A drink or down here hosted the cartoons, and I want to talk about your money. You're funny. Is this your career and this God thank you for listening to wake up, call for the middle class pouch success. Your duty was your daddy's again. Freedom in business finance, Cardona Zones starts today. I want to talk to you about debt and you'll, see you'll, see a lot of people have a lot of different opinions on this. I get ass constantly about this debt grant. What should I have debt for once? Good debt, good debt ones, bad debt, bad debt? I want to tell you that debt is absolutely necessary in order for you to create wealth. If you want true wealth, prosperity and affluence in your life, you must use debt

order to get there and there's a lot of people out there. That will challenges, but today I want to show you how to constructively use debt in your life, the difference we good debt, bad debt, a monastery, Atta constructively use debt to create wealth and cash flow, how to get cash flow for you and your family in a day. Bramley is famous by the web massive respect for David David. If your team seizes I'm sure, maybe they'll pass it on to you, but massive respect for what David Donnie Self, so many families around, not just in America but around the world, to protect themselves from stupid debt. Consumer debt, student loan deck car debt. Even home mortgage- is what people have over deaded themselves on taking loans out to don't make sense and Davis done like he has been the leader around the world in guiding people out of this bad debt.

I don't know if we have a video clip of day talking about this, but here- and here I thought I saw something- I think my guy showed me something this morning about us consumer debt. Is it fifteen trillion dollars, and this is why Dave Ramsey is so emphatic. Almost a fanatic, that is is bad. People include John, is its most, not what Dave Rooms he thinks I happen to be. The aggregator of the information, meaning of gather the information over thirty years of walking with people. with millionaires and billionaires and broke. People I have a lot of data. a whole more than your broke brother in law with his opinion or the idiot. You are playing golf with yesterday and his opinion, Our data says that the shortest direction, the shorter distance between you and wealth is

Having no dad is, is it ok, so the shortest distance between you and having no wealth is taking on debt so again mass of respect for day, there's fifteen trillion dollars. This is what is warning you against ride. You fifteen trillion dollars a consumer debt in the United States of America. Folks s trillion not billions. Most of that is consumer loans? Okay, I want a. I want a t shirt, so I go borrow money to get a t shirt. I want shoes for my kids, so I borrow money. I want Christmas gifts or candy for Halloween. I borrow money, there's loans, you went and borrowed money to pay off your gambling debt or your drugs or your alcohol binges or whatever it is right. That's that's. The debt that Dave is talking about that will is the shortest route to zero student loan debts. I think there's one

point. I think the number to see what stood alone dead is in this country, this, our higher education, that's what they call about the way before they get you to borrow money on it. Student loan debt. This is one of the great Travis these in our country. By the way stood alone, debt keeps fifteen million people in debt. They're gonna wipe all this out by the way by no trying to get a bunch of voters like that stood alone. Debt total crisis? In America alone, debt rate outpace is rising, twitching caused by three out of a degree percent total of one point six. Trillion dollars ten percent over. I actually. Eleven percent of the entire household debt in America is student loans, dead. So when is good debt and when is it bad debt? Ok

Am I right or is Dave right or we both right, and I would suggest to you that we're both right, because I'm not talking about consumer, I'm talking about business dead, I'm talkin about turning the out into real property, actually have a show you today how to turn this stack. This ten thousand dollars Missy by getting more this garbage or me yeah do happen to have a little wrote one two three four Five: six, seven, eight nine ten ominous show you today. I would be doing more this stuff magic throughout the year. I'm actually show you some day where you can do this, I want to show you how to turn this thousand dollars into four grand instantly. Animal show you how to take this paper, this very vulnerable to fire when storm theft and appreciation and the effects of inflation inflation basically says. Ok, this was a thousand dollars. Now it's six

are basically goes like this. It was a thousand dollars, but now you need fourteen hundred too by the same product, so you gotta cook, that's when inflation is it is. It is either the invisible theme of money or hey. I gotta, add money just to pay for that same water bottle or the calculator, the computer or the alpha. Ok, that's inflation right. The car was fifty grand now it sixty round. The house was four hundred thousand. Now it's suddenly magically four hundred and eighty thousand inflation is a real thing. Back fact, Jack Dorsey talked about inflation Friday. He tweeted, we are, if you guys, can show this just so you got no one, not just making step up. I've been accused of just come in here in same whatever I want to say, which is by the way. What I do. I do say what I want to say. Let's see what Jack was.

