Inside the Mind of a Finance Maverick | Aaron Chapman | Part 2

Summary

In this insightful podcast episode, the hosts Flip and Danny, along with their guest Aaron Chapman, delve into the intricacies of real estate investment amidst an inflationary environment and rising interest rates. Aaron, a seasoned investor, emphasizes the importance of understanding the true value of real estate and the power of leveraging a 30-year fixed mortgage to build wealth. He debunks common misconceptions about refinancing and the allure of lower interest rates, arguing that the potential for appreciation and rental income in real estate remains a compelling investment strategy. The discussion underscores the significance of patience, strategic planning, and focusing on long-term gains rather than immediate cash flow. Aaron also introduces his investment tool app, designed to help investors calculate the time value of money and make informed decisions. The episode is a treasure trove of practical advice for both new and seasoned real estate investors, highlighting the continued relevance and profitability of real estate in uncertain economic times.

Takeaways

• 📈 **Inflation Impact**: The real rate of inflation is significantly higher than the interest rates being paid on loans, which means the purchasing power of the dollar is decreasing over time.
• 🏠 **Real Estate Investment**: Despite high inflation and interest rates, investing in real estate can still be a smart move due to the potential for appreciation and rental income.
• 💰 **Cash Flow Importance**: While cash flow is important, focusing solely on cash-on-cash return can lead to overlooking the long-term value of real estate investments.
• 📊 **Compounding Effect**: Small increases in rent can lead to significant growth in cash flow over time due to the compounding effect.
• 🔒 **Interest Rate Lock-In**: Locking in a low interest rate for a 30-year fixed loan can be beneficial in an inflationary environment as it provides a hedge against rising rates.
• 🚫 **Refinancing Caution**: Refinancing a loan may not always be in the borrower's best interest, as it can extend the payback period and result in paying more in interest over time.
• 📱 **Mobile Accessibility**: The increasing use of mobile devices suggests that making real estate investment information and tools accessible on smartphones could be advantageous.
• 🤝 **Teamwork**: Success in real estate investment often involves collaboration and teamwork, leveraging the expertise of professionals in the field.
• 📚 **Education**: Emphasizes the importance of educating oneself and future generations on how to effectively use assets for wealth creation.
• ⏰ **Urgency**: There is a sense of urgency to invest in real estate now to secure a legacy for future generations, given the current market dynamics and potential for increasing housing unaffordability.
• 🚀 **Action Over Inaction**: Encourages taking action in real estate investment rather than waiting for the 'perfect' market conditions, which may never come.

Q & A

What is the significance of understanding the real rate of inflation compared to interest rates?

Understanding the real rate of inflation compared to interest rates is crucial because it impacts the purchasing power of money over time. Despite single-digit interest rates, inflation can erode the value of money significantly, leading to less repayment in real terms as time goes on.

How does annual planning help in business?

Annual planning helps in taking a step back from the day-to-day operations to evaluate and adjust business strategies. It allows for identifying areas that need improvement, setting priorities, and ensuring that the company's efforts are aligned with its long-term goals.

What are the three main categories that team members should focus on when evaluating their projects?

The three main categories are Revenue, Customer Experience (CE), and Critical Process Improvement (CPI). These categories help in determining the priority and importance of each project in relation to the company's overall objectives.

Why is it important to regularly reassess and prioritize projects in a business?

Regularly reassessing and prioritizing projects ensures that the business stays agile and can adapt to changing circumstances. It allows for the reallocation of resources to more critical or high-impact tasks and helps maintain focus on the most important goals.

What is the role of marketing in building a company's foundation?

Marketing plays a vital role in building a company's foundation by creating brand awareness, driving customer engagement, and generating revenue. It is a key investment area that can significantly contribute to the company's growth and success.

How does launching an app benefit a company's marketing efforts?

Launching an app makes the company's offerings more accessible to users, especially given the trend of mobile device usage. It simplifies user interaction, provides a direct channel for communication, and can enhance customer experience, thereby potentially increasing customer retention and revenue.

Why is it recommended not to pay off a loan faster despite having the means to do so?

Paying off a loan faster is not always beneficial due to inflation. As the value of money decreases over time, the real cost of the loan reduces, meaning that you effectively pay less over the life of the loan. Keeping the extra cash flow can be better utilized for other investments or opportunities.

What is the potential downside of refinancing a loan?

Refinancing a loan can be disadvantageous because it often results in the loan term starting over, which means you may end up paying more in interest over time. Additionally, it can trap borrowers in a cycle of financial servitude, continually paying down interest rather than making significant progress on the principal.

What is the importance of understanding the time value of money in real estate investments?

Understanding the time value of money is essential in real estate investments because it helps investors assess the true worth of their investment over time, considering factors like inflation, cash flow, and appreciation. This understanding can inform better investment decisions and strategies.

Why should investors consider buying real estate despite high inflation and interest rates?

Despite high inflation and interest rates, buying real estate can be a smart move because it serves as a hedge against inflation due to potential rent increases and property appreciation. Additionally, locking in a mortgage rate can protect investors from further interest rate increases.

How can investors ensure they are making informed real estate investment decisions?

Investors can ensure they are making informed decisions by seeking advice from experts, educating themselves on market trends, and using tools like the qjo investment tool to understand the time value of money and the potential returns on their investments.

Outlines

00:00

📈 Inflation and Interest Rates Impact on Real Estate Investment

The speaker discusses the high rate of inflation compared to single-digit interest rates, emphasizing how paying back a loan results in less value given to the lender over time due to inflation. They also mention the importance of annual planning and the excitement of sharing insights with Aaron, who is featured in the episode. The discussion touches on the holiday season's impact on business and personal life, highlighting the cultural differences in celebrating Christmas, especially between the United States and the Philippines.

05:01

📊 Prioritizing Business Projects for Maximum Impact

The focus is on the importance of prioritizing business projects based on their relevance to revenue, customer experience, and critical process improvement. An exercise is introduced where team members categorize their tasks under these three headings to streamline efforts and drop non-essential projects. The conversation also addresses the need for adaptability in planning, ensuring that tasks align with company goals and that everyone is aware of their responsibilities.

10:03

🏡 Real Estate Investment Insights with a Focus on Long-Term Value

Aaron Chapman shares his expertise in finance and real estate investment, emphasizing the importance of understanding the true value of real estate properties. He criticizes the common focus on cash on cash return as a metric for property value, instead advocating for considering rental income, appreciation, and the ability to raise rents. The math behind a 30-year fixed loan is explored to illustrate the power of long-term investment and how property value can grow significantly over time.

15:06

💵 The Erosion of the US Dollar and Its Impact on Investments

The paragraph delves into the historical devaluation of the US dollar and its impact on purchasing power. It contrasts the stability of gold as a store of value with the fluctuating value of currency. The discussion then shifts to the benefits of locking in a loan and interest rate, highlighting how inflation reduces the real cost of repayment over time. The speaker advises against refinancing, explaining that it often benefits banks more than individuals and can lead to financial servitude.

