805: Dani & Flip Robison: How To Use Master Notes To Grow Your Investment Business

The world is going through changes, changes happening at a speed that we have never seen before. This is leading to disruption, chaos, panic, fear, hysteria, and a turbulent economy and marketplace. How do you protect your wealth in a turbulent world? How do you invest for cash flow in alternative assets to escape the rat race in times of uncertainty, how do you decentralize yourself, your family, your community, your business and your investments to become sovereign and escape the matrix? If you are looking for strategies, tactics and techniques to escape the rat race and matrix, you are in the right place. My name is MC Lobscher and this is Cash Flow Ninja.

This is Cash Flow Ninja. I'm MC Lobster.

Thank you so much for joining me.

For another episode and spending your most valuable resource, your time once again with me on the show Everything. Cash Flow Ninja is@cashflow ninja.com cashlowninja.com I've got a fantastic show for you today. I'm joined by Danny and Flip Robinson.

Danny and Flip, great to see you.

Great to see you as well, mc. Thank you so much for having us.

Yes, thank you so much. Yeah.

But looking forward to our conversation. Now, for folks that are not familiar with you and what you do, can you please share a little bit about your journey and your, your background with. With all of my listeners and my viewers?

Yeah, absolutely. We started in 2008. I'm really going to let Flip kind of take, take over this story because it's been a crazy journey.

Yeah. So in 2008, we had left. We actually had worked on cruise ships for over 10 years and we were trying to find something else to do and we both wanted to go into real estate. And what do you do when you want to go into real estate? Well, you get your Realtor's license. And it was September of 2008, which most people think back and go, well, that's probably not the best time to get your Realtor's license. But it actually went. In hindsight, it was actually the best time for us because it really showed us what we wanted to do. It really put us on the right track because after eight months and only doing one transaction, we knew we wanted to go into real estate investing. And so we jumped in with both feet. We found a mentor, and he taught us 12 different ways on how to buy and sell real estate with real estate investing. And we hit the road. We did everything that everyone told us what to do. Instead of, like most coaches have students that just sit there and listen, we actually listen and did what they said to do and we actually succeeded. And so this led us, that was in Texas. We led us to Arizona for a couple of years where we really jumped in and really sunk our teeth into wholesaling because that was all really to do in Arizona. And then that led us to learning about turnkey real estate. And that led us to Ohio where we could really do turnkey real est estate. And we knew when we first, when we heard about turnkey real estate, we were like, that's what we want to do. It was like the, the proverbial light bulb over our head. And so we moved to Ohio and next thing you know, where we formed Freedom Real Estate Group, which was the first company that we formed. And then we're seven companies later in one 15,000 square foot office up in Ohio. And everything's vertically integrated. Everything was created because of necessity. We got tired of contractors ripping us off, so we started our own renovations company. We got tired of property management companies not knowing what to do, so we formed our own property management company. We got tired of not having enough deals, so we formed our own acquisitions company. So we just laid everything right on top because we needed to. And which then we came across a deal that the seller had apartments in and single family houses and he wouldn't split them up. And so long story short, we ended up having to buy the apartments. We've never bought an apartments before. And so we jumped into apartments with Both feet in 2020. In 2020, yeah. Sorry, forgot to mention that part. And that's a whole nother story of ours. It's called drug thugs and bugs, which is what we call that apartment complex. So you can only imagine. But that put us into apartments, which actually led us into money raising, which led us into syndications and funds. And so it's just every little step has just to the next. To the next level, I should say. And now, before she knew it, she had thought about getting into apartments. Now she has apartments and she got into syndication and funds. And now she's like, people are calling her for advice and wanting to raise money. And so it's, it's been a wild ride. Let me just tell you that.

I love it. I love it. And it's, it's almost like, you know, when you're building stuff out of need, you're much more motivated, right? And it's almost like, all right, let's get in the car and let's turn the key and let's figure out how to ride this and drive this. So that's fantastic. I had a question for you.

You mentioned what was the market you.

Were in before Arizona, on your journey, where did you guys start?

Yeah, we started everything in Austin, Texas.

Okay. So went from Texas, then to Arizona into Ohio. I had a question on those markets. What led you from the one to the other one? What was kind of the thinking and what made it attractive? Obviously, the starting you started where were at that point in Texas. But what. What was kind of the. Your. Your thinking and the reason for the moves at that. That time?

Well, really. So we moved to Texas because, like I said, we were working on cruise ships and we could live anywhere.

