Creating 7 Streams of Income with Jeff Ervick

My loan off with the insurance company. It's a simple interest, so the more I pay back, the less my interest grows. But I still pay that same amount. So I'm actually making money in that policy and I'm also earning an. I also have an asset now. After I pay that off, I own this car outright and I paid all the money back to my policy. It's kind of a no brainer, but people don't really get it sometimes.

Welcome to the Next level income show where it's our goal to take your income, your investments and your life to the next level. I'm your host Chris Larson. If you haven't yet, get a copy of our book for free at our website, nextlevelincome.com. that's www.nextlevelincome.com. just click on the book link and I'll even send you a copy if you put your address in. On today's show, we have Jeff Ervic. Jeff is an accomplished real estate operator, investment relations maverick. He has successfully deployed over $40 million of equity into $160 million portfolio of assets under management and development. Consisting of multifamily luxury single family homes, ground up development and light and flex Industri. Jeff's LP and GP portfolio comprises over 1800 doors under management and development. But more importantly, Jeff is a devoted family man who treasures quality moments with his amazing wife and business partner Kim and their three wonderful kids. Outside of running his businesses, his hobbies include boating, golfing, sharing his love for vintage cars and motorcycles and inspiring young athletes as a coach for youth travel, baseball. And today, Jeff's going to tell you his secrets for developing seven streams of income that you can employ in the new year. Jeff, welcome to the show.

Hey Chris, how you doing man? Thanks for having me, bud.

Yeah, it's a pleasure. And yeah, we got story like, like how we, how, how we ended up here. Jeff and I are, are at this meeting in Florida and he heard me talk and he comes up to me afterward and he goes, I, I think he's like, I, I went to Virginia Tech too. We both were at the Pamplin School of Business, which is, I got, I don't know if you can see it, Jeff. It's up there.

Oh nice.

And you know, he tells me how he knew my sister and then it turns out Jeff lives in the neighborhood. I grew up in her papers. Well, not to that house because I don't think it was there when I, when I did it. And like, and he's telling me today that his, his son Walks to the same middle school that I went to. Like, what a crazy small world. How amazing is that?

It's amazing, man. Totally small. And I love it. Yeah. And, and I'm drinking out of my mug right here. That has our, you know, the town that we live in.

Right.

So, yeah, it's awesome, man. It was, it was great. It good to, good to meet you in person too because I heard about you and in fact we have some friends, you know, that went to school with you. High school. And, and so, you know, when I, when I looked you up, I was like, holy crap. Right? And then I saw you in person. Like, this is too much of a coincidence. Like, we have to meet.

Yeah, no, it's, it's awesome. And then the more we talk, I said, hey Jeff, you got, you got a, you got a great story. You got some great resources. I'm really excited. We're going to talk, talk to the audience to develop seven streams of passive income, which I'll never forget reading Robert Allen's book, like Multiple Streams of Income back at Virginia Tech and saying, okay, everybody talks about Robert, Jeff, but I think one of the big things that kind of gets over all these streams. So we're going to dive into that. But before we do, share with the audience a little bit more about your background. Yeah.

So again, appreciate for having me on. So I've been in technology sales for just over two years, right? So having a background in a, in a high, high volume sales type world. I started out in a, what called like a pit, right, where we're cold calling and setting meetings and interviewing. I was in a staffing firm, so we were interviewing candidates and so forth. So kind of learned from, right out of college, right? Like, you know, your hard work pays off, right? So the more, the harder you work, the faster you work, the smarter you work, the faster you get promoted, the more money you'll make and so forth, right. So fast forward. I was at company for about 12 years, left there and went to my current job. I'm still a W2 employee for a text. I sell technology solutions and cloud managed service solutions to, to the federal government, right. So I've got a really good solid there. And through that I, I've always been interested in real estate, right. So back in 2017 I, I met a couple buddies or met through a buddy of mine, one of my other friends, right. And he introduced me to the world of real estate meetups and a great way to kind of go in, learn local market, learn about, you know, what certain people are doing. Get in the room. Right. Rubbing elbows with the right people. Right. And that's, that's important. Right. So from that I said, you know what? I need to buy a rental property.

Right.

