There are ultimately 2 secrets that it's going to require for you to
transcend society's broken gameplan. And learn how to make millions of dollars in
real estate. Today as a team, we're going to break that down. I don't care what
department we work in. I want any of one of us to know how to be on the phone
with the client. Look at their file and know where they're at and know what
their next steps look like.
They need to understand their million-dollar game plan just like we
need to understand it. And so today, what we're talking about is if you looked at
the last video part of the training we talked about this. How do we freaking get
to a 20% ROI? How come real estate can do this
when 401Ks and IRAs can't? How can real estate can do this? -Rental income.
-Okay. So, you have a rental income. There's multiple streams of money such as the
rental income. What else? -Appreciation. -You have massive tax right offs. You guys pay
too much in taxes. Like you need to do more real estate. -Property value appreciation. -So,
the properties appreciate. By the way, in real estate over time, if you actually
look at any graph from like 1900s to present, what does that graph look like?
It's always doing that, right? So, there's multiple ways of getting income from it,
right? What's another reason why real estate can produce a 20% ROI?
So, it's going to appreciate and go up in value because they're not creating any
more of it. Another one of the reasons that I want
to point out is because when you actually look at the value of real
estate, one of the reasons why we're able to get that ROI is because we get this
thing called leverage. If I have 50 grand, I can buy how many stocks worth of 50
grand? I mean by $50,000 with the stocks, with $50,000? But in real estate,
traditionally $50,000 will actually buy me how much real estate? -At least 2
-250,000, why? Because you can put a 20% down payment and the bank will actually
carry the other 80% of it. This means that you can take ROIs and you can
really bump up really heavily. We'll look at some examples later today on our
performance. But when you look at that really high ROI, if you were to buy the
house cash, do you know what happen to ROI? It would go down.
Which is good news. Because most people kept high house cash anyway. -Why are they
just willing to do this and not the same for like stock market or IRAs investments?
-Okay. It's a really good question. Banks are willing to actually do this
for a number of reasons. One, they understand this. They have historical
track records that actuaries, they know what real estate does. And then real estate
is not a stock that can go up and down based on people's feelings. It's a hard
asset. It runs on supply and demand of population. In America, as long as people
are making babies and as long as immigration laws are positive, we can
predict the need of more supply of houses. And that will continue driving
the price up. I don't mean that throw is a need for it. Guys, when the stock market
tanks, every 8 to 10 years statistically, the top of stock market
will tank. And it tanks because people lose confidence. It'll take 3 years
for it to recover. When Tesla or Google or Microsoft like takes a 30% hit
in a stock value, do you really think that it's because that company is worth
30% less? No, it's a reflection of people's confidence and feelings.
Which is why it comes back because there's an actual real intrinsic value.
But the banks don't know how to evaluate the way they know how to do that with
real estate. So, there are some reasons why real estate is an absolute yes.
Understanding that, there are the 2 things that everyone should be trained
to do with their money that would allow you, me and every one of us here to get
ahead. We don't have to make millions of dollars. But we do have to do 2 things.
The first thing that we have to do is we all have to learn how to do this thing
here called P-Y-F. Stands for what? -Pay Yourself First. -Okay. And by the way, how much should you be paying
yourself? What's the goal? I think the goal should be over time to get to a
point where 40% your income... By the way, your biggest bill you will ever have in
life is to the government. And they could extract up to 40%. Now, hopefully, if you
own a lot of real estate, you'll never be in that bracket situation. But this is
your biggest bill that you could ever have to pay. So, I think that I should be
paid more than whoever my biggest bill is. But I do want to say that initially,
people need to learn how to get to 20% And if people are checked to
check, they need to start with 5%. And they need to challenge the budget
and then they need to do a little bit of a makeover to get to the point where
they can get it here. Paying yourself first is the first part of the million-
dollar gameplan, why? [Inaudible voice] -Yes. And people like to say, "it takes money to make money." That
is always true 100% of the time. It doesn't have to be your
money. But it's easy to control if it is. In this training, we are going to talk
about like... We've got Mavericks here in this room. You guys are actually buying
real estate. How homes have you bought? You bought 4 homes. How much money did you
put into those 4 homes? You put no money in, right? So, there's clearly ways
of buying real estate without needing money. But did it need somebody else's
money? -Yes. -It did. By the way, while you make more money, what should all of us be
doing with our money? -Pay yourself first of preparing it for what? -Yeah. Because by
the way, if I'm using someone else's money, that means I'm sharing profits
with them. Is that okay? But if I put my own money into a deal, then I don't have
to share it. Is that a part of a million-dollar game plan? -Yes. -So, paying yourself
first is like it's the first key. So, you guys know that one inside and out really
well. Here's the second thing that people need to learn how to do. They have to
learn how to tap into hidden assets. Now, hidden assets is a term that we use for
some of the things that we see here. And do you know why I call him hidden assets?