Yeah.

And my family. My. My family lived in Texas, and her family lived in Arizona. And honestly, the theory we went with is my family was bigger, so if we had to fly one family to the other, it was cheaper to fly her family to Texas. Seriously.

That was really how we met.

And so we lived in Texas for about 10 years, and her mom had a health scare, and we're like, you know what? Let's go. We need to go live by your family for a while. And so we moved over there strictly to just be by. Our family had nothing to do with real estate at that point. We had known and learned enough about real estate investing. We're like, we got this, and of course, we got over there, and everything we were doing in Texas didn't really fly in Arizona. But it didn't take long for us to realize you couldn't throw a stone without hitting a wholesale deal in Phoenix. So we quickly moved and transitioned into doing wholesaling. And so we were there for about a year and a half in Arizona. But when we were in Arizona, Danny had created a Facebook group of other people that were doing a lot of deals.

Like, yeah, it was called a volume. Volume mastermind. I just. I said, if we're going to do wholesaling, let's just do, like, you know, 20 deals a month, 30, 50 deals a month. And so we found all the people that were doing volume deals created this Facebook mastermind.

Yeah. And so she ended up befriending an investor living in Ohio that his main thing was doing turnkey real estate. And we're like, what's turnkey real estate? And when he explained it well, like, wow, that's. That's pretty awesome. I really like that. And so then we started helping him do deals. And so I love telling people the story that I was in our astroturf backyard in Phoenix and walking around talking to a guy in New Hampshire about a property in Ohio that none of us have seen. And I was selling properties In Ohio. And I'm like, this is brilliant. You know, I just. I love this. I love the strategy. I love everything about it. And we can sell. We can have repeat buyers. You know, so instead of talking to an investor once, I'm talking to him multiple times and selling them multiple houses. And. And so that's when we realized. And at the same time, we were renting in Phoenix and our landlord said, hey, we just got foreclosed on and we need to move back into that house. So do you want 30 or 60 days to move? And at the. At the same time, the guy that we were working with in Ohio, he said, hey, you know, if you guys lived here, we could do a lot more deals. And so we're like, oh, all right, well, let's move back to Ohio. And it's back to Ohio for me, because that's where I was born. So we loaded up the truck and moved to Ohio and sight unseen.

And ren rented a house.

Y. Yep.

And then we ended up buying a property. And we built seven companies before now moving to Florida because we hired a CEO. We are tired of the cold. And I said, let's go somewhere warm. And because we used to work at Disney and used to work on cruise ships, we both went to Colle, Florida. We both played trumpet. We have all of this, like, bass here in Florida. We said, hey, let's. Let's move to Florida. And we're 30 minutes from the park. So, you know, on. On days that we get tired of working, we can go have some fun.

Fantastic. And the freedom, obviously, which is part of your brand is huge. And we talk a lot about escaping the rat race and getting out of the matrix through cash flow investing. What. How did. What was the. The roadmap kind of that you guys had? What is. What is the flippin Danny blueprint?

Yeah. For cash flow, it was really. We started the very first cash flowing real estate investment that we did was subject to wraps. And I'm sure you're familiar with that and your audiences are familiar with that. We would buy the property subject to and then we would wrap it to a buyer who couldn't get a loan and we'd have some cash flow in between. We partnered with an attorney and we started doing that nationwide. And that's really why Flip had said we fell in love with turnkey because when we moved to Arizona, it was not easy to find those sub 2 wrap deals. So transitioned into wholesaling. But when we were introduced to turnkey, it had the same concept. It was very much about that passive income piece, the cash flow piece. And so as he was talking to people from, you know, in different areas that wanted a cash flow property, Ohio is just perfect for that. Right? That's just. Yeah, where you, the Midwest, you just buy, you can. The purchasing power that you have for properties and the cash flow you can get is remarkable. And so we kind of went, hey, this is very much what we were chasing with the sub 2 wrap strategy is we own all these properties and we've got this cash flow coming in. Well, now we can do turnkey. We can be buying for ourselves and also working with other investors who want to achieve the same goals and we all just do it together. And so that's pretty much been our journey. When we got into apartments, that just got us to a next level. That's really the portfolio that we own now is apartments. Because the economies of scale just really, really makes sense. After we built those, the vertically integrated companies, that first 56 unit, drugs, thugs and bugs, our contractors went there to renovate it and they actually we had budgeted $800,000 for this 56 unit and I think we ended up around 650. And it's because the contractors gave us such great discounts of being able to buy in bulk, stay on site, store all the materials in one of the apartments while they're renovating the rest, you know, be there every single day. And we were just like, and you know, having four roofs instead of 56 roofs. Like, like all of it. Like we just said, hey, this is, this is what we want to do. And that's when the six company was born. And I said, hey, I want to start building our portfolio of apartments. That's what I really, really am passionate about.

