Make These 3 Investments So You Don’t Have To Work Again
Published: 2024-06-02
Status:
Available
|
Analyzed
Published: 2024-06-02
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker aims for a minimum 7% cash-on-cash return on real estate investments, prioritizing profit over property value appreciation.
"For me I look at... a 7% cash on cash return on my money meaning for every dollar that I invest I'm going to make 7 cents in positive cash flow 7 cents in profit every single year"
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Real estate investors can utilize depreciation to significantly reduce their taxable income, potentially paying taxes on a fraction of their actual profit.
"you get a little bit of a tax break you get to tell the IRS hey I made $6,000... but because my property is one year older I deserve a $5500 tax break"
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The 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting profits into like-kind properties, enabling wealth accumulation without immediate tax liability.
"you don't have to pay any money in taxes today... called a 1031 exchange... you can flip your property into a bigger property and pay $0 in taxes today"
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Residential real estate is considered a stable and 'innovation-proof' investment due to the fundamental need for housing, unlike retail or office spaces.
"residential real estate... Innovation proof real estate we're always going to need a roof over our heads no matter how crazy the metaverse becomes"
Pending
Investing in businesses is aimed at generating wealth growth through innovation and expansion, driven by the company's active efforts to create value and revenue.
"when I invest in businesses I'm looking for growth... you can invest into a company that way they can use your cash to hire more employees to innovate to create new products to sell more products"
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The speaker employs a passive ETF investing strategy for broad market exposure, avoiding the challenge of selecting individual winning stocks.
"my passive ETF investing system all I'm trying to do is just invest my money into these ETFs which give me broader exposure to a bunch of companies instead of set me perfect trying to pick the right company"
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Investing in startups offers the potential for exceptionally high returns if one can identify and invest in a company that achieves significant market dominance.
"if you can find the next Amazon or the next Uber before it becomes Amazon or Uber well now you can see a massive return on your money"
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Gold is presented as a reliable asset to protect against inflation, holding value as a traditional form of 'real money' across history and cultures.
"gold is your traditional inflationary hedge because gold has been used as real money for centuries"
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While volatile, Bitcoin is viewed as an investment in emerging technology and the blockchain, offering future potential.
"Bitcoin... is also a way for me to invest in the New Age Technology it's a way for me to invest in the blockchain"
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Index funds and ETFs are recommended over mutual funds for the average investor because they track market returns with lower fees.
"index funds and ETFs are going to be the better way to go because now you're going to meet the stock market returns and you don't have to pay the super high fees"
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The speaker prefers ETFs for their flexibility, emphasizing consistent, long-term investing as the key to success, regardless of the specific vehicle (ETF or index fund).
"personally I like ETFs because I like the freedom that comes with them... The key to succeeding with any of these is really just consistently investing your money month after month after month"
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Key factors for selecting a good real estate investment location include crime rates, population trends, business activity, and walkability.
"the four factors that you want to be paying attention to when you're looking at a good location is the crime in the area the population and population growth businesses moving in or out and the walkability of the area"
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Thorough due diligence, including hiring a private property inspector, is crucial before purchasing real estate to ensure its condition and value align with expectations.
"you want to make sure that this property is what you think it is and this is where you want to get a private property inspector who's going to be walking through the entire property to give you a report on the health of the property"
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The primary goal of real estate investing for the speaker is to generate passive cash flow, enabling financial independence and the ability to live off rental income.
"when I invest in real estate my goal is not to flip the property for a big profit my goal is to generate cash flow because I want enough cash flow from my real estate to be able to live my life"
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A specialized real estate accountant is essential for investors to maximize tax benefits and deductions, going beyond basic tax filing.
"if all your CPA is doing is filing your taxes you are leaving a lot of money on the table and if you are going to be investing in real estate you absolutely need a good accountant"
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A belief in the American economy implies a belief in the stock market's long-term upward trend, making consistent investment in ETFs or index funds a viable strategy.
"if you believe in the American economy then you're going to believe in the American Stock Market which means over the long run the stock market will continue to go up"
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Owning businesses or assets (like stocks or real estate) offers significant advantages over employment, including lower tax rates and benefiting from the work of others, ultimately leading to greater wealth accumulation.
"The thinkers... their duty is to take care of their owners... The system benefits these people... you are a W2... you're going to pay the highest tax rates... but now as the owner when you get this money in dividends the top tax rate here is 20%"
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The speaker outlines three essential investment types for financial freedom: income-generating, wealth-growing, and protective investments.
"you need an investment that's going to pay you with income you need an investment that's going to give you growth of your wealth and then you need an investment that's going to protect your money so what I want to do today is go over the three Investments that you need to make that way you don't have to worry about money ever again"
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Investing in property renovations like upgrading kitchens and bathrooms can increase rental income and overall property value, especially in markets with demonstrated demand for better units.