None of these things are in your bank account. I'll never forget. This is when
it hit me. I was talking to a pilot. He had been a
pilots whole life and then his career got slammed back in the... And the pilot
pay really went down. But at that time, he had 937
thousand dollars in his 401K. So, almost a million dollars. I'd never seen a 401k
that big in any one up. Up at that point, I'd never see the bigger 401K. But the
man had $200,000 in his bank account. And he acted in his mentality
just as poor and broken as if he had no 401K. His 401k paid him nothing. His 401k
gave him no benefits. And it moved up and down with the stock market. And then he
was told, "If you touch it..." What will happen? 10% penalty. And by the
way, if he wanted to then take a 10% penalty and flush off under
grand down the drain, then he would also have to pay taxes. By the way, you can't
evade that. So, what's tax is on
$900,000? 40%. So, he's going to give 370 whatever thousand dollars down the drain.
he's going to lose almost a half a million dollars if he tucks his 401K. So, by the
way, did he want to touch his 401K. -No. -He was terrified of it. And because he had
2 grand at the bank, acted like he had no money. Everyone eventually...
And just to be clear, big taxes for me isn't bad. Like, I believe
wholeheartedly in paying the goose that lays the golden egg. It is so easy in our
day and age to make money. It's so easy to control our financial destiny. Anyone
who's not as simply not acting on education that's available. It is so easy
for us to actually get ahead financially. So, I love paying my taxes. I support
roads and hospitals and you know, law enforcement all sorts of good things by
doing that. Don't get me wrong, I will do everything in my power to reduce my
taxable liability. But whatever I do at the end of the day, I'm going to pay. So,
hidden assets. People have money in a 401K but they don't act like it because
they don't know that they can actually spend it. We'll talk about that today.
IRAs, stock market, home equity. They're stuck in an accumulation plan that says,
"Pay off my house, pay off my house." They don't realize that they're screwed if
they focus on that. The time to pay off the house is when you have enough
residual income that you can afford to pay off the house. Because again, what
would you rather have? A million dollars or $8,000 every month
growing at 10% for the rest your life? You can budget a lifestyle of 8
grand. You cannot budget a lifestyle on a million. You try to budget a lifestyle a
million, you're going to buy this paid off house and you're going to buy this boat
you're going to buy this thing. You're going to have little left in the bank. None of it
produces a residual and you will lose it and consume it in time. Because we need
an active income to survive. Hence, learn how to control your active income and
set money aside. And then whatever assets you do have, in fact, do you guys know how
many total hidden assets there are? There are hidden assets that we're going to go
over in great depth today. And by the way, do they have to be your hidden assets? By
the way, there are trillions of dollars in this country alone of these
assets that people are unhappy with producing this 5% garbage saying, "Show me
a better way." How many of you could be the ambassador's of showing a better way?
That's what we teach people how to do if you can get a handle on these 2 things
and coming up next, I'm going to really dive into how do you do this. But if you
can be discipline to save money and then you can get those hidden assets going
from low yields to high yields like real estate with the benefits that you talked
about, then you have the ability to go someone else's and crush it.