Fundamentals of Real Estate Success : 3 Most important Questions Answered
Summary
TLDRReal estate investors Danny and Flip share their journey, failures, and lessons learned over 15 years to help others avoid common mistakes. They explain the difference between active and passive investing, noting that many pursue active flips/wholesales as a side career without realizing the time/money pitfalls. They advise assessing your goals first, deciding if you want an extra job or passive income, and finding a trusted team. They believe you can try both active and passive small-scale first to decide which path works best before committing. Ultimately they now focus on quality of life and giving back, using a trusted team for active work while they passive invest.
Takeaways
- 😟 Make sure you understand where your money is invested and what the associated risks and returns are
- 😀 Ask key questions upfront - who do you trust, where do you want to start, which path is right for you
- 😕 Going down the wrong investment path can cost time and money
- 🤔 Evaluate both active and passive real estate investing to see which fits your goals
- 😠 Real estate investing has risks - be prepared to lose some money
- 😊 Mitigate risks by diversifying and doing enough volume
- 🙂 Take the time to design the lifestyle you want before investing
- 😀 Find an experienced team you can trust to educate and guide you
- 😉 Set boundaries and timelines when exploring new investing avenues
- 💡Teach and learn from both successes and failures in real estate
Q & A
What is the biggest mistake real estate investors typically make?
-The biggest mistake is going down the wrong path by not knowing where to start or which investing path is right for them. Many jump into being active investors without realizing it takes a lot of time and work on top of their regular career.
What three key questions should real estate investors ask before getting started?
-The three key questions are: 1) Where do I start? 2) Which path is right for me? 3) Who do I trust?
What is the difference between being an active real estate investor versus a passive one?
-Active investors are involved in the day-to-day work of finding, fixing up, renting out, and selling properties. Passive investors provide funding to other companies and people to do the active work while they collect returns.
What does the lifestyle design worksheet help investors determine?
-The lifestyle design worksheet helps investors determine what they want and don't want out of life. This clarifies whether they should pursue active or passive real estate investing based on their goals.
Even with experience, do the hosts still lose money on real estate deals?
-Yes, even with their 15+ years of experience and safeguards in place, the hosts say they still lose money on some deals. This is why they focus on doing high volume - to mitigate the risk.
What is the show's purpose for providing education about real estate investing?
-The show wants to help people avoid common mistakes and years of lost time and money by educating them upfront so they can make wise decisions and live a higher quality life.
What are some examples of passive real estate investments they recommend?
-Some examples are private money lending, real estate syndications, Turnkey rental properties, and master notes.
What current passive opportunity do they discuss that helps reduce tax burden?
-They mention the Cottonwood Town Homes opportunity which allows investors to get a $30K-50K tax write-off by investing $100K.
Why have the hosts structured their business to be more passive now?
-Now that they have achieved success, the hosts want to focus more on their quality of life, giving back, and side projects like their podcast instead of active real estate work.
What resources do the hosts provide for people looking to get started?
-They offer a free lifestyle design worksheet, free call consultations with their team members, and their contact info to ask questions and get help ([email protected]).
Outlines
😊 Introducing the podcast episode and key focus areas
The hosts welcome listeners to a new episode focused on examining where investors should put their money, assessing associated risks and returns, and identifying alternatives that offer true wealth preservation along with favorable tax implications. They emphasize the importance of asking critical questions upfront before investing.
😮💨 Cautioning against blindly investing money without understanding risks and uses
The hosts advise being wary of various investment options where you lack clarity on how your money is utilized and the actual risks and returns involved. They stress you should feel confident you have wealth preservation and understand all tax impacts, contrasting banks which simply use your money to benefit themselves.
😃 Relating their personal journey into real estate and subsequent pivots
The hosts describe how they individually developed interest in real estate, took realtor courses and became licensed before the 2008 financial crisis. After struggles as new realtors, they pursued real estate investing by buying distressed properties but eventually needed to change course after tapped out financially.
💡 Recommending reverse order of key questions for real estate investors
The hosts suggest real estate investors should prioritize who to trust first, then explore which investing path suits their goals, and finally identify where to get started. They emphasize character and transparency as reasons to potentially trust them.
📝 Explaining their lifestyle design worksheet for clarity on wants
The hosts walk through their lifestyle design worksheet which has investors highlight what they want or don't want across key lifestyle categories. This surfaces clarity on true goals and helps determine if active or passive real estate investing is the right fit.
⭕ Describing active vs. passive investing and the blend in between
The hosts visualize active and passive real estate investing using two overlapping circles, identifying a middle hybrid section. They characterize truly passive as hands-off like private lending versus active as demanding like fix and flips.
⏱ Lamenting investors wasting too much time and money chasing active profits
The hosts criticize how easily investors pursue active real estate investing without understanding alternatives, only to later regret the lost time with family and lost money from mistakes. They suggest instead carefully evaluating options first.
🙌 Expressing passion to help investors avoid painful mistakes
The hosts explain their fervor to save investors years of wasted time and money through education on prudent options leveraging trusted partners. They aim to equip investors to enjoy life instead via passive means.