"by upgrading the bathrooms but upgrading the kitchens because according to him he does the research he's been looking at different properties he manages different properties in the area he sees that there's more upside in the area but we need better units"
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It is crucial to work with a real estate broker who specializes in investment properties, as their focus and expertise differ significantly from agents who handle primary residences.
"a regular real estate agent is helping people buy and sell the home that they live in they're not helping Real Estate Investors find a real estate investment deal"
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The speaker prefers real estate rental income over dividend stocks for generating passive cash flow.
"starting with number one which is investing in real estate for income traditionally when people talk about making a passive investment for income they talk about investing their money into the stock market into a dividend paying company so you look for a company like McDonald's that's been paying a good dividend you invest your money into McDonald's and then every quarter McDonald's is going to give you a dividend check but I prefer real estate rental income and I'm going to show you why real estate is the best place to generate passive cash flow"
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Real estate investors benefit significantly from tax breaks.
"and the second reason why I like real estate is because of the tax breaks that you get as a real estate investor"
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Startup investments carry higher risks but also offer the potential for exceptionally high returns if successful.
"Higher risk and higher potential reward... if you hit the right one now you can see an insane return on your money"
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A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting profits into a like-kind property, enabling tax-free flipping into larger deals.
"well now you have a almost $1.5 million gain which means you got to pay taxes on a $1.5 million now even if you have a low tax rate because investors get lower tax rates that's still a lot of money but real estate gives you another exception because now what you can do is you can take all of this money you take the 1.7 millionar and you go out and you buy a bigger property let's assume that now you buy a bigger property with multiple units this is called a 1031 exchange it's called a light kind exchange you don't get this in the stock market but you get this in real estate where you can flip your property after one year you own the property for a year you can sell it for a profit flip it into a bigger property and pay $0 in taxes today"
Pending
Residential real estate is considered innovation-proof as people will always need housing, regardless of technological advancements like the metaverse.
"I like residential real estate because this is a Innovation proof real estate we're always going to need a roof over our heads no matter how crazy the metaverse becomes which is why I like residential real estate"
Pending
The speaker's investment goal for real estate is a 7% cash-on-cash return, meaning 7 cents of profit for every dollar invested annually.
"what I'm looking for is a 7% cash on cash return on my money meaning for every dollar that I invest I'm going to make 7 cents in positive cash flow 7 cents in profit every single year"
Pending
Businesses are recommended as the second investment type, focusing on growth rather than income, which is the primary goal for real estate investments discussed.
"the second place where you want to be investing so you don't have to worry about money is in businesses now the reason why I say in businesses is because this goal is to give you growth with real estate it was cash flow here when I invest in businesses I'm looking for growth"
Pending
Investing in startups carries higher risk but offers the potential for massive returns if one identifies a future industry giant like Amazon or Uber early on.
"if you hit the right one now you can see an insane return on your money because if you can find the next Amazon or the next Uber before it becomes Amazon or Uber well now you can see a massive return on your money"
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Market Briefs has been established as a standalone daily financial newsletter company, previously part of Minority Mindset.
"Market briefs Market briefs. comom is now its own company and this is our daily Financial newsletter we were running this through minority mindset but the problem was I was having a hard time separating myself J prit Singh from Minority mindset from the products and companies inside of minority mindset"
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Physical gold is recommended as a protective investment and traditional hedge against inflation, serving as 'real money' due to its centuries-long use and universal recognition of value.
"third you want to invest some of your money into real money and the reason why I say real money is because you want to have a protection investment that way if the American dollar begins to collapse if the American economy really starts to go down and real estate prices now aren't worth as much and businesses aren't worth as much you want to have something to fall back on this is why I own some physical gold gold is your traditional inflationary hedge because gold has been used as real money for centuries"
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While Bitcoin is seen as a potential 'digital gold' with future promise, it currently lacks the security and protection offered by physical gold due to its volatility and speculative nature.
"and the new thing that you're seeing a lot of young people move towards is Bitcoin now I own Bitcoin as well and I buy Bitcoin on a daily dollar cost average system but Bitcoin doesn't provide you the same security that gold does sure Bitcoin might be the next digital gold Bitcoin has a lot of potential in the future but it is not exactly there yet it's not there yet in the sense of protection it's not there yet in the sense of security however it might be there in the future"
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The choice between ETFs and index funds is personal preference, with ETFs offering more freedom and index funds providing automatic reinvestment. The speaker personally prefers ETFs.