I need to buy, I need to offset some income. I want to start earning some passive income. So just like the TV shows back in the day, you know, I went to a, to a property, raised my hand. I was at a live auction in front of a property outside of Baltimore in Baltimore County. Yep, exactly.

You gotta, you gotta be. Yeah. Or have your running shoes on.

Yeah, exactly. And it's funny, is, is back then it was a, it was a, it was kind of a rough area. Now it's gentrified. It's turned actually to be a very nice area. Right. So kind of bought before the market turned a little bit. But anyway, so that was my first, my first avenue real estate. And from then I was hooked. Right. And I'm like, I just need to, I need to be able to buy more properties. I need to be able to, you know, if I need to flip some. Whatever it is, I just. Anything I need to do to get into real estate to be able to start earning passive income.

Yeah.

So I've been doing that since 2017. Fast forward past couple years. I transitioned out of single family buys and buying holds, which I still have those right. In my own portfolio. But I got into syndicating and multifamily. Our core value add is our. Multi is our, is our, our asset class. We look at. We're also doing some ground up development work down in Florida and in Texas. And I also own a warehouse right outside of Charlotte. So. Yeah, a couple, a couple markets. Asset classes. We focus on. Yeah, great markets. And that's what I love too. So. So that's kind of been my, my story for the past couple years. Yeah.

No, thank you. And we'll kind of touch on each part of that. You know, the first one is, I think, you know, I think everybody should be thrown into the sales world. Sales world, Jeff. And like have to cold call or go door to door. Like the things you learn in that experience are just amazing. Kind of going back, Robert Kiyosaki said, hey, sales is great because everybody's got to sell. You got to sell a business, you got to sell to, you know, even, even if you think about like a date, like what's a date? Seinfeld says a date is nothing but, you know, an interview where you might end up naked at the end of the date. Right. And I always used to tell My sales reps, I'm like, hey, like, if you can't interview, you can't sell. Because an interview. Yeah. Is, is just a sales process where you're the product, you know, where you're selling kind of your features and benefits. You know, we were interrupted there.

But one of, one of, like the quintessential book that I've, I've, I read when I first started in the sales role, right back in the day, was Dale Carnegie's how to Win Friends and Influence People. Right?

Fantastic.

I think everybody should, should read that book. And because it doesn't necessarily teach you how to sell, it teaches you how to build relationships. And I think that's the most important part in anything you do, whether it's a, you know, in your family, friends, in business, you always have to build relationships. And again, yes, you, you're, you're always selling. What are you either yourself or the dream of becoming wealthy for whatever it is you might be doing. Right.

And.

Yeah.

Well, let me ask you a question. If you had to distill that book down into, you know, one phrase or one sentence, how would you do that? Jeff?

I would say ask questions. Right. And listen.

Right.

Nobody wants to, like, if you're, if you're trying to build that relationship with that person, you're trying to either a. Make a sale with or become friends with or date. Right. They don't. About you. Right. They don't want. They don't want. Like in this, in this situation, you and I were talking because you, we were having a good time. You want to hear about me? This is great. I get to talk about myself, but in normal circumstances, I never myself. I only ask questions and listen and start to learn about that person. So I'd say that's the most beneficial thing I learned from that book is actions and listen and learn. Right.

That's fantastic. That's fantastic sales advice. And if you want to do a better job at selling, listen to people, find out what's truly important to that person, and then figure out how whatever you, you have, and it may not even be something you have, I think that's the, that's the most beautiful thing. I found that the best, you know, sales relationships I developed, Jeff, were when I was able to bring value that wasn't even really directly related to the product I was selling. And those customers said, wait a minute, like you're doing something that your competitor isn't doing or can't do because you're providing this alternative value and ultimately getting, getting that customer getting that client more of what they want, which is probably, you know, more money, more time with their family. Um, what do they, what do they say? If you want to sell something, teach people how to, you know, make. Make more money, have more sex. It's like, you know, it's pretty simple. Pretty simple stuff, right. When you come down to it. And the other thing I think, you know, I would add to that is that, you know, we have this saying. Your, your network is your net worth. And, you know, if you're, if you're always talking to people, you're trying to learn from people, you're listening to those people, you're developing those relationships with those people. That network that you have can ultimately, you know, you can provide them value. They can provide you value. And I think that's really what, you know, the world is about, is having these relationships.

