All right, Matt, welcome to the show.
Danny, it's really good to be here.
So Matt is a lifelong learner.
He's only 30 doctorate of anesthesiology with the mail from Rochester,
and he's also the founder and CEO of W M V, a commercial real estate company
which specializes in triple net commercial assets.
What is triple net?
Yeah, so triple net lease is where the taxes, insurance, property
management, maintenance and repairs are passed through to the tenant.
So it's a very predictable stream of income.
So the example would be like
a FedEx distribution facility or Walgreens or grocery anchored center.
A lot of people are familiar with, you know,
single family investing in multifamily,
self-storage, those kind of things and kind of and level
many times as triple net leases that are passive income sources.
So it's far more like a big box retailer or big box commercial.
A triple net lease is just a kind of lease that you can put on
on really any property lately, and that's why it's so scalable.
So I was trying to replace a lot higher income than many people do.
So the first step is trying to replace your expenses that you have, then you're
trying to replace your income and then keep going further.
So I learned that your time became your most valuable asset,
and that's why I moved to triple net leases.
You were around these surgeons.
You're still in this time. You're in your twenties, right?
So I don't know how you figured this out some early and all of a sudden
you're saying, you know, I don't think that these guys are really worth
and probably have a nice home.
They work a lot, have a nice car, but that's about it, right?
Absolutely.
And I started doing a lot of reading and you know, I think going to
all the schools helped me continue to, just like you said, be a lifelong learner.
And I read the book called Vivid Vision and I set a vision
of December 19th, 2019.
I set a vision to own
$50 million of real estate in three years, and I ended up doing it in one year.
And so there was some mindset shifts that I was able to do of
when you set your goals
and intentionality of like, I'm going to put myself in that position now,
you know, hey, if I want to live on a beach sun, go down for a weekend
and spend the night in an expensive hotel, feel what that feels like.
Fly first class.
Try it, and you almost can trick your brain
into believing that you know that can be real for you.
And then all of a sudden, it's an identity that you take on and your habits
eventually become that person.
So, Matt, I want to break this down, though,
because you basically just said you had millions of dollars in real estate.
Very quickly. Let's start from the beginning.
You know, real estate's a triangle and its money, knowledge and hustle,
and you only have to have two sides.
So if you don't have money, you need the knowledge and hustle.
So you could go to somebody say, I'll pay you 10% interest only on your money.
I'll sign a promissory note.
I'll give you a point on the front end or back end.
You can structure the money however you want.
It ultimately comes with having a good deal to begin with.
And I was just coming out of school when I did it, so I actually didn't
really have much money at all at that point.
But I did have a mentor out of the relationships
and then had the opportunity.
So how did you meet your mentor real quick?
Basically, someone might leave.
So leading lagging indicators
that a lot of times I encourage people like his call ten brokers a day.
And you know, it's kind of like the burrito
principle of 80% of the deals are getting done by 20% of the people.
And so I think in most markets, you can make calls and say,
who are the deal makers, who are the closers
and you're able to find those individuals?
And that's how do I get that person in my inner circle, right?
How do I provide enough value to them, whether it's stair stepping up?
So when you close on a first property, it's like, Oh, he closed, I got paid.
My commission now is double it.
When did you? It hit you.
You need to not flip and then hold for cash flow?
Absolutely.
So there's huge tax problems, if that's what you do, right?
So now I'm at a point
where I have my own family office and I'm holding most of the assets because
you don't just go out and buy something because it's packaged and it's for sale.
So you actually saw through that and saw the value creation
which actually got kind of to the next step, right?
Absolutely, yeah.
So when we value properties, that's from an income based
approach or account based approach on an apartment building, it's
what are the rents in the area? Are mine above or below?
Right?
What are the expenses lesson to increase the A.I.?
And then with triple net property, you know, some of the underwriting that we
do, it's, you know, cap rate, but it's also price per square foot.
But other things we look at is real estate location, location, location, right?