💰 Recapping key takeaways and current passive investment opportunities
In closing, the hosts summarize key lessons from their journey, urge creating clarity on lifestyle wants first, and highlight current passive opportunities like master notes and townhomes offering substantial tax savings.
Mindmap
Keywords
💡real estate investing
💡active investor
💡passive investor
💡lifestyle design
💡wealth preservation
💡tax implications
💡return on investment
💡mitigating risk
💡quality of life
💡transparency
Highlights
You should ask questions about where you invest your money and what risks you face
Real wealth preservation keeps your money safe while earning good returns
Many investors don't understand where their money goes when investing in stocks or banks
We became real estate agents in 2008 when the market crashed, giving us valuable experience
The three key questions are where do I start, which path is right for me, and who do I trust
You can be actively passive or passively active with strategies like turnkey real estate investing
Many investors regret chasing active real estate roles without considering passive options
Even experienced investors like us still lose money on deals - it's about mitigating risks
Do a lifestyle design exercise to understand what you want before deciding on investing
Set a timeline to evaluate active versus passive investing instead of losing years
Find a team you trust, then use tools like our lifestyle design worksheet to clarify goals
Our mission is giving back by sharing lessons learned to help investors avoid pitfalls
Cottonwood Townhomes can provide a $30-50k tax write-off - ask about legal tax reduction
Master Note program offers 10-12% returns with flexibility to exit annually
Learning from mistakes and lessons is very powerful - we aim to help avoid those pitfalls
Transcripts
you should be afraid of stocks and all
of the things that where you're putting
your money and you don't know exactly
what's going on and where it's being
used and what type of return you're
getting what your risks are do you have
true wealth preservation is it safe is
there a safer alternative and what is
the comparison on your return on
investment what type of tax implications
are there based on where you're
investing are you actually adding to
your tax burden or are you reducing your
tax burden there's so many questions
that people don't know that they should
be asking at the very very beginning so
that's what I really want to dig into in
this episode
[Music]
hey everybody flip and Danny here
welcome to another exciting episode of
the freedom
show yes welcome we're so excited to be
here today and today we're going to have
a flip and Danny solo episode but it's
not really a solo episode it's a duet
come on oh yeah good call yes this is a
duet this is not a solo all right Mr
musician whatever come on everybody
knows
that um we were actually talking about
uh before we jumped on the air uh what
we wanted to talk about today um and
many times if you followed us in our
freedom through passive income podcast
where we did 365 days in a row we
literally would wake up and be like hey
we got to record some podcasts today um
and sometimes we' do two or three in a
row just a batch because we would have
meetings and sometimes we'd literally be
getting up and doing just a podcast
every single day um and so it was always
it got to the point where I mean I was
planning right so at the beginning of
these episodes you would have seen me
with like this iPad in front of oh man
it was detailed listing of everything we
talk about that we're talking about like
the five big biggest mistakes Real
Estate Investors make or um you know
what does a cost segregation study mean
or we're talking about inflation or or
tax benefits or whatever the topic is
and I've got my iPad out I've got the
title of the episode and I've got some
notes for us both um and it eventually
got to the point where we just said what
are we talking about today yeah towards
episode 300 it was like are we talking
about something today let's go and
record that actually happen way sooner
than 300 but um uh so literally you know
as we jumped on this podcast it's not
that we're um uh not really pre-planning
what we're talking about it's just I
think that we talk to so many investors
all the time that we know what the
questions are that that people are
asking we know the battles um that
they're having um we know the mistakes
that they're making and many times it's
not just conversations with other people
it's stuff that has happened to us and
so um you know as we you know prepared
for this podcast um just a few minutes
ago he said what are we talking about
and we brainstormed a few things and and
really went back to um what type of
investor are you um and I think that
that has been the biggest mistake we've
seen over and over and over of people
not knowing where to start when they get
involved in real estate yep and I'll say
this over and over again the top three
questions are where do I start which
path is right for me and who do I trust
and if you don't answer those questions
then you end up going down the wrong
path most of the time right um so I know
you're about to add something in there
so I didn't mean to cut you off yeah no
I was just what when we were talking
about like what we're going to talk
about today we also don't you know we
don't have things pre-canned for like
five five episodes we talk about
something relevant something that's
today something that's fresh something
that you know came up yesterday
something that came up the day before uh
and so that's also a reason why we don't
plan these like what are we talking
about well what's happened recently yes
you know and so that's that's what makes
us so exciting too so yes yeah it keeps
it fresh for us too right because if
something crazy happened um then we get
to talk about it because we we don't
have anything like oh but we were going
to talk about interest rates today
boring that is so boring um so let's
talk about probably one of the biggest
mistakes Real Estate Investors make
funny that I actually referenced that um
just a second ago and it really is going
down the wrong path out of the gate I
think a lot of people are interested in
real estate I think a lot of people um
are
um not sure how to get into real estate
uh they think that they can't get into
real estate because of whatever reason
maybe knowledge maybe because they they
think that they have to have a bunch of
money um to be able to buy something
outright they don't understand the
mechanics of real estate um and so what
happens is you end up um if you're if
you're really serious about real estate
and learning a little bit more about it
so that you can understand how people
are Building Wealth um then
you end up going down a path of how do I
get started so that's where do I start
and as you answer that question you
start realizing that okay well I could
