Money School Podcast

When we go through personal financial difficulty, picking ourselves up and rebuilding can feel near-impossible, but our guest this week did just that. How did he lose it all, and what did it take to rebuild? What are the key lessons he learned from his failure? How can we avoid the common mistakes many investors make when they start seeing solid monetary returns? On this episode, Real Estate Investor, Speaker, Mentor and Expert, John Ferguson shares his experience going from success and speaking gigs to selling jeans; all before climbing his way back to the top. Just because you can make and spend a lot of money, doesn't mean that you should until your revenue is there. - John Ferguson Three Things We Learned Change the view we have about money The conventional knowledge we are given by society about how to spend money isn't always applicable to our personal circumstances. We should be getting mentorship to change those beliefs for better financial practices. Don't eat into profits too quickly When we make money off our flips, instead of spending it, we should be reinvesting it back into our businesses. Once that money generates revenue, that's when we have more flexibility to spend. Never ever neglect tracking your numbers and studying the books The biggest mistake many people make, especially when the money starts flowing in is that they start ignoring their books. Always look at your books and reconcile appropriately. Hire a good CPA in the beginning so that your books can already be set up, and you won't have to fix errors further down the road. Guest Bio- John Ferguson is a Real Estate Investor, Speaker, Mentor and Expert with Real Deal Real Estate Investors and a founders advisory board member with Renatus Real Estate. He provides massive value nationwide to new and seasoned Real Estate Professionals. For more information visit https://legendaryclosers.com/, or find him on Facebook.

The one thing every successful person will deal with in their entrepreneurial journey - naysayers. What causes people to try to hold us back from achieving our dreams? How can we block out the noise from those who don't understand our vision? Should we be looking into more practical, popularly accepted methods of finding success to appease our critics? On this episode, we discuss how to stop letting other people's opinions get in the way of our dreams and aspirations. You need to understand in your heart and mind that this is your dream, no one else's. - Chris Naugle Three Things We Learned More often than not, naysayers are those without the drive to fulfill their dreams. They don't want us to achieve our career goals because they aren't comfortable with their own personal circumstances. Avoiding our naysayers is difficult as they are usually the people closest to us - but to be truly successful we have to cut them out, at least on a temporary basis. Stop trying to please people by adopting more orthodox methods to success. The path to our dreams is ours alone.

When we're new to the investing world, so many obstacles can come our way - whether it's choosing what to invest in, where to invest, or building credibility in the market. This week's guest faced all these initial hurdles but still managed to build a multifamily investment operation with 4300 units. How did he overcome both internal and external obstacles to build this amazing business? Why are long-holds overtaking flips? Why do we need to rethink the kind of value we can bring to the table? On this episode, Mark Kenney shares his investing journey and how he got out of his own way to achieve success as the co-founder of Think Multifamily. There are certain aspects of the multi-family business that are harder to pick up, and the two hardest areas are raising money and deal analysis. - Mark Kenney Three Things We Learned Flipping has become increasingly more difficult, and the margins are diminishing. People are turning to long-holds, and multi-family units are a good option. Having a social media following is useless unless we're leading those people into our email lists. We don't have to be an expert at social media but we can put together a real plan that drives traffic to our business lines. Deal analysis is a key skill investors need to have at every level. We need to be able to see if the deal has merit or not before we commit any money or resources. Guest Bio- Mark is Co-Founder & CEO of Think Multifamily. He has invested in over 4,000 units. He has a reputation among the multifamily investment community for providing exceptional value to investors and the community while also being easy to work with. Visit https://www.thinkmultifamily.com/ for more information, and to find out about the events and training their group offers, or feel free to email them directly.

One of the things we have discovered in our investing journey is that most private lenders are their own banks. It gives them a great deal of control and greater opportunity to build wealth. Why would we want to build a bank outside of the traditional banking system? Why should we stop buying into the myth of compound interest? How can we leverage our homes, 401ks, and IRAs to fund further investments? On this episode, I share how banks control our transactions, and what we can do to get our own revenue streams working for us. Money must remain in motion in order to work, otherwise it becomes a liability. - Chris Naugle Three Things We Learned If we get our current liabilities to generate income, they can become usable assets. Don't do things with money that we wouldn't do with tangible purchases. We would never buy a car and not drive it for years, or buy a house and not live in it. We have to put our money in motion. A 401k loan allows us to be the bank and earn an increased return, even when we pay the 5% interest on the loan. We've been taught to believe in the concept of compound interest, that we should just park our money with financial institutions. The problem is, we're giving up good dollars to the bank today, to get weaker dollars later. In order to become truly financially free, we need to replicate what banks and the wealthy do. The bank controls all the financial transactions, so if we became the bank we can have greater control and get higher returns because of it.

