The Finance Expert: 6 Keys to WEALTH Formula (ANYONE Can Become A MILLIONAIRE!) Jaspreet Singh

Summary

このスクリプトは、財産を築くためのシンプルな6ステップの公式を紹介しています。話者は、お金に関する誤った考え方と向き合うことで、自己教育と投資の重要性を強調しています。彼は、学校教育では教えられないお金と投資に関する知識を自ら学び、実践することで、財産を築くことができた経験を共有します。また、借金を減らし、節約と投資のバランスを保ちながら、お金の流れをコントロールする方法についても説明しています。

Takeaways

• 💡 成功と豊かな生活を築くには、まず豊かな心構想を持つことが重要です。
• 📈 財産を築くには、収入から支出を引いた残りのお金を投資することが求められます。
• 🏦 銀行は、人々が金融的に無知識であることで利益を得ることができます。
• 🏠 リアルエステートは、キャッシュフローと税制上の利点から、富裕層の人々が愛する投資の一つです。
• 📚 教育は、人々を豊かにするための鍵であり、しかし学校では財産に関する教育が提供されません。
• 🚫 クレジットカードの利用は、無知識であれば借金を増やす原因となりますが、適切に管理すれば便利なツールです。
• 🔄 インフレが高くなると、銀行に預けられた現金は価値を失ぎます。
• 💼 ビジネスや金融の本を読むことで、自己教育を行い、成功への道を模索することができます。
• 🎓 大学での成績や学位は、収入と直接的な関係があると思っていたが、実際にはそうではないことが明らかになりました。
• 🤔 富裕を築くには、自分の価値観や人生の目的を再確認し、それに向かって行動することが重要です。
• 🔄 資産形成には、毎月の収入に基づいて一定の割合を投資し、節約することが重要です。

Q & A

What is the main message the speaker is trying to convey about wealth and mindset?

The speaker emphasizes that to become wealthy, one must adopt a different mindset than the majority, focusing on building wealth through investments rather than just saving money. They stress the importance of financial education and understanding how to use financial tools effectively.

How does the speaker describe their initial experience with real estate investing?

The speaker describes their initial experience as challenging and filled with mistakes. They bought a property at a young age without proper knowledge or guidance, leading to financial stress and learning through trial and error.

What is the speaker's strategy for managing credit card debt?

The speaker advocates for paying off credit card debt as quickly as possible to stop the financial bleeding. They mention that credit cards can be a tool if used with financial education, but without it, they can lead to significant debt and financial strain.

What is the speaker's approach to saving money?

The speaker suggests saving at least $2,000 for emergencies and then paying off high-interest debts. They also recommend creating a financial system where a portion of income is consistently invested and saved, regardless of the income level.

How does the speaker define a 'wealth formula'?

The speaker's wealth formula is a simple mathematical concept: Income minus Expenses equals Investments plus Savings. They emphasize that savings are for protection against emergencies, while investments are what will lead to wealth.

What are the six steps the speaker mentions for building wealth?

The speaker outlines six steps for building wealth: 1) Build the right mindset, 2) Create a financial base, 3) Lead your money by creating a financial system, 4) Invest your money for growth, 5) Increase your income, and 6) Minimize expenses. These steps are meant to be followed regardless of age.

How does the speaker view the role of education in achieving financial success?

The speaker believes that education is crucial for financial success. They mention that without the right mindset, one will not seek opportunities, and without education, one cannot effectively use financial tools or understand investment strategies.

What is the speaker's opinion on the traditional path of education and career?

The speaker questions the traditional path of getting a good degree and a job to make money. They argue that this path often leads to financial struggles and that true wealth comes from understanding investments and entrepreneurship.

How does the speaker describe the importance of passive income?

The speaker highlights the importance of passive income as a way to generate wealth without actively working. They mention their own experience with real estate investments, which provided them with a steady cash flow without the need for constant active work.

What is the speaker's advice on managing and investing in real estate?

The speaker advises on investing in growing areas with stable or rising populations and ensuring a 7% cash on cash return. They also stress the importance of having a system in place for property management to minimize time and effort.

Outlines

00:00

💡 财富公式的启示

演讲者分享了他如何从传统教育观念中觉醒，意识到财富与学历、工作努力程度并不直接相关。他通过创建一个简化的财富公式，开始质疑并深入探索财富的本质。他强调了心态的重要性，以及如何通过投资而非仅仅储蓄来实现财富增长。

05:02

🎓 教育与财富的误区

演讲者讲述了他如何从医学院的学习中意识到，即使成为医生也不一定能实现财务自由。他通过研究美国最富有的人，发现他们并非都遵循传统的教育和职业路径。这促使他开始探索房地产投资，并在19岁时成功购买了第一处房产。

10:04

🏦 银行与财务教育

演讲者探讨了银行如何通过鼓励储蓄和信用卡消费来获利，同时指出这些做法对个人财务的负面影响。他强调了财务教育的重要性，并揭示了为什么保持人们财务无知对某些系统是有利的。他还讨论了如何通过理解和利用税法来优化个人财务。

15:05

💼 创业与投资

演讲者分享了他的创业经历，包括在大学期间创办的派对策划公司，以及如何通过阅读商业书籍和实践来学习财务知识。他强调了创业精神和投资房地产的重要性，并分享了他如何在房地产投资中取得成功，尽管过程中遇到了挑战。

20:05

🏠 房地产投资的智慧

演讲者详细讲述了他如何通过房地产投资来建立被动收入。他分享了自己的投资策略，包括选择投资地点、确保至少7%的现金回报率，以及如何通过物业管理公司来实现投资的被动化。他还讨论了如何通过教育和实践来克服房地产投资中的困难。

25:06

🚀 财富增长的策略

演讲者提出了一个财富增长的六步公式，强调了建立正确心态的重要性。他讨论了如何通过增加收入、减少支出或两者兼而有之来增加投资。他还提到了如何通过教育和自我提升来实现财务目标，并分享了他个人的投资策略，包括在不同领域如股票、房地产和加密货币中的投资。

Keywords

💡財産形成

財産形成とは、個人や企業が資産を蓄積するプロセスを指します。このビデオでは、資産形成が豊かな生活を築くための重要なステップとされています。資産形成には、収入の増加、支出の削減、そして投資の重要性が強調されています。

💡マインドセット

マインドセットとは、個人が持つ思考パターンや信念のセットを指します。ビデオでは、豊かな生活を目指すには、まずマインドセットを変えることが重要とされています。成功を信じ、自分自身を高める方法を学び、行動を起こすことが求められます。

💡投資

投資とは、将来の利益を得るために資金や資源を現在使う行為を指します。ビデオでは、資産形成において投資の重要性が強調されており、投資によって資産を増やす方法や、投資のリスクとリターンについても説明されています。

💡節約

節約とは、支出を抑えることです。ビデオでは、節約が資産形成において重要な役割を果たすとされています。節約によって、無駄な支出を減らし、より多くの資金を投資に振り込むことができるためです。

💡借金

借金とは、将来的に返済する必要がある貸し入れ金を指します。ビデオでは、借金を早期返済することで、利息の負担を軽減し、資産形成を促進することが重要とされています。特にクレジットカードの借金は、高額な利息負担となるため、早期返済が推奨されています。

💡不動産投資

不動産投資とは、不動産を購入し、その賃貸や売却によって利益を得る投資方法を指します。ビデオでは、不動産投資がどのように行われるか、またそのリスクとリターンについても説明されています。

💡税金

税金とは、国や地方自治体が徴収する公的な負担を指します。ビデオでは、税金を節約するための方法や、税法を理解し活用することが資産形成に役立つとされています。

💡資産の多様化

資産の多様化とは、投資を一元的なものにせず、様々な種類の資産に分配することでリスクを分散する戦略を指します。ビデオでは、資産の多様化がどのように重要であるか、またどのように実践されるかについて説明されています。

💡経済的な教育

経済的な教育とは、金融や経済に関する知識を学ぶことです。ビデオでは、経済的な教育が資産形成において欠かせない要素であるとされています。また、経済的な教育を通じて、より良い投資判断ができることも強調されています。

💡長期的な視点

長期的な視点とは、未来に向けた長い視点を持つことです。ビデオでは、長期的な視点を持つことが、資産形成において成功するために重要であるとされています。また、長期的な投資は、短期的な市場の変動に左右されず、安定したリターンを得ることができると説明されています。

Highlights

The speaker created a 'wealth formula' that simplifies wealth-building into a six-step process.

