How to Make a Million Dollars, Guarantee Passive Income and Keep it for Life

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What's up fastlaners? Ryan Moran here. You look better than ever. I hope you feel as good as you look. Hope you're having a good day and if you're not, stop it.

Quit that. Start doing good things. Today we're gonna touch on a controversial topic, something very few people want. We're gonna outline the plan and the path to make a million dol invest it for passive cash flow that never goes away and how to avoid paying taxes on it. Alright, sound like a, sound like an okay day. If we could do that, if we could outline that, would it be an okay day? Would you stop doing that having a bad day thing that you're doing? Would you turn that frown upside down? You know, I have spent a good amount of time in the last year and a half, two years or so outlining what my desire for the message of Freedom Fastlane to be and massaging that and clarifying that. And I'm starting to get, you know, really clear on where we're going long term with Freedom Fastlane. And when it comes down to it, what we talk about most of the time here is how to achieve real wealth so that you can live the life that you really want. And when we're talking about wealth, wealth really comes down to three stages or three steps. One, make the money. Two, invest the money for passive cash flows that you have dependable consistent income. And three, protect the money so that it doesn't go away and that people can't take it from you, including the government. And most of what we talk about, everything that we talk about when it comes to money and finance, whether it's on Freedom fast lane or somewhere else, some inferior source, it falls into one of those three categories. Making it, investing it, growing it and keeping it, protecting it. And we're going to talk about all three of those on today's chat. The reason we're talking about this today is because I have been kind of kicking around the idea of having a workshop in Austin, Texas about this topic. Working with individuals one on one on helping them craft their million dollar strategies for making it, growing it and protecting it. But I'm still massaging exactly what is in that. So A, this is a bit of a practice run for me and B, I'm actually looking for a small group to test some deeper content on. And I'm going to be putting together some, some trainings for the small group who will help me massage this content. Kind of like a beta test group if you're interested in being in that group in that group you can head over to perfectly passiveincome.com I'm gonna be doing some free trainings over there as well as some free classes and inviting some people into a kind of a private beta test group as I test some of the deeper content. So if you're interested in making a million bucks and investing it for long term profits and shielding it and protecting it, head over to Perfectly Passive Income and I'll be doing some free trainings over there. I'm also doing a free class at the blog@freedomfastlane.com that goes a little bit deeper into each of these topics. So we're having one training on making it, one on investing it, and one on protecting it. And again that'll be over@freedomfastlane.com so let's start at the making it point. This is the point where most people get hung up. Why do most people never become millionaires? Because they never make it in the first place. And.

The model, at least here at Freedom Fast Lane, is done by starting a business. And in my career I am always asked the most questions about.

This point, about the making it point, the starting the business point. More millionaires and millionaires are made faster as a result of starting a business because it only takes one idea to make it. Mark Cuban has a great line in his in his recent autobiography which talks about that is the beauty of business. Business doesn't care how many failures you had. Business didn't. It doesn't care about what happened to you a year ago, what divorce you went through. It just cares about if you got the next one right. Because it only takes one to be massively successful. And yet I am asked the most questions about this point like what's the best model? What's the hot thing? What's the next thing to do?

Where should I go to make my million? I gave a talk in front of a group of entrepreneurs a couple weeks ago and some fairly successful people came up to me and just said if you were me, what would you do? Well, if I was you, what would I do? What? Well, if you wanted to be successful, the hell does that even mean you start a business? Well, what kind of business? So much of the confusion around where to go would be solved if most entrepreneurs just made damn decisions and started something and moved towards something. Because you can always course correct, but it's really hard to move a stone that's not in motion, whatever the hell that phrase is. It's easier to steer a moving stone or I don't know what the phrase is but if most entrepreneurs could solve most of the problems if they just decided on something and then. Course corrected. I'll comment on this in a second, but.

I am often asked, why don't you make courses about Amazon? Or why don't you make courses about info, products or whatever it is? And it's a. I'd rather just talk about it freely here on the podcast so you don't have to go buy one of those things, one of those courses if you want to. Cool. But second, because models change and I don't believe in selling the next wave. The thing, the hot. I just, I'm just not. It's not my thing. Some people, it's their thing. It's not my thing.

They all work. It just matters what decision you make, what road you go down. And you start a business by providing a product or a service that serves a very specific target market and then you marry that to a channel where buyers or leads already hang out. That's how you make your first business. We'll talk about going to the million dollar point in a second. But you start business by identifying a product or service, identifying who would benefit most from this product or service and identifying where they hang out and then getting your leads and sales from that place and then selling them more stuff. The selling them the more stuff part is where real magic happens. Now, I hope you stuck with me through that a little bit of a rant, because if you already have a business.