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A great cash flow market in the Midwest and especially Ohio too. And especially when it comes to turnkey and real estate. A great market over there as well. I know we wanted to talk a little bit about Master Notes and generating cash flow from master notes. So for our listeners and our viewers, if this is the first time hearing about it, what are Master Notes and, and how do they work?

Absolutely. So I'm gonna preface it with this. Masternotes were was created because of one of our investors who came to our office and said, hey, I'd like to, you know, meet you guys and just learn more about you and your companies. And we were talking to him about private money lending at time because at that point in time we were building out our turnkey real estate business. We had a lot of private money lenders and they were essentially just helping us grow because they were the ones funding our deals in the rehab. And then they would get cashed out as soon as we closed on the property. Then they go back into the next deal. And you know how it is, you're going in and out of each single deal as a private money lender. And he said, you know what, I'm a doctor, I really don't have the time to be looking at these deals and having to approve each one and wire the funds. Is there anything that you can do that I can get invest with you and you can use the money as you see fit, you can use it on deals, you can use it to grow your business. I've been following you for a while. I feel comfortable with that. And he came to our office, took a tour. And I think at that point in time he said, you know, he wanted to start with $50,000. By the time he left, he said, hey, I really like you guys. If you can talk to you. Because I said, let me talk to my attorney and see how we can do that. Because when, when you're a private lender, we can't just keep your money. You have to get it back. You have to sign the, you know, release of mortgage and then we can give you another deal and you can put back in. I said, so let me talk to My attorney and just figure out how, what we can do for you. And he said okay, I actually I have, I had some more money come in, so I've got about $200,000, so let's start there. And I said okay. So I started working with our attorney and I said, hey, this is what this investor would like to do. Can you tell me how we could make that work? And he says, oh, okay, well we can do just a master note. And I said what's a master note? And he said essentially it's a promissory note to your company and it's going to allow you to be able to use it for deals as you see fit. If you have extra funds that aren't being on deals, you can use it for operations that you don't have money sitting there. It allows investors just to kind of invest in you, in the business and what you're growing and still have it backed by the business and the real estate. And so I said, okay, that sounds great. So we went back and forth with the investor a few times with the agreement that the attorney created and ultimately he was like, this is it, this is fantastic. And one of the things that he wanted was he wanted the option to keep renewing so he didn't have to bother us. And. But he also wanted the option to be able to pull the cash out if he wanted and he wanted the option not to take distributions. So in this master note we have the option of you can take. Just take distributions quarterly or you can just reinvest it and allow it to compound. It also is a 5 year auto renewable note which, which achieved his goal of if I don't want to move the money, I just want to leave with you and not have to say a word. It just auto renews. But if he ever wanted the money back out, he could pull it back out. That's where we went back and forth again with the attorney. Because if we have those funds in real estate, then we needed to be able to pull them out to be able to get the cash back to him. So then we made like 180 day notice. So that way it gave us the time needed, still allowed him to be able to pull out his money every single year. It would give him that right. And so th. Those were the conversations that we were having. And what's interesting to me is the more I've talked to investors, this conversation led me to understanding investors better. What are your goals? Do you want to be putting your money in and out? Do you want it to sit do you want it to compound? Do you want the option for liquidity? And so the Master Note program turned into the most customizable and flexible investment program that we have. And so we went to all of our private money lenders and said, okay, one of your fellow investors gave us this idea. This is what we've worked out with our attorney. Would you be interested in doing the same thing? And then we educated them about it, gave them the Master Note documents. And I would say between that and a new fund that we launched, we had, I would say over 50%, maybe up to 70% of our investors transfer into that because they too were like, okay, we've been working with you a long time. We don't need to keep on going in and out. We would just like you to keep the funds. And so the difference between the fund and the Master Note program was really about being accredited or not. Right. Because that's one unique thing about the masternote program is that every single investor has their own bank account. So it's not something that needs, requires SEC or the PPM or anything like that. It's for non accredited and accredited investors. Because when somebody comes in, flip is the one that creates the new bank account and that's where those funds get wired. And then our financial team tracks at all times where those funds go.