become a realtor which is the path that
we took yes um um and then it could be I
could be an investor but that means I'm
going to probably buy a rental property
Buy and Hold is probably the most common
um thing taught when you're talking
about real estate investing or the bur
method um or something like that those
are the the easier to understand ways to
get into real estate especially if
you're a busy professional and we use
the term busy professional simply
because most of the people uh that want
to get in real estate and build their
wealth are doctors lawyers um uh
entrepreneurs business owners um just
High income earners like you you've
gotten yourself into a position where
you absolutely love what you do you're
really good at what you do
um and you understand hey but you know
what do I do with all this money I've
got all this active income and at some
point in time I'm going to want to
retire and what do I do so that I can be
growing this income in a safe way um and
I don't understand real estate I don't
understand necessarily stocks and mutual
funds and things like that but yet so
many people invest in that um so many
people put their money in the bank and
they have no idea what the bank's doing
with their money right um uh no
Lots they're not yeah your money your
money is not doing anything for you
sorry that's what your your money is not
doing anything for it's doing a lot for
the bank just nothing for you yes
exactly so um reality is is that
wherever you put your money um it's
being used for something and uh you
probably have a lack of understanding of
exactly what it's being used for and so
our admonishment I guess at the
beginning of this episode really is not
to be afraid of real estate yes because
it's like anything else you should be
afraid of stocks and all of the things
that where you're put your money and you
don't know exactly what's going on and
where it's being used and what type of
return you're getting what your risks
are do you have true wealth preservation
is it safe is there a safer alternative
and what is the comparison on your
return on investment what type of tax
implications are there based on where
you're investing are you actually adding
to your tax burden or are you reducing
your tax burden there's so many
questions that people don't know that
they should be asking at the very very
beginning so that's what I really want
to dig into in this episode so do you
want to go back to just a a short recap
of um where we got started because we
too didn't know where to start when we
decided we wanted to get into real
estate um you know actually I um went
into the mortgage business before I did
anything else um and then we got into
real estate uh so you want to start kind
of talk about that story and then talk
about um the probably a common question
we get asked a lot and what our answer
is and then we'll kind of roll into you
know some other yeah absolutely so a
long long time ago in a galaxy far far
away
we both decided that we wanted to be uh
we wanted to go into real estate we
didn't want to know if we wanted to be
re Real Estate Investors or realtor you
know we didn't know what we wanted to do
we knew we wanted to go into real estate
yeah uh because you were in The Mortgage
business and and you had gotten your
your you dipped your toe into
essentially real estate because you were
on that side of things uh and uh and I
was coming out of the the art career and
and uh we both we were both intrigued
with with uh with real estate you know I
wasn't intrigued with the stocks and
bonds thank goodness um but we were both
intrigued with real estate and so we did
what most people do not all people but
most people do and we went out and
studied for our realtor's license and
and took the test passed the test uh we
got we got our uh license uh September
of 2008 um and you know and and people
we always laugh this is the worst time
to get your license actually was the
best time for us to get our license
because if you can learn and figure
things out there you know when it's at
the bottom of the barrel then you know
when it's at its height then it's just
easy easy going um and so anyway so we
got our license in and it took eight
months to do a deal which was depressing
um and you know we burnt through a lot
of money and that was when we like you
know hey what's you know what's what's
this about being a real estate investor
you know why don't we be
investors and you know you found someone
that teaching 12 ways on how to buy and
sell real estate you know um and with
with basically with no money right and
so we took the class and learned and did
did everything they said and you know we
had the ground running and but we
started learning right there you know we
we like we went blend we went blindly
into being Realtors you know because
that's what you do I mean was that the
bad thing to do I don't think so I mean
it just I wish we could have shortened
that eight months of doing a deal you
know but we' learned a lot about real
estate we've learned the foundation of
real estate which helped us you know
help Propel us once we went into the
real estate investing side of things um
you know and people ask us uh you know
because we went into you know short
sales and and U gosh you know sub twos
uh sub2 ws and you know um just whatever
we could get our hands on it and back
then it was you know 2008 2009 and you
know all of those deals we you know we
couldn't throw a rock without hitting a
short sale um and uh but people ask us
you know if we could do it all over
again would we do the same thing or
would we do something different uh we
both have different answers um uh and
and you want to say what your answer is
well I actually have two answers you
have two answers you say yours well mine
is I mean yes I wish we would have
gotten into multif family right then but
we didn't know you know we thought we
had the this goes to you know the one
you don't know what you don't know right
we just thought that we needed money MH
and we just did a course we learned how
to do 12 ways and how to buy and sell
real estate using no money mhm well
that's cool I just spent eight months
burning through my you know savings I
got no money let's let's do it you know
um and uh and so so we did that but uh
uh you know I I had no no idea that you
know any of these things that we're
doing today if we would have known then
you know about all these strategies and
getting into multif family and I mean I
would we would have jumped into multif
family at least I would have I don't
know about
you yeah so um I have two answers um one
is really the right answer the one that
I believe um the answer that I believe
is that we are on this path for a reason
right um we are here because we are
meant to be here everything that we've
learned has been um has gotten to us
where we are today I do not regret one
thing about where we are today I think