Yeah, no, I agree. You know, like I mentioned, providing value to whoever it is you're.

You're.

You're meeting with and talking with and hanging out with and not always being about yourself. If you're about yourself all the time, then no one's going to hang out with you. Right. And no one's going to want to, you know, be with you and work, you know, work on that. Right. So I think it's. It's really. Yes. Adding value and establishing that personal relationship with somebody. For sure. Yeah.

Fantastic points. And we were talking before the show. We both got two boys, you know, kind of teenage ish boys. You're fortunate. You have a daughter, too. I just got a. I just got a. We settled on a. On a female dog for my wife. So we said, okay, you know, do we try for one more or not? You rolled the dice. We didn't. But, you know, we were, we were talking about how similar our sons were in a sense. And, you know, one of those things was like this, like, persistence. Right. And I was about to talk to you about Jordan Peterson's 12 Rules for Life. And I think this is one of these other traits that I think can really help if you're in sales. It's. Jordan Peterson talks about being agreeable versus disagreeable. And I want to highlight something. Because people hear disagreeable, that doesn't mean you can't be likable, you know, but, you know, you were talking and that's what this is what popped into my head. Jeff, if you're working with a client and you say, hey, Chris, I know a better way, I know something that can help you do this, I don't want you to tell me to change. I don't want to change. But for you to help me, you have to basically disagree with me and help me change. Any tips that you can provide to the audience from all your years in sales about how to be disagreeable but still be likable at the same time.

Yeah, it's a fine line. I mean, you know, you have to frame the conversation, right, In a certain way that the customer is getting what they want, but also you're providing that to them that is maybe better than what they're doing right now. Right? So, for example, if they're, you know, in the technology sales space, right, so if they're using a cyber tool, right, and we know that there's a better product out there that they really love, this one tool that they're using, it's probably because they're currently interested. So you have to provide that, you know, the frame of reference of why this one might be a better value, what it can add to their. Their toolbox. And not that we need to replace it, but maybe we should just try it out and test it, right? And then, yeah, go through that trial period and then see if that works out. Same thing with. With investing, right? So, you know, jumping in and putting $100,000 into a deal, right. Right away with. With that first time is be scary for a lot of people, right? So that's the waters, right? So maybe go in and. And do something smaller. Go on to, you know, there's a bunch of reggae things on that you, you know, crowdsourcing, right, that you could put $5,000 in.

Reggae, the music. No, no, regular. Yeah, yeah, yeah, yeah, yeah, yeah.

No, the, like, like crowdsourcing ones, right, where you can buy smaller.

Smaller investments.

Yeah, yeah, you put 5,000 bucks in and then you can say, hey, that was my process. I'm learning. I'm starting to see what it's like so forth. And then eventually you build yourself up to where you can. You can get into that, you know, larger investment deals if you're able to.

So, yeah, no, I think that's fantastic. And, you know, you may have raised some eyebrows because the audience here is like, wow, Jess is. Jeff is successful in real estate. He's also successful in tech sales. But you just said you've got. You've got a lot of different sources of income. And we're going to share with the audience today your ebook. We're going to put it in the show notes, and you can share at the end here how the audience can get a copy of this, Jeff. But I want to walk through the seven streams of income that you built because I think this is a really important lesson for people to realize as we go through different points in the parts of the economic cycle, certain assets do better than others. And a lot of people, they say if you really put all of your eggs in one basket, you can perform really well. But what I found is those that I know that are truly financially successful, they've either had a successful career or business, and then they use that capital from that successful career business to develop additional income streams. So let's talk about your journey from one to seven streams of passive income.

Yeah, no, I appreciate bringing that up. I think it's definitely something that can help out a lot of people because in the traditional world, like what you were taught from growing up is go to college, go get a job, work that job, invest in your 401k and retire. Right. And we know that that's probably not the right way to go about it, right. In fact, they don't teach you that. Right? In which, you know, is, is the fact, you know, I feel like they should have a next level course, right. Of, of how to teach people to earn multiple streams of income. So I did that. Right.

Well, I do, I do have a next level course. It's on my website. But yeah, but we got to get that. Yeah, we got to get that at the Virginia Tech man.