So if I have to summarize three things already, maybe you can add to this, why investors would be interested in this is the first thing is the management of it. Instead of going in and out, in and out, in and out of deals, the headache, they could be much more, hands off, much more passive. I think the example that you use it was a, a doctor, medical professional. So they're busy. They don't want to keep wiring money and getting money and wiring money and reviewing deals. The second thing that I wrote down was flexibility. So you can put a lot of flexibility in this, this, this master node. So you can, you know, as you mentioned, distributions, length, renewal, I mean you can, it's a, it's a, it's a contract, right. So it can be negotiated and put in it. And then obviously the third thing that I wrote down is cash flow, obviously the returns. What, what are some of the, what are some, some other things, if there's any other things that you can add to it, of benefits for investors and why they would choose this, for example, over, you know, the fund, besides the, besides the accredited non credited kind of thing?

Yeah, I really think it's the liquidity option. The fact that you can get your capital Back at any year as long as you give us that 180 day notice. Because our funds require like our current fund, it requires a three year lock in, right? So you're going to invest your capital and you're going to keep it in there for three years. We do have a new fund launching that has more flexible because we see investors weighing their options between the fund and the Master Note program and they're like, whoa, I'm gonna go with the masternote program because it's similar interest. More flexibility can be customized. The other thing is you can, the flexibility piece I think was a really, really good bullet point there because even on the compounding part, you can change that at any point in time. Whereas a fund, once you lock in, I'm going to compound, then you can't, can't switch it to distributions and vice versa, if you choose distributions, you can't switch it to compounding. You have to have a new investment and you have to choose again. Whereas the Master Note allows a flexibility of an email being sent and saying, hey, I'd like to start taking distributions now instead of compounding. And it's very, very simple. And so I, I love that flexibility, especially for newer investors, because that is one thing that this particular investor taught me and that is he came to our office saying 50,000 and then he was like, by the time he leaves he has $200,000 and he's now over $2 million across all the investments. So I think a lot of people want to learn to trust you. They want to experience what it's like to invest with you and learn who your team is and what it's like. And so I think this program, private money lending, really gives people that opportunity to dip your toe in the water. Even as low as $25,000 for the master, 50,000 for private money lending. And so you don't have to put a whole lot in, but you could, you just get to test us and go, do we like flipping, Danny? Do we like their team? Is there good communication? Did they pay me back on time? Did they do everything promised? And then as we earn that trust, then you continue to invest. And I think that's really, really powerful.

So, and just, I made another note here. I just want to hit on this again. And I like, I like this Master Note strategy because one of the things that you mentioned in there is 180 days, then you can get your liquidity. So you give 180 days, which is what, six months? I think if I do my math correctly, where a Lot of deals that you're in and fund sometimes. I mean, it could, yeah, I mean you could be in it for five to seven years or even longer right. Before there's any, any liquidity. So that is, that, that's huge.

So let's, let's talk about how do you generate income from this?

So we mentioned the cash flow, but what are some other factors? You're. Because that's obviously, you know, why, why you do this, this type of structure.

Yeah, absolutely. So our private money lending, the interest rates that we offered was 8 to 12%, just depending on the deal and how much people were putting into the deal. Because sometimes, and most of the time we would top off the capital, right. We would top off rehab. So we may have a lender that says I've got 50,000, but we actually needed 75. So we'd let them put in 50, have a first lien position, we'd put in the other 25. So that's essentially, you know, what we're doing with the Master Note program as well. I actually forgot the question. Can you just say the question one more time? Because I just got. My brain went, no, no, no worries.

Just how, how income is generated. So it's obviously the operations, the, the assets behind it and so forth. And then the distributions and the compound distributions come from that, right?

Yes, yes, thank you. So we make money from using their capital for real estate deals. Right. So as we cash out, then we're getting the profit back, the operations, as we grow the business. Like right now we a supply company, so we're getting materials in bulk. So we, we're, we've got this huge warehouse where we're able to, to stack them all. We're saving money on our own deals and we're starting to sell some of those materials to other investors. So all of the income, that's the income that's being used in order to pay the returns to the investors. And the returns are on the master note program, 10 to 12%. So. And that's paid quarterly. So if it's under $100,000 investment, it's 10%. If it's over 100,000, it's 12%. And we then pay the distribution distributions depending on how much they have invested with us.