God has us right here for a reason and a
purpose um my second answer though is
had we known about passive
investing right had we known about
passive investing from the get-go that
we could find a team that we trusted
that was already skilled and experienced
and had the knowledge and and years
behind them many hundreds of deals
behind them has proven track record um
had we known that we could invest with
them and get a return on their money we
at the very least likely would have
split our funds and said hey we have a
bucket of cash let's take half of this
and invest it in this way or we would
have gotten on in some type of strategy
call and said and somebody would have
taught us hey when you have money you
want to have different buckets you want
to have a bucket that is liquid so in
case you need it you've got access to it
you have peace of mind you can sleep at
night you want a a bucket that's really
focused on on preservation of wealth
right um you're not going to shoot for
the moon with this bucket you're going
to you're going to probably invest it in
real estate that's going to give you
really good returns but it's a solid
asset class it's not going to go to zero
um or um you have this third bucket
where you are going to you know you're
going to just shoot for the star shoot
for the moon and you know pretty much
say I'm burning this money but I'm
hoping it's going to go like crazy and
I'm like going to be one of those you
know fortunate people that um you know
just made Millions because I invested in
this early on right um and so maybe we
would have gotten on a strategy session
call and been taught about the different
buckets and there's many more buckets
than just that there's a tax you know
tax benefit bucket um uh there's a cash
flow bucket there's all kinds of
different buckets and reasons that you
invest and goals that you have for your
money and what you want it to do for you
maybe somebody would have had that
conversation with us and we would have
said hey we're going to take half of our
capital and we're going to put some in
the in the bucket that we want liquid
and some in the bucket that we just want
we want growth but we also want the
confidence of wealth preservation and
some of it maybe we're going to shoot
for the moon shoot for the stars
whatever it is um and maybe we have done
that and we wouldn't have like Tapped
Out you know all of our savings you know
chasing this realer thing maybe we would
have said hey we have spent this much
money now whatever was left and we need
a new Direction maybe we' have found our
new Direction a little bit faster and we
wouldn't have waited as long because we
had the cash to wait we had the cash to
keep on learning and keep on you know
pursuing um uh but it eventually ran out
and when it ran out is when we said it's
time you know it's time to do something
new and it's not like we were at you
know Zars in the bank account but we
were close enough that we said all right
we need a new strategy we we need to
correct our course yeah so that if we
were going to change anything I I think
I would have wanted to be educated I
would have wanted to listen to a podcast
like this that told me hey there are
different avenues for you to go if you
want to invest in real estate you don't
have to be active um you can go the
passive route here's what that looks
like and I don't know what that where
that decision would have led but having
the knowledge would it would at least
have given us the opportunity to make a
better decision right I could have said
hey we did the exact right thing because
we had all of the information in our
fingertips right then in 2008 um instead
we didn't know where to start Y and we
thought well let's get our license you
know and let's just see where it goes
and that's what we did and it it brought
us here so I'm a static um um for where
we are um and and maybe those lessons
were meant to be so that we could share
it on a podcast like this right maybe
everything that we've gone through was
meant to not only get us to success but
be able to share with other people to
say hey this is what we did and we can
help you not make the same mistake and
lose years and years and years and maybe
that's not a loss of years to us um it
was just meant to be so now we go and
and start talking about this particular
topic and tell you what um what we say
you should be doing um and that is
answered the the questions of where do I
start which path is right for me and who
do I trust and as one of our um
investors recently said you should
really ask those questions in the
reverse order um so really ask who do
you trust um if you're listening to this
podcast right now I hope that we are one
of the people that you trust and why
would you trust us because um quite
frankly we're just the real deal we talk
about the goods we talk about the bads
we're not we don't care about being
transparent um we don't care about
sharing our failures um actually think
it's of benefit to you because if we
teach you um the challenges that we've
had the failures that we've met um and
and show you how we solved the problem
and the lessons that we've learned it
helps you to avoid those mistakes and I
really think that that's part of our
path and why we're here um so um and
looking at our track record looking at
our testimonials looking at talking to
our clients looking at um how we've
built our companies looking at who we
are as people and what happens when we
do fail on something how are our
investors treated how is the how did the
deal turn out looking at the character
um of who we are which we talk about a
lot when it comes to trust I hope you've
already answered that question that's
why you're you're listening to us right
now um but then now go back to where do
I start which path is right for me um
and so we talk about the lifestyle
design um and that's really a worksheet
that we share with people that it starts
you on the path of answering the
questions of what you want right I just
want to go back to the trust thing you
know um and and you hit on all the you
know the
transparency um you know and and we we
show you everything and our character
and and uh I mean what it comes down to
is we're not telling you to trust us
we're telling you that you can trust us
and if you don't trust us that's fine
yes that's we're not we're not forcing
you to trust us we're giving you
everything and uh to we're giving you
all of the information and then you do
it with it what you may um and you know
by being transparent by showing you our
highs and lows is showing you what we've
done and showing you know being
completely 100% transparent um uh but
again we're not forcing you to trust us
I don't want anyone to think that we're
that they told me to trust them no we're
telling you you can trust us uh so just
wanted to throw that in there because I
just what it's that's important I don't
want people to think that we're forcing