20:06

📉 The Risks and Misconceptions of Refinancing and ARMs

The speaker warns against the pitfalls of refinancing, explaining how it can reset the mortgage balance and lead to paying more in interest over time. They also discuss the misconceptions around Adjustable Rate Mortgages (ARMs), suggesting that they may lead to a flood of housing inventory if rates rise, causing people to default on their payments. The paragraph emphasizes the importance of understanding the long-term financial implications of mortgage choices.

25:08

🚗 The Appeal of Classic Cars and the Importance of Time Perspective

The conversation takes a personal turn as the speaker expresses his love for classic cars, particularly his 1967 GTO. The discussion includes a humorous anecdote about getting a speeding ticket and the benefits of driving a cool car. The speaker also shares his preference for action movies over comedies and scary movies, citing the latter's unsettling spiritual implications.

30:09

🏠 Urgency to Invest in Real Estate Amidst Market Fluctuations

Aaron Chapman stresses the urgency of investing in real estate, given the rising inflation and interest rates. He argues that despite the challenges, now is a great time to buy property due to the shortage of inventory and the potential for long-term appreciation. He encourages educating oneself and future generations on the importance of assets and advises against going at it alone, emphasizing the importance of teamwork and seeking expert advice.

35:10

📚 The Role of Education and Family Trust in Wealth Building

The final paragraph emphasizes the significance of education and the use of family trusts in building wealth through real estate. The speaker provides his contact information for those seeking guidance and reiterates the importance of not attempting to navigate the investment landscape alone. He also mentions the 'infinite banking strategy' as a valuable approach to leveraging real estate investments.

40:12

📝 The Benefits of Master Notes for Investors

The speaker introduces the concept of master notes as an investment opportunity, particularly beneficial for non-accredited investors. They explain that these notes offer a 10 to 12% interest rate over five years and are automatically renewable, providing flexibility for investors. The speaker encourages potential investors to reach out for more information and to inquire about other opportunities available for the upcoming year.

Keywords

💡Inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. In the video, it is mentioned that the real rate of inflation is very high compared to the interest rates being paid, which is significant for investors as it erodes the value of money over time. An example from the script is when it's stated that 'a flat 8% inflation means that your dollar is losing 6.66% of its buying power every single month.'

💡Interest Rates

Interest rates are the percentage at which interest is paid by borrowers for the use of money that they borrow from a lender. The video discusses how current interest rates are still in single digits, which is beneficial for those paying back loans as the value of the money they pay back decreases over time due to inflation. The script mentions, 'our interest that we're paying is still single digits,' highlighting the advantage of low interest payments in an inflationary environment.

💡Real Estate Investment

Real estate investment involves the purchase, ownership, management, rental, or sale of real property for profit. The video emphasizes the importance of understanding the true value in real estate investment, which goes beyond cash on cash return to include appreciation and leveraging the power of loans. An example from the script is the discussion on how 'the real value is and that makes you and I are going to have to do some math to illustrate this.'

💡Cash on Cash Return

Cash on cash return is a metric used in real estate to determine the cash flow that an investor receives from a rental property, taking into account the cash invested. The video criticizes an over-reliance on this metric, explaining that high cash on cash returns can sometimes indicate a property that will be costly to maintain. The script points out that 'every time you get your person out of it, it's going to cost you a fortune to maintain it and get it rent ready again.'

💡Appreciation

Appreciation in real estate refers to an increase in the value of a property over time. The video discusses how appreciation, combined with a fixed loan payment, can lead to significant wealth creation for investors. The script uses the example of a property appreciating by 2.5% per year, which compounds over time, leading to substantial gains for the investor.

💡Rental Income

Rental income is the money received by a landlord from tenants in exchange for occupying a property. The video highlights how rental income can increase over time with rent raises, leading to improved cash flow for the investor. The script mentions a scenario where a $56 increase in monthly rent results in a 56% increase in cash flow, demonstrating the power of even small rent increases.

💡Leverage

Leverage in investing refers to using borrowed money to increase the potential return of an investment. The video explains how leverage is used in real estate to maximize returns on investment, especially when interest rates are low. The script states that 'there's no way to calculate it' when you use leverage because 'every bit of every single cent of return is an infinite return' when none of your own money is at risk.

💡Refinancing

Refinancing is the process of replacing an existing loan with a new one, typically to achieve lower interest rates or to change the terms of the loan. The video cautions against refinancing, arguing that it can lead to financial servitude by extending the time it takes to pay off the loan, thus paying more in interest over time. The script includes a story of a client who, after refinancing, 'literally reset himself where he was 48 months before' but still paid 'over $30,000 in interest.'

💡Dollar Erosion

Dollar erosion refers to the decrease in the purchasing power of a currency, often due to inflation. The video uses the concept to explain why, despite paying back a loan, the actual value of the money paid back is less over time. The script illustrates this with a historical example, stating that 'an ounce of gold is worth over $2,000' and still buys the same amount of goods as a $20 gold piece did in the past, showing the erosion of the dollar's value.

💡Housing Inventory

Housing inventory refers to the current supply of homes available for sale. The video discusses the low housing inventory and anticipates an increase in available homes when Adjustable Rate Mortgages (ARMs) come due and people are unable to make their payments. The script mentions a CNBC comment about 'housing inventory is very very very low and very lean,' suggesting a future flood of inventory due to ARMs.

💡Investment Strategy

An investment strategy is a plan or approach for managing investments with the goal of maximizing returns while minimizing risk. The video emphasizes the importance of understanding different aspects of real estate investment, such as leverage and appreciation, as part of a broader investment strategy. The script advises viewers to 'look at the infinite banking strategy' and 'how to utilize a Family Trust' as part of their investment strategy.

Highlights

Inflation is currently very high compared to the single-digit interest rates being paid, leading to a decrease in the real value of debt payments over time.

An 8% inflation rate implies a loss of purchasing power in the dollar, which benefits debtors as they effectively pay back less than the original value of the loan.

Annual planning is crucial for businesses to step back, evaluate, and prioritize projects based on revenue, customer experience, and critical process improvement.

The concept of 'bandwidth' in a business context refers to the capacity to handle more work or projects without leading to inefficiency.

Marketing is identified as a key area of focus for the company, with significant investment made in 2023 to build a strong foundation.

The importance of prioritizing tasks that align with revenue generation, customer experience, and critical process improvements is emphasized.

The discussion of an exercise to help team members categorize their projects and drop those that do not contribute to the company's main goals.

The necessity for businesses to regularly check their direction and priorities, whether during quarterly or annual planning phases.

The introduction of a new app being developed by the team to make courses more accessible via mobile devices, reflecting modern user preferences.

The significance of understanding the real value in real estate investments, moving away from the cash on cash return metric.

An explanation of how the appreciation of real estate and inflation can work in favor of investors, despite the common misconceptions about interest rates.

The potential for a shift towards a subscription-based economy in housing, with large financial institutions anticipated to control a significant portion of the housing market by 2030-2035.

