How We Made $1Million With Real Estate ( Without doing anything )

The first thing that we need to talk about when it comes to real estate and why real estate is so valuable and why people say real estate will not go to zero. There's a lot of things that you can invest in that could go to zero, but real estate isn't one of them because there's only so much land. And we as humans living on this planet need a place to live.

That's right.

We need shelter. So there will always be some type of value exchange for real estate in general. He was talking about 2024 and how economic outlook is better than expected right now. A few things happening. Number one, people are getting more, less fearful, more confident. And it's a mix of people who were fearful and kept tight on their income and their savings and their investments and didn't want to put it anywhere because they weren't sure what was going on in the market. There's also the other bucket of investors who are like, I'm liquidating and making my cash available because I know this market. I know this is where millionaires are made because they keep looking at the opportunities. They're not fearful and they are ready to pounce when things are ready. So there's capital available in both of these buckets. You could be talking to somebody who's looking at the entire US and saying, here's where we're at based on the economy. That does not mean that this little pocket of Ohio has this massive demand for housing because a new Amazon facility went in or for whatever reason, and those prices are skyrocketing where other places, maybe a job site went down. And so there's a lot of vacancies there. It's hard to rent a property like real estate is local. And if you don't understand that part, there is a big, gigantic piece missing for you and you're going to likely end up losing money. For those of you who are got your money sitting in your bank account or you have it stuffed in your mattress or wherever else you might have it. I wanted to give you an example of how easy it is to invest that money and get a pretty remarkable return.

Hey, everybod. Flip and Danny here. Welcome to another exciting show of the Freedom Show. The crowd, all of them go crazy.

I don't even. Like I helped you on the first episode. I don't even help you anymore.

Yeah, yeah. I don't need it. Trust me, I don't need any help. Well, we're super excited. We're glad that you are joining us today. Today we are going to be Talking about.

You don't know what we're talking about?

No, I never know what we're talking about.

This actually is going to be kind of a look back to our 20, 22 episodes in that I made notes about what we're talking about today. And Flip is finding out live on the episode.

Yes, I remember that daily.

Yes. So there's a few things that we're going to talk about today. A couple of them, actually, our team came up with. And I thought they were going to be great to actually do kind of a four part episode today where we're going to talk about, number one, what even is real estate. Secondly, we're going to talk about current trends that are going on today. Third, a couple real estate tips. And we're probably going to start creating those segments of current trends and real estate tips into the episodes going forward, if you guys like them. And then lastly, today was one of the ideas that I came up with a few weeks ago that you helped me with, but I just didn't insert it in the last show. And that is wealth building made simple. So I love taking complex ideas and making them super simple so it's easy to take action. So Flip, that is what we're talking about today.

I love it. Take it away.

Okay. All right. So we're going to start with what even is real estate. And so when the team thought about this, you were on the call, right? And I think I remember saying, what exactly do you mean? Like what? Because we're immersed in the world of real estate, right? So when they said, I think you need to talk about what even is real estate. And I was like, what? What? Like, huh, People don't understand what real estate is. I'm confused. And so talk to me. And so Caitlin actually started providing some ideas. Matthew chimed in too, and he was like, he goes start with planet Earth.

That's right. Go back to the beginning.

Yes. And planet Earth, we have a finite amount of land. And so that is the first thing that we need to talk about when it comes to real estate and why real estate is so valuable and why people say real estate will not go to zero. There's a lot of things that you can invest in that could go to zero, but real estate isn't one of them. Because there's only so much land and we as humans living on this planet need a place to live.

That's right.

We need shelter. So there will always be some type of value exchange for real estate in general. And so another thing that Caitlin had mentioned and she Said, hey, before I came here and started working with you guys, like, I didn't even know the difference between an agent or a realtor. So, Flip, I'm gonna let you take that one away.

Well, so an agent is someone that is. I guess they would be just licensed with the state.

Correct.

Yep. And then the realtor is. That's a separate organization there. There's the national association of Realtors, and then each state has its own association of realtors. And so it's a. It's a separate organization. So not all agents are realtors, but all realtors are agents.

Yes, yes. And so there's also, like, codes of ethic. There's all these different things that a Real Tour is very proud of.