Right, exactly. Yeah, we should, we should talk to the pamphlet school of business and, and you know, I was one of those advisors and go see if we can do that. But, but ultimately, yeah, building, finding a way to be able to take your active income, right. That you, you, you can't leave that job, right? So a lot of people can't leave their job. It's, it's, it depends on, for their family for benefits and so forth. But take, take excess income that you have right after you paid your bills, right. And put it into some type of moving portfolio. Right? So I've gotten From, I got 401k and then I also then have a stock portfolio. So that's kind of my second level. Right.

Is all right, so excess income and then put that into, you know, an alternative, you know, an alternative investment, whether that's, you know, the stock market or your, you know, you said your 401k, which I'm not a huge fan of qualified plans, but I think one of the things is you probably get a company match with your, with your plan, right?

Yeah, yeah, get. So if you have a way to get to the match, so you, you know, what I would normally suggest for somebody would be to, you know, and put it in your 401k up to your match, right? Because it's free money, right? So put it in there. Let's say your company matches percent, you put in 5%, that's a 10 that you're putting in every single year, right. And it doesn't cost you too much, right. Because it's all pre tax as well too. And then you've, you've set aside some cash, right? Put that into a money market account. So anyone having savings should always put it into something that's going to generate income, right? So it's going to generate income in a, in a, a money market account. And then I also have a, you know, I work with a financial planner, right. And I put money into a, into the stock market. So I actually do what a lot of real estate people don't do is they like, oh, I don't, I don't want to go into, into the stock market. I only want to do real estate. Well, it kind of like said, I don't want to put all my eggs in one basket because if all that real estate somehow, you know, flips upside down like in 2008, that we're in an issue, right. If I have a hedge, right, with some stocks, some bonds, any market accounts, I can kind of diversify inside of that portfolio, right? So that's like my, my second level is taking my active income, putting it into another portfolio, hitting a threshold. And once I meet that threshold, then I keep filtering it down to level two or level three. Right.

I think that's fantastic. And you know, we sit on one end of the spectrum, Jeff, where you know, investors ask me a lot of times like, well, Chris, what percentage of your portfolio is in real estate? And I'm like, I'm not even going to tell you because you're going to, you know, people are going to freak out when they hear, when they hear the number. It's totally inverted compared to what most people have because that's my primary business. But what I think is a great indicator is you look at how institutions, family offices, you know, even endowments invest, they're putting like 20 to 30% of their investment portfolio in income producing real estate. So you know, if you're, if you're like Jeff and I, you know, now I bought my first property actually at Virginia Tech there, Back Cove off of it was, did I tell you it was right behind University City Boulevard, behind the Starbucks over there? No.

That's awesome. Though that's amazing. I always wanted to buy a property when I was in college.

But you know, but you know, let's say you've been working, you're successful like Jeff, and you're in your 30s or 40s and most of your wealth is tied up in the stock market. A great place to start is to consider putting some money into real estate. But I agree, like there's, you know, stock market's been on a tear the past year. There's a lot of people that you know, you know, spin around in our world and they're like no, no, no stock market at all. But it does have its place.

Well, I'll tell you what, there's another layer to that too that we can get into a little bit, right? But it's if you pretty heavy stock portfolio, right, and you work with a money manager, right, Ultimately you can create a second stream off of that money. You arbitrage that money, right? So you let your stock portfolio grow, right? You add to it as you need to and let that grow. But you do what's called a securities back loan, right? So you take a security loan off that and you might charge, it might be a prime, so it might be like closer to 7%. But if you find something that pays more than that number, right. Then you can arbitrage it and you're more money on that first dollar you put into the stock market. So you're making which is a 10% on that money in the stock market. You take a securities back loan that might charge like 7% but you take and you put it into like a 12% return of like a short term loan, like private lending or hard money lending or something like that. You're making that, that spread. So you're making 5% plus you make, you're actually making 15% on that money, right? So I think you, you might love this idea too. But being your own bank, right? So it's basically kind of how.

