So how many of you
How many of you were raised perhaps like me where in your family?
So how many of you
How many of you were raised perhaps like me where in your family?
Maybe there was some split
How many of you were raised perhaps like me where in your family?
Maybe there was some split
mentalities around money
How many of you know what I'm talking about?
You know like maybe mom had a certain way of thinking and dad had a certain way of thinking
So how many of you guys know who my dad is?
My mom and dad got married when they were like 22 years old, my dad flunked out of college
Right as a speech and communication major which is pretty awesome considering
he's like one of the greatest motivational and real estate training speakers ever right and
His mindset because his mentor this is what his mentor said to him you want to make a lot of money go buy a rolls-royce
Go get a big fancy watch and go get a really expensive car and a real expensive house
And you will be motivated like crazy
And you will go do whatever it takes to be successful and guess what my dad did
He went up a big fancy car big watch. You know rolls-royce the whole nine yards and every day
He was like this. Holy shit. I gotta make money
My mom on the other hand
Grew up in an environment with a few more kids my grandfather. My mom's mom passed away when she was very young and she
Immediately had to go to work at like 14 years old by the time. She was 16
She was working at Disneyland as a Mouseketeer
You know Orange County, California, and she's doing great
But all of her money went back into the family
So she would work only to basically have no for herself benefit from it so in her mind
Every cookie in the cookie jar mattered you should be very
mindful with every single dollar
Imagine growing up in that house
This one is like it's not how much money
You just need to make sure there's at least one cookie in the cookie jar
we could divide it up six ways and my dad's like we should start a cookie factory and
finance the entire thing
Well, no surprise that relationship did not last long right my dad actually ended up marrying somebody who was ridiculously financially savvy
And I think she's somewhere inside the room who are you inside the realm?
My my other mom somewhere inside her maybe you're running around the room
The bottom line was this I grew up with a completely messed up psychology when it came to money
And it wasn't until in my mid-20s when I met one of my mentors who he showed me something which I'm gonna
Show you, the bottom line is this guy's money is a tool nothing more nothing less say that out loud
Money is a tool nothing more
nothing less, listen if you're a jerk money makes you more of a jerk if
You are mother Teresa money makes you more mother Teresa
It is just a tool, but this is what I know how many of you know someone that
doesn't have enough money, I
Don't know about you guys. I don't want to be that person and
Not that I feel bad for them or less them all I think to myself is
That person was never taught what I'm about to teach you
They never
understood that your money is a tool and just like an app on a phone if you don't use it and play the game
right and follow the steps. You don't get the results. It's not how much money you earn
It is what you do with the money that matters, you guys with me on this
So I want you to write in your notes the following
There's been a lot of research on this and you've probably seen something like this before
Especially if you've ever met with a financial planner, or you know you've watched CNN financial. They all say the same thing write down
5, 15 and 80.
5 percent 15 percent and 80 percent
Five percent 15 percent and 80 percent and as all the studies show it
Says five percent of the planet are basically
generational wealth
They have created generational wealth
It's not the top one percent guys somebody who is worth five million dollars
Who has paid off their home and
when they pass on they
Transfer all that wealth over. That's generational wealth you with me on this
Some of them are worth millions some of them ten some of them are hundreds some of them are now billions
But that's the 5% the 15% write this in your notes. You ready. They are the middle class
They got a house
They got a little savings. They go on a few vacations, and they're comfortable and there's nothing wrong with that 15%
But where do you think the 80% sets?
Darcy the 80% 80% 80% look around the room
potentially 80 percent of this room
I don't think so, but potentially with the numbers 80 percent of this room when they are older either A
have to work to make money or
B are dependent upon the government or their family to subsidize their lifestyle
80% 80%
80% some of your think to yourself my kids better be successful
5%
generational wealth and it starts at five million dollars and above fifteen percent comfortable my in-laws are
93 and 90 years old they have a million dollar net worth there in that 15 percent, house is paid for that they bought for
$11 300 years ago
right in Anaheim, California on Bruce Street
Paid that sucker off
Every time I talked to my father law you see my Ford stock
Right he's not he started buying Ford stock like in 1948
You with me like I had a dollar that I had two shares then three shares, but over time guess what he's in that 15%
How many of you know someone right now though?