The speaker emphasizes the importance of having the right mindset for wealth accumulation, which involves thinking differently from the majority.

The speaker shares their personal journey of questioning traditional success paths, such as getting a degree and a job, and realizing that these do not necessarily lead to wealth.

The speaker highlights the misconception that grades and income are directly correlated, which they challenged by observing successful individuals like Steve Jobs and Warren Buffett.

The speaker's event planning business in college and their early real estate investment at 19 years old serve as examples of entrepreneurial ventures that led to wealth-building.

The speaker discusses the importance of investing in real estate, stocks, and businesses, rather than just saving money, to achieve wealth.

The speaker shares their experience of dealing with financial struggles and the emotional journey of learning about money and entrepreneurship.

The speaker emphasizes that wealthy people work to own the corporate ladder, not just climb it, which is a different mindset from the majority.

The speaker points out that financial education is often not taught in schools, which is profitable for banks and governments as it keeps people financially uneducated and poor.

The speaker discusses the benefits of investing in real estate, such as cash flow and tax benefits, and shares their personal strategy for investing in real estate.

The speaker talks about the importance of having a financial system in place, such as the 75/15/10 plan, to proportionately invest and save based on income.

The speaker explains the concept of passive investing, including index funds, ETFs, and mutual funds, as a way to invest in a diversified portfolio without active management.

The speaker shares their approach to active investing, which involves researching and investing in businesses, real estate, and stocks, and the importance of having a system to manage investments.

The speaker discusses the challenges and learning curve associated with real estate investing, including dealing with tenants, contractors, and property management.

The speaker emphasizes the importance of having a clear investment strategy, such as aiming for a 7% cash on cash return, and investing in growing areas with stable or rising populations.

The speaker talks about the impact of interest rates on property prices and the economy, and how the Federal Reserve's actions to fight inflation can influence these rates.

The speaker shares their personal experiences with real estate investing, including the mistakes made and the lessons learned, which led to a better understanding of the investment process.

The speaker discusses the importance of having a financial base, such as saving $2,000 for emergencies and paying off high-interest debts, as a foundation for wealth-building.

The speaker emphasizes the role of financial education in understanding how to use credit cards and other financial tools effectively, rather than viewing them as scams.

The speaker talks about the importance of being proactive in financial planning and not waiting until it's too late to address financial issues.

Transcripts

it's not very complex but I created this

wealth formula which breaks it down into

a very simple almost mathematical thing

where it's six steps I am sing from the

minority mind.com where money Minds we

think rich I realized that something's

wrong and I was like am I missing

something because I thought that if you

go to school get a good degree you can

make a lot of money and if you work

harder in school get better grades

you'll make even more money so I thought

it was just directly correlated your

grades your income and that's when I

started questioning things as you start

to go down deeper and deeper down the

rabbit hole you start to realize oh my

God everything that I've been told is a

lie I can't show off my stock portfolio

or my real estate portfolio the way that

I can my Gucci belt and most people

would rather have the show would rather

have the look than the actual thing that

will make you wealthy right and that

goes back to the mindset the thing you

talk so much about your mindset has to

be focused on saying you know what I

want to become wealthy how do you invest

where it doesn't become a Time suck and

an extra job well

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facet.gov told go to school get a degree