And about inflation, Jack, Dorsey inflation now know this guy's a big, promote, ok, JAG, Darcy Issues, Dar warning about economy as inflation sores under Biden, I'm looking for his exact quote: Jack's Jack's got his his beards gotten inflation on it and we find jagged or cease account this fund that one hyperinflation to waste hyper invasion,

hyperinflation is going to change everything. Ok, so this show today is about how to use debt to create wealth. The average consumer has ninety three thousand dollars with a debt today, including consumer loans, consumer debt loans, student loans, mortgages, while Apple computer, has in an end what data set as debt is the fastest rout to being broke. I just want to give you got some facts. This is as of this, not forgetting the last tumor apple computer has. If my data is right and I could be up a little bit- one hundred and twenty billion dollars in debt, and while they took on this, they had seventy billion in cash. You tell me why company one of the smartest biggest there's a trillion dollar company? Why would a trillion dollar company one of the most successful companies that, as ever, a

our planet, why would they bore a hundred and twenty billion when their signals, seventy billion dollars in cash they're, not stupid, ok, you're, not trying to go, broke I'll, explain this year, a second and how you can benefit from it. Let me just give you example. There's a company called Google are today is called alphabet. They change their name. It sounds like Facebook and change your name. Google today has did ten billion dollar last month, tin billion dollar dead, offering it's called a barn. You should be learned stuff, so you and your family Canberra. How do I get? How do I get part of these guys up these two companies? Don't pay taxes in that interesting. Ok, because if you don't use that by the way you will pay too much in tax for those Eu Penitential Amazon check this out This is not about company since sings single

they know what they're doing another trillion dollar company Amazon today has thirty three point: seven, billion dollars in dead. I don't think up finish. The Google Google has a total of fourteen billion in dead. This just something they wouldn't grab last week can be. Hours, Amazon in Amazon by the way, has seventy three billion in cash. Now you tell me how accompany a seventy three billion gash, and then I would like to go bourse thirty, three billion dollars. They didn't use or cash debar, the money they use. The debt to board the money, two more more money, but they didn't even need because they think that debt is actually cheaper than using their cash. Did you guys put your wrap your head around that and you're going to understand that? Maybe some of this debt is actually a benefit to these companies that pay very little in taxes and have massive expansion, T mobile

mobile, has seventy five billion dollars, whether a debt. I think you know that company eighteen, ninety one hundred and eighty billion dollars within debt. Eighty anti is not just a telephone company more they a media company when what is eighteen, two young, like almost like all the media you see in the world they re Johnny, facebook has twelve billion dollars, the least of all the groups- twelve billion there, probably gonna bars and money here soon just change your name. Companies often is TAT. If you look it up on the internet, why do companies use debt companies use debt when constructing their capital structure, because it has certain advantages compared to equity, financing, equity finance in what is equity finance equity financing is I'm doing a deal right now to two hundred and lets say it's a two hundred fifty million dollar deal? Ok and I go to the debt market, I go to the debt mark.

like I want to borrow as much as I can on this asset, this asset, I'm just given you a big example right now, they're like yeah, grant. We love this asset, which will lend you Well then, you are the same. one hundred and ninety million. In dollars on this asset for grant. You need six a million dollars to buy the deal, I'm giving you crazy example, maybe I should take it down a little bit and not ok, let's say: there's a two hundred fifty thousand dollar apartment building you want to buy in the The they get the the banks as yet willing your hundred ninety thousand dollars on the deal. Ok, you know sixty thousand dollars about that that two hundred fifty thousand now you'll be

It's called leverage. Ok now there some real reasons why you want lever- and you can't get this with a belt or a pair of shoes or Christmas gift, a birthday present. You can't get it. What a car you can't get it would cast when you take cash. If you take one thousand dollars three, four: five, six, seven, eight, nine ten! You take a thousand dollars. You understand, you can't take a thousand dollars in borrowed thousand dollars, much less four thousand dollars gay see. This is this: is the problem with money? Ok, nope! You can go to banks, it look. I've got a thousand dollars. I want

or a thousand dogs nebulae once decision, one thousand dollars get, even if you did that, even if you could get a bank to do it because some of you do have a bunch of money, you would call this a credit line. You be like. I got a hundred ran in a bank. I want to borrow a hundred grand. I keep my hundred granted a bank. Ok, you bit bait. The bank now has first dibs zone it and I want to borrow DEC two hundred grand a debt when a credit line and Amigo use the hundred grand believe this Where am I leave? This demand? Gonna want a bar, the hundred I'm basically barring my money and paying for five or six percent people do this every day, folks, but they don't use it to buy gamble, to buy alcohol to buy it. This is what data