Yeah, so we've got a lot of people listening to our show. So we've got investors, we've got operators, we got people just learning. So I mean, everybody will be able to take value from this. There's a lot of things to, to learn just in, in this Example, I mean, if you're looking to scale and grow, this might be a great strategy too. If you're, you know, trying to a, a proof of concept, already profitable operation. If you're looking to scale that, because it gives you, as you mentioned, just, I mean you get the capital now you're buying in discount, buying in bulk, which gives you discounts and so forth. So there's, there's a lot of, there's a lot of advantages to it on, on both sides. Right. For obviously the operators and then obviously their investors.

That's right. That's right. And that another thing that I found too with that earning trust concept is a lot of investors like the idea of liquidity. They don't necessarily want their capital back. So very many times we have approached things where we say we're gonna like, create this master note program and allow you to come in and out as you please, or give us 180, 180 day notice and get your capital back. They love that and they've got peace of mind, right, that they can access their capital if they need it. But ultimately they don't. They, they get those distributions and they are just, it's like diving off the diving board for the first time. It's like, oh, this is awesome. I'm leaving that money right there. I'm not having to do any work for it. It's just passive income. Or they see the quarterly reports that show the compounding and I do videos about that. You know, I mean that's, you know, that's remarkable how much more you can earn if you reinvest, you know, those distributions instead. So yeah, it's, it's a fantastic program.

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So for, for operators, I'm just thinking too, if they're learning about this concept, you know, one of the things that I would just say too, as we say with everything is, I mean this is your, you're in an alternate alternative asset world, but things can also go pear shaped. So just stating that you guys have been in the business for 15 years, there's a track record, there's trust, there's success and, and so forth. So for younger operators, I just wanted to, to do the beware kind of message here too. If you're thinking this is a great strategy to use in your own business and you're just getting started, this is not, I mean you guys are, have been into it for 15 years.

So the younger folks that I'm saying you got to have a proof of.

Concept, a very viable, successful operational business that you then bring in capital and scale with this type of strategy. This is a, isn't something to start up a business with or you know, if you're still in the beginning phases of this, to implement such a strategy. Correct?

Yes, 100%. I'm so glad that you said that. I always tell people that investors ask us three questions. Where do I start? Which path is right for me and who do I trust? And I always tell everybody. The third question is the most important question because I talked to investors many times where they did lend to somebody that they knew or they lent to an investor and they did not do their due diligence. And I think character means everything when you're looking to invest with somebody. And we go to the point where we tell people, hey, look at our track record, look at all of our deals, all of our case studies, like we actually have them all ready for it so that we can hand them over to investors and say this is what we've done. We did an expert panel video with our cfo, with a self directed IRA custodian, with one of our private lenders, with our title attorney company and said we asked all the questions to the people that see our deals, that see our books and ultimately we wanted them to share, hey, they have never not paid their lenders back everything owed capital plus interest. We have lost money on deals. We tell people not not only Are you checking for their track record? You're going to ask them what's your like, worst failure? Like what's the, the deal that went wrong? And tell me what happened to you and tell me what happened to the investor. And so we talk about a duplex that we lost over $50,000 on it. And what happened was our project manager at the time was trusting his runner to go check the properties before paying the contractor. Well, the runner wasn't checking the properties. The project manager didn't know that the runner was because the runner said, yep, it's fine, go ahead and pay him. And so we paid out a full rehab on a house that was still gutted because this contractor was somebody that we had used before. So the project manager trusted him, but he was taking pictures of a house that he was working on that was not our house. So we had to pay for rehab twice. And we lost over $50,000 on that. Our private lender didn't know a thing about it. We would have transparently told them what happened, but we didn't need to scare them. We paid them everything owed back. We paid them every penny of interest owed for the time that we use their money and we took the loss because our character and our reputation is the bottom line, most important thing out there. Because there's no way you get this big without gaining trust of the investors that were with you.

Yeah. And no. And thank you for sharing that. Can you talk about just your building out your team? Because obviously as, as you guys grow and you go into different areas of business, what has that experience been like? And what has been some of the. Yeah. What has been some of the success and what, what has been some of the lessons that you guys learn in the process.

Yeah. So we like to talk about like this get real concept.

I personally think hiring and firing is one of the easiest things to business.

No, not.

Oh my goodness.