get a job and all you figure it out

right and then what happens for the

majority of people is you end up broke

you end up struggling financially and

you you can never figure out why what is

it that you want to achieve in your life

financially and then you have to go out

and figure it out yourself because

unfortunately school will never teach

you this stuff I saw my parents work

their butt off every single day if my

dad got a Saturday and a Sunday off it

was considered a long week

and so I didn't get to spend a lot of

time with my parents growing up and they

would always tell me that you know you

have to go out and become successful and

I completely agreed because I wanted to

give back to my parents I wanted to help

support them and I figured okay if I

want to become successful I should

follow the steps that were told to

become successful what are those steps

go to school get a good degree get a

good job for me in my case it was become

a doctor and along that way it was in

college I realized that something's

wrong

something's not adding up and it

actually happened I was studying to get

into Medical School M and as I was

studying I I started reading other

business books and financial books and I

remember this I was in the library

studying and I went on to Google and I

searched the richest people in America

and know you see people like Steve Jobs

Warren Buffett Bill Gates Mark

Zuckerberg and I was like huh none of

these people are doctors MH none of

these people went down that traditional

route of of you know getting a degree

doing a good job am I missing something

because I thought that if you go to

school get a good degree you can make a

lot of money and if you work harder in

school get better grades you'll make

even more money so I thought it was just

directly correlated your grades your

income and that's when I started

questioning things and I realized oh

maybe this isn't right and as he start

to go down deeper and deeper down the

RAB hole you start to realize oh my God

everything that I've been told is a lie

and so that that kind of pushed me into

this whole painful emotional journey of

learning about money learning about

entrepreneurship learning about what

does it mean to become wealthy and how

do you actually do it right so that was

that was kind of the the initial phase

for me and then I had to go out and

actually start learning it yeah and the

first real experience of that for me was

I I had this event planning company that

I started in college and the reason why

I started it was because when I was in

high school I worked at Indian weddings

so I got to know a lot of the DJs right

and when I was in high school these DJs

were like hey man you know a lot of

people in high school how about we host

a teen party for your friends in high

school I was like all right that's fine

you know why not started this little

teen party party business in high school

and I go to college don't know what to

expect because my parents didn't go to

university here I think everybody goes

to college to study hard and and become

this big thing in college I get to

college and everybody is partying

they're blowing their money that they

don't have on alcohol they're drinking I

don't drink I don't smoke I'm not I'm

not into that party scene but I need

something to do on Friday nights so I

was like why don't I just take this teen

party business that I had in high school

bring it to college and that's what I

did my freshman year I was 17 years old

just had a knocking on the door of every

club venue bar restaurant asking if I

could host a party here some would say

yeah it's going to cost you $10,000 some

would say yeah it's going to cost you 20

grand I don't have that money right but

then one or two said you can do it here

we're not going to charge you a penny

just give us half of the cover charge

half of the money that you bring in I

said okay now I'm in business so I

started making a little bit of money

doing this and I had some cash saved up

and I'm starting to read these business

books and every Business book said

wealthy people invest in real estate I

don't know what that means I don't know

any Real Estate Investors my parents

aren't investors and so I was like okay

if wealthy people invest in real estate

maybe I should invest in real estate and

this was right after the 2008 crash in

I'm in Michigan where estate was hit

extremely hard so I was like all right

you know well I would like to invest in

real estate I'm studying for a medical

college ad Mission test I start going to

Google because I'm bored while I'm

studying for this exam I'm reading about

the the Forbes richest people none of

them are doctors none of them are people

that work the traditional path and you

know I have this idea to start investing

in real estate so I started looking at

real estate in between my study sessions

and on August 22nd I took the Medical

College admission test the MCAT August

23rd I closed on my closed on my first

real estate investment property wow how

old were you I was 19 holy cow it was

$88,000 for was the investment was the

price of the condo it was the condo was

8 Grand 8 Grand how' you get a condo

for8 Grand this is right after the 2008

crash wow you got out of forclosure or

what it was out of forclosure that same

condo was selling for about 150 Grand

just a few years prior come on yeah and

so I came in it was actually listed on

sale for $8,400 I made an offer for

$4,000 they came down to $7,000 and I

was still trying to push them lower but

then they said they had another offer on

the table I didn't want to lose it so I

said I'll give you eight grand right wow

so I bought it for eight grand put in a

few thousand worth of work and at leased

it for $600 a month and now all of a

sudden my mind was blown because I kind

of had this idea of what

entrepreneurship was I had never heard

that term until I came to college but I

was running this event pic company I'm

starting to learn about this thing

called entrepreneurship and now I have

this condo that's generating me this

like almost passive income I say almost

because I was making a lot of mistakes

in the beginning but now I'm like wow

this investing thing is very unique

because I never learned this in school

my teachers never taught me this but why

am I working so hard in school I mean I

want to become a doctor so I can

ultimately make money now I start having

this you know I talked about an

emotional dilemma why am I becoming a

doctor okay I want to make my parents

happy check I want to be successful

check do I really want to be a

doctor maybe and and now I'm starting to

question my like my actual beliefs

because if I become a doctor how do you

make money you treat people I kind of

have this entrepreneurial mind I want to

become successful how do you make more

money you treat more people so it's like

this kind of runs into a dilemma because

if I'm trying to maximize my income as a

doctor I got to maximize how many

patients I see maybe that means I don't

get to give the best value to each

individual patient but as a human I want

to provide the most value possible so I

start to kind of face this dilemma where

maybe I'm becoming a doctor for the

wrong reasons interesting and then I run

this idea by my parents I don't want to

be a doctor and they're like absolutely

not my my my my dad was angry my mom was

Furious it took my mom about a year and

a half to believe that her son was not

going to be a doctored oh man and I had

I mean when I say it was it was it was

tough like my parents would tell all

their friends just not going to become a

doctor oh wow you're not becoming one

I'm not going to become one now I'm

getting calls from my family in IND

calls from my family across what are you

doing you're disgrace to your family

exactly exactly I hear that again and

again and again but I was like this is

not for me and I started to realize that

there's more to this thing so now I

started to go down this financial

education journey and the more I I

learned the more I realized I was lied

to like we're taught to go to school to

get a degree to get a job so we can then

get a job and climb the corporate ladder

well wealthy people don't do that

wealthy people are not working to climb

the corporate ladder they're working to

own the corporate ladder I didn't even

realize that you could do that now you

can climb the corporate letter and work

to own the corporate letter at the same

time but it's a different mindset right

most of us are taught to get that degree

so we can do one thing climb the corpor

letter get earn a bigger salary but if

you only rely on your salary you're just

one step away from being broke because

if you lose your job something happens

to you you can't work or your company

goes down you lost your salary and now

you have no coming in and now what

you're scrambling for a job maybe you

have some savings to help take care of

you right or if you haven't been saving

and you just spend on on on things all

the time and you have no savings then

you're really screwed yeah you're going

into credit card debt right and now

you're trying to figure out how do you

make things work and by then it's too

late this is where you got to be

proactive and now I'm just like this is

crazy why was I never taught this I was

never taught about wealth I was never

taught about investing I was never

taught about this sort of financial

education but why aren't we taught this

and that's when I realized it's very

profit to keep people financially

uneducated it's profit to keep people

poor interesting what is the what would

you say is the main system that keeps

people poor

then it goes down to so many different

things the banks profit when you're

financially uneducated because they will

keep you saving money in the bank

they'll keep you in Consumer Debt if the

banks lived by their own advice which is

save money the Banks would be losing

money when you go and deposit $1,000 in

the bank that cash that you deposited is

a liability for the bank an asset is

something that puts money in your pocket

a liability is something that takes

money away from your pocket so when the

bank has your cash it's a liability for

them they want to get rid of it as fast

as possible and the way they do that is

by lending it out because it's an

investment for the bank they don't want

to hold on to cash but they want you to

save your money you want you to give

them cash right and just leave it there

leave it there and what's happening to