front. Tell you the fastest way to being broke is to use death by junk. But what, if I took this ten thousand dollars right here, UK and magically magically took the thousand ten thousand dollars. You talked about inflation earlier and what, if I bought forty thousand dollars worth of buildings, ok noticed when I just did leverage garbage too by building. Let's say this is a building. Now not cash basically go about forty thousand dollars, whether real estate that produces little babies. Okay. So what I want to take on

dont? If you get the shot down here right here, but I will take a thousand dollars. Ok, I'm gonna grow it up to four thousand dollars and it's gonna have little babies. Ok, it's gonna, give give me back this year's gonna. Give me back. That's ten thousand is getting a thousand dollars back every year, because so what did I do? I just took this this pay me. A thousand. You understand this by itself. The ten thousand will not pay me a thousand dollars a year. No bank in a whirl does is Pullao Johnny, but When I take this in our leverage it into a building. I really need this to be like a monopoly houses right now, average it into a building this because it has cashflow, can then produce more this. In fact, in ten years I will replace this.

Guy. So why am I telling you that's why Google? Well that's why these company leverage leverage cash? They take this cash. Whatever this number is don't get confused by how much It is sixty million undaunted deal right now. I may take sixty million dollars and I'm about to interfere million dollar building one thousand dollars cannot borrow one thousand dogs most, and you cannot do that and you know. Why would you ok? Why would you, unless you want to credit line you gotta business, but nobody you can go to the banks are on board a thousand now roomy like what, for my wife, yet when I do in Amman

In fact, there probably going to be suspected view only asking for a thousand dollars you go to them is to hand in a hundred grand economy like ok, you, you must have a business. You want to invest in companies. Use debt often use debt when constructing their capital structure. Why do you need to know that, because you, as a household, trying to build a capital structure, not just have a job, if you continue to simply have a job, make money Then you go make sixty thousand dollars a year and the government takes thousand dollars at that You gotta, live on forty five thousand dollars. Ok, that this measure this. What you got you're, never going to get ahead, you're never going to get a wealth, and I would just suggest to you that the fastest way to took to being broke is to continue to operate in the fashion that we ve been taught. There is one job over here this one job that is heavily taxed. Ok, by that,

or ass is the fastest road to poverty. because you're not figure in the game. Now. What I need to do is I need to convert some of this cash here to assets. When I convert cash to assets, I get a multiplier, sometimes for ex multiplies, sometimes fifteen ex. If I'm making the right investments are average real estate, Johnny can use on the deal I'm doing right now. They then you gotta go. I want to show you the deal that I'm talking about right now, I'm gonna take sixty. In dollars. I went to convert the sixty million into that building right there, I'm in a bar or one hundred and ninety million dollars. Okay, and what's going to happen, I think this things going to throw off three point: six million dollars in cash a year can be sure that, but that's what I think it's going to do- that's in the first year where rents are where they are today. Now this is two thousand and twenty one is that what we're in

I'm not going to sell this warning, consider celebrate until two thousand and thirty one. If I ever selling at all the rich this building right now about twenty four hundred dollars. The location is ridiculous. I'm one and a half blocks from every restaurant, Fort Lauderdale on the biggest property, with the biggest pool with the best amenities in the best location in the entire city, a Fort Lauderdale of about two million people location, Ridiculous- be replaced. This is institutional body asset, the rents or twenty four hundred a day. What do you think those routes will be in two thousand thirty one as those rents go up our fight inflation. Now these rents, these I've been going up seven to eight percent last year. I think those Winthrop eight percent in one year, if that red changes by ten percent in the next two years That means I end up with another two hundred forty dollars. Just

percent over the next two or three years has three percent a year. Ok, that writs go up to hundred forty dollars. There's four hundred fifty six units ear tat, two hundred forty dollars times, twelve, I would produce One point: three million dollars in new income, so this number I hear my circle this one a circle there ok, now my building is producing three point, six plus one point: three, that's almost five million dollars. Four point: nine million divided by sixty million. That's when I put down the garbage bud, why? Oh, in the last in the next three years, the sixty million would be worth more or less than sixty. I gave the bank it's gotta, be worth glass, I regret that money that similar money that money will be worth less one thousand one thousand. People would agree. Sixty million today will not be what is worth three years from now