Right.

Because they took these classes, they have these designations. They're within this family of people who call themselves a realtor because they hold themselves to a higher standard than an agent who just passed a test and is hanging their license, but isn't obligated to the same standards, I guess, of ethics or rules or guidelines.

Continuing education every three years.

Yes. Yeah, absolutely. Exactly. So I thought that was awesome that she said that. And so then we continued the conversation and started talking about the fact that most people, when they think of real estate, they think of one. When I buy a house, I guess I will own a house. That's real estate. And they maybe might make that connection. They think about agents and realtors. They also think about, if they watch hgtv, they think about fix and flips. And so that's kind of the world most people enter when they think of real estate. But reality is there is, I can't say endless, because obviously there is an ending of what you can do in real estate, but sometimes it seems like there's an end. Endless amount of opportunities in real estate.

Yeah. Actually, when you and I went into real estate and we talked about going into real estate until we went to that first class of the. Was it 11 ways, wasn't it? Or 12. 12 ways. 12 ways. How to buy and sell real estate. And I didn't know about the other 11.

Right.

I mean, I just knew about fix and flips. You know, you buy it, you fix it up, you sell it.

Yes, yes.

And so taking that class, I was like, that was an eye opener because I didn't know.

Yes.

And we learned very quickly.

Yes.

Of the other steps.

So we're going to talk a little bit about, just between flip and I, we're going to reminisce. A walk down memory lane to talk about the different types of real estate investing that we've done, or maybe not done. We just have friends that have done it.

Right.

So I'll just say short sales is one of them because it's one of the very first things that we learned.

Yep, Yep. One of the first things we learned and we would, we found properties that were on the pre foreclosure and we targeted those properties by putting letters on their doors and trying to work with them, to work with them, be sort of a liaison between them and the bank to get the bank to allow us to buy this property from the seller, but for a way reduced price than what they owed to the bank. Yep. This was a, that was the first one that we did because that was the low, low hanging fruit. Unfortunately, the low hanging fruit at the time took forever to get a deal done.

Yes.

And so that was the first thing that we did. And I remember the day that we learned about the mortgage assignment program and we learned about this program and in this program we learned like, okay, so and this was 2009, 2010 area and we learned that, okay, we would find, let's go out and find a seller that couldn't sell his house and then let's find a buyer that couldn't get a loan. Okay, so both of those were everywhere.

Yes.

Couldn't throw a rock without hitting one. One or the other.

That's right.

And so, so once we found this, found the house, the unsellable house, and then we figured because once you sell it, then once we found it, then marketing for the, the buyer didn't take long at all.

That's right.

So what they say it was the marketing, the earth taking the unsellable house and selling it to the unloanable buyer.

That's right.

And we found, we did one and we did it like within two weeks. And we got PA and we're like, wait a second, we're doing this other thing over here, these short sales that are lasting months and this just took us two weeks. I don't think we ever looked at another short sale after that.

No, we had found our way during the housing crash. That was really the way that actually helped people too. Right. Because sellers unfortunately were a victim to the crash itself and the lending environment who allowed them to get a loan at such a high ltv, which is loan to value. And so they weren't able to sell a property needed to sell because of those two things combined. And then the buyers, the lending environment just got so, so strict. Right. And so buyers that maybe had a really good amount of money to put for a down payment. Could not get a loan in that environment. So we were able to help the sellers, help the buyers and marry them and get paid as a result for finding a solution to the problem. So these two are examples of active investor. Very active, yeah. Type of things in real estate. So we could go through a ton more and we'll just name some, we won't describe each one, but subject to deals where you buy a property, subject to the existing lien, wraparound mortgages where you wrap an existing lien and get cash flow as a result. And I know some of these, you're going to listen to them, you're going to be a little confused. And that's okay because we're not here to tell you and explain every single strategy, but we are trying to explain what even is real estate.

Right.

And there's tax lien investing. You could buy notes for that are, you know, seller financing type notes. And you can buy those discounted. What are some other ones that we did while we were.

We did foreclosure auctions.

Yep, we did. Yep. In sheriff sales. Yep. We bought those. Quit claim deeds, probates, inheritance. You could still buy properties, cash and still do the fix and flips. Right. So we landed.