them to trust us I I don't think we can
force people to trust
us um so the great thing about flip and
ey is we always think opposite so um if
you hear conversations like this this is
actually happens in real life um we just
have both have different points of view
so I'm glad that he shared that point of
view okay so let's get back to you know
where do we start so that's the next
question that you want to ask um and we
we like to talk about the lifestyle
design um and that's a worksheet that we
provide to you um and you can just email
us um invest freedom family
investments.com if you'd like a copy of
this um then just say lifestyle Design
worksheet and and somebody will send it
to you it's it's free no charge um uh
but it's boxes essentially and what
you're going to want to do is you're
going to want to fill it out and uh you
can either answer the questions of what
do you want or what don't you want um so
I think it's easier to answer what don't
you want right so um let's talk about
travel flip um what don't you want when
it comes to
travel no travel I want travel I always
want travel uh I don't know what what I
what I don't want about travel um I
don't know no what I don't want about
travel I don't want to drive long
distances yeah you know that's that's
one thing I don't want um I don't know
what else I don't want on travel that
one that you stump me on that one yeah
um okay so let me pick something else
geography what don't you want cold okay
could I have said that faster yeah I
don't think I could have said that
faster I I don't want cold um I want
warm you know nice warm climates uh 12
months out of the year would be
preferable um what else do I don't want
I don't want to be in the middle of the
woods okay as nice and peaceful as that
may sound I've had one too many run-ins
with uh Critters um in the last couple
years that uh that's where the critters
live and they can stay there I'm I'm a
city
boy so I don't want to be in the middle
of the woods I don't want to be up in
the mountain I don't want to be secluded
you know because I like having access to
things yeah okay um so for travel I
think I would say I don't want to be
forced to travel oh you know I want to
travel because I want to travel um I
also don't want to be traveling so much
that I'm barely home we have dogs and we
love our dogs right and so um those of
you with kids can relate to to to
replace dogs with kids right um so you
may not want to be traveling a lot
because you want to be home with kids
you may not want a second career um or
second job uh that is in top of the job
that you love because you want to be
with your family you want to be with
your spouse you want to have date nights
um you want to be at your kids soccer
games you want to um just be a part of
their life and and allow them to learn
from you um and have and create those
memories while you can I I know that
there's um a book I can't remember the
title of it but it talks about you have
only 18 Summers with your kid oh right
right and so I thought that's really
impactful to think about you you think
18 years you're like oh my gosh 18 years
but when you think of it as Summers
because summers are when most families
get to have a vacation or they get to
spend time with their kids and you think
I only have 18 Summers with my kid like
that suddenly puts it in perspective of
how quick life can go by and how little
time you have to spend with your kids at
each age increment um so this book even
talks about taking your kids out like if
you have three kids each kid gets to
choose hey this is what I want to do and
this is my day with you um and you do
that like once a month or something like
that I can't remember I didn't read the
book because we have dogs and our dogs
just don't care they care that they get
cuddled and fed and loved and um pet and
all that type of stuff but um those are
the things that you fill out on this
worksheet so this work sheet really has
six boxes and it's and it's got the
boxes and you could be saying the things
you want to do or you want to see and
you want to get out of life or you could
be um saying the things that you don't
want and either are good you could do
both you could split the boxes in half
and be like I want this I don't want
this because the don't want really
starts providing Clarity of what you do
want um so that's really the first
exercise that we like to talk about a
lot because had we done that um I again
don't know what path we would have
chosen um and for us we may have chosen
both because we like to be exploratory
right we like to explore different
things and experience at firsthand um we
were coming out of a career that we were
intending on changing careers anyway so
it wasn't like we had a career that we
um loved and that that real estate was
going to be a second job right um so
when we were in this position we were
really open to all of it um it's just
that we could have made different
choices had we been a little bit more
educated about our options so I think
that's where you start when um where do
I start it's really answering it's
filling out that sheet and and that
sheet is going to ultimately lead you to
this do I want to be an active investor
or do I want to be a passive investor
and now Flip's going to talk a little
bit about like two circles because uh we
say actively passive and passively
active sometimes and we're going to talk
about that a little bit and he's going
to expl explain why we say that right so
what you want to do is just imagine two
circles but they sort of overlap just a
little bit so there's that little tiny
section right there in the Middle where
the two circles you know overlap so if
you're in in that little tiny section
you're actually in both circles and so
one Circle would be the active investor
and the other Circle would be the
passive investor but that little tiny
Circle or the little tiny section where
the two circles uh overlap that's what
we like to call either actively passive
investor or the passively active
investor and there's just a few things
that can actually fit in that spot
because most everything is either you
are just truly passive or you are truly
active so like a truly passive is you
know like a a private money lender right
a syndication and funds uh like here's
my money make it work don't call me just
give me checks right uh then there's the
active investor you know like fixing
flips that's I don't think there's more
active than that uh but then like the
actively passive or passively active
whichever way you want to look at it uh
would be sort of I like TurnKey uh
TurnKey real estate because TurnKey yes
it's you're you're passive because
you're not buying the house you're not
rehabbing the house you're not putting
the tenant in there but you know because
we're we're doing because the company
does that but but you still you once you
buy the property from us then you still