with a building they work more or less. Most. People the building's going to be worth more money. Ok, now now making eight point? One six percent or my investment- eight percent. It was six ok if you divide six by eight, I just had a limited increase by two right. So if I go from six to eight, I increase my returns on this property by twenty five percent in one year. You guys don't much of two points, but companies do companies often use debt when constructing their capital structure? Your household has a capital structure. Your money has a capital structure. You just don't act like a business because it has certain advantages compared to equity. Finally,

guy see this right here. The sixty million dollars see this right here. This is the debt financing. Ok, so I'm gonna give you what's called a capital structure, don't get lost. Has everything to do with you, guys you're, like man, I don't understand what you're talking about right here is because you know have not been educated on capital structure. If the Gatt does not support a capital structure, you should not take the dead and it is not true that all dead is bad debt, because companies, don't stupid companies. These are the biggest companies in the world, folks, so capital structure. What does a capital structure? Ok, you have the asset. You have the equity

You have the dead, so if I go to the debt market in today, these companies are going to debt markets, airborne money for two point: seven percent: when they bring investors on equity. That's an investor here, ok or it's your cash. Your cash is trash, its garbage. You wouldn't leave this right here? Would you nobody would leave this activity? What's garbage? Ok, you wouldn't leave its susceptible to loss in if the depreciation in inflation and in fire you and just leave it here without protecting now. Would you leave building. Can you show that building? Would you that building there this weekend, you worried about it sure it's gonna firearms, sprinklers, convince predicted. It can obtain tenants and security can be there next week next month, You can't just leave this here any more by the way, then you should gas should be leaving it in the bank,

the error rate in the key. Oh, you got you You're leaving garbage and the bank doesn't leave it there. When you give this money to straw, swab fidelity, RO or whoever you give it to you know they do with it as fast as a flexible button. They lend it out to the people as debt, they lend it out. Are they lend it out as equity? Ok, now What all this is what what? What what I've done? I've done! What's call crowd funding crowd. Funding is I go to my friends many of you on the internet, many of you on Youtube. Instagram you come to my office. Is you go to our can exploit conferences? You come to our real estate of its you're in my real estate club I offer this you guys, rather than all the other equity sources in the world: ok, typically equity sources or family offices

family office is Goldman Sachs Equity firms. Ok, these are typically Wall Street firms in wealthy. Well, the people I have chosen not to get my money from those people and instead because the already enriched I instead, I have decided to go to real people- Bob Beverly John Karen. Loris, my friends on clubhouse instead, hey guys, I want you guys to be my equity in this deal. Now, when I do that, you guys got understand this, I'm doing you a favor, because this is what I can pay the bank. I have the money to buy this deal already. I'm trying get rid of my cash to converted to wealth guy? sixty million dollars can about two hundred fifty million dollars with assets. I merely become worth a quarter of a million dollars that assets it doesn't it does it. My network does an increased. It took court of appeal

overnight, but what happens is my money? My money, my garbage converse is something a massive value. Four times more than the money was worth an unprotected against d or inflation and depreciation. Ok of the act of this asset class garbage glass, these people they come on. I give them percentages of the business percentage, way greater than two point: seven. So what you're right this now equity costs more than dead, the equity in your capital structure cost more than dead and gone Google, Facebook apple. They know that so they're like rather than Sellen, shares dude rather than selling more shares in our company apple computer in this is going back to answer him. Why? Does apple when it has seventy billion dollars. Borrow. What was the number one

in twenty billion. Why do they do that gets what they went bought? They went about their start back. They went bought the star, Because they believe the stock is going to go up in value, they know something that you don't know. They know this for sure. This is garbage. Ok, what's worth less than this debt, they use debt, the cost of two percent to buy an asset class that they know can go up about you also, if you notice, if you notice the bright, not check what facebooking, Google and Amazon or buying right now, what what one of their biggest investments right now, what do they use in all this debt for to buy back stock and about real state? ok, I want to sum it up with this and then I'm gonna give you. I'm gonna, give you the simplicity of what I just shared with you that might go over some of your heads in the reason is going over your head is not because you're done, because none of us have taught anything about capital structures were taught how to go, get a job

do a good job cross. Your fingers hope hope they give you a raise every once in awhile, and then I'm going to save my money and one day I'm going to retire, and hopefully I got something left. freak and hope game. While, while everybody around you is the world around, you is borrowing money like it. A crazy rights, three things when taking dead, axemen, give you five things when taking out, did ok, if you, if you follow these fat things when taken out debt, debt will become your friend, not the devil, and this will be the fastest way to grow. Well, if you don't violated in these rules. Number one number one: when taking debt? Ok, you ask yourself this question: does it create wealth? Does it have any chance to create wealth? Okay? So when you are the targets? Don't you like? Oh a mamma by I'm about his bell about, is built in