"between an ETF and an index fund this is really personal preference I mean do you want to have the automatic reinvestment into an index fund or do you want to just invest your money into a brokerage that can automatically invest your money for you personally I like ETFs because I like the freedom that comes with them"
Pending
Key factors for evaluating a good real estate location include crime rates, population trends, business activity, and walkability.
"the four factors that you want to be paying attention to when you're looking at a good location is the crime in the area the population and population growth businesses moving in or out and the walkability of the area"
Pending
Successful real estate investing requires building a good team, analyzing numbers, conducting due diligence, and increasing property value.
"you need to know how to build a good team number three you need to know how to run the Numbers number four you need to know how to do the due diligence on the property and number five you need to know how to increase the value of your investment"
Pending
A property manager's core function is to make real estate investments passive for the owner by handling tenant acquisition, rent collection, bill payments, and dispute resolution.
"the whole purpose of a property manager is to make real estate passive for you when you buy the property you're supposed to give them the keys and then they're going to manage everything they're going to find the tenant they're going to make sure the tenant pays they're going to make sure the bills are paid they're going to handle all disputes with the city with the tenant and everything in between and then they're going to take a small fee"
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It is crucial for real estate investors to work with a broker who specializes in investment deals, not just residential sales, as investment properties differ significantly from owner-occupied homes.
"you want to make sure you have a broker that specializes as real estate investment deals and even if you are a real estate licensed salesperson like I am I'm a licensed salesperson I got licensed when I was 20 I used to work with uh people who wanted to buy and sell homes I worked with investors I worked with a bunch of people but I don't broker my own deals I have another broker that work with"
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A specialized real estate accountant is essential for investors to leverage numerous deductions and legal strategies to minimize tax liabilities.
"if you are going to be investing in real estate you absolutely need a good accountant now because now it's not just showing your W2 there are so many different deductions so many different things that you can do in real estate to allow you to make money and pay less money in taxes legally"
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Hiring a good contractor, despite potentially higher upfront costs, saves significant time, headache, and long-term expenses by ensuring work is done correctly the first time.
"get a good contractor it's going to cost you a little bit more but it's going to save you so much headache it's going to save you so much time and it's going to save you money in the long run because when you have to keep paying to fix up your previous contractor screw-ups it really starts to add up"
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Engaging with the city during the due diligence phase is important to understand potential new landlord restrictions, outstanding liens, or licensing requirements that could impact costs after purchase.
"and fourth get the city involved because you want the city to know that you're looking at buying this property that you want to rent it out because maybe they're creating some new restrictions on new landlords you going to know that before you enter buy the property maybe they have some outstanding leans you want to know this before you buy the property"
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The speaker's primary goal for real estate investment is generating passive cash flow to live off of, rather than flipping for quick profit.
"my goal is not to flip the property for a big profit my goal is to generate cash flow because I want enough cash flow from my real estate to be able to live my life that will now have this passive cash flow that I can use"
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Climbing the corporate ladder is presented as a suboptimal strategy for wealth building compared to other methods.
"everybody says that if you want to become more wealthy you got to work to climb your way up the corporate ladder but that is one of the worst ways to increase your wealth"
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Corporate executives ('thinkers') have a primary fiduciary duty to the company's owners (shareholders), not necessarily customers or employees.
"who do these people the thinkers have their Duty towards because these thinkers when they're working every single day their duty is not to take care of their customers their duty is not to take care of their employees their duty is to take care of their owners this is the way that our system works"
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Earned income (from jobs) faces higher tax rates, while portfolio and passive income from investments benefit from lower tax rates and more deductions.
"you have earned income or ordinary income that's the money make from your job you have portfolio income and passive income both portfolio and passive income which is investment income come with lower tax rates and more tax deductions"
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The economic system, particularly concerning taxes, favors owners and investors over employees (W2 workers), who face higher tax burdens.
"the system benefits these people the second reason why this is so important to understand is because of taxes when you are a worker here you are a W2 you're getting a salary and this means you're going to pay the highest tax rates"
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Individuals can gain equity ownership in the economic system by either buying into existing businesses (with as little as $100) or building their own.
"now how do you own it you can buy it or you can build it if you want to buy it this is how you can start being an investor you can start doing this with as little as $100"
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True wealth building involves using increased earnings to acquire assets, rather than simply increasing spending on material possessions.
"if you really want to become wealthy you want to be working to make more money that way you can own more assets that means you're working to earn more money here that way you can put more of that money here when you put your money here now you own the asset"
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Real estate investment is presented as a way to build equity, similar to owning company stock, but funded by rental profits rather than business profits.
"then the third very common option to do this would be by investing your money in real estate because when you invest your money in real estate now you're building Equity now in a company but you're building equity in these rental properties and now you can pay this not with profits from the business but with profits from the rental property"
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