves to just hitting singles, we’d win the game. Yeah. Probably every single time. That’s right. Right. And so we don’t have to even try to hit the home runs. Because probably 9.9 times outta 10, if we’re swinging for the fence, we’re going to strike out.
Versus if we, if we, you know, make game and we just make contact with the ball and we’re trying to put, place it, position it, the chances of us hitting a single and getting on base are so dramatically, drastically higher. That’s exactly right. It’s just, I mean, stats are kind of fun. It’s kind of crazy. I was trying to look this up and see if I could figure out how many, So the, I know that the Dodgers hit more home runs solo home runs than any other major League team.
I don’t know if I. I can get a breakdown by team, but I, I don’t know if it, Oh, here we go. Well, it has like players that hit 10 or more home runs. So point is there’s a lot of players in the major league and even just this list of players that hit 10 or more, guess how many is on that list? So here, let’s just do this real fast.
Okay. So let’s, I’m gonna Google real quick. I’m gonna Google how many players are in the mlb. Okay, We’re just gonna do that. How many players in the mlb? Let’s see. Grass shows on opening day rosters, so, Okay. It looks like there’s probably over a thousand. Players in the mlb and there were 14 of over a thousand that hit more than 10 home runs.
So 14 out of a thousand. So 14 out of a thousand hit more than 10 home runs could duplicate the ability to get a home run. Now, if we were to go look at how many bats they had, we’d probably see that the home run was a very small percentage of those. So 10% of hits were home runs? Yes. 90% were singles.
Yes. 1.4%. of out of a thousand players, were able to even hit more than 10. More than 10. More than 10 home runs. 10 home runs, right? Yeah. And. That’s crazy, man. Yeah, I mean that. So in other words, like look, the reality is like the duplicated ability of being able to go hit home runs is look the, I think the stats would prove out it’s minuscule.
I know that the stats would prove out for real estate because that’s why the money bomb mind is so powerful. Kevin. Yes, dude. How many people do we know that if gambled in real estate and have. There is only a handful that really do well if they’re swinging home runs. It is a small, small percentage. And I would say that the same thing could be said, like we always talk about in this country the one percentage, the people that have the most money, like what percentage of people are these hedge fund managers that are absolutely crushing it versus what percentage of us are making a little bit in the stock market losing a little bit in the stock market.
So, but you look at our client, Steve, let’s juxtapose. You look at how many of our clients are able to go and hit a real estate single, what percentage of our clients that get preapproved are able to go and hit a real hundred percent? 100%. So look at that. So you go from a 1% ratio, 1% ability to be able to go hit a home run in the major league to done for you real estate clients.
People that are going and hitting a single and a hundred percent of them are able to go and hit a single. That’s why we do the preapproval. Let me just share this with you. So of the people who held onto a property for at least five years, even individuals who had what at the moment in time seemed like big issues with their properties, like massive water leaks, or we would even consider like, like significant events where it’s like, oh man, it’s like, The, the properties that our clients by typically don’t have these types of expenses associated.
Yeah. Even those people who thought that they had swung and struck out, Right. Yes. And bought a lemon. Yep. If they made the repairs and they, they bit the bullet and they figured it out. They, they covered the expenses. Five years down the road, like 100% of the time our clients like won the game. Meaning?
Meaning the property ultimately did what the performer predicted it would do. Yep. Right. Or better. Yeah. Or better. And so, So guys, okay, so why real estate? Why this kind of real estate? Why Moneyball real. Why does real estate always win? Because we’re literally playing the percentages. Like if that’s, I didn’t know that that’s what this podcast was gonna evolve into, but that’s why we love to have these conversations cuz it’s part of the multidimensional investment that we’re talking about, Kevin, because in order for you to win, you’ve got multiple things working into your benefit, right?
We talked about cash flow, we talked about leverage, we talked about somebody else funding your investment by having the principal pay down and even the bank funding a piece of that. We talked about how that creates. Duplicatable and predictable approach that statistically is far more sound than going and hitting real.
You know, home runs. We didn’t even talk about the fact that real estate hedges, inflation, we’ve done a couple episodes about that, but real estate can hedge inflation for a whole variety of reasons. That’s another profit center. That’s another part of the multidimensional benefit of owning real estate.
We haven’t even discussed appreciation yet. Appreciation is another one of the multidimensional aspects. The appreciation. That’s the only one that is like typical crypto and 401k. I invest, I hope that it grows. That’s appreciation, right? That is, all of that is, But even that is to a degree predictable.
Yeah. Well, yeah. Well, with real estate, it. With real estate, you can look at statistically like, and you could say that about the stock market, right? That the stock market is predictable. I don’t know if you could say that about, You cannot say that about cryptocurrency yet, right? Not yet. At some point, maybe at some point you probably can.
We probably need 50 years. I mean, I don’t know how long, but it’s gonna take some time for us to be able to say, okay, we kind of have an idea for crypto. I mean, the stock market’s been around for what, couple hundred years or something like that. I don’t know what the advent of it was. At least a hundred years.
Cuz we know the crash was like in what, 1920 or whatever. So the stock market’s been around, so we’ve got some data. Real estate’s been around since people started to settle the United States of America and had the ability after the Revolutionary War to own property, right? When we were able to break away from Britain and we were able to not just be stewards of a property, but to.