nobody's soccer ball and I'm about this net and I'm about a trampoline. Would debt? Is there any chance that creates wealth? Ok,. meaning meaning by the way wealth means it. Can it potentially be worth more than the exchange. when I showed you guys at building, please putting comments. Do you think that building will be worth more money in two thousand thirty one than it is today is a brand new building today, students, fifty some million dollars. Do you think it that bill it's a quarter of a billion dollars today will be worth moment Could it be worth a half a billion dollars in two thousand thirty one number two does it provide leverage, meaning.

When I bought a thousand dollars and I go by a thousand dollar ticket trip- let's say about out of two people to flat first class to allay I was in when I bore when I think a thousand dollar debt in about thousand dollars where the tickets can those airline tickets be worth more money can't number one number two: does it provide leverage? Does it provide leverage where the thousand dollars, but ten thousand dollars were the tickets or ten thousand dollars for the buildings? Ok, is it deductible? Is the interest on the loan? If you guys just use this one right here, you would not take eighty percent of the dead you wouldn't even take. I only use debt when I can write it off If I can't write it off, I will not use number four. Does it provide cash flow.

If they don't cash flow, I say no. So if the interest rate is too in amendment six percent on my money. I am making four percent on somebody else's money, other people's money, so on paying too, and I make six iron food on whose money some body else's is called opium in number five, and by the way everybody knows about opium that gets rich I mean real ridge, I'm not dog, and about fifty million dollars or kinda. dollars wealth or a million dollars this? What Ramsay was saying about? I talk about you, you're broke your broke, a golf buddy down the street or your uncle, who who could be worth couple million doubt he was not talking about me by the way. Let me just say, Dave Ramsay was not call me an idiot come on their got. We have ten thousand apartments, a pay me every single month in number.

Can I depreciate the assets and on purchasing so to take a? U S dollar! I got there name in God. We trust. Ok, let's one hundred dollars on it and I'm going to convert it to a building or buildings. Okay, four hundred and fifty six units to pay me twenty five hundred bucks a month twelve times a year, twelve ten years, twenty years or thirty years ago, and we will take this bit. We don't take this bad boy out. Two thousand fifty one now building can be worked, a billion dollars in two thousand fifty one I'm a boar money against this thing. I'm amount to convert this garbage piece of paper whatever that is into that building this is gone now this I can write it off. Checkmark number. I can write it up. Number one: does a grey? Well number? One

oh, yes, and create a lot of wealth that grey way more well number two: does it provide leverage, tremendous leverage I turned dollars into building through is the interest rate deductible. The interest on this. It's gonna be to one what one hundred ninety million dollars terms, This the interest on this low terms, point zero to the answers on this loan from before millions. The interest is gonna, be four point: seven million dollars a year and interests and entire amount one hundred percent is deductible. All of it is deductible number four: does it provide cash this deals. Gonna pay me three point: six million me and my investors three point: six million dollars a year. Three hundred grand Ahmad we're gonna be paid to own the holding an to write it off again and number five: probably right off in the first year check this out to fifty million I'll bet. You we ride off.

Hundred million dollars from our investors, taxes, and we will only on the building two months in twenty twenty one. I just hope direst and see this and get all annoyed with these, and we have a step back. MAX max. If we can keep new ever a, I bet you have a deal, but Yes, your before that, if you'd listen, you're so What did you learn about good that bad debt today? Not what pretty pretty much has been on all the time, but not all that is that That's ok, call D ever deity. Everquest I get a deal. I got a great deal for your great opportunity at that time: ACT: dot, com, the edges or five nine nine red than road brought Bernier four, five, nine, what road red men are

gee, I'm a and a non road tat brought Port New York. He after the Brok apartments at the ranch or six. Fifty five ten eleven fifteen cases section eight. This will not be able to do. And how can I talk to you a while ago we went to streamline and appointed what what's he gonna? What's the US, the university that it supports it backwards, take out. Ok, I don't know. I've never heard that school Cool condolement, by the way HU, I liked already like the brick yet good, good, good going around new construction right next to the college. How much, though it that adoption right now bidding days during the reign of three point, seven,

or at the Vienna Loan Albert twenty four million dollars the company that they want the belly up. Just because you know covert o jacobi, Because a covert cobra destroyed student housing around the country can people want going to school anymore So what are really? What do you think the starting bid us point seven alone is how much would like they won't backward thine alone. Like twenty. I think that a total of almost twenty four million. twenty four million. They went backwards. Okay, so look what you Emily Company units or one you have any idea what, hundred one? Ok for I want their cell embeds here, probably forbids per unit right. on the other, there are sectors that can be won bedroom to bedroom sleep around all different. Those is reversed. The own down down down. I have known about thirty eight.