Running a successful investment operation, even in property management, requires a consistent and effective business mindset. Why is it important to plan ahead for any potential challenges or crises we may face? What does it take to maximize our profitability? When it comes to partnerships, how can we make sure we're working with the right people and planning for the future? On this episode, we're joined by expert investor, broker, property manager, and speaker Mark Ainley. He shares his personal journey in building his successful business, appearing on The Deed and how best to approach working partnerships. Property management is becoming its own sector, and with technology and different efficiencies, it's becoming scalable. - Mark Ainley Three Things We Learned Too many partnerships can erode any success faster than a bad deal It's better to partner up with a few select and trusted partners on all of our deals. Otherwise, we end up with an extremely messy business, and a lack of consistency can harm our profitability and trust with our clients. Plan ahead for partnership challenges Partnerships don't always end well, and these splits are often complicated and costly. It's critical to plan for the potential end for a partnership from the onset, with operating agreements beneficial to all parties. We need to know the procedures, and inevitable consequences, of dissolving a partnership. Overspending on property will destroy our profitability Following a max-offer model and buying for the right price will always put us in a more financially stable position. Overpaying, even by just a small amount, will add up across our property portfolio and hurt our bottom line. Mark's success as a property manager is that he thinks and operates like an investor. If we're not thinking like business owners with a long-term vision, we can create many challenges for our business. A visionary entrepreneur will partner up with the right people to facilitate long term success, not short term profits. Planning for potential challenges ahead of time, allows us to maintain a high level of service for our customers.

Some of the most successful people in the world had to start from nothing, or start fresh in a completely different place. On this episode, we talk to real estate entrepreneur, author and podcast host, Reed Goossens, who shares his story from Australia, starting his real estate investing business from the bottom up and what new investors can learn from his experience. When you reach the limit of your own portfolio, that's when you leverage the power of other people's money. -Reed Goossens Three Things We Learned Local banks are a great source of capital Never underestimate the power of the local relationships with banks and bank managers. It's one of the best ways to access money for deals. We don't necessarily have to get money from the big banks, if we leverage community banks we can actually solve our funding issues. Success takes consistent effort Success is not about not putting in effort and then having one huge breakthrough moment. It's about taking consistent action everyday, always following through with our goals and continuing to educate ourselves. We build wealth by smartening up A fool and their money are easily parted. In order to not be a fool, we have to educate ourselves; whether that's getting coaching and mentorship or consistently being willing to level up. In the real estate investing business, our success is very closely tied to what we know and how willing we are to expand on that. The truth about life, and what we can learn from Reed's story is that consistency and persistence pays off. We must be willing to learn and constantly find opportunities to level up. But that information also needs action behind it. Ultimately, we have to be willing to bet on ourselves. If we're not willing to take that chance to live a life of freedom, we'll ultimately regret it.

One of the fundamental rules of becoming wealthy and successful is emulating what the wealthy and successful do. If there's one thing they do well, it is using whole life insurance to become their own bankers and create wealth intelligently. What can we learn from the way banks operate? How can we make money without working harder or taking on any more risk? On this special episode, recorded at the Impact Players Tour, wealth coach, Brent Kesler shares on the wealth strategy of the most successful people in the world, and how we can use this machine to build our own wealth. You need to start treating your own money the way you treat the bank's money. -Brent Kesler Three Things We Learned The wealthy use whole life insurance to keep money in motionUsing whole life insurance as a wealth building vehicle is what the wealthy, rich and elite do. It's what the banks are even doing. Conventional banks own more in whole life insurance than any other holdings, and that's because there's a guaranteed growth rate, and the money we make is tax-free. Paying cash for a car isn't as beneficial as we thinkWhen we pay cash for a car, you don't avoid interest and we don't actually save money. Once we've bought that car, all that money is completely gone and we have to start saving for the next one. That means we're losing out on many benefits when we part with that cash. The 3 rules of becoming your own banker There are 3 key rules we have to follow in order to successfully use the Money Multiplier Method to build wealth. If we want to get back the money we've spent on assets, we have to pay ourselves first, because that is our premium deposit. The second rule is that we have to pay ourselves with interest, and thirdly recycle and recapture our money. Our goal is to become our own bankers so that we get the benefits that the banks are getting. We're already buying stuff and paying for stuff but the bank is getting all our money, so why not buy stuff and get money back by being our own bankers? 90% of our money goes to someone else and then we're left trying to save the 10% that we have. By employing a whole life insurance policy in a mutual company that pays dividends we increase how much money we can earn and save, we can recapture the dollars we've spent and we can really start to create wealth.