monthly have the the the notice from the
property manager and you know uh the
Water Heater just blew up you know or
the the the tenant poured cement down
the toilet you know or whatever you know
so you still have stuff that you have to
deal with it you know because most of
the stuff you'll tell the property
manager just deal with it you know don't
tell me about it just cover it whatever
um but there are things that you
actually have to still do or the tenant
you know decides to leave and move up
out of the country or whatever now you
got to get a new tenant and redo the
house or whatever so there are things
you have to do but it's still passive
because you know we're the ones doing
all the work so it's it's it's weird
that's why it's that little tiny sliver
uh but all the other passive stuff
they're all by itself over here you're
not having to be active uh for those
other uh those other strategies same
with the active side um it's very active
and what you like you I don't know how
far you want me to go into this but when
you're when when active it it is it's
another career yes you know it's another
job um you know and even I think that's
probably the one thing that those Fix
and Flip shows do on TV they show you
how much work it is they're not there's
so many things about those shows that
are 100% fake um
sorry spoiler alert if you didn't know
that already um you know but uh uh but
but one thing is is that you know
because it shows them constantly doing
work you know constantly doing so so I
think that's probably the one that they
really show that's true yeah um is that
that is it is another career uh but with
passive side it's not a career it's
you're just Building Wealth you're you
know for your future and for your
family's future and um so yeah those are
my circles yeah so um I really love that
he described that there's we could go
down many Avenues right here but that
would be a very very long podcast um I I
think what we really want to hit on um
is
that many of the investors and and what
we've seen is many investors will go
down the active route not realizing that
um they know that it's it's extra work
right they know that after they get off
their job they're going to go ahead and
and start pursuing this they might go to
a real estate Club they might JV which
stands for joint venture with another
investor but it's still an extra job
after they get done with their career
their W2 or whatever it is that you do
where you earn your active income now
you're going to go and do something else
with this you know activity of real
estate that you are pursuing and that
activity takes away from your life and
your family and people only realize that
6 months 12 months one two three years
down the road and they're like crap this
is not what I was looking for this is
not what I intended and suddenly they
are now backtracking trying to sell a
property or do something different after
so much time and effort invested so much
time lost from their families um that
they regret making the mistake of going
down this active route because they
didn't understand hey I can just do the
passive or maybe I can do both and over
the next six months I can actually
evaluate what have I done in six months
on the active side what has my money
done for me in six months on the passive
side and they can actually put a
decision tree Benchmark right there that
says is what do I want to do because
I've just experienced six months of
exploring the active and exploring the
passive and that is a much wiser way to
walk into the real estate World um is
understanding your options and if you
want to explore both then do something
like that as opposed to losing so much
time and for many investors losing so
much money because reality is um
investing in real estate is not easy you
will lose money and even as much
experience that flip and I have and the
team that we have and all the safeguards
that we've put in place because of the
mistakes that we've made and the lessons
that we've learned and the processes we
put so that we don't make those mistakes
again we still lose money on deals it's
just reality we tell our investors this
is reality it's why we do volume because
we are mitigating our Risk by doing 10
deals knowing that maybe two of them are
going to lose money and the other eight
are going to be fantastic y so if eight
are fantastic and only two lose money
we're good like we're we're in the the
the plus side of of things so if you're
not mitigating risk in that way you have
to go into this knowing hey I'm going to
lose some money at some point in time
it's just where where is it and was that
time away from my family and that extra
work and that extra stress worth the
learning curve that it takes in real
estate when experienced people like us
who have been in it for uh 15ish years
um are still are saying we still make
mistakes um so knowing and understanding
that reality because you're going to see
on Facebook and you're going to see on
the internet and you're going to you're
going to hear ads of hey become a
wholesaler become a fix and flipper
you're going to make thousands of
dollars you're going to make millions of
dollars you're going to become you're
going to reach all of your dreams um and
they don't tell you about the hard roads
they don't tell you about the lost money
they don't tell you how long it's going
to take for you to get your first deal
um they don't tell you any of that and
so so many people are chasing this
active real estate role when all they
really could be doing is taking that
money that they're investing in these
courses and actually investing passively
um and earning money that way and then
getting to enjoy life because that's
what we all want right we just want to
enjoy life we want to have a really
great time um I'm going to stop right
there because I'm going to continue on
on the rant but um you are here with
flip and dandy in the freedom show and
we are going to take one quick short
commercial break and we will be right
back add new income streams to your
financial statement freedom family
Investments can help own property and
get paid rent join funds and get paid
interest wealth is well-being own your
own
future freedom family
Investments get more time to focus on
what matters learn which investing path
is for you where to start and who to
trust visit freedom family
investments.com all right welcome back
to the freedom show I was on a little
bit of a rant and I stopped myself um so
that you could we could get that
commercial break in before um we got so
far in that I had forgot to actually um
stop for a second um so I think I'm just
really really pass passate about saving
people the time um uh and the money um
because uh we have one life and that
life is very very important to you to
your family to those that you love um to
everything that you want to accomplish
to the things that you want to give back