That based upon their money behaviors, and their money psychology
They're clearly going to end up in the 80%
Don't point out him if they're in this room and don't like you know make them wrong, but I'd like you to consider
Maybe they just never heard what I'm about to share with you
So I'm gonna show you guys a business strategy for your money you guys have for that a business strategy
I'm not gonna tell you what to invest in that's not my role
I'm going to show you ideas of what the very best people do, I'm gonna put it up on the big screen
Which means the team's gonna keep it here the whole time?
And you're gonna take detailed copious notes, so here's the first thing. I want to show you
This is what 80% of real estate professionals do
80% of real estate professionals
They get a commission check and that check goes into their personal account
their personal account
80% they get a check and it goes into their personal account they go home
And maybe they say here honey, or here on by myself, and I put it in my account
But this personal account is not an LLC an S. Corp a limited light
You know limited partnership. It's not a corporation. It's a personal thing now. I'm not gonna
Ask you to raise your hands if that's you
But I am gonna say this to you I would like to thank you for paying lots in taxes
Thank you very much. I really appreciate you overpaying what you should be paying keep up the good work
So what's rule number one?
Should I have a corporation yes, or yes?
Yes, or yes?
so check this out guys if you answered this, don't feel bad I will
teach this stuff at conferences
And I'm blown away by ten people in the room 10,000 people in the room the number of people that go
Yeah, I thought about doing that but like I don't know like which one do I pick I'm no expert
Here's what you do you call your
Accountant and say I think I need to get incorporated, which you recommend based on where I live
What country what state etc?
But rule number one is no one leaves this conference in 30 days if you are not incorporated
And you don't own your business and now your checks come to blankety-blank LLC not you personally
Cuz now you get all the tax advantages yes or no guys
But I got to tell you, this is what the 80% does and this is clearly bad. Let me show you
What the 15% do.
I Want you to draw this out I
Want you to imagine a world, where and by the way? Did you guys notice the subtle little difference?
This one says check this one says checks
Because people that get checks
Understand the following, I get the check it goes directly into my business account
Right I get it wired in from escrow. I don't get physical checks anymore the money
Just gets transferred over, you with me
Oh my a escrow company my title coming up won't do it great get the physical check
But it goes into a business account, which means now as you can see I'm gonna have four different
Accounts at my bank
Four different accounts at my bank. I'm get out my business account
I'm gonna have my tax account to me three accounts
Tax account business account and my home account my personal account
Here's the reality my friends if I if I can encourage and inspire
You know every single one of you to just do that and then
Follow the rule you ready write this in your notes
above the tax account
I want you to write down let's let's do an imaginary check and I want you to show you how much money goes where
so at the top, let's say, that's a
$10,000 check, just for easy numbers
$10,000 check so all of a sudden
$10,000 hits my business account and the first thing that happens is
instantaneously
3,300 of the 10,000 goes directly into my tax account
3300 automatically into my tax account because some of you think when you get a check for 10 grand that you actually have 10 grand
How many of you are in the state of California or New York or in the country of Canada
You get a check for 10 grand, and you're lucky if you get 4,500
That's the real deal now you're an entrepreneur you own your own business you're gonna start taking better write-offs
You're gonna pay more attention to your accountant
You're probably gonna have your uncle Larry who's done your taxes forever stop and actually hire a CPA who's gonna pay attention?
But 3,300 bucks automatically goes there then
3,300 or less
goes into your business account and
This is where I run my business a check comes in I've got marketing a check comes in
I've got expenses a check comes in I've got my MLS dues
Everything that I need to run my business every check 3,300 3,300, and then what goes over here
3,400 bucks to my home
Now it sounds like you might need a home budget. What do you guys think?
Because many times what do we do we get a check and we just start spending the money?
By the way if you look at this the very first one. This is the the cardinal sin
this is what poor people do they get a check and
They just start spending
Who knows someone like that say I?
matter of fact the bigger the check the more they start spending and they never think about
Debt reduction because they'll do that later
Because I've worked so hard and this was such a challenging transaction
And that's why I'm going to overindulge and over and spend on myself, and we know the financial rollercoaster. You're actually putting yourself through
this my friends is
What the people do that take care of their money they know Uncle Sam or Revenue, Canada or Mexico?