your cash while it's there it's losing

value to inflation each and every day

every day that you keep your cash in the

bank you're becoming poorer each and

every day now it's funny I made a video

on this in 2016 it was my first video to

go viral it was called you're guaranteed

to go broke if you do this and I was

talking about inflation at 2 to 3% if

you keep your cash in the bank you're

going broke every single day now here we

are 8 and a half% 8 and a half% and now

people are starting to realize wow this

inflation is a real problem

and so now when you keep your cash in

the bank the bank is paying you 0 one%

maybe .5% if you're lucky and they're

turning around lending it for 5% 6% and

so the bank does not want to keep the

cash and savings because it's a

liability for them they want to keep you

spending money on their credit card

because now they'll get to earn 18 to

25% in interest every time you spend a

dollar wow governments want you to be

financially uneducated because when

you're financially uneducated guess what

you are an employee and you're a

consumer who pays the highest taxes

employees and consumers everybody knows

that rich people don't pay taxes it

makes people angry but a lot of times we

don't understand why right and we get

angry at the wrong things and the wrong

reasons yeah but the more you make as a

business owner until you're like uber

rich I feel like you're spending a lot

of taxes you are man and and you know

what and there's a lot of things that

you can do right legally to pay less

money in taxes and there's different

ways that you can invest your money to

pay less money in taxes so I'll give you

a couple examples let me start with this

tax avoidance and tax evading are two

similar words with two very different

outcomes this is one of the first things

that you learn in law school tax evading

is illegal yes you go to jail yes tax

avoiding is legal and then you get hated

for doing that but but this is the way

it works but you're playing within a the

rules of the system and if you learn the

IRS code it's a rulebook M and the

people who understand the rule book are

the people who have the money to hire

the good accountants and the Good

attorneys but you're not an accountant

but have you studied the I have studied

a lot of laot tax law really yeah and so

what happens is wealthy people will

understand how this works play Within

that system and pay little to no money

in taxes what are three things that

people who are making half a million and

above should be doing to avoid

taxes better so let's start with let I'm

going to assume that you have either

some sort of your own income you're a

side Hustler or you are a business owner

yes so if you make half a million

dollars let's assume that's profit you

are taxed on income so if you take out a

salary that's going to be taxed now the

question is what is a tax deduction or

the better question is how can you make

something a tax deduction because

anything can be a tax deduction if you

know how to make it a deduction M so

that's the question that you have to ask

yourself because if you don't have an

income you don't have any tax so this is

what wealthy people are doing so I'll

give you an example of it being done

then I'll show you how people can do it

on a potentially smaller scale Elon Musk

he is probably the biggest example of

this he never got paid a salary running

and owning Tesla he got paid in stock

options so these stock options even

before it was public this is uh I think

it was around the time that it was

public or maybe a little bit before okay

but

he's been getting stock options for a

long time sure but the stock options

that he gets or originally got were at

$6 a share so when the stock went up to

$1,000 a share and he was given millions

of these stock options now he has on

paper a lot of money but that money

isn't in his bank account so what he

does is instead of selling it and having

an income he goes to the bank and says

hey I have these stock options which are

worth billions of dollars how about you

give me a loan loan at 3 4 5% interest

no bank is going to say no to that

because the value of this is so much

there billions of dollars I me you can

make the number smaller but no bank is

going to say no he takes that loan pays

three to four to 5% interest on it and

if his company grows his stock value

Grows by

6% he just made a profit on that he does

have to take any money out never took an

income doesn't pay any taxes and is able

to now spend his money Live Free by buy

whatever he wants live rich and not pay

a penny and tax so he didn't have to

sell any of the stock because if you

sold it he'd pay an income tax right

when you sell it instead you get a loan

out from the bank MH and you don't have

to pay tax on that loan when you go and

get a mortgage you're debt it's debt

it's not taxable it's not income if you

go and refinance your home it's not

income it's cash that you have in your

pocket but it's not income you're tax on

income so now your job now as a as a

business owner is strategically how do

you not have an income now you might say

well I need money to spend sure of

course you do but how can you now

strategically use your income to pay for

your lifestyle now again it's got to be

within the rules so talk to a tax

adviser but right now after the pandemic

one of the things that the presidential

Administration wants to do is encourage

people to eat out eat at restaurants

because restaurants were hit so hard by

the pandemic right so what did they do

they created a 100% deduction on food

through 2022 so if you go out to eat

with your team it's a 100% Adu right so

right off I'm here in San Diego well

we're in LA right now but I'm here on a

two-month business trip to San Diego

with my business partner uh I have to

rent a a car actually got a Ford Mustang

cuz I always wanted to for Mustang when

I was a kid that was like my dream car

so I got one here with a convertible

nice uh and you know we have to go to

business meetings we have to go out and

explore San Diego do these things my

business partner is my wife we're

staying in air BNB in beautiful San

Diego guess what these things are tax

deductions against my business I'm here

working when you're an entrepreneur

everything is work yeah now the question

is how do you spend your money in a way

that's going to give you a tax write off

but you have to be smart here because

you don't want to just blow

$500,000 so you don't have to pay 150

Grand in taxes right like my accountant

uh called me up last year and said just

bre you need to go out and buy a G wagon

I said what I don't want to buy a G

wagon why he said you know there's this

tax reduction going on saying if you go

out and buy a heavy car it's still going

on right now if you go out and buy a

heavy car you can deduct up to 100% of

that value of that vehicle right now

really and because you're an influencer

you can potentially claim that as an

influencer you need a G wagon to help

you support your lifestyle the tax code

allows this and I was like well I don't

want to go out and spend 150 grand for a

car that I don't necessarily need just

so I can save let's just say 50 Grand on

those taxes so you have to be smart here

and know what's right for you and not

just spend your money uh to you know

spend a dollar to save 2 right so you

know you just need to know the right

strategies that can work for you and

these things change over time which is

why the best thing that you can do is go

ahead and hire a tax accountant a Tax

Advisor somebody that isn't just going

to file your taxes but someone that's

going to help guide you and say all

right you know here are some things that

you could potentially spend your money

on here are where there are more

benefits coming this year next year

things that you want to do and there's

going to be times where it's going to be

more beneficial for you to spend money

there's going to be times where it's

going to be more beneficial for you to

take in money and you know it's all a

game yeah and this is what wealthy

people understand it's all a game and a

lot of people

hate that oh this person's not paying

taxes that person's not paying taxes but

at the end of the day what you have to

remember is somebody else wrote the tax

code yeah all the people are doing is

they're trying to learn okay this is

what the tax code is what do I do and

and you know and then you kind of get

into the other philosophical questions

who's going to do better with 100 Grand

the government or me if I have 100 Grand

in my pocket I can go hire an employee

or two the government's going to you

know spend that money wherever they

spend it and pennies will end up

actually go to help people I'm all for

helping people I think that's very

important as soon as we hit a million

subscribers on YouTube what we did was I

took my team we went out to a teacher

store and essentially I asked them hey

can we buy everything in your store wow

because you know the the whole during

the pandemic people weren't going to

class uh in person and so a lot of these

businesses were hurt I said can I buy

everything and she said well we need

some of this stuff for our teachers I

said what can we buy so then we went out

and bought a big chunk of the

store Mr be style Mr beat style it was a

fun video uh took the team out kind of

as a celebration we we bought a big

chunk took it out to a school in Detroit

gave it to them for free and then I

asked the principal there's a friend of

mine I said how many teachers do you

have okay and I gave every one of his

teachers a $500 check to help them help

support their students giving is

important but you know it goes back to

that tax question of who does a better

job with their money right entrepreneurs

who are working to create more jobs for

working to produce more value or the

government which you know may not be so

good with their money absolutely yeah so

you started doing the real estate thing

early are you still a massive investor

in real estate what's your apprach on it

now yeah yeah so this this an

interesting question that you asked

especially right after the tax question

so real estate is one of the the best

tax games for investors that's one of

the reasons why wealthy people love

investing in real estate because not

only can you get cash flow but you also

get tax benefits I started investing in

real estate when I was 19 on accident I

went through a lot of pain I remember

when I told my dad first Hey Dad I want