The recommendation for families to invest in real estate now to secure a legacy for future generations amidst rising inflation and interest rates.

A warning against the common practice of refinancing mortgages, which may not be as beneficial for the homeowner as it is for the banks.

The assertion that housing prices will continue to rise despite fluctuations in interest rates, advising investors to lock in prices now.

The introduction of the QJO Investment Tool, an app designed to help investors understand the time value of money and make informed decisions.

The emphasis on the importance of education and leveraging assets to build wealth through real estate, especially for future generations.

Transcripts

you start looking at the real rate of

inflation it's very very high and it's

extremely high compared to what we're

paying in interest our interest that

we're paying is still single digits

because of that single digigit interest

you get to see that as you're paying it

back you actually give them less and

less every single month if you're just

at a flat 8% inflation which we've been

above that since the 90s actually since

the 80s when you look at the real rate

of inflation a flat 8% means that your

dollar is losing 666 per of its buying

power every single month wow so as

you're paying some me back you'll start

to see that today's interest rates

you'll actually pay less than what you

borrow hey everybody flip and Danny here

welcome to another episode of the

freedom

show we're super excited to be back if

you are coming back because you heard

last week's and you are like I can't

wait for part two to be released well

then welcome back because we're super

excited to be sharing Aaron with you

again today um but before we get into

that episode um we wanted to talk to you

a little bit about um annual planning

and preparing for 2024 because um this

is the holiday season that's right um

holiday season oh she's been listening

to Christmas music since

Halloween um uh yes yeah as soon as

Halloween yeah that was actually thanks

to you you actually put you you put

lights around the house and everything

and I was like yes it's Christmas time

that's right so

but we don't we don't beat the the our

team in the Philippines because they

they actually decorated on September 1st

yes did you know that in the Philippines

they spent four months right they start

in September September so September

October November four months of

Christmas and here in the states we get

yelled at if if we have decorations up

before

Thanksgiving that's so funny oh my

goodness um so yeah so annual planning

um uh uh I really love planning because

it really it what many times we get

caught up in working in the business

instead of on the business right and and

when planning comes around it's the

opportunity to take a little step back

um put yourself Elevate yourself you

know way way way up here and look down

and go oh oh we should probably fix that

yeah yeah we need to fix that part that

one right there y um and I was just uh

um we had a post in we have this uh

channel in our Google chat called core

leaders um and it's really kind of the

leadership team within our um company

and we are talking about bandwidth and

how that it seems to be probably one of

our biggest problems right now is that

everybody is just at the you know very

very limits of what they can handle um

in terms of bandwidth and so uh you know

I said okay well here's an exercise that

um that we can all do and I actually

started it with Caitlyn our marketing

director um so I didn't see didn't use

Tiffany hi Tiffany I'm talking about

Caitlyn right

now so hey I heard Caitlyn swear the

other day just letting I'm letting

everybody know oh man Caitlyn's been

outed on a podcast on a podcast um so uh

I I was talking to Caitlyn and she's you

know she's the marketing director and

she's you know over all of the companies

and so what's on her plate is insane and

we've really grown her team like like

heavily um because marketing is really

one of the most important things that we

could be doing here um and and it was a

foundation uh builder in 2023 anyway we

really invested a lot of money into

building our foundation in 2023 we we

did our website we brought two websites

and made them one um redesigned our logo

we did all this this podcast room like

all of this stuff is brand new and the

fact that we finally launched season two

of the freedom show is literally because

we focused on marketing here in 2023

right um so um I she was there was two

more things that I jumped on and I'm

like I'm very impulsive I'm like yes we

need that we're working on it anyway and

this is going to get us there faster so

let's get it and so I got two things and

one thing

squirrel it's not squirrel we're working

on it anyway um uh uh one thing's

actually going to lift the burden a

little bit off of one of the team

members in the marketing department um

and the other thing was a little bit of

an addition but it's going to be more

effective in our ability to launch it so

we're launching some courses um this

year and we are going to put it on our

go high level and just have you know

website and the normal you know desktop

uh uh course and uh I was on this

webinar and there are just like more

people use their phones these days and

they do desktops and it's more

advantageous to have things at people's

fingertips it makes it simpler for them

so I'm building an app I'm not building

it my team's building it but I put that

and I said it and and and Caitlyn Smiles

she's so sweet she smiles and she's like

oh and she she's happy at the same time

I can see it like in her head going not

another project I can't do another

project I going to do another project um

so uh I was just like okay we need to

Let's look at what all the projects are

um and let's make sure that you know

you've got capacity and let's like like

throw some that don't aren't necessary

and put them on C to one or whatever so

you're always having to do these things

in business so it doesn't matter if it's

quarterly planning or annual planning um

you should always be checking yourself

if you see something that lines up with

something that you were doing anyway and

suddenly that becomes a priority over

some of the other projects by all means

you don't have to stick to the script

just you know grab the stuff that isn't

as important dump it down and then make

sure you're always um uh prioritizing

what's most important so um Chris

actually mentioned something in the core

leader channel uh about the bandwidth

and so I said here's an exercise that

I'm working on with Caitlyn I didn't say

it to Caitlyn this way because I'm

actually helping her with this so I can

figure out what we can what we can dump

but I told him I said if we could just

have all team members write down what

are you doing right what are you doing

right now what are the projects that

you're working on and then if you can

write next to them the word Revenue the

word customer experience or the word

word critical process development or uh

Improvement critical process Improvement

um so CPI for critical process impr

Improvement customer experience is CE

and then Revenue if you can write those

three words if that if something's on

your list that has nothing to do with

those three things um so for instance on

one of the things on Caitlyn's list is

swag we want to get our swag store up

right um because we want to have cool

shirts and stuff it that's it's barely

Revenue because we don't really make

money on swag yeah maybe a dollar

customer experience it would be fun but

it's not the type of customer experience

when we're talking about excellence and

really serving our investors better and

then um critical process Improvement it

definitely doesn't do that so that got

dropped off or listen into q1 um even

though it would be fun to do she might

throw it on back on our list because she

has the capacity to do it and it's fun

so it might like move back up but that

was the point of the exercise if it

doesn't fall in those three categories

it can get moved but if it's Revenue it

is first like what anything you wrote

Revenue um on you're going to put it the

very very top of the list anything that

you wrote customer experience on um

you're going to put it um third in this

scenario and I'm going to explain why

and then where we shift it um for custom

uh critical process Improvement you're

going to put it number two because

typically a critical process Improvement

is a bottleneck in the company which

affects revenue and so Revenue one CPI

is number two because it has to do with

Revenue um and it has to do with

customer experience if it's a bottleneck

it's not only affecting Revenue it's

expecting affecting the customers

customer experience is only because

those other two had to be put first um

uh so uh but the customer experience

then you have those things and depending

if if your job is to really focus on the

first two you could say hey flip you

actually don't have these first two on

your list can I give you these three

customer experience pieces and boom now

it's number one priority for you right

so now we lifted the customer back into

a number one seat um as far as a

priority so we're going through that

process and I just encourage everybody

to go through it no matter if it's

planning stages or not those are always

important processes but I just get

excited when it comes to this because we

really get clarity we like we we put our

blinders on just like the horse and we

go this is where we want to go we

fine-tuned it we know what direction we

put some accountability pieces in place

um we know like who's responsible for

what um we know what uh they're

reporting on every single week and um

that type of clarity like fuels me yeah

I know and plus it's it's also make sure

that everybody on the team knows exactly

what we're doing yes you know in case

somebody's like well I'm not sure you

know our quarterly planning puts

everyone back in line you know because

two three months that's enough to get

somebody start straggling over here yes

so yeah no I love it yeah absolutely um

and also I think it really helps new

team members too right we talked last

episode about how hard it is sometimes

to make sure that you're conveying the

vision that's in your head to the team

and making sure that they understand

where the company's going that's just as

important for the investors right where

is the company going so that 12-part

series that um uh we did that helped

communicate that so we're just getting

better and better and so um those are

the things that we do and that those are

the things that we talk about and those

are the things that we want our

investors to know we want active

investors to know so you can apply hey

oh that's a good idea let me let me go

ahead and do this because we only know

what we know now through all the trials

and the pain and the suffering that we

went through to go oh this is how we

should do it um so uh yeah I love

talking about this type of stuff at the

very beginning so now we're going to

dive back into Aaron yes um uh so this

episode is going into a superpower yes

yeah um and uh we're doing math yes and

uh I think I think that's what they call

it and I think last week we said have a

calculator already if you're not in a

car yeah if you're not driving

calculator would be helpful for for most

yeah there's some people out there that

could handle the simple calculations

that he's going to

ask not me we had some fun with it

though we're not going to give you any

more secrets about what's about to

happen we're just going to let you guys

dive in um here is part two that's right

of Aaron Chapman

[Music]