It is still an option.

Yep. We still, we landed on those rentals. So Caitlin had mentioned, she goes, I don't even know. A lot of people understand that rental, rental properties, that's really estate like that's a part of the world of real estate. And they think of rentals but don't really associate associated inside the world of real estate. Buying land, flipping land, developing land, multi family, commercial office space, industrial assisted living, self storage. You know, anything that has to do with the finite earth in which we live on has something to do with real estate. And that's why we say if it feels like there's endless opportunities, because whatever you think you can do and if you can exchange value for something that has to do with land or something associated with land, that essentially is real estate.

Yep.

So I think that that is a big conversation that we take for granted because we're in it and we understand all the options. But people who are, you know, in their career, they're a business owner, entrepreneur, physician, attorney, whatever it is that they're doing in life, they're not in our world. And so they don't know the many, many opportunities in which you could be inside real estate. You could also be a private money lender. You also could be investing passively through Crowdfunding platforms or through syndications or through funds. You could be JV ing, which is a joint venture, right. With an active investor and a passive investor and marrying those opportunities. So there's so many ways to make money in real estate, and we love making money in real estate because I feel like it's got the most. It is the most reliable source of income because of the fact that it can't go to zero.

Right.

I just know 100% for sure. There's never going to be a moment in our history in which you cannot exchange land for something even if there is no monetary value, like, the dollar's gone. Like, we don't even exchange money anymore. You can always say, hey, for all of your, I don't know, eggs, I will give you X. And it could be an exchange of value in some shape or form where look at the stock market and other investment opportunities, and you're really investing in, you know, some brand that you think is going to be successful, but depending on the market or the economy, there's so much more risk, in my opinion, of that being true and solid and reliable compared to real estate being true, solid and reliable. So I think this is a really good conversation for us to be having more often, and I think we're actually going to make it like a talk that we actually go on stages and really talk about planet Earth and why real estate is so important.

They're even selling air now.

Yes, yes. With air rights. Actually, we were interviewing. We're interviewing a fund manager of the recording of this episode they're happening this week. And he was actually talking about an opportunity coming up here in this year of certain buildings and finding the ones that have air rights. And we are having this conversation, and it's just. It's amazing the. What appears to be endless opportunities, you know, to be able to be in this world and to be able to be making income because of it. And some of this is active, some of this is passive. So what we like to do is we like the active because we've been doing it for years, since 2008, and we've fallen in love with it, that we don't mind that this is our livelihood and how we make money. And we really love being able to help other people do the same by educating them and giving them access to our resources and to our team and to everything that we're doing together. So I thought that was a really fun conversation to kind of kick things off.

I love it. I love that we now have more people to help Us do the active part. So it's not just us.

Yes. Well, that's key because it kind of came actively passive for us.

That's right. Passively active.

Passively active. Okay. So we're going to go into current trends right now. So it's. We're still in the first quarter of 2024 as we're recording this episode, and this. This episode will air still in the first quarter of 2024. So right now, the look in the economy is looking good. We're ramping up into February. January, historically, is the ending or it's. It's winter in so many states and it's coming out of the new year and the holidays. And so it's typically slow, but it starts to ramp up, February especially. And so we're even seeing this cycle in our business, right?

Yes.

Did you not tell me today earlier? We have so many houses.

Yes.

And I don't know.

We're not full. We could never be full. But let me just say that the sheet that has all of our acquisitions is very full.

Yeah.

It's healthy.

Yes. Yes. So 2024 is really looking like a really great year for us. And I did some research in some. Marcus Millichap is a really great resource for the economy and real estate and what things are looking like. And I found a couple other articles that had some really great stats. He was talking about 2024 and how the economic outlook is better than expected right now. And so a few things are happening. Number one, people are getting more. Less fearful, more confident. And it's a mix of people who were fearful and kept tight on their income and their savings and their investments and didn't want to put it anywhere because they weren't sure sure was going on in the market. There's also the other bucket of investors who are like, I'm liquidating and making my cash available because I know this market. I know this is where millionaires are made because they keep looking at the opportunities. They're not fearful, and they are ready to pounce when things are ready. So there's capital available in both of these buckets. And in 2024, one of the articles was saying, there is going to be a lot. This is going to cause a lot of trading activity because some people made their cash available for opportunities. Some people preserved their cash because they're eek. I don't know what to do with it, and I don't know what the market's gonna look like. And now everybody has. Or the people who are fearful and saying eek. Are going, hey, it's like they opened up the door.