They're taking their money. No matter what so when I commit that Check comes in I don't say to myself
I get it all it automatically goes there
I leave a piece here, and the balance goes here makes sense so tell your buddy. Are you gonna do this yes or no?
Yes or no
Now here's what I know look up here guys
The number of clients that have done this and then I see them a year later
And they go I have $15,000 and my savings kind of never had that but more importantly I paid all my taxes
Like I'm on time
and I have money inside my business account and it's the end of the year and my accountant said I need to take a
Dividend so I'm getting a big chunk of change at the end of the year. This is awesome
Now I don't know about you guys, but I like is anybody like nice things
You know family trips vacations memories, holidays, you know maybe a new outfit
The challenge is if you keep that psychology without requiring or putting in the discipline
You know what you end up with a bunch of nice things and a shit ton of debt
So do me a favor tell your buddy. Do you know someone personally that has too much debt?
Anybody's anybody inside this room
Now listen there's smart Debt. There's bad, debt, and I'm not gonna go too in depth with you on this
But you know the difference you know credit card, debt at nineteen percent is dumb
Debt buying a house and getting a mortgage with three-and-a-half percent is really good debt
So we all know the difference, and I just want you to be mindful
I want you to take care of your money, but now did you guys get a photo of this?
Did you capture it are you sure?
Are you promising to do this?
Okay, do you want to know what the wealthy agents do?
This is what the wealthy agents. Do it's a little more complex
It's a little more complex
I would get it up on the big screen over there guys and take a photo of it, but more importantly
I want you to draw the whole thing out in your notes
Draw the whole thing out on your notes, this is what the wealthy do
This is the stuff that no one taught me so all until Bill Mitchell
Pulled me aside and said what do you do with your money?
and I'm like I don't know I just get the check and I throw it inside my account and I spend it like crazy and
I never have any cash, and I'm always in trouble
Draw this out
So play a game with me you get a $10,000 check
The $10,000 check goes to what account?
to what account and
33% of it goes automatically where
To my tax account because I don't really have 10,000. I really have like you know
6,000 and change that's the real deal so 3300 automatically here
then I take another
3300 over here or less because I don't know your business expenses
But by the way guys here Marketing costs should be no more than 10% of your expected gross revenue
Your marketing cost should be no more than 10% of your expected gross revenue
So a percentage that 3300 is gonna go for your direct mail and your
Marketing and your email and your Zillow leads and your Facebook ads and the prints and the brochures and everything else
But no more than 10%
No more than 10% got it?
Because you're incorporated now your car and a piece of your house and all kinds of other things get written off
into or from this account so we like that but you might also have inside there ready guys a
Virtual assistant an assistant well, where is that person gonna be paid from you got a check for 10 grand
You didn't actually get 10 grand you got
6730 3300 goes inside here now I can pay my assistant it starts to work like clockwork you with me, but you can see
This is where it gets interesting
Some people call this other account your investment account. I like to think of it as my financial hub
It's where the money comes in and then it gets divided again
Now I'm not a financial planner nor do. I you know even would even attempt to be, but I'm giving you just an example
Of what that extra thirty four hundred dollars could go towards
So maybe you need because you do two deals a month you're like I need
Four grand a month to come into the home expenses
So I'm gonna take you know two grand of my thirty three hundred or the thirty four hundred. Where does the rest go?
Do you have a retirement account?
Do you put money in the stock market or in bonds or whatever you believe in 401 K
Do you have an account where you just put cash?
to buy real estate
Why not on every check take five percent of every check put into an account called cash for real estate
And you just watch that sucker grow like crazy over time
I'n two years, and also you're like I got 185 thousand bucks in cash sitting inside that account
I should go buy a duplex. I should go buy a four-plex. I now have the money to go do these deals
retirement account real estate cash account
I use this because I did it you know with my kids a 529 B account which is a college fund
Cash account since we did real estate cash. What do we call this the fun account?
The fun account you know the I'm gonna go spend this money on stupid stuff and
Throw it away later and not care or I'm gonna take this money, and I'm gonna use it for vacations and holidays
What action are you going to take in the next 30 days around this conversation? There's no more information. That's it?
Tell your buddy What actions are you gonna take in the next 30 days do it right now?
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