W B Lasher far sighted is four hundred thousand I'm in here. Right now. Oh god I would do. Is that we do that. I would you three thousand seven hundred purse, the matter, and that would be one point. Five billion one point: six million per semester is pass, which would be three point: one million dollars a year for that property and I'm getting this domestic because the reckless postmaster about five thousand dollars no one here newer and there's a lot more manatees that caused the campus. An appeal. I brought my freedom, though, that when I did everything with a cabinet Capri with thirty percent, and I are with a hundred fifteen percent per year, for the old is roughly two hundred sixty amongst the groups for their property.

and I would want to act properly in about ten years and we can even take its own level. You know you referred to in our place tomorrow. Namely gap events there we can have our chose there. Comedy show there as well. I mean that everything either that location there. Ok, sounds like you got it all figured out. My death. We have figured out united Front presented to you. I have a budget that around the area and damp and really think that repair the other in about into here's a thought. Everything that I have my did tailored finding things. I can't I can't pull the equity outer again about property earlier anything like that, and I have about a happy about. how much faster than that radio. One hundred thousand ok you're, not gonna, buy this thing not now. I need you

yeah. So look it's a hundred fourteen units, not for a one. It's a hundred forty. Why looked at it with four hundred one bad tangled? Second, no, two thousand and twelve acres, two hundred seventy five parkin spots you need cash to. this deal, okay, you'll have to have the cash plus whatever Twenty four million dollar alone, this thing's gonna, probably sell for twenty four million dollars at least and you'll need another. Point four million to bother the thieves at ten ten x. I say these because they tried to steal my connects and the starting bid at three point. Seven is not what it's gonna be its the eight percent occupied. You will not get alone on it. You need to close, but I'll cash on how you, this deal, I don't do this deal and are so many

a good deal out there to cash flow from day one. But you guys have always heard me say: I've never been a big fan of student housing when it works. It works great and when it don't work, it is awful nest. Our hope that helps brought MR brought brought the Brok Property MAX. The Brok Hagen hot MAX Brok brought MAX. Next scholar Tony. I hope you have a better deal man place I grand I just gotta, get a few questions. A guy appear in Detroit and its terrible, terrible anyways I wanna be. Other areas, a forty five specified office building my real estate office. I saw the birthday and I am now ranging building. I bought the brokerage

twenty five hundred dollars a month in cash flow. Don't intolerance and I'm trying to refinance the building because a matter stupid, Ray Baker a little bit of money yeah. I like that. Ok payment right now is to thousand five hundred dollars a month to banana property since two thousand and thirteen I've got another four years on a leash, Eric standing at their going anywhere and I'm one of their job salespeople in the company, ok? So let me say this is what I would tell you to do. What do you think the builders worth it thousand ok, goods! the first thing need to do. Is you need to go back to your guys say I want to extend this leads to ten years you needed, before you go, the bank is gonna, get the bank comfort right, ok, so

so what it? What is the rent, their pay? And now is you just got one tenant there I got one can get it is he a good tentatively accredit worthy tenant? Oh yeah, they ve got nine offices over two hundred agents- oh yeah, that's beautiful brought, so And what do you own? The property ten thousand dollars, that's that's beautiful! So what you're going to do and what does that interest rate on the truth? There are two hundred ten thousand six point. Six point born. I like there s a human and we can you play that loan off. I can pay it off anything and there's no penalties are ok, good, so you're going to go back, you gonna go up and whose the lean on that who's got them that mortgage first date bank go back, ok, good, so you're gonna go back then I did. I want to refinance I'm a pay you off to Mama paid alone, ol man one how much how damaging notice you want just open with this, I want to pay the bill

la pulmonary funny. If it was somebody else, nobody like no memory Finally, is it with us I wanted to do but you're, not you don't want to beat up. They don't want to good, so they don't want to that's good, because the gloomy loan anyway, usually not already, doesn't want you going on inside payment. Second, given to go by four hundred and fifty thousand dollars you pay them off. You're gonna, walk away with two hundred and forty thousand dollars in cash? You money what a new loan at four fifty and you're gonna pay. Probably gonna pay everything property taxes, insured, hence our put everything in one loan or guide for the times. Point zero. Sixty five, you're going to pay two hundred eighty one thousand dollars a year right now. What what you're to anyone