It's looking pretty warm outside.

So I think I'm gonna go ahead and start investing my money some more. And so capital is coming back into the marketplace, which means the people who had the cash liquidated to be able to take advantage of opportunities now have their cash and have more cash. And we are seeing this in our own business. Like, we have a lot of cash available and we're having meetings going, here's our balances. Where is this money being deployed so that we can ensure we're making a profit and making that return for our investors that we promised? And so we've got a sheet that has got like every single fund that we have. How much is available, how much is ready to go out and what it's for, how much is coming back in because we're selling and then what that balance is and what's going on the next month. Like, we've gotten really, like, granular on this because of the current trends going on in the market. The other thing that I thought was really, really good to know is new construction is going to hit its peak in 2024. 480,000 new units are going to be coming available. So they're talking about housing supply and the fact that there's a shortage of the housing supply and limited availability and the fact that house prices are still rising. So interest rates are going down. Right. And so. But house prices are still. And inflation's going down, House prices are still going up. So it's still unaffordable for a certain segment of the market. So they're still looking to rent and the housing supply and the rental supply isn't there. So new construction was kind of ramping up to this. And those 480,000 units that are going to become available, it's going to take a little bit of time. So all of us landlords are still able to increase our rents because of that housing supply. So I thought that was really interesting. And then something else that is, it's one of those things where you don't know exactly what's going to happen, but there's getting a little bit more comfort level. So the reason that there's such a supply and demand issue in the housing market is because sellers who otherwise maybe would have sold are saying, I've got a 3% mortgage if I sell my house. Right now I'm looking at a 8, 7 depending on when they're. When they're getting approved for the loan.

Right.

Like, it makes no sense for me to sell. So they just decided not to sell. Maybe they've decided to tap into their equity and renovate their house instead of selling and moving because they don't want to replace a 3% with a 7 or 8%.

Exactly.

So that leads to more supply and demand issue. Now that the rates are going down, there's a little bit more comfort and more sellers are starting to allow those houses. But we still have the. I can't afford, you know, the houses. So there's this weird dynamic going on right now that is all leading to good. Like there is no forecast. Not one article that I read is forecasting any type of crash or any, you know, they're all seeing 2024 as, hey, this is looking good, the economy's looking good. Rates are decreasing. Even us, we're getting ready to refinance six properties. And I keep on emailing them going, hey, you want to give us the new rates?

Exactly, exactly. Did they go down?

Yeah, yeah. I'm so glad that it took this long to actually get those refinances done. You know, everything happens for a reason. So. Yeah, I thought that was really interesting. Let me see if there's anything else that I wrote down. What's your comfort level, especially seeing all. Everything that's in the pipeline. What are you seeing and what are you hearing from our acquisition team?

Yeah, it's, it's. Well, the acquisition team, they're. They're realizing they're getting more calls and, and they're getting more people ready to sell. Yeah. And what I'm seeing though is that it's all of the people that wanted to sell the last year, just year and a half.

Right.

So you got a combination of those people and then you have the combination of the people that were just going crazy two, three years ago where they were buying houses sight unseen and houses that just normal houses had, you know, when they would go on the market, they'd have a line down the street of people wanting to walk the house.

Right.

Like, where did that come from?

That's right.

But all that went away when the interest rate started going up. But now just even the slightest sign of the interest rate going down, boom. It's just all of a sudden the fervor starts, it's starting to bubble already and everyone's to going, going, where's it at? Let me add it. You know, they're just, they're chomping at the bit and so it's, it's exciting. And all the articles that I'm reading too Saying the same exact thing. And it's just like, it's now. Just get ready.

Yes.

And don't wait. Get ready and take action. Because this is. We never know how long it's going to last. That's right, because you never know, Covid. You never did. No one saw that coming, huh?

Yep.

Well, not everybody anyway.