enjoy let's jump into your superp power

this is really why I wanted to have you

on this podcast really um share what's

going on in the market right now um

share your superpower which is really

the finance industry and you serve

investors like ourselves so you serve

our clients and that's why I'm so

excited to introduce you to everybody um

so we've already talked about uh um how

got started um so tell us a little bit

about how you help investors and what

the real estate investor needs to know

about today's market right now thank you

the the superpower I don't know if it's

really superpower I just believe it's I

have the ability to dumb things down to

a way that people can understand it

because what we have in the world

between the attorneys and between the

the uh the people out in on Wall Street

and the politicians they take the most

simple things and complicate the piss

out of it so it makes it look like we

need them and then when we start to feel

like we're starting to get ahead of them

a little bit and we don't really need

them as bad they change the rules just

so you need them again they keep

manipulating everything and messing with

it so my goal is to help people

understand what the where the real value

of things are and the main thing is

understanding where the value in real

estate is we spent the last 12 13 years

mistakenly understanding where value in

in investing in real estate was and it

was because everybody kept using the

cash onh return metric as the key to

understanding what whether there's a

good property not a good property now

albe it a great metric if you get great

cash on cash return why would you not

but the problem of it is is those that

ship sale be able to get a stupid cash

on cash return 14 15% right out of the

gate one unachievable if it is

achievable I guarantee this property

that you're buying is going to eat you

alive in maintenance because that you're

underpaying probably for a piece of crap

that's going to rent high but every time

you get your the person out of it it's

going to cost you a fortune to maintain

it and get it rent ready again and you

you didn't get any cash on cash you just

look great on paper so what I explain to

people is where the real value is and

that makes you and I are going to have

to do some math to to be able to to

illustrate this so okay what we're GNA

do you guys pick amongst you who's going

to do the math because we're going to do

it together I'm going to ask the

question you're going to explain the

answer and just know it's simple math

and you are prone to get it wrong

because your brain sees one thing but

the reality is something else even

though it's simple and the reason I do

it this way is it's going to sync up our

minds and I need the people listening to

be able to say oh okay yeah now I get it

because if if we can't sync their minds

up they'll glaze over it so I need

everybody to check the math here so

we're going to say a person's buying a

$200,000 single family residence they're

going to put 20% down they're going to

finance 80% they're going to get $1,800

a month in rent and they're going to

only get say $100 a month in cash flow

and this is a 30-year fixed loan so

where a person needs to focus their

energy at is not what's my cash on cash

it's going to be can I keep this

property reasonably rented the entire

time I own it does it appreciate and can

I raise rents that's it now we're even

going to beat the appreciation up we're

going to beat everything up on these

numbers so here's where the math comes

in if you're putting buying a $200,000

home you're putting 20% down how much

you putting down $40,000 40,000 bucks

okay check that math make sure we all

agree it's 40 Grand now let's say

between the lender fees appraisals taxes

Insurance title fees all this crap it's

very expensive let's say it's 10 grand

I'm not saying that's what people pay us

I'm just saying let's do round numbers

is 10,000 so if you put 40,000 down now

you have 10,000 how much did you invest

$50,000 50,000 invested that's your

money in the deal how much was the loan

amount the loan amount was

$160,000 60,000 a lot of people you did

very very well a lot of people like to

say 150 cuz the automatically in their

mind they think I invest in 50 they it's

it's amazing how often that happens

160,000 so if you we said this is

30-year fixed if you did your job as the

CEO of your investment real estate

investment business and you got to keep

it reasonably rented the entire time you

own it who pays off the $160,000

loan my resident the tenants or group of

tenants over 30 years so let's take

160,000 divide it by 30 and let's see

how much they're actually giving you

average over that 30

years I don't have my

phone and I can't do that math in my

head flip uh roughly

53,000 it's 5300 5300 sorry you had a

just a decimal point off which I mean

you got that right $

5,333 34 per year is what they're

averaging payoff now I know there's an

amorz table and it's only going to be

about probably 1,200 bucks or 1,300

bucks first year I'm talking about

average because we're talking about a

30-year long game so they're average

giving you $5,300 a year well what

percentage of 50,000 which is your

investment is

5,300 it is 10% close to 10% yeah a

little over 10%

10.66% okay so we're getting

10.66% increase every single year

averaged over 30 years correct correct

just by having somebody paying off the

loan you're not getting a single dollar

of cash put in your pocket they're just

paying off the loan that you got that

right there is increasing your

investment by 10.66% averaged over 30

years now I know the first year it's

going to be probably like three or 4%

but we see what the potential is now we

spit that on the shelf that right there

we know that growth now we live in an

inflationary environment do you know

what K Schiller Black Knight and cor

logic said that properties were

appreciating in

2023 no they said they're averaging

8.9%

much higher than what they thought

coming into 2023 because everybody new

rates were going to go up so they

thought maybe five maybe 6%

8.9 so let's beat that number way down

let's say you're only appreciating this

$200,000 house by two and a half perc

that's a very very low number and easily

achieved number in any market so what 2

and a half% of

$200,000 two and a half

two oh two four 5,000 we both did gave

you different answers so which one is it

5,000 was correct all right bam oh man

and the easiest way to do that the way I

had to do it in my head is well if 100

it's 2 and a half% of 100,000 is 2500

bucks you just double it right so so 25

so it's $5,000 is what you're gaining

every single year now it's compounds

right it's not 5,000 every year it's

5,000 the first year then it's 2 and a

half% of of

$2,500 or or 205,000 right so you can

see how they compounds but just that

first year that 5,000

what percentage of your

50,000 is that

5,000 5% 10% 10%

5,000 another 10 right so look at double

digit percentages right not even

factoring the compound that there that

is a 20.6% average increase not even

factoring the compounding effect right

so when you only take to a consideration

Compound Effect you're already at 20%

20% plus and that's before any cash flow

hit your pocket that's before any tax

benefits that hit your pocket right so

now we talk about the cash flow we said

he was making a 100 bucks a month right

for the for the first year but then you

get to raise rents how much are rents

going up by year-over year right now in

your guys' markets we predict 3% but

it's actually higher yeah it's between

six and eight depending upon where

you're at but let's say three let's just

use your three okay what's 3% of 1800

because that's the rent we said it was

1,800 bucks a month what's 3% of

1800

um