There has been talk about a looming recession in our industry for some time now, but what's surprising is that many people don't believe it will happen. That's because they are looking in the wrong places for signs. What are some of the biggest misconceptions about recessions? How do we get an actual read on the signs of the market shifting downward? What investing strategies should we be using in these market conditions? On this episode, I'm joined by BiggerPockets podcast host, real estate investor and author of the book Recession-Proof Real Estate Investing, J. Scott. He goes deep on the signs of a coming recession, what economic markets look like before downturns and how to turn downturns into opportunities for growth. Instead of looking at the real estate market and trying to gleam where the opportunities are, look at the economy and gleam where the opportunities are going to be. -J Scott Four Things We Learned Recession deniers aren't looking at the proven data on recessions Many people are missing the fundamental concept of economic cycles. They see recessions as optional things. It stems from not being familiar with the data, and having never lived through more than one recession. Recessions are inevitable. In the last 160 years, we've had 33 full economic cycles. Every 5.5 years, on average we have had a downturn. The time between recessions varies, right now we're at 11 years since the last, but that doesn't mean it's not coming. The economy tells us if a down turn is looming The economic signs that a recession is on its way include a shrinking GDP, an inverted yield curve, stagnation in wage growth, a reduction in business spending, and a drop in luxury car sales. These are all signs we're seeing and experiencing right now. The real estate market shouldn't be how we get a read on recessions Real estate is a lagging indicator, it doesn't get affected until after the economy has turned. Real estate is NOT what drives recessions but the economy has a huge impact on real estate. How to handle flips pre-recession New investors shouldn't do flips, they are just too risky. If we've been flipping for years, keep our projects quick so we're not caught mid-transaction when the market shifts. We should have an understanding of what happened in our market in 2001 and 2008 because that will show us the worst case scenario and what we can expect to happen in the next recession. The writing's on the wall, and there's a recession coming. In terms of our economy, things aren't nearly as robust as they once were, and historically that has always been a sure sign of a shift. It's not about reading the real estate market, it's about reading what's happening in the greater economy, consumer habits and buying habits. We don't have to be afraid of the recession, it's actually a great opportunity for growth. In order for us to capture these opportunities, we have to optimize our businesses to maximize profits, minimize risks and take advantage of where we are in the cycle.

Many of us waste time wondering if we have what it takes to make our entrepreneurial dreams come true. We think we're too young, too old, too poor or not connected enough. My guest today is proof that we shouldn't let those excuses hold us back. At 19, he has become an entrepreneur, created a massive network and is changing the world. What were the obstacles he had to go through to get to where he is? On this episode, CEO of Build Your Empire and host of Rise of the Young, Casey Adams, shares on making a mark on the world at a young age. If you want to make a change and become the best version of yourself, you need to massively change your actions, routines and habits and the people in your life. -Casey Adams 3 Things We Learned Use social media differently to achieve goals Most young people use social media to connect with friends. Casey used it to connect with mentors, create opportunities for himself and start his entrepreneurial journey. We can't sit around and wait for opportunities Opportunities don't just happen, we actually have to go out, impact and help other people. If we help people get what they want, we'll get what we want too. We can create our own opportunities to connect with people If we want to grow a bigger network, don't just attend masterminds, create one. If we partner with the right people, we can easily build something that will attract people. Casey went from being an injured and depressed teen athlete, to connecting with and being mentored by some of the most inspirational people in the world. He is living proof that getting around the right people can be the key to unlocking everything we want in our lives. Once we get around the right people, money and opportunities will follow, provided we're willing to do the work.

To create wealth, we need to stop playing by the rules we've been taught by the finance industry, and start playing by the rules of the wealthy. How can we create a cash flow that allows us to create a passive income? Are real estate and insurance logical places for us to be putting our money? On this episode, fellow podcasters and partners at Wealth Without Wall Street, Joey Mure and Russ Morgan share their 5 pillars of wealth. Learn what the wealthy are doing: it's the complete opposite of what we're taught by the financial world. We have to seek out what we want to know, and keep ourselves educated. -Chris Naugle Three Things We Learned We have to understand how cash flow and passive income truly work Cash flow is integrally linked to passive income, which is something we all wish to achieve. However, the word 'passive' often causes a lot of us to think there's no work involved. In reality, to create cash flow, and ultimately passivity, we need to work hard at first and become knowledgeable about our options. If we want to invest, we need to know more about what we're investing in. Likewise, we need to know when we're paying more taxes than necessary. Education is crucial in creating a sustainable cash flow. Use life Insurance Life insurance is a replacement for our savings accounts. It gives us the same access, liquidity and safety. Plus, they grow tax-free. Life insurance has been used by the wealthy for years, from big banks to the Rockefeller family- we need to play by their rules and use insurance in our own lives, to our benefit. Be strategic with real estate investing Real estate has always been used as a means to generate money, but if we pay attention to the markets at the moment, we should be cautious of investing now. If we have real estate, now is a great time to sell- not to buy. That's not to say we should write off real estate entirely, as once the market stabilizes it will once again be a great place to invest. Along with owning businesses, life insurance and real estate have been used to generate money by the wealthy for years, and will continue to be used for years to come. To know when it's a good time to invest, we need to become as knowledgeable as possible on wealth creation. Create a sustainable cash flow and use life insurance and real estate to our benefit - but stay mindful of market trends. To create real wealth, we need to stop listening to financial planners and advisors who play by the rules. For wealth without Wall Street, we need to educate ourselves and start mimicking the way the wealthy use their money.