One of the things that I have been working with some of my clients on and working on some of my own businesses on is in identifying the highest paying customers and going after those customers and giving them different solutions than you give to everyone. For example, I'm working with a client right now who is used to taking an average sale of about $600. The average person who would come through his pipeline would pay him about $600, which is fairly respectable. But we're identifying those on those are his customers right now that are not worth $600 but are willing to pay $10,000.

Now that sounds like a big jump, and it kind of is. But when you break down the numbers, you need 1 20th, 1/15 of the customers in order to break even. So even if the sales or the leads come in very slowly, you can still generate a lot of money from very small lists, from very. A very small group of customers. In fact, we were on the phone today and we were talking. We're outlining a plan of how could we, Max, how could we kick this up a notch and have $100,000 level. I told you the story on a recent podcast about how I was in a group of entrepreneurs and I realized that the same service that several years ago I would charge $1,000 to a client for and be tense about it in this room, it was worth hundreds of thousands of dollars. And in fact, two people offered me more than $100,000 for the same service that I would have charged a few thousand dollars for a couple years ago. Same exact service, different audience, different crowd. So I mentioned on that podcast that sometimes it's not you, sometimes it's not your product, it's just the people that you're targeting. So let's take that a step further. If you're selling something to your audience, are there people in that audience that then are willing to pay more for similar services or diving deeper into the services of the products that you serve? And then let's ask a different question. Could we cut out the front end in the first place? Could you cut out the front end of the process and not have the low end customers and just serve the high end customers? Could you just do that? I have a buddy who doesn't take any customers who don't start with at least $5,000 as a price point. His next level up is $50,000. I have another buddy who does the same thing, but the first level is $10,000. Second level is $50,000. And this isn't right or wrong, this is just a suggestion. Is there a way to extract large amounts of money from small lists? And the answer is yes, as long as the value is there. Because you can sell $10 widgets and you have to sell a lot of them in order to profit a million dollars. Or you could sell.

100 people $10,000. That's right. 100 times $10,000 is a million dollars. That's what that would be. Numbers are a little bit different. And again, I'm belaboring the point, but neither is right or wrong. I'm simply asking the question, are you selling yourself short by not asking for more money from the existing list of customers that you have? If you are taking front end products, even on a physical product, if you sell on Amazon, if you have a low end product, how much are you leaving on the table by not having some really high end offer that those customers can take you up on? And if you don't think of anything in which you can charge premium pricing for, the problem isn't you. It's often not your product, it's who you're targeting. So if you want to hack this a bit, ask yourself the question, who can I target that is willing to pay this? Or who would benefit the most from this service? So the way you make a million dollars is by having a product or service with a defined market and going to where they already hang out. This is true in physical products, it's true in coaching, it's true in information products. It's just the model. It's how things work. You make your money in business. That is phase one to getting rich. That is phase one to true wealth is you have a business, you can accelerate that and you can get to much higher profitability if somewhere in that process you have higher end customers that you either funnel people towards or that you just start with. The model that's really picking up steam right now is to just cut out the front end and have the first product be something really expensive. That's the model I follow right now. In the Freedom fast lane and the freedom fast lane business, I give away as much as possible for free because I don't want the getting started crowd. That's not who I'm coaching. I'm coaching people who are seeing success and they come to the next level. They come to freedom fast lane live and that is my target audience. So I cut out the front end and I go straight for where I can make more money and work less. That's how I'm accelerating my personal million dollar path on freedom fast lane in my physical products businesses. It's a little bit different, but the model is the same in which there are lots of front end customers. You take those front end customers and you channel them into some sort of higher end service. That's how business works, that is how you make your first million. It is really that simple. Now we could confuse it and we could go really deep and we could toss around a whole bunch of business ideas. But that's a conversation for another day. That's the model. Step two of investing that for long term wealth and cash flow. This comes down in my mind to really two pieces. This is we need to have passive cash flow and we need to have wealth, meaning it's growing in value. Those are the two things that ideally we want to hit. In my personal opinion, the only reason to invest is for cash flow to take your cash and to have it produce more cash. But as a result of getting cash flow, you may also get wealth appreciation increasing of value. And we also get some tax benefits as well, which we'll talk about in section three. But here when we're investing the cash flow, there are two sources that I think every entrepreneur should at least consider and they are cash flowing real estate and dividend paying stock. The reason for these is because they are baked in. Baked into those two models are the two things that we want. Passive cash flow and appreciation. We're not banking on the appreciation, we're not banking on the increasing of value, but it often happens as a result of us focusing on cash flow. Even if the appreciation does not happen, we still have the cash flow, which is what we ultimately want in the first place. Now, there are a lot of other places that you can put cash for really strong benefits.