Let's not get into our conspiracy theories anyway.

Yeah. So it's now. Now is a great time. Yeah. Get ready and get ready to take action.

Yes. Okay, so for real estate tips, another great segment that I love. What I decided is I decided to do two things. One was, this is like the Where's a. I wish we had a buzzer that said, like, so it' that you hear in real estate. And we experienced professionals will go, like, that's not true. Don't do that. Don't listen to them. So I'm glad you don't have the buzzer. So the two things are. And I'm going to let everybody take a time to guess. The first one is time the market. That's your first real estate tip. Your second tip is buy low with multiple exit strategies. So one of them deserves a buzzer, and the other one is a really great tip. So should we test flip?

All right, what's option three? Let's see. So the first option was time the market. Time the market, because everybody knows when that is. You put 10 real estate, you know, geniuses in the room, you're going to get 10 different times. And the other one was buy low with multiple exit strategies. That seems awfully smart. I'm gonna go with the second one. Is the right one.

Flip fast.

Where's the ding, ding, ding, ding, ding. There we go.

Yeah. So you're gonna hear people say and give you advice to time the market and to look at market cycles. And even in our book, we talk about market cycles, right? And that's a real thing. Market cycles are a real thing. And you want to be able to look at the market cycles to see where you're at, to see if it's a good time to buy. That doesn't mean that you're able to time the market, because, number one, market is local. So you could be talking to somebody who's looking at the entire US and saying, here's where we're at based on the economy. That does not mean that this little pocket of Ohio has this massive demand for housing because a new Amazon facility went in or whatever reason, and those prices are skyrocketing where other places, maybe a job site went Down. And so there's a lot of vacancies there. It's hard to rent a property. Like real estate is local. And if you don't understand that part, there is a big, gigantic piece missing for you, and you're going to likely end up losing money because you're trusting a macro view of something that really you should be looking at in a micro basis. And that's why we always say trust the team and the people who know and understand the market or know how to tap into people in that specific marketplace to hear and see what's going on, to determine if it's a good market to actually buy in, which is something that we do all the time. So timing the market is the beat. Don't do it.

Yeah, I was gonna say timing the market. That's almost like you might as well just go to Vegas and hit a blackjack table.

Yeah, right.

Same thing.

Yeah, yeah, exactly. And there's some really, really smart people, and sometimes they're gonna be right and sometimes they're gonna be wrong. Yeah, true that. Yeah.

Yeah. They're either 50% right or 50% wrong. Just depends on the day.

Yeah, that's right. So the right answer in this particular one is buy low with multiple exit strategies. So to go right back to, we don't have a crystal ball and we don't know what's going to happen, even though we think that we are pretty knowledgeable and we've lost enough money to have the experience that goes, hey, we felt that pain before. We're not going to do it again. We still could make mistakes. A cycle or an event could cause things to change based on what we forecasted, and that could happen easily. At any point in time, a pandemic can happen again. So always having multiple exit strategies always mitigates your risk. And what I love about our business is we also do volume, and that helps mitigate risk. So when we say buy low, that means you're buying it at a deep discount. So much so that if the market shifts or changes or things start, by the time you end up renovating a house, the market has gone up or down, you still have some room there to make a profit. This has been a real concern for us sometimes, right? We're like, the market is shifting so much that we know we're going to buy this house, but we're not going to sell it for another six months. Like, we have to have enough room in there so that depending on where that market shift goes, we're still gonna make some money. Right? Or at the very least, I don't wanna do this, but break even. So that thought process has to be in play whenever you're thinking about something. And that goes for being able to say, I'm not gonna sell this property. I'm actually gonna hold it. We have six properties right now. We are choosing to refinance and hold because we just. We bought them at a time where the market has shifted and in an area where it's actually on the same street where we just said, hey, this is going to be a better move for us to go ahead and hold them instead of sell them. And so without those exit strategies, then you put yourself in a position where you got to get out and you can't. And then you're forced to do something that makes you a motivated seller, which is the type of people that we work with so that we can actually make a profit because they didn't have enough knowledge and experience to put themselves in a good enough position. So we're going to take the property off their hands and actually, actually make a profit on it when we rehab it or hold it or whatever it is. So multiple exit strategies is really what you're going to do with it. Are you going to sell it? Are you going to keep it? Are you going to rent it? Are you going to, I don't know, do a mortgage assignment or a lease option or whatever other exit strategy that you want? So those are. That's the real estate tips segment. And then we're going to. Oh, before we go to the last segment. So last segment is Wealth Building Made Simple. And I am a big fan of simplicity, and I'm a big fan of this particular segment. So. But before we do that, two things. One, we're gonna hit a commercial break. Two, we want to hear from you because our team is constantly giving us ideas on what to do, what to change. We're in this new environment right now because the team said, hey, when you guys are doing podcast episodes and it's just you two, why don't you get somewhere a little bit more comfortable where you actually can talk to each other and see each other as opposed to at the table? With our background, when we're interviewing guests, which makes sense because we're staring at the guest on our computer. So we made that change. And this real estate investing tips and the current trends, we made that change because of another example. And what even is real estate was a topic brought to our team. So if you can leave us reviews, if you can email us and just say, hey, you guys are doing great. This is what I like. This is what I don't like. We are going to take all that feedback just like we do anything else in our business and we're going to keep changing things up. So now before we get to the last segment, you are with us flipping Danny on the Freedom show and we are going to come back and talk about wealth building made simple. But before we do that, we're going to cut to a short commercial break. We'll see you in a second.