Yeah. So yeah, hiring and firing of just people, that is the hardest part of the business. So I just did a, a 12 part video series just the other day and we had 59 team members. We just now brought on three more. So we're at 62. And that it is literally where things have gone really upside down. Right. You know, having a, a project manager who is trusting a runner and that runner is saying go ahead and pay. Pay people that you shouldn't be paying because they're not checking the house. They're prob. 7 11. You know, I don't know, I don't.

Know what they're doing.

Whatever hanging out with friends or buddies, but they're telling you to fork out money for, you know, for a property. And then there's times like, you know, growing these businesses because we built out of necessity. We went so fast and faster than we ever would have. And so it got like, you know, really hard to manage everything that was going on and manage the people. And so there was times. And we just recorded our Get Real podcast because is we believe in being vulnerable. We believe in being authentic and transparent. And we tell people, hey, crap goes wrong sometimes. And one of the things that went wrong is as we're building all of these businesses, it just got very, very taxing and stressful. And so I wasn't the best leader, I wasn't the best manager. And some really good people we lost just because I was just overwhelmed and couldn't manage it all. Fortunately, we were able to get through it. And thank goodness for my husband who is my business part because, you know, he's the one I'm screaming and crying to, you know, every single night as we build it. But, you know, ultimately the good ones stuck it out and understood, you know, you know, what was going on. They are now the leaders of our company. Our president is the gentleman that came in as a renovation manager when. No, actually he was our punch. Punch list person when it was his first job and then he went to renovation manager and then he started running our acquisition company and now he's the president of our company. But there's been, it's a bit a roller coaster ride. Like we could tell you story upon story. It's just, it's not always pretty, it's not always rainbows. But if you have determination and commitment, you'll see it through. If you just keep on getting up every day and you don't give up.

Yeah. And, and I mean, it's part of the process too, right? That, the whole sifting, I mean, it's 15 years into it and you're going to find some great people and you're going to find some people, unfortunately, that just doesn't work out. It's either not a right fit or, or not right motivation for them or not. What, you know, so it's just, it's. It's part of the, it's. It's part of the process.

That's right. Yeah, absolutely right. We started using a. It's called predictive index. I don't know if you're familiar with it, but we started using that for hiring because it was so difficult to really, I, I kept on saying I wish I could just test this person out for two weeks. I just want to try them for two weeks before having to hire them, because you really want to see, you know, do they say what they're do to. Going. Going to. To. Is what they say? Are they going to actually follow through and do it? Are they going to be reliable? Are you going to give them the task and they're actually going to cross the finish line with it, or are they going to drop the ball multiple times and then blame it on somebody else? And you usually learn a lot of that in the first couple weeks. And so we started using this tool called Predictive Index to start learning more about people's, you know, personality. And. And it was pretty remarkable to be able to go, I really like that person. And then you read it and it was like, oh, that's not the right fit for that. So it was helpful as we grew.

So it's called Predictive Index. I've heard of the. I mean, we. You have used the Colby kind of tool in our business, so definitely check out the Predictive index as well.

Fantastic tool.

Yeah, I liked it. How they. It would take all your team members and it would show you, like, if you put five people in one group and it would take the predictive index, it would take all of their. How they all rated and then how they would work together with each other. It was. And it was brilliant. It was. The first time we did it, everyone's like, oh, my gosh, this is crazy good.

Wow. Yeah. F. That's fascinating. So let's get back to quickly. Just finish off on the. The master note. So any other final comments, anything that you want to share? I think we've covered, you know, kind of like positive negatives. We've covered why this is great. A great tool and a great strategy. We've covered some pitfalls. Anything else that you guys wanted to add to this? The. The monster notes?

No, I think we really nailed the master notes. Yeah, I think we covered everything. It's. I. It's popular with our investors for a reason, you know, because of the flexibility. I think that's really the key. But it comes down to being comfortable. Right. I always tell people, you know, you need to talk to the team, you need to understand who we are, and just make sure that you're comfortable with anything you're about to invest in. That's just, I think, think. I think the most important piece, and I think people, a lot of times, fear gets in the way, and I don't think it should when it comes to just jumping on the phone. Right. There's never an obligation to invest. But if you don't start learning about it and you don't start learning about the company, then you never take that step forward. And then, you know, years go by and you're like, man, you know what? I've got this cash still sitting in my bank, you know, and I'm losing dollars because of inflation. Right, yeah. Know, just get to know the people that you're working with. I think that's, you know, really, really important.