to and if you're spending it on a second
career on a second job because you're so
in interested in real estate that you
think that you want to jump in but you
go the active route not understanding
all of your options and not taking the
time to actually evaluate what it is
that you want by doing that lifestyle
design um then you're going to lose
years of your life and fortunately for
us I don't feel like we lost years of
our life because of where we landed
right um but it could have turned out
differently right um so we're just
really trying to do our very very best
to convey um what to ask what to talk
about what to explore before you
actually make the move um and when
you're ready to make the move um then
just be confident in the choice that you
made and be confident that you uh can
set some time parameters on on that um
decision so that if you said hey I
actually do think that I want to be um a
wholesaler maybe that's what I want to
do I'm going to go out and find deals um
put a timeline on what that looks like
and what you want to earn and and make
your decision tree that if I succeed at
this in six months and make this much
money I am going to continue and if
after six months I have not made this
much money then I have proven to me that
it is not meeting my goals it's taking
time away from the other things that I
could be doing um and I could have a
more passive route um that is actually
going to build more wealth because I
don't have the learning curve I don't
have the mistakes I don't have the lost
time the lost money and I'm going to
live a higher quality life um so those
are the things that you want to talk
about those are the things that you want
to um discuss I would say discuss it
with your family first your spouse right
sit down flip and I um sit down and talk
about things like this all the time and
and and really it happened I think at
the point where 2022 when we are finally
on that road of hey you know we did it
after all this work we finally did it we
started saying what do we want to do we
went to the doctor made sure we were
okay because we were working nonstop um
and we got a clean bill of health and we
said okay now now what what does this
look like and um I think up to that
point just that previous year we had
started taking quarterly vacations just
so that we could get out and Away um you
know for a little bit um but even then
it was hard um because you know the
business is still going and we're always
worried about you know uh building these
businesses as fast as they've gone so
we're always available to everybody to
make sure that things are going okay um
um uh so you don't have to do that right
you don't have to get to the point where
finally you're
like we made it um you can do it a
better way a wiser way um and that's
what we're really trying to share today
is really find the team that you trust
once you find the team that you trust
and you talk to your family and you fill
out that lifestyle design U worksheet um
then talk to somebody on that team so if
it's our team you're going to talk to
Ben and CJ Jr um and you're going to
talk to them about hey this is what we
uh discuss this is what we like we
actually want to be um we're going to
try a little bit active maybe um we want
to dip our toe and just the passive and
then we want to try maybe this circle of
actively passive where you have TurnKey
or um the equity Advantage program and
maybe that little circle of equity
advantage and TurnKey set gives you the
mix of active and passive just enough
that you love it you've got the control
that you want you've got a little bit
more of the cash flow especially in the
equity advantage that you would if you
wanted to be a fixed
um and maybe that's where you where
where you want to live is right in that
middle of both circles um and then um or
maybe if you're like me now that I've
learned everything I would like I'm so
glad that our team is doing it all
because I don't want to be doing it
anymore I don't want to be physically
out there doing all of this hard work I
love that we have a team that is doing
it for us so we've learned how to be
passive in a very different way right we
just hired the people um that we trust
and that we oversee to be able to do the
active um part of real estate investing
so that flip and I can continue to be
passive investors because we are more
focused on our quality of life together
as a couple and as just humans um in
general of what we want to do in life
and the causes that we want to give back
to and doing things like this like doing
a podcast um it's not like we make
revenue from doing a podcast we're here
to it's one of our ways to give back um
many of the speaking events that we go
to it's not like we're paid to speak
there we actually pay to travel there
why because we are very interested in
giving back um and teaching other
investors um why we do what we do why
we've made the choices that we have made
what the pitfalls were of those choices
um and you know where we are now um and
and you know I think looking back um is
really really important to share um and
it helps people live a higher quality
life um and you know we just want to
expose real estate to everybody that's
right what else what did I miss what did
you
miss over the last 15 years let me let
me see if you missed
anything no I mean I love it you know uh
everything's happens for a reason you
know uh we were meant to do what we did
uh to be able to learn all of the things
and we learned them all in a specific
order to be able to start building our
companies and and to build our companies
one by one by one by one faster than
anyone else thought was possible yes um
so and it was because of that Foundation
that we started back in 2008 even you
know as Realtors we started that
Foundation of learning Real Estate
Learning the basics learning you know
the stuff that they don't teach you when
you're a real estate investor they don't
teach you all the other stuff that you
know they teach as Realtors so um so no
I think everything was was done on
purpose and you know like I said uh you
know uh it's it is what it is that's not
what what what I I just said it it was
everything happens for a reason there
you go you know and I love it I love you
know we always talk about what would you
do different I I'm I'm with you I'm I'm
this I'm I'm super excited about
everything that happened and and the way
it happened yeah yeah okay so um I don't
think we need to belabor the point
anymore I think we've like done a good
job of sharing our story and telling you
what what how we think um is the best
way to proceed uh we will recap it here
real quick so number one find a team
that you can trust um and if that's us
um then utilize us right and so if
you're still asking where do I start and
you're scared you haven't taken that
first step um we encourage you to sit
down with your spouse and your family um
and email us at invest freedom family