Add new income streams to your financial statement. Freedom Family Investments can help own property and get paid rent. Join funds and get paid interest. Wealth is well being. Own your own future. Freedom Family Investments get more time to focus on what matters. Learn which investing path is for you, where to start and who to trust. Visit freedomfamilyinvestments.com all right, welcome back.

Thank you guys so much for hanging in there with us. Flip, you did the math on this segment, right?

Yes, I did.

Thank you for your hard work in putting this together.

I found the website.

So what we're doing here is we've talked numerous times about the fund that we're launching. It is called the Liquidity Fund. It's got a few classes in it. It's a 90 day class, a one year class, a three year class. And this really was an effort for us to be able to meet the needs of investors who do have a goal of liquidity and kind of peace of mind. And for some people, they really like the idea of being able to get their money back if they need it or if they want it. And so this fund, this is called liquidity fund for that purpose. It was a goal that our investors said, hey, this is what we're looking for. And we said, okay, we're going to meet that need. So what I wanted to do was give you some examples for those of you who are got your money sitting in your bank account or you have it stuffed in your mattress or wherever else you might have it. I wanted to give you an example of how easy it is to invest that money and get a pretty remarkable return.

I just want to jump in real quick. When you say there's a 90 day class, you're calling them classes now. These are not actually classes for the investors to take. You can actually think of it as if these are classes for your money to take.

Yes.

You're sending your money off to a 90 day class and let's hope it learns and brings back other friends.

I love that. And I love that you Define that. Because a class is. So this is a fund. It's a liquidity fund. And a class is like the share. The share class that you're investing in. So you can invest for 90 days, you can invest for a year, you can invest for three years. And so Flip's example of your money's gonna go to school or to class for 90 days. One year, three years, and it's gonna come back with a bunch of friends, and you're gonna be. So. You're both gonna be so happy. I love that. It's kind of. It's a playoff of Kevin o' Leary's Shark Tank thing.

Exactly. He sends his children off to work.

Okay. All right. So wealth building made simple. So we're going to start off with $100,000 is what you're investing. And so for those. For the production team that is helping us with these videos, we have done math examples like this before, and we have had investors write back going, I love it when you do math examples, but can you put it on the screen for those of us who are watching the YouTube videos so we can actually see it? So if you're able to do that, please do so. And if you're not, email us. If you're listening to this and you're not watching, just email us and we'll get you a copy of what we're talking about here. So we started off with $100,000. If you have $100,000 and you don't have to have $100,000, by the way, the minimum.

Well, in order to invest $100,000, you do need $100,000. But what you're saying. Saying is that I get what you're saying.

Yes, you can invest as little as $25,000 in this fund. But for the sake of our math example, we used $100,000 because that is like the more common investment. Easy math. Okay? So if you're going to invest for 90 days, you're going to get a 5% return. Okay, so 5% for 90 days means that your $100,000 now turn to 100. $1,250. 101. 250.