As I'm putting together the content for the beta test group over@perfectlypassiveincome.com I'm outlining a bunch of different places that I've personally invested, including funding deals, buying businesses, investing in cash flowing websites in kind of unique and different ways. There are funds that pay fixed percentages on that are really, really attractive on your money. There are a lot of different ways to get cash flow that most people don't talk about, but to give you kind of the shotgun approach, the two things that if we only had five minutes together that you would put your money in, I would recommend that it go into cash flowing real estate, dividend paying stock and real quick. This is good for another podcast someday, but I own a fairly healthy amount of real estate. I often never see them go inside them, inspect them.

See them in person. It's all done fairly automated and I could go into the details of that. I probably will inside the beta test group. But just to alleviate your fears, I've never fixed a toilet or a roof or taken a tenant call in the middle of the night. All of that is automated and very, very inexpensively as well. So dividend paying stock, a specific type of dividend paying stock, the type of dividend paying stock that are shown to increase in time. There's companies like Coca Cola, Target, Chevron, Verizon that For at least 10 years have increased the dividend that they pay to their investors. Every year, good times, bad times, they have increased the amount that they're giving their investors. So that means that if you get cash flow today, tomorrow it's going to be more, next year it's going to be more, year after that it's going to be more. So if we're in this for cash flow, which we are, that cash flow is going to grow over time. And in real estate, our goal on cash flow is to get 1% on our cash flow per month. So if we're investing $100,000, we want to be profiting on thousand dollars a month. For investing 10,000, we want to be getting $100 a month. One percent per month is our target. When we break down all of the benefits of real estate. And this is a nice transition to part three, avoiding taxes. When we start getting into all the details of real estate, your returns are many, many times what it looks like on the surface.

A because we, we get the cash flow from it being rented, but we also get the appreciation. We get mortgage write off, depreciation write off and we get inflation write off. We talk about inflation, write up inflation in more depth in an upcoming podcast with Jason Hartman. It's all about investing in real estate. But those are the five areas of wealth building in real estate. It's one of the reasons why I hold a considerable amount of real estate.

That was investing in six minutes. But I want to spend a little bit of time talking about this last piece which is preventing the wealth from going away. What do we do to insure our wealth to lock in cash flow to prevent governments from taking it? I don't really care for government. I certainly don't care for government taking my money.

So what do we do about reducing that, limiting that burden in cool and ethical ways? And what do we do about ensuring our long term prosperity? I do this in three ways. I have three ways for accomplishing this goal. The first is to own a business. Part one. Because when you own the business, you can directly influence your income. When you own the business, you can always go get another client, you can always sell another product, you can always go back to what your source of cash flow is and do it more. Assuming that you are in control of your business and you're running it, you can always tap it for more cash, which you can't do in a job. That's why Jim Rohn says that profits are better than wages. You can control profits, you can't control wages. Waiting for the minimum wage to go up. A strategy for making more money. There's a lot of demand right now about $15 minimum wages. First of all, are you kidding me? Second of all, that's a strategy, but not the most effective strategy. The most effective strategy is in being control of the amount of money that comes to you. And you do that through profits. So starting and having a business is a way that you control your wealth, but it's also a way that you protect your wealth. Because inside of a business you get more tax, you get more tax breaks and benefits than anyone else because of what you can write off. I recently bought a Tesla. I bought the Tesla for a few reasons, but one of the ways that I made the Tesla more affordable is it's my company car. So the payments that I'm making on it, half of them are being paid for by the government because I'm not paying tax on it. And the way that I paid for that, the way that I got that for, I like to say almost free, is that instead of paying cash for the Tesla, I bought assets that paid for the Tesla, that paid for the payments on the Tesla. I talk about this in more depth over at the miniseries I'm doing@freedomfastlane.com and@perfectlypassiveincome.com you want to go deeper into how I got a Tesla almost for free. I'm. I'm doing some free trainings over@freedomfastlane.com and perfectly passiveincome.com so you get to write off some unique things inside of having a business. It's one of the greatest shelters. The second place is by strategically investing into areas that are made to be protections. So their cash flows and their returns aren't that exciting, but they protect your wealth and they also grow tax free. So I made the mistake a couple of years ago where I invested in, I shouldn't say invested in. I opened a 401k and I actually regret this decision. I think 401ks and IRAs are mostly a waste of time and I know this now after doing them. So I regret the decision. But I didn't know it at the time. I thought I was being very smart and very prudent. And now I realize that that probably wasn't the case because all that's doing is delaying taxes. I'm not really eliminating any taxes, but there are very similar structures to 401ks or IRAs that grow more linearly, they grow more predictably, and they grow tax free. And.