what what what your income from the property right now that you're free cash flow is yeah, you're gonna pay are given. you're gonna walk away with two hundred forty thousand dollars and non taxable event. Fanny may Freddy MAC. Or find somebody does off. As I can turn you into a god here that I work with digging, they can show you who a good long born office deal please guy! That's that's number. One number two would watching Squat Box this morning and they said Congress wants to eliminate borrowing the money on your goody Congress must eliminate what you know how you feel keep saying, but by the property rate, when the equity goes up to seventy five percent.

Our continuing cash following the rancher going up here, and they want to eliminate that near corset. I thought of you immediately was like waited in vain. The reason I'm getting end of its near the federal housing finance agency announced today that Fanny Friday will eliminate the hotly contested half a percent refund. It's the to help. Families reduce their housing, cos. now. This is the one on the commercial property. Oh yeah, yeah, you're, saying Congress that then I can do that. Brody just saying that get boats we get rich people. Ok! Now that the people are. Such liars is unbelievable, so there never going to do that This is like Warren Buffett saying I want everybody, we should increase the taxes and thereby say all worn. Such good got warned and earned income

This is Congress, saying hey. I want some time to talk. I wanted. I want to talk. We should get rid of this and then, when they go to vote, don't get rid of that they just tell ya, get rid of it now everybody should wear mask, but she mosquito, they all do that the executive, Jose I'll do that. Man. when votes so they're gonna tell the people, whatever the newborn, to hear That's why everybody hates politicians look Democrats, don't like their own Democrats, Republicans only like a Republican. Nobody likes politicians. and then we will finally get somebody. That's not a politician. We don't like him either it. We don't like ourselves. ok, but I tell you what I do like I do like real estate that has debt. So. Why do I like? What are the five rules? You guys, remember: here's the rules when you take get out

if it does not increase your wealth, do not do it. I would take money out of my way account my four or one k, my cache, My money markets by savings bore money against my life insurance. If I had any, to bar we'll assets because it creates wealth, number two Does it provide leverage? Yes guy? When I could when I can take a thousand dollars wow monsieur you got something: Wakeham take a thousand dollars and I can give four thousand where the real estate that is smart. That is a lot. more than taking two thousand dollars down in buying fifty eight thousand dollar car? Cars gonna go down a value. This asset up in value and provide cash flow? Number three. Is the interest on the loan tax deductible interest?

on a car alone is not tax deductible interest on a student loans, not tax, deductible interest. I don't think it is a small portion of your mortgage. Your interest on your mortgage is tax deductible and, after that, it's not on an apartment deal on an office. Building on it after all, on a warehouse on storage, one hundred percent of all the money as tax deductible, including which is crazy. The fees get the day alone. Our lawyer to look over the documents of the loan. I get to write that off number three or did I do number three number: four Does it provide my best buddy cash flow cash? close. The holy grail of finance, guys always it cashflows it'll, give me through the bad times I get paid four percent: five percent six percent. While I wake

and then, as time goes on, the rents go up, and next thing you know it's eight percent, nine percent or ten percent. I keep wait a little while ass, twelve or thirteen or fourteen percent. When that building comes worth more money in ten years and that building that was worth two hundred fifty, whatever million is now for four hundred and twenty five million. We'll get alone. On this point and twenty five million dollar building, I never overleveraged. Why I want the cash flow just hit. These five points and you'll never lose in your great wealth for yourself foreigner. twenty five million tonnes Seventy five is Bree one eight seven five: oh zero. zero. Zero word I pay for the building I paid two hundred fifty million dollars are now getting a new loan of three hundred and eighteen million.