480 it's 56

bucks we needed our calculator for this

episode

$56 like when you people think about

like oh it should be going up high no

it's only 56 bucks here's the thing

about this you don't get excited about

56 bucks your landlords don't get

excited about 60 56 bucks and your

tenants do not get excited about 56

bucks like oh cool it only went by 56

bucks but what that do your cash flow

went from 100

to

156 that's a 56% increase in your cash

flow look at the compound growth there

people think these small percentages

they look at oh it's only 3% increase in

rents I'm going to go find a different

house no can this house stay reasonbly

rented is it one that is in a good area

is it what type of grade are we talking

about is a c-grade house is an a grade

house what type of house is it look at

all the factors just by having somebody

stay in there long term look at that

growth you will within year five six or

seven you'll see some massive cash onh

return but you got to be patient it's

all the other things where the wealth is

being created now that's where not where

it gets sexy does the lender get to

raise the payment on the loan because of

inflation no they do not a thiry year

fixed that some is locked for the

entire 30 years here's what's very

interesting about that we live in an

inflationary environment we just talk

about that's why we get to raise rents

and that's why appreciation happens on

homes but what happens to the value of

the US dollar goes down it declines

here's here's a way to illustrate how

much it has declined back in the early

1900s and late 1800s they used to Mint a

$20 gold piece it was a single ounce of

gold is about 098 something per pure

because they had to add some other

Alloys to make it durable but that $20

gold piece you can walk into a

department store get a hat because hats

were a big deal back then right you can

get the Hat you can get a suit you get a

shirt a tie a belt a pair of shoes and a

pair of socks for that $20 gold piece

you can't walk into an Department Spore

Spore department store and spend 20

bucks for a pair of socks these days

it's more expensive than that right

especially decent socks my socks cost 40

bucks right because they're they're a

wool so because that we know that the

dollar is completely eroded

significantly but here's what's

interesting you can still get all the

things I just said with an ounce of gold

why because an ounce of gold is worth

over

$2,000 it's not that the gold has gone

up in value it's not that the clothes

have gone up in value it's that the

instrument we're exchanging for them has

eroded so much in value so where this is

a benefit to everybody listening here is

when you lock in a loan and an interest

rate and you get all caught up and

what's are what are rates doing think

about what the rate of in of inflation

is doing inflation's much higher than

what they're claiming they're claiming

to be between four and 5% it's closer to

about probably 11 to 12 uh when you

really start factoring things in because

they're talking to us what the rate of

inflation is is in in the CPI or

Consumer Price Index it's an index it's

not everything it's it's a few things

that they monitor not everything that we

spend our money on when you start

looking at the real rate of inflation

it's very very high and it's extremely

high compared to what we're paying in

interest our interest that we're paying

is still single digits because of that

single digit interest you get to see

that as you're paying it back you're

actually give them less and less every

single month if you're just at a flat 8%

inflation which we've been above that

since the 90s actually since the 80s

when you look at the real rate of

inflation a flat 8% means that your

dollar is losing 666 per of its buying

power every single month wow so as

you're paying some me back you'll start

to see it today's interest rates you'll

actually pay less than what you borrowed

in this scenario you pay 160 was it

$160,000 in in principal but in

principal and interest it's be about

$42,000 over the life of the loan that's

where everybody's like oh I'm going to

pay this off early or I'm going to

refinance and try and get this rate down

because that's all this interest

interest but what you don't realize is

that the long you take to pay the less

you actually pay because that dollar is

worth less and less and less you come to

find out you're paying about 152,000 in

actual dollar value so keep your extra

cash flow don't pay it off any faster

and don't get caught up in the freaking

refi let me ask you this who does it

benefit when you refinance the bank bank

benefits the banks it doesn't benefit

you everybody thinks it benefits you now

if you're pulling cash out to buy more

investment yes that benefits you using

somebody else's money to expand your

Holdings and did you invest any when you

take pull cash out of a house you take

all that money and put it to other

Investments and let's say you buy three

houses with with what you got on the

loan for one did you put any money up no

you put a single dollar every bit every

single scent of return is an infinite

return because there's no way to

calculate it there's none of your money

that's how rich people get rich it's all

leverage now when you start looking at

the benefits for the bank of refinance

everybody's like how could that benefit

the bank I just dropped my interest rate

by 1% well I had a client of mine came

to me had $120,000 mortgage when he

bought this house he came to refinance

it 48 months later it's the 47th month

and we did the math on it it's like dude

you paid almost $37,000 in principal and

interest on this over the last 47 months

his new payment was coming due he was

making that payment so 48 months have

gone by he paid over

$37,000 but only dropped the balance by

like

$6,500

look at all that that went to interest

tons of money went to interest I tried

to talk him out the refinance but he

wouldn't wouldn't listen to me when he

refinance that where is his cost years

they go they go back into the loan right

so we had it back into loan because they

didn't want to come into the money with

to the table with any money it took his

balance to within $106 of the original

balance it was 119,000 in change so he

literally reset himself where he was 48

months before but still paid out over

$30,000 like $31,000 in interest and

started that over again people are being

conditioned to refinance every four to

five years it's been common within our

industry why because you keep people in

financial servitude that's why there's

so much front-loaded interest up front

because that's when people are

programmed to come in and do that

refinance again we've heard it being

said if it drops at least this much or

you get to this point you should always

refinance that was always being

perpetuated by the bank right the same

same way De Beers convinced everybody to

spend at least a month salary on a

freaking ring to get married so it's all

marketing you've been conditioned and if

you keep doing that same pattern as this

guy he would have paid over $180,000 in

20 years but never moved the needle on

his mortgage never where somebody else

could have paid the original payment for

the entire 20 years and had it

two-thirds paid

off wow and then could have p a t of

equity and bought five houses right so

that's the other realize you're being

put into Financial servitude when you

get caught up in the refinance

game yes that is mind-blowing and again

something that nobody talks about um you

always hear from even your mortgage um

Professionals for the most part with the

exception of you Aaron are talking about

refinancing and correct me if I'm wrong

but they're getting paid to refinance

you as well yes 100% that's why they're