What are the vehicle counts in front of the building?
There's a technology called Placer Air,
which goes off your phone and measures foot traffic in and out of building
and can rank that tenant against all their other locations.
We can look at store sales if it's a grocery anchored center
and see that those are increasing,
so there's a lot of ways that we can underwrite
and make sure that a property is going to be solid for the long term.
How long?
What's the timeframe?
May 16th of 2019 was my first trip.
Oh my god.
Yeah.
So like, if somebody was, what would you tell them to do?
Like what? How would you tell them to get started?
Yeah.
So I think that, you know, the banks will lend off of the asset.
The primary source of repayment is, is the tenant, right?
So you're going to be able to I think that debt is a hedge against inflation
when inflation's at 7% or whatever CPI, and you can get that at sub 4%.
All of a sudden, you almost have a negative cost of capital,
meaning that we kind of I talk about for mindset shifts in the book.
one is active to passive income.
one is cash flow to net worth, one is six to seven figures and beyond.
And the other one is debt negative to debt positive.
And all those are mindset shifts of if you have a great job,
you're making a lot of active income.
How can you turn that into passive income and then also having somebody
fill out their personal financial statement,
which Robert Kiyosaki talks about this all the time, right?
That that really clicked for me when I was like, Oh, I'm making this,
but I'm not keeping it.
So as people fill out a personal financial statements
not only can help them get the debt with the bank,
but help them understand their net worth, and you can choose your net worth
if I'm 30, when I'm 60, the property is going to be paid off.
So if I take out 1,000,000 dollar loan, I'll pay off 1,000,000.
If it's ten or 100 million, you can.
You can start to think about, you know, net worth and cash flow keeps you alive.
And it's the lifeblood, right?
Cash flow is very important, but ultimately when you have enough
to be financially free, network starts to become more important.
So and then I would just say that taxes are your number one expense.
It's not your lattes or, you know, your travel, that kind of thing.
So how can you minimize them proactively plan your taxes.
So one of the strategies is if you know one of the spouses stays home,
if they can qualify as a real estate professional,
which is 750 hours a year and or 51% time,
then if you buy one of these buildings, you can take bonus depreciation
and all of a sudden that passive losses become active losses without offset
act of income,
which means you can take your tax liability
to zero depending on the state you live in.
If you're in California, that may not be true.
But so I would say that tax planning getting somebody who's really proactive.
So it's not just like, here's my papers at the end of the year, but it's
how do I qualify?
And starting to ask those difficult questions
is what I would say to that high income earner.
I don't think W-2 a full time job as security, as much
as having multiple streams of income. What would you say to that person?
Well, to the person
who doesn't like their job, I would say, don't give up, don't sell out.
You know, as a
as a kid, you always had those dreams of doing those things, going those places.
So I think that creating those magical moments for you
and maybe it's taking a trip and going somewhere, you know, to
to kind of breathe that life back into your dreams
and realize that you are capable of anything creating passive income.
Where anything can happen to me, I can, and I make money while I sleep and I,
my kids are protected.
And it's these kind of steps of financial independence to where
it's about creating a legacy.
Or there's these two versions of you, right?
The version that you could have become in the version that you actually are.
And you know, fulfillment is the congruence
between those two in those two matching.
And so I think that it's a lot more
than making a decision based on a job, but it's what's your passion?
What's your vision? You know, what's going to fulfill you?
And guys like,
you know,
when when Matt comes out with his book, it's going to come out in September?
Correct? Yeah.
You know, read it.
Absolutely.
Yeah. And I and that's what I hope to do with this book.
My goal is how do I create a lot of financial freedom for people?
And then what can they do with that time time with family,
non-profits, those kind of things?
It's important, right?
Thank you.
Awesome job.
Can't wait to have you on again. I can't wait for your book to come out.
Let's awesome. That sounds great.
Thank you so much for having me on.
My pleasure. Always great. Take care.