Yes, absolutely. So, and from a market perspective. So you guys in, in Ohio, any particular markets in Ohio and then what are you currently seeing there? I'm always interested to learn what's going on in all of the different markets in the United States and around the world.

Yeah, so we started out originally just in Dayton, Ohio, and then we, we just kept getting bigger and bigger and bigger. And now we're basically from north of Dayton all the Cincinnati down to the Ohio river and probably into Columbus soon. So we're, we're in the southwest section of Ohio. Even, even though Dayton and Cincinnati are 45 minutes apart, they are just astronomically different markets. Dayton is still 15, 20 years behind. You know, it's, it's not as, I mean we're still a three bedroom, one bath bath, maybe 100,000, maybe 110. And Cincinnati, you're looking at 180, 190 at minimum. And so it's, it's two completely different markets. But they're the, the thing that I love about Dayton and, and the middle areas, which is actually the town, it's called Middletown. But that whole range is, it's, it's like a bulletproof, you know, it's not, but it's, but like, even when the market went up and down, it just really stayed steady. It didn't go crazy up, it didn't go crazy down, but it just steadily got better and better. And one of the things that we always tell people when we sell them the turnkey properties is that we sell you on cash flow. That's the, what's the most important. We don't sell you on appreciation. And we've stuck with that. And it's always been our mantra and just I think it was like maybe four or five months ago ago we came across a property that we had sold six years ago and the property is like doubled in value and we were just like, does the owner know this? He probably should know this, you know, and so it's, it's happened. The appreciation is happening, but that's not why we moved here. That's not why, that's not why we, we went to these markets. It was mainly, and most importantly the cash flow. And it's just, it's been a solid market. It's been, you know, it's, it's a, you know, it's a blue collar America. You know, the whole middle part of the area is a giant steel factory and everyone works at the steel factory. You know, it's just, it doesn't get. I, I love it there. It's, it's, it's amazing.

Yeah, it's so less volatile. And I love the Midwest too. I love the people in the Midwest. It's great, great people. I actually lived in Chicago for, yeah, almost a, almost a decade and got to travel a lot of the Midwest. It's fan. Just fantastic. But yeah, from a, from a. Just a appreciation standpoint, not as volatile as, you know, another market that you guys came from was Arizona. So that's a, that's a little bit of a different ball game in Florida. Right, where you're, you're currently in.

That's right. That's right. Yeah. We don't like the ups and downs. Right. We don't like the swings. When the market's going to change, we can't, you know, nobody has a crystal ball. The market will change and there will be ebbs and flows. So we love being in a place where we're just not hit as hard. And if you're evaluating the numbers and not counting on appreciation as part of that, and you are truly just looking at the cash flow for you, then, you know, it just. The Midwest really, really makes sense.

Yeah. The other thing that we noticed too when we moved from Arizona to Ohio was cost of living. It's not something that a lot of people talk about, but when you're talking about renters, you know, you want to get a good quality renter for that price. Well, these renters aren't paying as much as you think they're paying for cost of living. I mean, it's just been Danny and I and the price of water in Arizona would have lasted us six months of water bills in Ohio. It was. The cost of living in Ohio is so incredible. And, and which helps out with the, with the rental and the level of what we call, we call them residents because residents pay and tenants don't. And so it's, but it's, it's a great. One of the perks that you don't really don't give doesn't get mentioned very much.

Yeah, that's. And especially right now, I mean we've got some serious inflation still across the country. It's funny how CPI numbers get thrown around and I'm like, nobody's going to the store and shopping and CPI prices.

So they're like, it's only 3 or 4% and you're like that's up like 30, 40% just in, you know, most grocery bills.

Right, right. That's right, yeah.

So one question I always ask and I'm always very interested in learning what wealthy and successful people are learning and currently studying. So what, what are you guys currently studying and learning right now?