Oh yeah, we're going to. I can't. I was waiting for this one. So yeah, yeah, we'll blend these two strateg together. So yeah, like bank on yourself. Family banking. When you say be your own bank, what do you mean by that, Jeff? I think, I think I know what's coming up here. But are you a high income business owner or professional earning 2, 300,000 or even more a year but still feel like you're living paycheck to paycheck? Are you comfortable working until you're 65 or 70 to retire or do you Want to achieve financial independence and live life on your own terms? You could join myself and Matt4 and learn how we both became financially independent in our early 30s. We'll teach you how to make, keep and grow your money. Teaching you strategies to maximize your earnings, keep your income that you've earned through tax strategy and legal structures, and ultimately teach you how to grow it by determining your personal investing strategy, as well as teach you how to analyze investments so you can grow your passive income to the point to live life on your own terms. Our coaching clients reliably do this in seven years or less. To learn more, check out our coaching program at nextlevelincome.com forward/coaching. That's nextlevelincome.com forward/ coaching.

Yeah, so, so, so that, that kind of leads me to number three, right? Is how do I earn other streams of income that might not be like, hey, I'm going to use that to like live off of. But it's going to be something that can grow generationally, right? So I love the infinite banking policies. I read Nelson's book and that like I got hooked, right? So I, I actually that's not my third level. Right. Is after you've got your W2 income stabilized and after you've got your, your portfolio in stock markets or 401k stabilized, then you need to back all that up, right? Because you need to protect your family and yourself, right? And how better to do that is to grow your wealth consistently with a whole life insurance policy, right? So you know, over policy, right? That where you can immediately take about 90 of it back out. So if it's established correctly, if you have a, a person you might know that knows how to engineer those correctly like yourself, right? You, you, you know, you, you, you've overfunded, right? You put up paid, paid up additions. You have to, you know, turn back it and so forth, right? But then you out that money and that loan is actually cheaper than securities backlog. So that might have been like prime, right? Prime plus one. Maybe this one is, I think my latest one I took out is like 5.25% interest.

We could spend a whole episode on that. And we certainly have. But if you want to learn more about that strategy, check out Next level income banking and you can watch a little webinar. But yeah, what you're talking about Jeff, is the exact same same strategy. And look, if you have a whole life policy or you want to explore this strategy, reach out to us. You can send us a message. You send me a message directly. ChrisXTlevelincome.com we're happy to review your policies or explain how this works, but you can also watch that webinar. But yeah, I think because we were both in sales, Jeff, for a long period of time, I did the exact same thing. And I call this in my book, chapter three, I called her savings tax. So what I would do is I set up these policies and I would sweep a pretty significant chunk of money every month into those policies, like a mortgage. And then it acted as a few different things. One, like you said, Jeff, it provided that insurance for our family. Two, it provided a guaranteed return of about 4%. So that was our safe money that was there that we can then pull out if we needed to as an emergency fund. And I know a lot of investors, as you probably do too, Jeff, you know, they say, hey, you know, I'm saving 100 grand, 200 grand to put into this investment. And it's just sitting there earning, you know, low single digits or zero, and it could be earning 5, 6% in these policies. I think a lot of people would be surprised that, like, our policies earn about 6% tax free on that cash value that's going in there. And then like you said, you can actually borrow against the cash value and put it into something which I know we're going to get into, something like private lending, which is another one of your income streams. So if you can borrow at 5 or 6% and lend it out at 10, 15% or higher, that's a massive arbitrage opportunity.

Oh, it's big time. Yeah, it's big time. And one thing I also love about those policies is that it's compounding, right. So it's going to like, what is it, the eighth, eighth wonder of the world that Einstein said is like compound interest. Right. However, you can get some type of compounding interest. That's the best thing you can do. So as you, as you pay into your policy, right. You're not, you're not investing into the policy. Right. You're storing your money in a policy. Right. For future use and also to build up your death benefit for your family too, if you, you know, how about in Pat?

Yeah, go ahead. Sorry.

Ultimately, that is a compounding effect, right? So that, that guaranteed return happens every single year. It grows. And as your policy builds, that number just gets bigger and bigger. And I think, I think my last one paid out over six and a half percent overall, right. This past year. So, I mean, I love it. Yeah.

Yeah. And, you know, the final piece of that, and this is almost kind of the boring side of it. Yeah. If you just say, hey, you guys are talking arbitrage and these investments. And that's, that's a little over my head. The life insurance policies, they originally were really a store of savings 100 years ago, but also they were most, most of our citizens, they used them in the United States as their primary source for retirement funding. And you actually get a guaranteed rate of return and you can get tax free income in retirement. So a lot of people have heard me talk about this as our private pension. So it can be a very safe, not only place to put your money today, a place to protect your family's future, but also a place for retirement income in the future for people like us that, you know, didn't, didn't have a pension. We were working.

