I'm Going Out Of Business (What Happened)

"I would be paying all in about2 200 to $215,000 to build a 700t two-bedroom one B that I could conservatively rent for anywhere between $2,350 a month to $2500 a month this means that even after all of my expenses including a property manager I could make more than a 10% return on my money every single year."

"even better but I could borrow the entire amount of money I need at 5.26% by using what's called a pledged asset line that interest is then deductible against California sourced income and then all of a sudden I'm earning free money with $0 out of pocket oh and by the way for anyone curious the company I'm using to do all of this is called realm they specialize in California based adus where they basically work with the select group of contractors they have them compete against each other for price and because they give them so much business those contractors are really incentivized to stay on budget and give them a good price because they operate on volume"

"it makes more money in this case not to put anything down than it does to pay it off in full how well I'm probably going to lose a lot of people here when I get into nitty-gritty numbers so if you want to skip through this just go to this Tim stamp right here but if you want me to break it down it's seriously like magic Let's assume I make $24,000 as net rental income on a $200,000 investment with real estate you're then able to depreciate the cost of the structure over 272 years so at a $200,000 build cost that's $7372 a year that I could write off against any profits this means I only have to pay tax on $16,727 worth of income which at California's 45% tax rate means I'm paying $77527 subtract that from $224,000 worth of net rental income and that's a post tax investment return of $1,473 in the first year but wait in order to pay for that I'm able to borrow $200,000 at an interest rate of 5.26% which works out to be $10,527 write off against California sourced profits my actual interest paid after taxes is only $5786 on top of that since I'm able to keep my money invested in a money market fund earning 4.3% that's an extra $8,600 a year that I get to keep which after a 37% federal tax comes out to $5418 worth of profit so when you add it all up we have $16,493 worth of income from the property I pay $5786 worth of net interest I make $541 from the money market fund and that comes out to a total profit of $6,150 in the first year for nothing out of pocket if you compare that to what I would have made had I just paid off the property in full I'd have just $1,055"

"as soon as I invite them on the podcast the success rate goes to almost 100% they win because they get additional exposure I get to ask all the questions that I'm curious about and the audience wins because they get to listen in on something like this for free and the podcast guest usually becomes a close friend afterwards so everybody wins"

"learn from me it's just really important to network with other people who are doing what you want to do or who you're curious about take the time to force yourself to do it even if you don't feel like it and if you're having a hard time meeting the people that you want to meet find a way to provide them Value First seriously I think this could change the entire trajectory of your life and you never know the impact that one connection can have one person has the ability to completely change your life for the better forever"

"I'm also somewhat experimenting with an idea where we could get together a group of experienced entrepreneurs business owners or investors together a few times a year so if that's sort of like a group thing that you're interested in I'll just put a form Down Below in the description where you can submit an application I have no idea if this is going to be a thing or not but I'm just testing the waters to see demand"