Oh, I put sixteen million down one. Ninety, ok, I have an event that makes me rich. This is a hundred and twenty million dollars. Please sixty million dollars. We get rich the sixty million dollars is left over I'm running out a room here this three million is a non taxable event. Ok, number five. Can I do initiate this over the ten years. I took this two hundred, fifty million dollar build and improbably rode off a hundred million dollars. Let's say I sell it right here rather than refinancing. I probably wouldn't it's not the smart thing to do if I sell it to Johnny, Johnny and Nathan put a fun together and they buy this deal for four hundred and twenty five right up: a hundred million do she's crazy.

two guys will end up right now, more than a building costs to build, and that, ladies and gentlemen, how you take debt and create wealth, one does create wealth. To does it provide leverage three is it interest deductible is the Percent alone deductible for doesn't provide you and your family with positive cashflow every month of it doesn't say no to it and number five. Can you depreciate the asset? If you can depreciate on your taxes, they did it's all five of those rules. Debt will create wealth and that's why big companies use debt to create wealth. We getting more colors. Don't let's go this. Would you mom you dad you uncle Euralia? Ok, a lot of people have a limited, a very

very narrow view, this debt think as they have studied it deep enough, and I'm just telling you from personal experience, man debt when issues right has been one of the best friends. I've had my my entire life. There what's up one of the hardest: real estate markets in America, today's Dallas Texas, guy top because to a document let's go to the next collar. Ro we daring does Dallas, we used a green and gold NED was met with a man come on requesting pre. Yet yet, though, Are you the way it has been agreed and I could only be in London? I found a dealer.

a deal work good reaches. The problem is the really big money experience at my credit, yeah yeah So how do you in any way around man, oil? Ok, so that would never say anything download the only likes, but because of his experience number one by the way. This is the order when you're buying real buildings, real assets, good quality assets in great locations, the order by the banks, the priority from the banks, credit score and then experience it flips? Now it's your experience to operate the building and your credit score is:

What's important, okay, so they're going to ask you miss me where's your equity. Coming from how much experience do you have and what's your credit? What's your credit score like or your net worth? Okay, your net worth cuz your network could actually your network could actually get over this credit score. Credit scores are not as important when it comes to buy real ass. That's why? Because the real building show the building Johnny see their linen me money against that building. Ok, what what would you rather do? Lend money against that building or my seven thirty credit score I got a building like that life insurance comes as we don't care to you that if we don't care that you ve been slow in your damn car You don't really care to humans, Lowood visa. Why look at our building again? She may not credit score. Look good, you understand. Ok, the other thing is going to help is you're not worse state. sometimes, particularly in the beginning, how big your deal net, ok

let's say his deal, seven hundred twenty five thousand dollars and he wants to borrow five hundred thousand dollars tip in other they're. Look for hey. Do you have five hundred thousand out whether network, which would suggest experience and therefore two hundred thousand dollars. Probably won't include your house, its cash accounts, its equity and other stuff, and they like to see equity and other stuff more The quantity like like I'm doing alone. Right now, the banks like we need you to keep twenty million dollars worth of liquid look liquidity, my growing any Luke witty thing you guys got now, I notice gay. I give you guys my money. What ya wanna give me alone, then you want me to keep you want me to keep a bunch of liquidity. I got it. I understand what you want and I had my liquidity is in Monday and real estate because it produces cash flow.

I don't have any dead money sit around, so you guys want to give me alone and tell me, keep your money dead at my bank. I got it appreciate, get let's go ahead, spoon it out, but I ain't doing that just cause you want to do it. Mean I'm gonna, do it so when a man who is making this twenty million dollars over here and is real estate account because this gonna pay me every month, How am I gonna pay you of it? Didn't pay me: ok, Grimwig! We go, When we also want you boss, matures good, where you want me to buy some insurance once you pay for. you got, you can work all these deals with the bank. So number one get your assets right. Ok, get your assets right, get your assets right to get your debt write start using debt on good things, not bad things in number. Three get your experience right for you work for you run down the street pay off your damn student loan. Okay, if I had a student loan, it wasn't paid back right now I can guarantee you. I can still get a billion dollars for the debt.

because, when I go to the debt market, a mad when you go to the dead market. When you go to the debt mark and we're gonna, do a we're going to a whole training on this by the way. If you want to get started, this go to grant Cordoba comforts, less or IA, Grant Cardona, comfort, Slash, Oreo it's a three hour introduction to her I started real estate. How you can to and then we're gonna do a five day course probability, the month, one hour day for five days because a lot of you said men. I have five hours in one day, but if you could give me one our on deal with our on debt one hour on where to get the equity one hour on how to manage one hour and how to pick my first Neil imagine if you find a one million dollar peace. A real estate and with no money did I get get? Two hundred thousand dollars were the equity aid, four thousand dollars for the debt and you could become a fifth, percent owner in the upside of that building,

Thank you for listening to their cardoza, subscribed to disband gas, to leave a review and check out grant on your favorite social media platforms. A drink or down here hosted the cartoons and thank you for listening.