Yeah. And, and I, you know, I keep saying it, but I, you, you've coined the next level. I think it is like the, the best way to talk about this, right? Because it is as you, as you get your policy and as you figure out how to use it and how it works, right. You can always level up, Right. So by leveling up, you take that loan against it. Right. And I'll get into the arbitrage in a second. But I want to talk about more of like how you be your own bank, right? Because a lot of people don't really like, like can't fathom this, right? But when you go buy a car, right, you go to a bank, right? And you say, hey, bank, I want to borrow $50,000. Right. I'm going to, you, you know, whatever it is, 6% interest on that loan.

Yeah.

And I'm going to go buy a car, right? And then you go to the car dealership and you say, hey, here's my, my certified check. Thank you. Cool. And I pay my bank a monthly payment. Usually it's a five year principal and interest payment, right?

So you pay yourself back.

So I pay myself back. Yeah. So I did this. I bought my wife a new car, right. I took the money out of the policy, I went to the dealership and I said, hey, dealership, I'm buying this car all cash, baby. Like, you're crazy. I'm like, I'm going to be making money on this money while my wife drives it and I'm going to have an asset and I'm going to pay off. But you have to be disciplined about it. And saying that a lot of people don't realize is if, if you are paying that monthly note, right? To your bank. You miss a payment, they're going to come after you. Right. If you don't pay yourself back. Right. You're not going to come after yourself. But you have to be disciplined enough to make sure you're paying that monthly, monthly payment. And I always match it to what I look at the rates online and I match it to whatever that rate is, right. And I say, and I always up it, I make it a whole percent because I'm, I'm analyzed that like so. Like so it's like 5.7. Do 6%, right. So I'll do 6%. I'll pay that back to myself. Right. And then I'll use that money to pay my loan off. Right. And so as I'm paying my loan off with the insurance company, it's a simple interest. So the more I pay back, the less my interest grows. But I still pay that same amount. So I'm actually making money in that policy. And I'm also earning an. I also have an asset now after I pay that off, I own this car outright and I paid all the money back to my policy. It's kind of like a no brainer, but people don't really get it sometimes. Yeah, you're gonna come, you're gonna come.

We're gonna do a webinar together. Jeff, this is fantastic. Yeah, and there's, it's. The cool thing is so many different, it's so flexible, so many different things. And again, it's, it's kind of boring. You know, it's insurance. It's kind of boring, but it's so powerful. So let's, let's get back to, you know, rounding out these seven here. Let's talk about some more exciting things. We talked a little bit about private lending and potentially using that. I know this is one of your, one of your seven streams. Jeff, explain to the audience what, what private lending is for those that may not be familiar with it.

Yeah, yeah. So private lending is just that it's you lending your capital to a private person, right. Or, or a company or whatever it might be that might not want to get a loan from a bank or they need quick to go buy a real estate, go buy, go buy a rental property. So. And that's what I do right there. Right. So let me just kind of, I'll boil into the real estate side. Right. So I lend my capital, right, to a, another real estate investor who wants to go buy a short term. Like maybe they want to do a fix and flip, right?

Yeah. So let's Say? I say, hey, Jeff. Hey Jeff. I met you at the meetup. I hear you got money you'd like, you like to lend money out. I found this great house somebody's going to sell me for $250,000. I can put 50 grand into it and I can sell it for $400,000. I can get it all done in three months.

Perfect. Excellent. I'll give you a loan. So we underwrite it, we make sure obviously our loan to value is typically never no more than 65%.

Sounds like, sounds great.

Of the. So we underwrite it appropriately. We underwrite the person, make sure the person has, you know, some, some, you know, good credit score. They don't have to have perfect credit score. They don't have to have, you know, a lot of money in the bank, but they have to have enough to be able to cover the interest for that, for that six month loan. Usually the six month loans will do 12% and three points upfront. Right. So kind of like traditionally a bank, but it's an interest only loan. Right. So if you pay that off in three months, you pay it off in three months. There's no penalty to prepay. Right. So it gives the opportunity for that investor to say, hey, I'm going to buy the house with cash. Right. It gets them quick close. Right. I'm going to be able to use some of that money to also fund the rehab. Right. They already have the rehab set up. So we give them draws right. In the rehab, do some inspections and so forth. And then at the end they're going to sell the property or they're going to refinance it into their own business. Right. To rent it out. And then they're going to pay that loan back 100. Right. And then we take that capital and then we just recycle it into another deal.