to go invest in real estate he was like

you're stupid go study go become a

doctor so uh I started investing in real

estate then and and I contined to buy

homes and I remember CU remember this is

right after the 2008 crash I was buying

homes for like 30 Grand in good areas I

remember home prices went up to $50,000

and I was like that's a lot of money for

a home I didn't know anything else right

that's all I saw and so to me I was like

that's expensive but I continued buying

um and I I still am buying but not as

much as I was before because now I've

been working on a couple other

businesses and so what I'm realizing is

okay when I invest my money in real

estate my goal is to get a 7% cash on

cash return on my money meaning for

every dollar I invest I want to get

seven cents back in cash flow positive

cash flow every year if I invest 100

Grand I won $7,000 of profit every

single year Well I I'm an entrepreneur

right so I'm working on a couple

different companies one of which is

Market briefs and so now I'm in this

position where what do I do with this

cash I can take this money put it in

real estate get a 7 8% return on my

money or I can put it in Market briefs

which would be a a bigger tax deduction

because now you know if I spend money in

advertising I spend money on marketing I

hire more employees we have a smaller

profit but then I can grow the company

significantly faster than 7% a year so

what I've been doing now is investing

more of my money into Market briefs

because it's something that I'm super

passionate about like I love real estate

I love revitalizing homes and buildings

and really helping to build the

neighborhoods through that but Market

briefs had such a a different

value in the sense that we're making

financial news accessible because you I

didn't grow up learning about money

right and CNBC looked cool but I never

understood anything that was happening

there they have all these confusing

terms that are going on so it's a way to

make Financial education and what's

going on with money more accessible to

people because I'm realizing how

important that is to me because the more

and more I talk to people the more that

people listen to what I say the more I

hear oh my God I wish I would have

learned this when I was younger like

yeah I know me too and and so it's like

it's important for me to help get that

message out there because it it's so

needed it's not very complex but I

created this wealth formula which breaks

it down into a very simple almost

mathematical thing where it's you take

your income you subtract your expenses

and that equals your Investments plus

your savings income plus income minus

expenses equals your Investments plus

your savings so if you want to become

wealthy It ultimately comes down to

having more Investments your savings are

not there to make you wealthy they're

there to protect you against an

emergency your Investments are will make

you wealthy so if you want to become

wealthy sooner or if you want to become

a wealthy you need more Investments you

need more Investments how do you do that

well if it's your income minus your

expenses it's basic math either increase

your income decrease your expenses or do

both right so that's the ultimate

formula so now if we talk about let's

break it down step by step on how do you

actually do it

six steps and this is no matter what age

you are these are the six steps that you

want to follow before you get into the

six steps what is the mindset that

someone needs to think about step number

one is build the

mindset so step number one is you need

to have the right mindset and so this is

why I call myself the minority mindset

and you know the brand minority mindset

because it's all about thinking

differently than the majority of people

because if you follow what the majority

of people do in 80 to 90% of situations

you're probably doing something wrong

and you'll be in debt you'll be paying

off debts and loans for the rest of your

life the majority of people are broke

the majority of people are living

paycheck to paycheck the majority of

people are drowning in debt the majority

people have zero to no Investments the

majority people are unhappy the majority

of people are miserable and the majority

of people do not like their jobs this is

not me exaggerating these are all

statistical numbers where more than 50%

of people feel this way and so if now

you keep doing what everybody else does

you're going to end up like everybody

else and so this is where now you want

to think a little bit different and try

to find what's right for you and starty

to get educated yourself because when it

comes to the mindset the first thing you

have to understand is that it is

possible because if you're sitting there

saying it's not possible for someone

like me somebody who has my background

my parents my whatever I can't become

successful I 100% guarantee that you

will not be able to become successful

you

cannot change your outcome without

changing your mindset oh that's big and

and the previous interview we had we

talked about mindset versus tool set

where most of the times we assume that

the reason why we can't become

successful is because we lack the tool

set when in reality for 90% of people

it's lacking the right mindset because

when you have the right mindset you'll

discover that the tool set is right

around you so it's first believing that

you can do it because once you know and

believe that you can do it that belief

is going to then impact your decisions

because now you can say you know what

yeah maybe I can become successful what

are you going to do you're going to go

on to YouTube watch videos how do I

become successful and you start watching

videos maybe you start binging

videos and now you start to realize oh

okay I can start to do this I can change

this about my life I need to change the

way I think I need to change my actions

I need to do more things in my day I

need to stop watching so much Netflix I

need to do this then maybe you start

reading books and I start reading

business books because I have read a lot

of business books and there's so much

wealth in a $20 Business book just go on

to audible look at some of the top

business books and just start reading

and you will learn so much now you start

reading them maybe you start doing a

little bit maybe you don't succeed too

much but you start taking some action

and you start to learn even more because

your experiences are some of the best

teachers teachers in the world even if

you make mistakes I have learned from my

mistakes I didn't have a mentor I didn't

have guidance I don't have investor

family members I didn't have people

telling me how entrepreneurship works I

screwed up a ton just like you we made a

ton of mistakes and that's how we

learned and then maybe you go and take a

class now you're like okay I want to

learn how to do this I'm trying to build

this business I'm doing something wrong

I'm trying to get a better job or I'm

trying to get a raise I keep doing

something wrong youve read books now

maybe you find a class you invest some

money in this class and now you have

more education now you try more and now

you start to see over time oh my God 12

months ago I had no idea I didn't even

believe that I can do it now that I

believe that I can do it I started

watching YouTube videos I started

reading books I started taking classes I

started taking action and then you keep

doing it maybe you hire a coach maybe

you hire a consultant I mean the list

goes on and on and on you can do but it

all first starts with the mindset

because if you tell yourself you can't

your mind shut down and you're never

going to find an opportunity you're

never going to look for the opportunity

so that's where the mindset is the most

important thing and if you don't have

the right mindset this is where the

first thing you want to do is start

learning how do I build self-esteem how

do I build my confidence how do I

believe in myself and there's I don't

have a ton of videos on this I know you

have a ton of videos on this watch

Louis's stuff right so start there then

we go a little bit deeper now for

focusing on finances mindset is number

one mindset is number one the second

thing now once you build the right

mindset is you want to create your

financial base and the best way to

understand this is just to think if you

wanted to build a house what do you do

first well you got to Foundation you got

to build the foundation if you want to

Bild a bigger house if you want to build

a bigger house you want to dig a deeper

Foundation you want to build a tall

building you need an even deeper

foundation so you have to start by

building a financial base and what that

means financially is first you want to

save $2,000 at the very least you want

to put aside some cash for savings as

fast as possible because right now it's

something like 40 to 70% of Americans

don't have well 40% of Americans don't

have ,000 to put aside and something

close to 70% of Americans don't even

have 400% $400 put aside to protect them

against an emergency so the you know

most Americans don't have $1,000 put

aside get a $2,000 B two grand as fast

as possible and then you need to cut the

financial bleeding that means your

highin debts your credit card debts your

hard money loans your 0% APR loans which

are now charging you 20 to

25% these need to be paid off as fast as

possible because these are loans that

are skinning you alive financially so I

mean it seems like credit cards are one

of the biggest things that hold people

back look credit cards credit cards are

a tool they are a tool if you're not

educated with them you can get stuck if

you have this tool without the education

it will burn you I only spend with a

credit card I spend money because I know

how to use a tool and now because I know

how to use my credit card what happens

well I don't spend more than I would

otherwise because I use my credit card

just as a medium of exchange I'm going

to spend this money anyways might as

well use my credit card for my credit

card gives me perks it gives me cash

back it gives me fraud protection gives

me free insurance it gives me Hotel

upgrades it gives me all these things

just because I use my credit card

instead of paying with cash and so now

again it's the financial education

because now some people will say oh my

God these credit card companies are

scams well the reason why they're looked

at as scams it's because we don't have