Honestly, we're studying funds a lot. We really, really love the, the diversification of funds and that's something that we actually didn't touch on on Masternotes is that you do have that diversification piece. But funds allow investors to invest their money, keep it in for specific, this specific period of time. Our new fund is going to be anywhere from six months to 10 years because every investor has different goals and funds allow you to diversify across everything that's in the fund. So we have a fund right now that's actually closing, which is why we're launching our new one. And it funds a lot of the, the turnkey deals that we do just like the master notes and private money lending. And so every investor that's in there is diversified across, you know, 30, 50 properties depending on what's in there at any given time. So that give everybody, you know, a little bit more safety backed by real estate and what's going on. So that's really what we're learning about the most. We're also exploring different asset classes for our funds. We are launching a hard money lending company because as we have this capital inside funds, we want to be able to deploy it, right? So we never want money sitting in there because we have an obligation to pay our investors the distributions that they are owed. So, so there's been times in our current fund where we might have $500,000 sitting and we don't need it and we know we're not going to need it for the next six months. So we'll do a short term loan with somebody else in our mastermind that we know like and trust. We've seen their deals, we underwrite their deals and we say, yep, absolutely, we'll loan you the money and that, you know, produces a return for the fund and just ensures that we're just keeping that money deployed and making sure that we're just being mindful of being able to get the investors returns because that's priority number one always. That's really what we're studying. The other asset classes we're studying is self storage, assisted living and industrial. Those are the ones that I feel like really we're in a good place in this market to be looking at. They're hot. The people that we know in this space are doing really, really well. We are a big believer of partnering with the right people. Who not how. I don't know if you ever read that book, but.

Oh yes, Stan Sullivan, yes.

Huge believer. Especially when we talk about that hiring piece to find the person that already knows what they' and you surround yourself with somebody that's the expert that you can depend on them for that knowledge and that experience and that track record. So that's something we're exploring and learning more about right now as well.

Yeah, great. Yeah. Dan Sullivan's who Not House. Great. So for folks, listeners and viewers that's not familiar with it, it's Dan Sullivan from Strategic Coach, wrote a book who not how. Because when somebody tackles a needle, you challenge the first thing that they usually the question that they ask themselves, you know, your life is determined by the quality of your life is determined by the quality of the questions you ask yourself is how can I do this? But that's actually the wrong question. It's like who does this already that I can partner with, you know. So it's great. Great book. I would highly recommend it changes. Definitely changes your paradigm of how you approach approach things in business.

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Another question that I usually ask our first time guest is we talk a lot about business, we talk about investing, we talk about cash flow. But it's about leaving a legacy too. So if you cannot pass on any money to future generations but we're only allowed to pass on three principles to them to build wealth and achieve happiness and success. What would they be?

Yeah. So I am going to go with something that Flip and I talk about a lot and that is work hard and don't give up, number one. Number two is do what you say you're going to do because your word is everything in business. And number three is be authentic because your character and your authenticity and who you are is why you build trust and why people want to work with you. And if you can do those three things, things you have a long term vision, not short term, you know, where you do something quick for money, but you burn people or you ruin relationships and you will succeed in spades. We never in a million years would have thought that we'd be sitting on seven companies going on eight and we have a vision for building five or six more. And it's because we, you know, built that network of people and just made sure that we always did what we were say, what we said we were going to do. Do we never ever give up. We always put them first and we're always transparent and truthful in everything that we do. And I think that goes a long way.

It almost ties into that concept too with what's that question is would you rather have a million dollars or a million friends? And it's like, would I like to have a million friends? Because if I build something of valuable to them, they're going to support me. And even if, you know, it costs them $10 each to support me and just to get what I've built, that's valuable to them. Well, now you've taken that one to 10 million just like that. So it just. Yeah, so I love what you're saying there. And business is all about people and relationships and so forth. So where can folks learn more about you? Where can they follow you? Where can they stay in touch and inform of all these many things that you're involved with? And yeah, keep, keep up to date.

Yeah, absolutely. So our website is freedomfamilyinvestments.com but if that's hard to remember, then chatwithfreedom.com will work and you'll get straight to our investor relations team. If you would like to book a call, you can also just email us@investreedomfamilyinvestments.com if you like the masternode program or anything that you heard, just put that in the subject line and our team will point it to the right person. And yeah, we're just super excited to get to know people. We're on all the social media platform if you want to find us personally. You know, his name's Flip, mine is Danny, and our last name's Robinson. Find us on Facebook because that's where you actually see where we post our social media team just being, you know, authentic because, you know, Tick Tock and all these other platforms, I'm like, I don't even know how to use them.

Yeah, there's so many these days, it's crazy. What a, what a. What a world we live in. This has been a blast. Thank you so much, Lip and Danny, for coming on the show and sharing your journey and your knowledge and just providing so much value for all of my listeners and viewers.

Absolutely, yes.

Thank you for having us.

It's such a pleasure to be here. Thank you so much.

And thank you to our listeners and our viewers for spending most valuable resource again your time with me on the show. Everything Cash Flow Ninja is at cash flow ninja.com until next time Live Infinitely.

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