Yeah.

And so by doing that you can, you can earn the 12, 10, 12, 13, 15 interest only in your capital's work. And your money is also in a first lien position. And that's the most important thing. Like you don't just lend it to somebody.

Yeah.

Yep. Don't just lend it to somebody and say, yeah, I'll pay it back. Right? No, no, no, we're going to title this and we're going to, we're going to deed this into their name and we're going to put a promissory note or a mortgage on it with the title. So you have to work with the title company and get them to draft the documents for you. We, I've got a, I've got a partner that runs a hard money lending business which is basically the same. So I actually invest capital investor in his hard money business.

Right.

And he pays me a monthly, monthly 10% and it's great. So I don't thing at all and my money makes 10%. Right.

So and what's beautiful is you can do this strategy. So if you say hey, I know people, I know investors that are out there doing this. A family member, a friend, somebody that you trust and you understand this, you can go out and you can do this with cash. You can do it with the cash value in your life insurance policy. You can do it with, with a loan on your stock portfolio. You can even set up a self directed IRA like my wife has and lend money out of that. And if you don't want to mess with that, we actually have a fund, we do this as well. We pay investors up to 10% as well. Jeff, you can check us out invest go to our invest link on our website@nextlevelincome.com so, all right, we're getting into the home stretch here Jeff. So let's. What else do you have in terms of the magnificent, magnificent seven streams of income you got going?

So it goes back into some real estate. Right. So, so again I'm being a real estate investor. You know my, my portfolio is, is, is leaning a little more heavy on the real estate side. But that's why I like to hedge it with the stock market and 4 1ks and my W2 job. But I use my, my, my personal rental, my single family rental portfolio as another stream. All right. So I've got a handful of rental properties. It's actually very passive for me. I've got a property manager who manages them colle rents and so forth. And so it's very hands off for me. And it's a great passive income stream. Right.

So, so those are single family. Do you have any short term rentals as well in there?

I do. That's a second. That's, that's another stream. Right. So I have a short term rental as well. Right. So yeah, that, that creates. Because it's to me it's a different asset class. Right. It's a different line of business.

So because it's run differently, managed differently.

Yeah, exactly. In the way. The reason why I say seven streams, right. Is that I want to have a multiple different ways to be able to earn money and if one kind of falls off, like if my short term rental doesn't pay a lot that month Right. I know my stock portfolio paid that month, but my stock portfolio is not down a little bit. I know my rental property is going to pay a little bit. Right. So it's kind of arbitraging your own portfolio or hedging your own portfolio. Make sure you have multiple different ways to do it. And, and being that a single family is different than a short term rental, then that's, you know, for me, I count that as a different stream.

I agree. And you know, I wrote about this in my book. I talked about short term rentals, which fall more into the hospitality business. It's definitely more active. I think a lot of people are like, oh, short term rental, I can manage it myself. You know, if you look at, I think one of the things you have to do as an investor. And Jeff, you just made a great point. You said, hey, I have somebody managing my, my, my residential portfolio for me. One of the things that I hear a lot of novice investors make, the mistake I hear is, hey, Kris, I'm getting a 30% return on my investment in my residential property. And I say, okay, what do you, what are you paying as a management fee? Oh, I don't pay a management fee. I manage it myself. So that's probably 10%. What is your, what is your vacancy allowance? Are you Putting aside, say, 10% for vacancy? Oh, we don't have vacancies. That, which is that. Well, you haven't had vacancies yet. What about repairs? Oh, it's a new house. So, you know, I think we have to look at residential and short term rentals as a business and look at those returns. If you want to actively manage them, you have the time to do that. That's fantastic. There's some phenomenal tax benefits as you and I know you can get into some short term tax rental benefits. Just talking to an investor yesterday. He had, he has his wife manage that. Terrific benefits. You can, you can check out, you know, some of those on, on past podcasts or shoot me a message Chris, at Next Level Income and I can share a little bit more about that. But we're not done yet, Jeff. We got a couple more to go still.