talking about it that is your career

their career path so what very very

recently there's a lot of people in the

mortgage industry that saying well you

just take an arm loan because you get a

lower interest rate and then refinance

when the rates go down well what I'm

explaining to everybody because I had a

big run for about a year there after

well probably about six months

everybody's saying can you guys do an

arm everybody says I should do an arm

like why do you think they're saying

that they say because I can refinance in

five years well one you're just setting

yourself up to be their future business

and that's exactly what all the leaders

in the industry are saying sell the arms

so you have future business right keep

track of those clients and Market to

them in the few years so that's their

future business model and business plan

secondly who says the rates are going

down that's right yeah do you guys know

the name Charlie Munger yes sure do so

he was on a c I think it's CNBC or MSNBC

I can't remember which one I think it

was Christy quick that she was he was

being interviewed by and in that

interview it was earlier this year he

said that we saw 40 Years of declining

interest rates they anticipate to see 40

Years of increasing interest rates I had

a clip of that on YouTube I go to that

clip now and it's taken down you can't

access that clip anymore I have spent

about six hours of going through every

edited version of that um that interview

and it's no longer in there what's also

interesting I downloaded the interview

what I believe is the interview and it's

been redacted from the transcripts I

can't find it why do you think they

can't find it because they don't want

people to know that we could be on a

40-year increase of interest rates so

you don't lock it now you wait till the

next thing now there's so many people

sitting here waiting well I'm just going

to wait till the rates go down cuz say

they rates go down well okay let's say

they do what do you think house prices

are gonna do they're gonna still go up y

Canna keep going jump right y we went I

it's amazing how many Realtors I talk to

or I've heard from like you banks in the

damn rates and they're at us like

it's us right it's like well what about

you damned realtors that would tell your

your your client when they want to buy a

house that you better come to the table

of 30 to 50,000 over list just to get in

the game

nobody bed about raising prices 30 to

50,000 because interest rates were 2 and

a half per. you gave away the benefit of

the interest rate in the price of the

house yeah so now we're at an

equilibrium where the price of housing

have kind of semi stagnated they really

have an 8.9% increase but there's some

areas that actually have come down a

little bit I'm telling people You better

lock in the price now because if you're

right let's say Aaron Chapman's wrong

and the interest rates do go down you

better have locked it in now because

you're going to get screwed hard and

what's really interesting is even though

the rates are are going up the cost of

housing is not going down why is it not

going down what are the hedge funds

doing they're buying the hell out of it

you got you got Black Rock you've got um

Vanguard and State Street are

anticipated this is anticipation I don't

have all the statistics on this this is

anticipation for them to control 60

plus% of the available single family

housing by 2030 to 20

2035 if they do that they will have

accomplished turning into a subscription

based economy for the next few

Generations our generation will make it

through but what about our grandkids

I've got a grandkid here at my house

today I've been watching her most of the

morning she's not going to have a shot

at this if we don't do something now you

want to talk about freedom family

Investments the freedom for the family

should be buying investment real estate

now because it's not going to be

available later I just closed on two

houses in Missouri because I have two

kids moving out there both five five

bedroom homes for a couple hundred

thousand we the Our Family Trust paid

cash I put leans on it I'm going to

refinance pull the cash back out of it

put it back in my in my accounts to keep

expanding our Holdings but that's the

only way they got a shot at this is to

rent from the trust and then the trust

is going to keep growing it and keep

growing it for the future Generations

because if we don't do that they're

going to be taken advantage of and it's

my opinion again my opinion because I

don't know the future if we're not doing

this now we're going to end up being the

ones paying the subscriptions not

offering the subscriptions that's right

that's right wow so powerful um and to

to tie back into Charlie Munger um I

just want for the everybody in the

audience that does not know who Charlie

Munger is um it's Warren Buffett's

partner um and that's something that I I

learned um like you know a few years ago

somebody I was on the phone with talking

about similar things as you are talking

about today Erin I was like have you

been following Charlie Munger if you if

you're not following him you need to

write his name down and start listening

to what he has to say um so gosh that is

so powerful and another thing speaking

of Charlie and Warren Warren said you

can Google this he said that the 30-year

fix is the greatest Financial instrument

in history because it's a one-way BET

right if you're wrong if I'm let's say

the rates go down you just refinance who

gives a if you want to refinance I

don't think you should but if you want

to you can but if you're right and they

keep going up and if I'm right and if

Charlie's right you just protect

yourself from from some heavy Financial

Devastation I was listenting I've got a

guy on my team's named Scotty bear he he

helps people on the interest rates and

figures out what's the best one for you

in the available market and he had CNBC

in the background and they were talking

and there was a comment that was made

was interesting that housing inventory

is very very very low and very lean but

they anticipate when some of these arms

come due the five years and 10 years and

arms that we're going to see a flood of

inventory because people are not going

to be able to make their payments

because the rates are going to jump that

high it was a quick little blurb and

only somebody like myself would catch it

but that's what they're talking about so

if you think they're coming down think

again the other thing that a person

needs to have is the numbers I gave you

earlier about what's happening with the

dollar you don't have to try and figure

that on your own you can go to your app

store right now and search for the

qjo investment tool that's my app and

that app will actually show you and run

those numbers for you the time value of

money you're not going to know how to

use it so you shoot me a text at and I'm

just going to give you guys my number

just text me 62 291 3357 again at 602

291 3357 say send me the you can

schedule appointment with me I'll have

my assistant Bri but you text me I'll

have her set it up and ask for the

videos on how to use the app and it's

called again the qjo investment tool

which stands for the quit jerking off

investment tool because that's what

you're doing when you're trying to hunt

for the rates you're trying to wait for

the market to get better you're just

wasting time on something of zero

value bam I love that okay so uh you are

listening to the freedom show with flip

and Danny and our guest is Aaron Chapman

we are going to be right back after this

short commercial break add new income

streams to your financial statement

freedom family Investments can help own

proper 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 don't forget to leave a