the right education on how to use them

right it's a tool without the education

on how to use it and this is where now

you have to build that Financial

education and many times you're going to

have to go out and do it yourself

because a credit card company is not a

incentivized to give you the financial

education because they're going to make

less money right it's profitable to keep

people poor it's profitable to keep

people financially uneducated because

now if you just keep spending money in

your credit card because you have no

idea what you're doing now your credit

card company's going to get rich the

average household in America has $6,200

with the credit card debt so if you have

credit card debt in America you probably

have an average of $600 wow now let's

talk about that because if and what's

the interest on that well that's

15 to 25 28% and every month every month

you're paying that you're paying it

every month so it's not 6,000 a month

it's really you know over years if you

never fully pay it off you're just

paying more and more and more and the

interest rate on your credit card isn't

fixed rate it's variable interest rate

so as the Federal Reserve Bank raises

interest rates the interest rate on your

credit card also goes up so if you are

21 years old right now and you invested

$6,200 which is the average household

credit card debt right now if you invest

$6,200 right now and you got a 20%

return on your money and you did that

for the next 45 46 years you are going

to retire with $20

million $20 million and you never invest

another Penny again say one more time if

you invest $6,200 today and you never

invest another Penny again and at 21 at

21 and you get a 20% return on your

money you're going to retire with 20

million wow now you're going to say just

where in the world am I going to get a

20% return on my money year after year

you're right but but your credit card

company's doing it every single day wow

they're charging you and so when you

have that sort of credit card debt

that's you making your credit card

company richer now you know whether or

not you think it's a scam look let's

move past and understand what's going on

that way now you can use it to your

advantage because I get tens of

thousands of dollars worth of cash back

every year from my credit card company

because I use it as a tool and I

understand how to use it and this is

where look if you don't want to use a

credit card it doesn't matter but just

don't if you have credit card debt you

have to pay that off because that is

skinning you alive right now understand

the financial education aspect so that's

the first thing you want to do is create

your financial base so you got to save

some cash then you got to pay that

credit card debt off cut the fin cut the

financial bleeding what's the strategy

if you got three credit cards what's the

strategy to to get r that of debt so

Dave Rams is going to tell you to do

something called the snowball method the

smallest first or smallest first to the

biggest because you're building momentum

right right uh a financial advisor may

tell you the opposite do the debt

Avalanche which is now pay the highest

interest rate first and then go down

because now you're going to pay off the

most interest first so it costs you the

most money the long term the reason why

Dave Ramsey recommends the snowball

method is because psychologically when

you get those small wins of paying

something off you feel like you're

winning and you can pay it off faster

yeah a adviser is going to look at the

math and say hey look these numbers are

telling me that pay off the higher

interest rate first because it's going

to save you the most money over the long

term which one's right again not going

to say which one do what's best for you

because I know if I was in a situation

I'm not I like the idea of paying down

the heavy interest rate first because

that's how my brain works I don't need

the small wins like that I can work for

the long term I think you know the

entrepreneurial mindset where you know I

know how my mind works so I understand

myself and this is just honestly being

open and honest with yourself if you

can't stay true with it then do a

snowball it does not matter screw payt

it off a few months early just get it

away and paid it off as fast as possible

cut out cut the financial bleeding and

have a $2,000 base that's step two okay

step that's step two now the next thing

you want to do is what I call lead your

money so this is where you want to

create a financial system and start

investing your money because your

savings will never make you wealthy you

cannot save your way to wealth you have

to invest your money your savings won't

make you wealthy because of what we've

talked about in previous interviews

inflation you're losing money in the

savings if inflation is high than the

interest that you're getting at the bank

then your savings are effectively making

you poorer each and every day because

now your savings are losing value to

inflation now does this mean you should

not save any money no it means you need

to save your money strategically so you

want to save your money for three

reasons and three reasons only save your

money for an emergency save your money

for a big purchase if you want want to

buy a car you want to buy a house you

want to buy a nice watch whatever you

want to buy you need cash in order to do

that and then three save your money for

an investment if you're not saving your

money for one of these three reasons

you're saving your money the wrong way

and it is making you poorer by saving

that money so now we focusing on the

first aspect of saving your money for an

emergency how much do you save this is

now again going to depend on your risk

tolerance you want to save somewhere

between 3 to 12 months worth of your

expenses and the amount of money you

save is going to depend on where you are

in life and how much risk you're willing

to take on if you're like hey dude I'm

I'm 25 years old I don't have any

financial responsibilities I don't need

that much savings fine save a few months

worth of savings and that's it invest

more aggressively if you're like hey I

have a family I have kids I have a

spouse I I don't want to take on all

this risk then save six months N9 months

a Year's worth of savings because now it

will give you that peace of mind that

you have some extra cash put aside so

it's going to depend on your risk

tolerance and and what you want but this

in this Le of money step this is where

you want to understand that there's more

more to putting your money aside than

just saving your money you also want to

be putting your money to work and the

best way to do this is to create a

system where no matter how much money

you're making you are going to

proportionately continually invest and

save based off your income so what does

that mean well one of the simplest

things you can do is follow something

like percentage my 75 15 10 plan which

means for every dollar that you earn 75

cents is the maximum that you can spend

15 cents is the minimum that you invest

and 10 cents is the minimum that you

save and this never changes with your

income the only thing that you would

ever change is after you hit that

savings goal for your emergency savings

you don't keep saving your money for the

Emergency because you built that

whatever months you want you put that

towards your Investments yes and now

whether you're making 40 Grand 400 Grand

4 million 40 million you just keep

following the same thing and you're

living below your means and now you're

you're constantly putting money aside

for Investments now again we talked

about this before this investment money

can either be passively invested all of

it or you can put this money aside to be

invested so you can put this money into

a bank account you're looking for a

rental property you're looking for a

business to buy you're looking for a

cheap stock to buy this now depends on

know your investment goals right where

do you want to be invested how do you

want to invest your money and this is

that Financial education now of you know

what do you want to do and your personal

goals if you don't want to be involved

with your money you don't want to be hey

day-to-day investing or paying attention

to the markets you hate that idea just

passively invested right you become

wealthy with your investment money your

savings are there to protect you against

an emergency your spending money is what

allows you to live your life live your

life and and have the nice things and so

now we'll get into now how do you live

more live better today by earning more

money in a bit but this is where now the

passive investing is the most accessible

way for somebody to start investing and

then somebody's going to say what do I

invest in right because we're talking

about well you can invest in the stock

market there are funds like there's

index funds ETFs mutual funds they all

work similarly with some Nuance

differences that allow you to invest

into a basket of stocks a group of

companies so for example I like ETFs

just because they're very convenient so

you invest in a ticker symbol ETFs stand

for exchange traded funds so for example

if you wanted to invest in the stock

market the General stock market there's

a fund an ETF called vti now I'm not

telling you what to invest in just

giving you some examples vti is a total

Stock Market ETF if you invest in that

one ticker symbol you're getting

exposure to the United States stock

market you're getting Diversified

getting Diversified in the stock market

not across different asset classes but

within the stock market you can then you

know pick oh I want to invest in let's

say the S&P 500 which is the 500 largest

companies in the stock market spy

there's a ETF that gives you exposure to

that let's say you want to invest in the

Dow Jones that is the most commonly

discussed uh fund it is a group of 30

companies in the stock market big large

companies Dia is a ETF that gives the

exposure to that you could invest in

three stocks which would be hundreds of

stocks throughout those three

Investments ETFs y those three ETF give

exposure to hundreds not thousands and

all you need to do is invest in those

three things and set it and forget it

essenti now you can just set it auto

remember automatic so the key here now

is you invest when the Market's up and

down you don't change it so when you see

the market crash happen you don't stop

you keep investing the only thing that