investments.com ask for that lifestyle
Design worksheet um we'll send that over
to you sit down and just fill it out
even have your kids fill it out what do
they want you know that's just super
cool if you've got a family um how neat
is it um for you to teach them this step
this process of saying hey you get to
have anything that you want in
life what is it um and and allow them to
contribute to you know what this looks
looks like what a fun family activity um
and then once you've kind of filled it
out then jump on the phone with Ben CJ J
Jr talk to them about you know uh this
is what my family talked about we
actually want to be um uh more passive
we we both have incomes um active
incomes we both have careers that we
love um we both we have a family that we
want to spend time with we don't need an
extra job we don't need an extra career
we don't need the risk of trying to be
an active investor and then losing that
money we'd rather just put it to work
passively so that we can enjoy life and
have that peace of mind um so those are
the things that you want to talk about
and then they're going to tell you hey
here's the types of investment
opportunities that fit in your bucket so
as they share those investment
opportunities with you um you're going
to be able to then sit down and evaluate
them and determine um are these going to
meet my goals you actually might learn
more things on those calls um and those
calls are no obligation they're
absolutely free um we're here to educate
you we're here to be a resource for you
um because you feel confident that you
did The Upfront work that allowed you to
say hey this is the life that I want to
live this is where the vehicles that are
going to get me to where I want to go um
and um man I mean What happiness that
would give me if we would have like had
that education right up front um so we
encourage you to go to um our website
you can go to chatwi freedom.com um
again Ben and CJ um are funds private
money lending syndications um Master
notes um very very passive Jr is who
going to want to talk to if you think
you're in that semi passive um uh and
he's going to talk you about TurnKey
real estate he's going to talk to you
about um Equity Advantage um where it's
very much I think the other day you said
it's like a bird it's like the bird yeah
yeah you're going to buy a property at a
very steep discount and our team can
help you renovate it our team can help
you manage it our team can help you sell
it depending on what your exit strategy
is and you're going to get a good chunk
of equity just by taking advantage of
that type of program uh it does mean
you're a little bit more active so just
keep that in mind and that's why they're
there to really educate you on these
options so um we just wanted to really
share this um this mistake that a lot of
people make um we wanted to share the
education to hopefully set you up for
Success so that you can make the right
decisions um and we always like to end
our podcast with things that we have
going on right now um so I'm trying to
think about when this is going to air
it's actually going to air within like a
week um so uh I think the big things
right now are still our Master note
program it's the most popular program
that we have um for Passive investors um
you're going to get a high 10 to 12%
return it also meets the liquidity angle
um you can get it out any year that you
choose um and it's just really super
simple um so if you want to be a passive
investor again that's probably our most
popular program we're in between funds
at the moment so I know by the time this
one airs our new fund will not have
launched so you can even you can ask
about it it's just not ready yet um so
private money lending Master note
program TurnKey properties Equity
Advantage properties all of that um uh
those are opportunities that you can
look at right now um we still have
Cottonwood Town Homes um available for
you right now um if you are looking for
tax benefits that's what you're going to
want to look at um if you call your CPA
and you say hey what's my 2023 tax
burden and he says it's high call us
about that Cottonwood Town Homes because
you will be able to invest um and get
like somewhere if you invested $100,000
as an example you're going to get
somewhere between a$3 to $50,000 tax
right off that is real money that is
like that that is how the 1% of the 1%
get wealthier is by legally being able
to reduce their tax burden every single
year um so if you hear everybody go I
didn't pay any taxes this year it's
because they're finding investment
opportunities like that um so um that's
very limited and it's a real GameChanger
when it comes to your wealth building
strategy so um Cottonwood Town Homes uh
uh call the team and ask them so yeah
chat withth freedom.com just scroll down
you're going to see everybody's calendar
we make it super easy for you all you
have to do is just jump on find a date
and time that works for you and you're
going to get to talk to them um and it's
fantastic and if there's anything else
that we can do for you always just in
email us that's why we give out our
email invest at freedom family
investments.com say hey and listening to
your podcast I would love for you guys
to talk about this I would love for help
on this um we do active we do passive we
do it all so we are here at your
fingertips to do um and help in any way
possible and we want you to use us
that's what we're here for we love to
help so never be afraid to ask for help
don't be afraid to get started um we're
here to help you take um every step um
from the very start all the way to hey
we did it we met our retirement goals
we're super excited and um yeah that's
all I have flip anything else no no I
love it I I love looking back and trying
to figure out did we do the right thing
yeah yes mistakes and Lessons Learned
are always very very powerful so we hope
you enjoy this episode um we are looking
forward to um uh the next one I believe
the next one is a guest um and we are I
believe having um well I'm not going to
even it's not even no no I'm not going
to give it it's a really really awesome
episode episodes uh we're breaking this
one into two parts um you are going to
learn so much so don't miss out on next
Wednesday's episode um it's going to be
a surprise and lots of fun I think this
this one's supposed to air right before
Thanksgiving so Happy Thanksgiving Happy
Thanksgiving everybody yes I'm glad you
remember that all right all right thank
you everybody see you next Wednesday
[Music]
bye nothing on this show should be
considered specific personal or
professional advice please consult an
appropriate tax legal real estate
Financial or business professional for
individualized advice opinions and
information on the show are not
guaranteed all investment strategies
have the potential for profit or loss
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