review so we know how we're doing and

what you guys are enjoying all right and

welcome back to the Freedom show with

flip and Danny Our Guest is Aaron

Chapman we are going to do one of our

favorite parts of the show this is real

quick with flip but before we get into

that Aaron I just want to say thank you

the power that you come and the value

that you provided in this episode of uh

why people should not be sitting on

their hands right now um and why they

should be connecting with people like

you um who can teach and educate them on

uh the importance importance of the

Investments things that that you're

sharing that they're not hearing from

anybody else um it just blows me away

and I am so glad that you're part of our

Network I'm so glad that you help our

clients and I hope everybody downloads

that app and we're going to put it in

our show notes um and I hope that you

Text Aaron because he is a vault of

information that again flip and I

invited into our company to tell all of

our you know team and lo and behold our

team already had connected with Aon um

so super super excited um and before we

get we're gonna recap some of that again

so you guys know how to get uh in touch

with Aaron but flip you ready to jump

into to this real quick with flip you

know you know we've been doing this for

a number of episodes now I don't think

this has been more anticlimactic for me

to jump in and do this this this segment

um yeah I feel like I I should have like

a clown hat on and a little you know

little noise maker uh yeah okay so now

we're gonna get to something completely

useless all

right all right so this we call this uh

real quick with

[Music]

flip so again uh I told you before we

started recording so it's going to be

like this that or the other I'm going to

give you two options you can choose one

of them but if you don't like either one

of them then you can choose another and

so uh so are you ready wait I don't know

how quick I'm gonna be because usually

my quickness is on other things so we'll

see what happens yeah yeah you know we

call this real quick with it's not quick

at all just have fun yeah yeahh all

right so the first one I'm gonna I'm I'm

gonna lob set you up with a nice lob

here uh country music or rock and roll

let's go with rock but there is a lot of

country that is um

man it's a lot of my history man you

don't cattle ranch without listen that

kind of stuff so there's a lot of good

memories to that but it's always going

to be Rock nice all right we can't see

it in the in your screen here but messy

desk or clean desk it's clean for the

stuff needs to be worked on but I do

have stuff stacked uh over here so it's

actually cleaner than normal there you

go H so are you a morning person or a

night owl I'm a morning I'm 4:30 a.m.

every single day yes us too well our

Bulldogs

are the reason I don't set an

alarm okay so what would you rather have

a time machine or a magic

wand probably a time machine um I would

imagine the oneand would probably act as

time machine so maybe the one but I

would say a time machine because there's

a lot of things in history I want to see

um and I want to see for myself because

I think people have really uh they have

messed with it and changed it and we

don't know the reality I would like to

know what the reality was ah the truth

with a capital T yep all right comedy

movie or scary

movie you don't neither I don't comedy

anymore is stupid and scaries they're

they get too close to the spiritual and

I don't want to mess with that crap

right you know i' I've been to a few of

those sometimes scary movies are funny

though because if you're in the theater

with the right people you just start

watching them and it's awesome some of

the biggest meanest looking Sun

just crawling out of there and they want

out especially these these devil style

ones these satanic ones I hate those

things but me I'm more of an action

movie guy that's and I'll laugh my head

off at action movies have somebody get

their head chopped off and I'm and I'm

laughing y y i I think we're we're both

the same I think the last comedy we saw

was the Ricky Bobby uh if you're not

first right yeah all right uh football

or

baseball again I ne on that one I

haven't watched either in so stinking

long last time I sat through a full

football game other than power room we

did the uh the Raiders was Super Bowl 23

you know and I just don't attend any any

games cuz like it's so so much time

wasted it's like it's crazy to think

that a person goes to a game or they got

to sit up and watch it's like there's

it's gone and what do you have you the

frustrated or happy but for what you

didn't do a damn thing right so what are

you frustrated for and what are you

happy for you did nothing and it's

amazing how many people fight because

they have somebody's freaking logo on

their shirt why are these guys fighting

who gives a damn right so it's it's it's

a very interesting Dynamic to me to

watch all that kind of stuff I just

don't get it and and for those of you

that are listening uh for quick

reference he said Super Bowl 23 I think

right now we're in Super Bowl 50

something so just giv you an idea how

long it's been how many years ago that

was playing though I'd rather play

football I loved playing football it was

a blast I played defense it was I was a

head I just I was a head hunter of

quarterbacks man I was a defensive end I

loved it I love it okay so would you

rather live in 1969 or

2069 probably

1969 uh cuz I have a 1967 GTO sitting

out here and that was the era for cars

man that was just that late 60s there

was no better time in the world for

being a a Gearhead than in the late 60s

in my opinion y I met somebody the other

day who was got a 1972 Chevy Nova just

yeah love it love it um that's a car

just so okay all right uh pineapple

pizza or candy corn P Pizza all day long

I'll do the pineapple with pepperoni on

that thing candy corn to me is one of

the nastiest things the world is ever

produced and again I'm sorry Tiffany no

one has yet to pick candy corn it's zero

for GU candy GL people that eat that

crap because they're the ones that leave

my pineapple pizza alone maybe who knows

yeah yeah there yeah yeah I I I put this

one in here because I thought this would

be would be fun uh do you rather shop

online or shop in store online person

because it's just I don't have the time

for store I would like to be in the

store I'd like to see it and see what

I'm getting and make sure I'm getting

what I want um but it's it's a time

thing anymore I'm so engaged with

something else that I can click a button

much faster I can drive and deal with

whatever what also sucks is when Home

Improvement stuff right how many times

you got to go back and forth to to to

the Home Depot or Lowe's or whatever it

is or Ace Hardware for to do the same

project because you keep get missing

crap it's it's amazing I hate I just

hate shopping all together how about

that just should

just that'd be a nun I am with you got

it got it all right well you just

mentioned the 1967 uh GTO outside uh so

last question speeding ticket or parking

ticket probably speeding ticket because

you're opening up that GTO right and I

did get pulled over for speeding in that

one time I did something crazy just

boiled smoke out of thing was hauling

ass and I had to pull in my parking lot

at work and up pulls a cop and he

blocked me in and I had my boss's son

with me and he comes over and wraps on

my window I'm like crap he rolls down

the window he goes dude goes I'm gonna

have one question for he goes um why are

you driving like that I'm like it's a 67

GTO bro how would you drive it and he

handed me back my thing goes I'd slow it

down and he goes but I like the answer

and he

left you can get away with stuff it's

amazing how much you can get away with

when you have the car to do it if I was

in a Honda Civic doing that he

would have probably cuffed

me I would have cuffed

[Laughter]