Own our property. So we’ve got stats on real estate, we’ve got stats on the stock market. We don’t know with crypto yet, but the reality is we understand that there is a predictability even to the appreciation, but with the appreciation, that’s the predictability that people rely on. When you have your employer match your 401k, when you’re looking at the stock market and you’re looking at, Okay, I’m gonna average, I hope, six or 7% growth, right?
Like that’s the hope, but that’s one profit center. With real estate singles, you’ve got cash. And you’re using leverage and somebody else’s funding your investment and it’s gonna hedge inflation and you’re gonna still get that appreciation. And we haven’t even talked about tax benefit. That is all under the umbrella of this duplicatable nature of real estate that our clients are statistically seeing a far better rate of success, Like a hundred percent of our clients that get preapproved and go by real estate and don’t sell it after a month or two.
If you run. The system, if you are owning it for at least a few years, you see a hundred percent success rate. You can’t say that about almost anything else. I mean, it’s insane. Right? And by the way, this is, we are not making any sort of guarantee of results or any sort of a guarantee. Like you never know, like somebody could buy a piece of real estate.
Man, the market could crash tomorrow and you could sell it at exactly the wrong time. And you may walk away saying, Oh no, I lost out. Like we understand that, right? So we’re not saying that guaranteed money goes into real estate. You will make a bundle. That’s not what we’re saying. We’re saying that you look at it statistically.
You look at the Moneyball mind, you look at Moneyball real estate. You look at hitting real estate singles. You look at playing the percentages, both for average, everyday normal Americans like Steven, I and you. And you say, What’s duplicatable? What’s predictable? What creates a system that. Gives us an environment to create success that gives us a multidimensional approach to owning real estate and owning profit centers more than just one profit center that’s dependent on conditions outside of your control.
You put all of that into the blender and you press go, and you’ve got this amazing, delicious smoothie. Of potential success. And it’s really, really cool cuz it all goes into the blender. You’re not leaving any one of those ingredients out because real estate gives you all of that. And that’s why we say that real estate always wins.
So Kevin, do we need to have like at the bottom of. Of this episode and every other episode like that, certain general’s warning before you drink this real estate smoothie. Yes. That, uh, like what all the different side effects I think we do be Yeah. Because real estate can be stressful. Exactly. Real estate can help make you lose your hair.
Yes. Real estate can cause sleepless nights real estate like so. Yeah. Like that’s awesome. Like we’ve talked about real estate being like the best investment ever and we believe it is, especially when you compare it to other things. It does like every investment, including real estate, including the real estate that we, you know, do, it comes with, you’re gonna, Yeah, that’s right.
Risk and headaches and what’s the disclaimer we have at the bottom of all of our emails? I don’t, You could lose all of your money. I don’t. Yeah. Something like that. But, but the reality is any investment, right? As much as, as we believe in and have seen success, you know, with our clients who hold onto their properties for five to 10 years, like the success rate is.
Like awesome. It is. It is awesome. And it goes back to that statement I made earlier guys as well. We’ll kind of leave you. If you have a duplicatable system, the system is Moneyball real estate and whether you’re doing it with done for you real estate or not, if you go by single family residential real estate purchases in some of the best markets in the country, three bed, two bath, two car garage type properties that are generally in a price range that’s right now is gonna range between 200 and $250,000 more often than.
But it’s gonna be properties that are popular among people looking to rent good neighborhoods, b plus type properties. You go do that, you rent it out, you hang onto it for 3, 5, 6 years, whatever it is, that Moneyball real estate approach, that’s the system that can create predictability or increase predictability and increased predictability.
Generally minimizes and mitigates risk, and that’s the key. You have a system, a duplicatable system, Moneyball real estate that can increase predictability, that increased predictability, can minimize, not eliminate, minimize, or mitigate risk. The minimized and mitigated risk can help to boost the overall benefit of owning.
Investment real estate. And that’s really what we’re talking about here. And so yes, we say that real estate always wins. Yes, we have a hundred reasons why we believe that. And I hope that this episode was a good rehashing of those. I still feel like we barely scratched the surface, like we could go on forever about this stuff.
And listen, if you’re listening to this podcast, I know we’re probably preaching to the choir. Maybe this will just give you some ammunition. When you go talk to old Uncle Lester who’s like, What are you doing with your real estate craziness? You could be like Uncle Lester. Check this out, whatever it is, we appreciate you.
Thank you for listening. We hope this was beneficial and helpful. And, uh, Steve, any last words before we sign off? Gosh, I think I’m all spoken out. Okay. All right. We sufficiently drained Steve of all of his wisdom and words. All right, you guys. Well, thank you so much for tuning in. As always. Please subscribe.
Please follow the podcast. Please go give us a five star review if you haven’t yet. Please share this with family and friends. We appreciate you so much and we’ll talk to you real soon. Have a good one. Thanks for joining us on Replace Your Income with Kevin and Steve. Do you wanna learn more about our company done for you real estate and to see if you qualify right now today?
To begin replacing your income with simple and conservative real estate investing done for you? Visit dfy-intro.com. Click the orange button, watch. Super quick webinar and fill out the little form on the right side of the page. You’ll know within 60 seconds if you qualify to begin replacing your income right away.
As always, please rate, review and share the podcast with friends and family. And until next time, just remember income replacement for you and your family may only be one property away. See you next week.