you would change is potentially buy more

yes because when you see these types of

Market pullbacks most people are selling

and they're running away because they're

panicking and getting scared that my

investment is going down that's what you

want to be coming and buying

aggressively because now Investments are

going on sale and so this is where it's

again that mindset shift of

understanding what is it that you want

to be investing in and how long are you

investing for if you're investing for

the long term who cares what's happening

in the next two months or next two years

you're investing for the next 20 years I

call it a decade of sacrifice if you

want to become wealthy and seriously

wealthy not like oh I have a little bit

of money no you want to become wealthy

you got to put in what I call that

decade of sacrifice where you're working

to spend less and earn more that way you

have more money to invest and most

people are not willing to go through

that sacrifice because that means I

can't have that Gucci belt today so I

can have more Investments today I can't

show off my stock portfolio of real

estate portfolio the way that I can my

Gucci belt and most people would rather

have the show would rather have the look

than the actual thing that will make you

wealthy right and that you know it goes

back to the mindset the thing you talk

so much about your mindset has to be

focused on saying you know what I want

to become wealthy and that's hard

because now for one you have to be

convinced yourself and now you might

have a spouse you might have kids and

that means you all have to be on the

same page financially right because this

is a money is a team game it's in the

house if you think you know I'm going to

and to build my and then your husband or

your wife is going out and spending all

this m they're going to be pulling you

back so you got to be on board where I'm

mentally on the same page my spouse is

on the same page my kids are on the same

page we're going to build wealth and

we're going to build something that

we've never seen before and that's that

first mindset where now I believe I can

do it I'm going to do it now you start

putting in that sacrifice so we started

about the passive investing next is

active investing and I also should

mention that you can do passive and

active investing I do both mhm what's

the example for you so I invest my money

in five places um I invest my money into

businesses which are my own businesses

and startups that I invest in invest my

money into physical real estate invest

my money into stocks invest some of my

money into cryptocurrency a little bit

more of a speculative play and then I

invest a small piece of my portfolio

about 2% of My overall Investment

Portfolio into physical gold so my gold

my

cryptocurrency and some of my stock

market Investments are passive

meaning this happens for my stock market

every week for crypto every day for gold

every month it's the automatic passive

and consistent I don't touch it it is

automatically pulled out of my check-in

account and it is invested interesting

and your bank you can set a parameters

in your bank to automatically do this

yes two specific places you want to

invest exactly that's nice it is

technology has made investing so much

more accessible do all these Banks do

this or what are like the top few that

you see that many banks will allow you

to money from One bank account to the

other these investment accounts you're

going to have to work with a particular

brokerage there's tons of brokerages out

there that do this you can find whatever

you like for let's to say you want to

invest in the stock market there's a

bunch of brokerages out there that will

allow you now to invest your money into

the stock market through this passive

type of system you just have to find

what's right for you and this could

depend on what country you're in uh you

know and just that your what interface

you like the best and it's become very

accessible there are so many it is so

much simpler now than 10 years years ago

let alone 50 years ago so we are very

blessed to be able to do this now right

on the active side this is where now I

invest into my own businesses I invest

into real estate uh and then I also

invest in some stocks do you do real

estate funds or do you do your own

individual real estate buildings

yourself I have done some real estate

funds but that is the smallest piece uh

most of it probably 99 Point some per of

it is actual physical real estate that

I'm going on and buying myself

and so now it's when we talk about

active investing what does this mean

first this means now that you are going

out finding investment opportunities to

invest in and then you're putting your

money in and uh now this is where the

research is important so like for

example business I invest in my own

businesses I also invest in some

startups startup investing is very risky

nine out of 10 startups will

statistically fail so I know that when I

invest my money in these startups a big

chunk of this money will I will probably

never see again but my goal is now that

a small piece of these startups that I

invest in will go big and then that will

make up for the other losses yes with

real estate my goal is completely

different with real estate my goal is

cash flow uh I call it cash flow because

cash flow funds the guac flow and what

that means is now when I own a cash flow

producing asset I'm getting money coming

into my account now every month with my

real estate that I don't have to

actively work to earn because I have a

property management company in place I

have a system in place so it's not like

I have to go to work to earn this money

I buy the properties I have the systems

where we renovate the properties with

the contractors we do the right

inspections then I give the keys to the

property manager my job is done now

every month I'm getting cash deposited

into my bank account every month and

every quarter I get financial reports

going over what's going on with my

properties so it's hands off I still

review the properties like I review the

financials I review what the property

manager is doing but I'm not going to

work to earn this cash now I should also

say it took me a ton of work and a ton

of time and a ton of headache and a ton

of mistakes to learn how to do it the

right way yeah because uh you know I

didn't grow up with Real Estate

Investors and my family I had to go out

and just kind of do it and figure it out

and it was very stressful you know a lot

of people on the internet make real

estate investing seem like this Holy

Grail go buy some real estate and you're

going to be swimming in the doome but

here's the thing when you buy real

estate on your own it's almost like a

full-time job managing the property

managing if you're doing the Airbnb or

short-term rentals it's like you're

going to constantly clean and adjust and

promote it and Market it and deal with

the Airbnb stuff or you need to find

someone to pay to manage it yeah but

ultimately at the end of the day you got

to deal with the taxes of it you got to

deal with the expenses of it you got to

deal with the fixing of it you got to

deal with the regulations around it

whatever it might be so how do you

invest where it doesn't become a Time

suck and an extra job so in the real

estate but it's actually cash flow that

is more passive is that even possible

with real estate for I can only speak

from my experiences because for me it

was a huge time suck in it was like a

full-time job it was more than a

full-time job I couldn't sleep at night

because of how many issues I dealt with

but so why so why be in real estate

today if it caused you so much pain

previously well see I you you go in with

the vision right like entrepreneurs you

have to be a little bit crazy you don't

know how something's in a workout but

you're you're putting in countless hours

you're not sleeping at night you're

sacrificing vacation you're not talking

to your family you're doing a bunch of

crazy things because you think this

thing is going to work that's how it was

for real estate I'm known for being like

that stupid person and I've always been

that thing and for me it's like I

believe something so much that I'm

willing to make a lot of sacrifices and

keep doing something and for me when I

invested in real estate I was 19 when I

started when I bought my first property

and um I did it kind of all by myself

because uh I told my dad I wanted to

invest in real estate and I grew up in a

very traditional

Indian house my parents are immigrants

from a state in India called Punjab so

my parents came to this country with

very little and so yeah EXA you got the

moves down that's our dance we were just

talking about F before this it's a

traditional dance um but my parents came

here with very little and um you know

they wanted me to be a doctor and it was

very like strict that you have to become

a doctor nothing else is the options

anything that wasn't medical related was

like a big no no so becoming a lawyer

you were a failure I was yeah that was

huge compromise for me to become an

attorney with my parents but this is

before I even became an attorney where I

said I want to invest in real estate and

my dad was like and I was actually

studying for the Medical College

admission test when I had the idea to

start investing in real estate and I had

some cash saved up because I was working

on uh event planning company at the time

when I was in college my parents didn't

know about that so I was making a little

bit of money and I was like I want to

invest in real estate my dad's like

you're stupid go study go become a

doctor and then worry about all this

other stuff that you're doing so I was

like all right I'm just going to

yeah you know so how much was your first

deal it was a small condo that I bought

the condo about three or four years

prior to me purchasing it sold for about

150 Grand it went through foreclosure

the banks had it listed for $8,400 how

man you got the jackpot of that thing it

sounds like so I I made an offer for

four grand oh my gosh I don't know what

I was doing right so I'm I'm like well

did you get it well I put an offer for

four grand they said we'll give it to

you for $7,000 and I said no I'm going

to I don't know what I offered something

else maybe less five grand yeah and then

another person came in to potentially

buy the property and so the bank says we

have another offer on the table give us

your highest and best offer now to put