you I love it so H Aaron give one one

quick recap on um why people should be

buying real estate today um in today's

market despite inflation and interest

rate just one or two sentences um for

those people who listened to this

podcast and went wow that was a bunch of

amazing valuable information can Aon sum

that up for me so they get off their

hands and give you a call the two things

you just mentioned our inflation and

interest rates is the reason why you

should be buying invest in real estate

right now because inflation will

continue to keep going up and interest

rates are going to continue to go up

that's just the way it is and if they go

down you have another play you could

always refinance but I don't know that

we're going to have that option but we

do know housing is going to keep going

up there's a massive shortage in

inventory anybody that says well we

could go through the 2008 again no we're

not that was an enormous amount of

inventory and not enough demand we have

the exact inverse people are not getting

you they're people are not able to get

into housing period And if you don't

start doing it now your grandchildren

will not have a shot at it you are the

hope of your future future you want to

leave a legacy quit thinking it's money

it's education and it's assets those two

things educate your family get the damn

assets and educate them on how to use

the assets and you need to look at the

infinite banking strategy you need to

look at how to how to utilize Family

Trust to put their whole engage your

whole family in the process and if you

need to understand how to do that you

freaking call me and I told you

602291 3357 just text me or go to Aaron

chapman.com but get it get a connected

up you will get on my calendar Bri will

syn us up and I'll explain it all you

can't you're not going at this alone

that's the other thing never ever think

you have to do this by yourself because

you do you're going to lose this is not

a this is not a solo sport this is a

team sport and you got to be careful

people you're putting on our team

there's a lot of predators out there my

industry is full of them I don't give a

damn where you go most of them don't

understand investment real estate most

of them don't do investment real estate

and nobody gives a damn what investment

real estate you're buying they just want

to close the deal and they'll back you

into a corner financially if they

can yes yes bam you did it so um

everyone this is why we're bringing our

Network onto the show because of value

like Aaron Chapman just brought so give

him a call download his app um utilize

this resource he is here for you we are

so excited that we had you on the show

today Aon thank you so much for your

time I know we went long but it was

freaking worth it so um thank you so

much and everybody else uh we are going

to see you next Wednesday bye wow okay

so I am horrible at math in my head

that's all I have to say that was fun

yeah yeah yeah I was thinking is it

basic addition no then I need a

calculator somebody help me please and

the funny thing is is that like we've

seen him on stage go through this

exercise we've seen him with our team go

through this exercise and we didn't

think to bring a calculator up to the

podcast room um because I didn't realize

he was going to do this on the podcast

too and boy oh boy um so man that was

just a powerful episode there's a reason

why he's in our Network there's 's a

reason why on these podcast episodes we

are introducing you to our Network um

for those of you who um have been

sitting on your hands because of the

high inflationary environment because of

high interest rates because of materials

and all the other other things that are

happening in the real estate um world um

and in the economy these days he just

gave you all the reasons to get off your

freaking hands and call him um because

of how real estate is such a powerful

wealth Builder and how right now is

still a great time to buy real estate um

I saw something on social media the

other day and I sent it to the team and

I said hey you need to fact check this

and then send it out to our audience

because it was literally somebody who

went back and said hey the last time we

were at this interest rate was X like

and it was like the eights or something

like that we were at this and for all

the people at that point in time that

were waiting for interest rate to go

down they would have waited like 14

years in which time the the housing

prices quadrupled in 14 years but people

were SC if they were scared of eight and

they were waiting to get back down to 7

six 5 four whatever it was um then they

just sat on their hands and meanwhile

everybody else that jumped in was

actually Building Wealth just simply

through appreciation but maybe through

cash flow too right so there is so many

ways to build wealth through real estate

cash flow is not the only thing and

that's why Aaron get into don't look at

cash on cash yes it is a way to like

view the properties and for some of you

that's going to be a metric to look at

but right now in this environment as

rise as interest rates are rising um

that is not the only metric to be

looking for um and we in Ohio like to

say don't count on appreciation you're

always going to look at cash flow we

still say that we still try our very

best to get to the 1% rule it is not

always possible and it doesn't matter

you don't have to have 1% rule in order

to buy a property um because uh there

was something that we were really

surprised about you were um cing a

property on a street go and tell that

story yeah uh somebody was asking me

about what property and I'm like oh I

know that street well we bought a

property on there just a couple years

ago and I thought it was two years ago

it was 5 years ago um and uh and so then

I went wow let me look into this

property and and uh and I was like holy

smokes the values on the street are are

really high and I'm like I don't we

didn't sell it to him for that high what

did we sell it for and and I had to look

back at the data and and I think we sold

it to him for

$799 and it was now worth like close to

140 or over 140 uh we don't sell by

appreciation but men that sure sweet

yeah yeah yeah I was like would somebody

call that owner and just tell them their

house doubled yeah yeah their house

almost double in value we tell them

don't count on appreciation oh by the

way but your house just doubled so um

there is appreciation in Ohio folks but

we just say don't count on it right

what's that slow and steady wins the

race that's that's the appreciation in

Ohio yeah that's right but we still

don't have the swing so that incredible

like um example of appreciation um we

don't have the swings of Arizona of um

California um sometimes Florida not as

much um so uh but so we love the Dayton

in Cincinnati Market because of that and

so um Aaron was really really hitting

home today to start looking at the right

numbers like like shift your mindset

because I can't tell you how many people

that we have talked to that are

predicting that interest rates will not

go down at all for years to come like

this is the new environment and this is

not that scary we've been in this

environment before we've had interest

rates like this before we all just got

spoiled um so I really want to encourage

you really state is one of the biggest

Wealth Builders that there is so if you

have questions about this if you're

still unsure about this Aaron gave you

his phone number dial that phone number

text that phone number get on the phone

with him because he will individually

talk to you about your situation and uh

help you understand the ways in which

you can achieve wealth through real

estate even in today

um market and he'll show you what

numbers actually matter so again that

was a powerful member of our Network

brought to you guys that's why we're

doing the freedom show um I just loved

those

episodes and I'm super excited when we

do like these long ones and we get to

split it into two it just it's a little

bit more fun for me I don't even know

why it's like this anti anticipation of

the second half um and that they were so

good that we sat here and talked for an

hour yes um so uh one uh thing that I

want to hit right before we go is m note

so um we're getting close to the end of

the year I last episode I talked to you

about Cottonwood syndication and about

tax benefits and how powerful those are

um at the point of this episode

releasing I am guessing we have probably

closed that that particular uh

syndication down um we have taken the

tax benefits ourselves if it didn't get

backfilled so because we're recording

this early um feel free to call and ask

just in case I'm wrong um but I want to

talk about master notes um it is we uh

fully tend on keeping it open through

the end of the year so even by the time

this one um airs you will be able to

take part in the master note program it

is one of our pop most popular programs

it's for non- accredited investors and

accredited investors you're going to get

anywhere from 10 to 12% interest um it's

a five-year Auto renewable note so it'll

automatically renew if you don't want if

you don't tell us hey hey flip and Danny

CJ and Ben we'd like to take our money

out you can do that at any any point in

time um and you can cash out at any year

so in the note it's going to tell you

hey give us notice by this time so that

depending on where your funds are being

used we can make sure we can pull it

back out and get those funds over to you

um so uh feel free to to to call CJ and

Ben go to chatwi freedom.com ask them

about the master note program ask them

about any other opportunities we do have

available there's a lot we have

launching in 2024 I almost said

2023 um as we close out 2023 we're super

excited about everything that we have

going on in 2024 we're glad that you're

a part um of our world um and we're

super excited to be able to share new

things with you anything else flip I

know I think that wraps it up for the

year all right so happy 2023 I'm not

even sure exactly when this is going but

this might have been the last episode

before 2024 if it is Happy New Year hope

you had a great Christmas Christmas

whatever holidays are happening right

now um hope it was awesome and we're

going to see you next Wednesday

[Music]

bye nothing on the 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