It would take some explaining. But we can borrow against them, we can treat them as a bank, we can guarantee the returns on them. There are some really cool things that can be done once you understand them. And again, forgive this selfish promotion, but I'll be diving more into it inside the beta group@perfectlypassiveincome.com and the third way that we protect our wealth and that we shelter some expenses in the form of taxes is by investing in real estate and leveraging that real estate. So I made a major mistake a couple years ago when I started buying houses I paid cash for all my houses and it took me a couple years to realize the mistake that I was making. So let's, let's say I owned five houses and I own them free and clear. And the average value on the house was $100,000. So it was $500,000 in real estate. Hey, that's great. That's better than most people. You're doing really well as an investor, comparatively to most people. But we could also finance the same amount of money and have 20 houses instead. Now, what would that do to the cash flow? Actually, when you break down the numbers, it would do very little to cash flow. So your cash flow on 20 houses that are leveraged is going to be almost the same as if you've got five houses that are not leveraged, that you're getting the full rent payment in your pocket. So what's the benefit? The benefit comes in A, the appreciation. It comes in B, the tax benefits of writing off the interest payment, writing off the depreciation. I mean, get this, you get to write off a portion of the house just for the fact that it's real estate. Every year it's about 2.5 or 3%. So if it's $100,000 on five houses, you can write off $15,000. But if it's on 20 houses, all of a sudden you can write off 3% of 20 houses. If they're all $100,000, that's $60,000 in taxes that you no longer have to pay just by the fact that you owned more property. You also hedge yourself better because if one person moves out, it's not as hard of a hit on the pocketbook than if you had fewer homes. You have more of a buoy, more protection against any potential downside. Plus you have the long term benefit of mortgage reduction and the inflation write off, which we talk about more in the podcast with Jason Hartman. So that's how we can shield and protect a lot of our wealth. By investing strategically in little known investments, by controlling our wealth through a business that we can impact, and by investing in real estate, which is the greatest tax shelter that I know of. There are other more creative ways to do this. There are certain types of companies that you can form in which the income that you take in does not actually get taxed. It gets given to you tax free. You can't put it into your pocket, but you can invest it back into your business in a way that also grows tax free. So you can actually completely eliminate part of the front end tax on certain types of businesses. So there are some other creative ways that we can do all of this. My hope and my point in this episode was to give you kind of the shotgun approach of if we only had a few minutes together. What I would recommend somebody do to make, keep, grow and protect a million dollars. And to recap it in a few minutes, it's start a business. You start a business by having a product or a service that services a very specific target market and then rolling out high end products that are very high profit, that serve a higher end of the market, or just by making your first and only product something that services someone who's willing to pay at least $1,000 for your product or service.

Step two is by investing into dividend paying stock that has a history of increasing the cash flow and by parking it in cash flow real estate, either single family or multifamily residential real estate. And then we protect our income. We now have built our business, we now have invested the cash flow so we've got more. Our money is making us more money. We're building our wealth. And then in step three, we protect it with controlling the business, investing it in little known creative investments, and by owning real estate so that we can write off all of our business expenses but also write off the depreciation, interest and the other tax benefits of owning real estate. That is the million dollar plan or the $10 million plan or even the hundred million dollar plan. My, my plan to own the Cleveland Indians is start really valuable businesses, service high paying clients, invest it wisely, protect it from being taken away from me. That's the plan for having $100,000 income. When I first started my first business, when it was doing $100,000, I wanted to put that into other investments as quickly as possible. And you know what I did horribly because I didn't follow this model. I bought a restaurant, I thought I own a business, I'll buy a different business that I know nothing about. And it was a terrible investment.

That money is pretty much gone.

Had I just put that into dividend paying stock and real estate.

That would be a really, really large amount of wealth right now. I learned from it, so it's worth more even now. That's a BS answer. I wish I had the money back.

This is the model. This is the model. No matter what level you want to play, play at, this is the model. And you just adjust the numbers according to where you want to play. So I hope this was, I know this was a lot of drinking from a fire hose on today's show, but I hope it was helpful for you. And if it is, or you want to go deeper or you want more details answered, we're doing a mini series over@freedomfastlane.com and at perfectly passiveincome.com is where you can get into the beta group that I'm going to be running through on a deep level about making more sales, taking higher end clients for maximum profitability, investing wisely, and protecting your wealth so that I can kind of massage the message and get it ready to roll out in 2016. So I hope this is helpful for you. I always appreciate your comments and your feedback over at the show notes@freedomfastlane.com and I hope to see you in the beta test group at perfectlypassiveincome. Com. Thanks for listening and I'll see you on the next show.