this in perspective I didn't know this

was a good deal because I'm 19 I knew

nothing about money five grand is a lot

of money at 19 like all your money yeah

so I know nothing about investing I

don't know what passive investing was I

had only read books about uh investing

so I'm I'm reading some books and now

I'm just just going on doing it because

I know nobody in real estate I didn't

even know you could invest in real

estate so I'm like okay well somebody's

making an offer I kind of like this deal

because I looked at a few other

properties so I was like well how about

I make an offer for eight grand we'll

see where they go and the bank took my

offer the other person offered less than

what I did wow so I bought it for eight

grand I put in a few thousand worth of

work and then I listed it for $600 a

month and the profit on that was between

$250 to $300 a month depending on the

month which now sounds great right this

is the the beauty of real estate the

downfall is it was a big pain because I

didn't know what I was doing I hired a I

don't want to say scam property manager

because I haven't been able to validate

that but I don't know if they were

licensed right the tenant moved in we

didn't have a lease the tenant was

absolutely crazy they had my phone

number so now I'm going to class like I

remember I was coming out in my

chemistry classes or my physics classes

and I had these voicemails these multi-e

long voicemails of the tenants talking

about how the world is ending they're

like this property is going to go up in

Flames so I was like what's going on I

get an electrician out there we go to

the property and this is like after

multiple issues that happened I went

with an envelope of cash I probably had

like $50 of cash in this envelope that I

gave to them because I felt bad for the

tenant electricians looking at the

property they're like yeah your light

bulb fused we can just replace that

that's it that was it there was an

instance where they were cutting

cucumbers on the countertop they missed

the Cucumber they scratched the

countertop she calls me crying that she

needs a brand new countertop oh my gosh

I gave it to them oh because I didn't I

don't know what's going on so like I

dealt with a lot of issues and that was

just the first one I mean like the first

I would say three were my learning curve

where I was like a full-time like I'm on

the phone talking to people trying to

find contractors I'm trying to find the

right attorneys I got screwed over by

attorneys I got I mean I made every

mistake possible why' you keep doing

real estate after the first three failed

yeah see this is where the the stupid

comes in out me

well I read books and people talk about

how investors own thousands of real

estate units I was like how can somebody

deal with thousands of tenants like this

like it's not possible like there has to

be a system I just had to figure out how

to crack that code how do I break this

system and that was my journey was

learning it and it was very painful very

expensive uh and very stressful because

the third deal literally depleted my

bank account um I was talking to my wife

about this the other day where uh that

third deal was so stressful because I

made every mistake possible I talk about

this on YouTube it's my worst real

estate deal

ever um I bought the deal because my

contractor told me it was a good deal he

told me that hey we can fix it up for

not a lot of money and because it's such

a good deal you're going to be able to

make a lot of money on it wow so he's

like don't even worry about getting an

inspection on the property just go out

and buy it so that's what I did I

trusted him right bought the property

gave him the money he ran away I didn't

know that he wanted the money because he

was running into financial

problems then this property it turns out

had a lot of defects behind the scenes

which I didn't know we had the City come

out and look at the property and it was

the repairs cost way more than what the

actual property cost and so now I was

really in trouble because I wanted to

get this property rented out my bank

account that property account literally

went negative and I had an overdraft fee

on this account uh which I had no money

to pay at the time for that property

because I was putting all my cash into

this and like I was saying before I was

in that event planning party business

which was a cash business so I had like

literally a bag of cash in my room so I

went to my last resort was I pulled the

cash out of my bag and I gave it to the

contractor I was like we got to get this

done I need to get this I need to get

some income out of this property because

I couldn't sell it I couldn't get a

certificate of occupancy I couldn't rent

it out

and so it was like I was so stuck I was

fortunate that I had that cash but I

mean it was a tough situation that was

my real life tuition like that was where

I learned like I say that one deal

taught me years worth of real estate in

one property because I learned so many

things that I should not do but then

from there you know I was able to

stabilize I made some more money with

other Ventures that I was doing because

I was making money for one reason to buy

real estate like that's all I was doing

and losing it in the real estate losing

in real estate but I was learning right

that was my learning process so I guess

I can't you know I I wouldn't change it

because I learned a lot from it very

stressful like when I say lost sleep I

lost a lot of sleep dur that time so

when you're going to buy a property now

what is the approach that you take so

that it maximizes your return saves you

time and energy and minimizes stress if

you like what is the approach if you're

like okay am I buying single unit

properties am I buying apartment

buildings am I buying duplexes

fourplexes am I what am I working with

another investor and buying a bigger

deal what is that thought process into

buying a deal yeah first off and then

how do you set it up so it doesn't take

you a lot of time to manage it sure so I

would say the first thing is I need to

know what my return is going to be and

generally my general rule of thumb is I

need a 7% cash onh return annually and

what that means is for every dollar that

I invest I want to see seven cents of

cash flow uh that's money that's hitting

my bank account after expenses um that

has nothing to do with appreciation so I

want to look at those financials I want

the 7 % cash on cash return then I got

to look at where am I investing uh so I

like to invest in areas that are growing

uh that have more like upand coming to

it so this is now I want to see

populations at least stable if not

Rising do a quick Google search of any

City and Google will tell you what's

happening with the population it's made

it so easy wow what are the top three

cities that are rising that are also not

over I guess overpriced right now now

one of those top let's see in 24 months

where that actually is because we're

going through this correction in real

estate right now so let's see where

interest rates go cuz that's going to

influence uh housing prices and real

estate prices in general interesting but

keep an eye on interest rates the

general thing is as interest rates go up

property prices will go down so let

let's let's rediscussed in what do you

think is going to happen over the next

12 months with interest rates well the

Federal Reserve Bank says that they're

going to raise interest rates and if

they keep doing that they're going to

push this economy into a lot of pain

because it came down a little bit right

recently so mortgage rates and interest

rates are two different things so okay

interest rates set by the Federal

Reserve Bank are called the federal

funds rates this is the interest rate

that One Bank pays another when they

lend each other money overnight so that

think of it like the wholesale price

right when when you go to buy this mug

from Amazon Amazon's buying it from the

manufacturer they they're buying it

cheaper then they sell it to you at a

marked up price called the retail price

so banks have this wholesale price

called the federal funds rate then they

Jack it up and sell it to you as the

mortgage rate so federal funds rates the

Fed rate can influence where mortgage

rates are going so interest rates can be

different than mortgage rates right they

are different than mortgage rates what's

the current kind of interest rate at the

time of this interview uh for mortgage

rates for the interest rate versus

mortgage rate so so uh the federal fund

right now is right around 5% just under

5% the federal funds rate mortgage rates

are hovering around the mid 6% for a

30-year fixed rate mortgage now the

question is where are we going to go

from here the Federal Reserve Bank has a

mission to fight inflation that is a big

deal it is a super serious problem and

we've discussed this in other interviews

I'm not going to go too deep into like

what is inflation why that's happening

we have an inflation problem and that is

a serious problem because if we don't

solve the inflation problem then we risk

a serious currency crisis we risk

potential hyperinflation we risk our our

dollar losing the reserve currency

status so it is a serious issue to bring

inflation down because yeah a recession

is bad a currency crisis is even worse

that's why the Federal Reserve Bank is

working to increase interest rates

because that brings down inflation now

they're looking to increase them

increase interest rates and what about

the mortgage rates so that pushes

mortgage rates higher higher so now

Rising interest rates have a consequence

and that consequence is a slowing

economy because when you raise interest

rates

it makes borrowing money more

expensive money less people buy and now

if you remember what we said just a few

minutes ago in our economic system

spending is good for the economy higher

interest rates less spending bad for the

economy our economic system wants people

to spend money in fact they want you to

be in debt and spend money because if

you're in debt and you're spending money

they're making money they're making more

moneyy and I can be rich and I can have

whatever else I want in life so let's

just start with that with money and

money me I think a lot of people just

think we're stuck in these these phases

the other thing that has been

fascinating is a money myth that I think

people that want to get rich is that the

best way to get rich