No, no, we're, we're, we're, keep, we're, we're gonna go. So, so I think we've covered six of them, right?

Yeah.

And, and again, we can dive in. And, and I'm gonna be able to dive in all of these on my, on my, my ebook. Right. So once again, my ebook. We'll have the link at the end, but it's going to be valorous capital partners.com next level and somebody will download this and be able to read through it. And I've tips in there, some pro tips and how to get started in it. But ultimately my last one, right. Which is the, to me the most passionate one right now is investing passively in real estate syndications, right. Or in a multifamily rental. Right. So there's, there's certain obviously criteria someone has to meet. If you're an accredited investor you can invest in certain deals. If you're non accredited investor you have to know like you have to know the, the sponsor you're investing in. But ultimately what it does is it provides a very good passive income where you don't have to, you the investor don't, don't have to manage. You don't have to worry about the tenants, the toilets, the trash, termites, any of those, any of those that and you can sit back and you earn mailbox money. So let us do all the hard work. I've got a whole team behind me that does the asset management, does the financial management, that does the property management, does all the construction. So we're vertically, vertically integrated and we have a strong portfolio of value added properties. So existing properties that are kind of like I mentioned earlier when I went and I bought that property at an auction, right? Same thing. We're not buying at auctions but we're buying it from the sellers directly or through brokers. But we're buying the ugly duckling on the street, right. And we're going to in a great neighborhood and then we're going to fix it up, create it, make it a beautiful place for residents to live and then be able to make sure that the occupancy level goes up. We're going to drive the net operating income, lower the, and create massive value for our investors to be able to reap the benefits of that. And as a syndication, I know your bunch of your listeners know about this but if somebody does know not about it, they can contact me at valor capital partners.com backslash jeff and you can kind of get an idea of what we, we do but it provides a really good passive stream for people to collect that mailbox money.

Absolutely.

So we're also, you know, and, but, and everything I talk about too, there's always difficult of it. Right. So the first one would be you know, investing into a, into that. Then there's a different, you can, you can diversify within each of these different streams, right. For multiple different incomes inside that Stream. Right. So you can almost create a, you know, a 7 times 7 stream. Right. By doing different things inside of it.

Right. Well, and that's why.

Yeah.

One of the big things, Jeff, is first off, you know, we love value add real estate here. But one of the things is that all of these seven streams that you mentioned, Jeff, can interact with each other and, and a passive investor in one of your deals can actually enhance their returns in their own residential portfolio. So when you start to mix this tax strategies with the investments and also with the vehicle. So maybe it makes more sense to do private lending in your self directed ira, but it makes sense to invest outside of your IRA in your residential and your commercial real estate and you can cancel out and end up. This is how the ultra rich end up paying very little tax. The life insurance has that, the real estate has that. So there's a lot of different ways that you can do it. Before we wrap up today, Jeff, I know you already mentioned it, but let's, let's just recap. We're also going to have this in the show notes. You got a great resource you're giving out to investors today with your new ebook. Where can they find that again?

Yeah. So you go to our website, it's www.valoriscapitalpartners. it's V A L O Capital partners with an S.com backslash. Next level. All right. And in there you'll be able to download our kind of see what, what I do for my own portfolio and how I've created seven streams. Now you can modify it yourself or if you want questions or you want to dive into it on that website is also a way to contact me, schedule a meeting. I'm always available for people to talk to and ask questions. And I love t. I love explaining, I love adding value to anybody that won't listen. Right. I love it.

Absolutely. Jeff, you've been a phenomenal resource to the audience today. It's great catching up with you. Check it out. Valoriscapitalpartners.com next level. And you can add another stream of these seven streams to your income in the new year. Jeff, thanks so much. Great to see you. Awesome.

Thanks, Chris.

Hey Chris, here again. I hope you found this episode valuable. Now I have one more thing to gift you. We have a page for my coaching clients where you can get a free copy of my book as well as much more from previous guests on the show. Just check out nextlevelincome.com coaching to get a free copy of my book audiobook and much more. I'll send you a copy of my book and cover all the shipping costs as a thank you for listening to the podcast. Also, please like share and take just 90 seconds to give us a rating on Apple Podcasts.