So they made $1,250.

That's right. In 90 days for doing nothing. Okay, so that means that if you kept that money in for a full year, they actually made $5,000. $5,000, which is 5% interest. All right? Now, if you use that hundred thousand dollars and you said, I don't need it in the 90 days, I actually am okay with increasing my interest rate to be able to make more money and I'll keep it in there for a year. Now you're getting 6% interest. So in one year, what does that $100,000 turn into? Flip.

It's going to turn into $106,000, which they made $6,000.

That's right.

For doing absolutely nothing.

Yeah. Except for reviewing the ppm, asking questions, and then putting your money in there, which I think we did an episode. It was like a total of four hours. Right. And you do it one time and then your money is earning money. Yep. Now we're going to go to the third example. $100,000 for 8%. Because you're going to invest for three years. How much are they going to make? Flip?

More than they invested.

The answer is $124,000. At the end of three years, you will. You will have made $124,000. Actually, you have made $24,000. You will get back your hundred thousand dollars if you wanted it back after the three years. So that means you made $24,000, which was $8,000 per year. So in this very simple example, for those of you who are driving or just listening to this, if you take that $100,000 and you put it at 5% interest, you're making 5,000 a year. 6% interest, you're making $6,000 year. 8% interest, you're making $8,000 a year. And that is for doing nothing. So except for reviewing all the docs. So a maximum of four hours invested allows you to put money in and keep it liquid. 90 days, one year, three years. That's nothing. So some people are like, yeah, I might spend my money on this, but I don't know if it's going to happen or not. Those are the type of people that we're serving because they keep on saying, where can we put our money for a short amount of time that we feel like we can get it out if we want to get it out? So. So now there is another video that we recorded that said all you have to do is check a box.

Yes.

And that is going to allow you to start compounding your money.

Yes.

What do they say about compounding? It is the.

It's awesome.

It's the eighth wonder of the world, compound interest. So this is amazing when you do the math of it on how much this increases your return. So if you choose to compound quarterly, this is what it's going to look like 5% in one year instead of it being $105,000 a year. If you compounded quarterly, it turns into $105,094.53. That means in a year you've made an extra $94.53 simply because you said I'd like to compound right now. Let me tell you a little secret. We didn't do the math on this, but our 90 day fund allows you to compound monthly, not quarterly. That means you actually make more than the example that we're giving you right now. But we are trying to keep things simple today.

Wow.

Okay, so now let's just say that you decided you were putting that hundred thousand dollars in the one year class and that was 6% return and you were going to choose to compound it quarter. Now that $106,000 that you would normally have gotten has turned into $106,136.36. So you made an extra $136.36 simply because you checked the box for I'd like to compound. Alright, now the 8% example where you're actually going to put the investment in for three years. Now, instead of earning 100 or instead of having $124,000 at the end of the three years, you now have $126,824.18. That means you made an extra $2,824.18 simply because check the box for compounding quarterly. And I don't really know that there's a box to check. There could be, but we're using that as an example because you are notifying us in some way, shape or form that you would like to compound this money. And what is really cool is when you start earning money on your money, you start earning interest on your interest. So for those of you who say, I don't need the distributions, you don't have to pay me quarterly, just reinvest it and let it compound now that whatever money that you would have gotten, it's earning interest. So that's when things get crazy. So are you ready for this? We did one last example, $500,000. And let's just say you put it in the fund that is earning 8 or the class that is earning 8%. And so 10 years later, let's just say at the end of three years you're like, I don't need it back. Go ahead and keep it. Just keep it. At the end of 10 years, then normally you would have had $900,000. So $500,000 at 8% return in 10 years without compounding, you would have earned an extra $400,000. You would have nearly doubled your money. $900,000 is what you would have at the very end. If now you compound that quarterly, you have $1,104,019.83. So for doing nothing, except for checking that box, you have earned an extra $204,019.83 extra.

That's crazy.

Just letting it sit there and continue to compound. Continue to compound like you make some real cheddar.

Yeah, that's right. That's. That's some serious cheddar.

Yes. So it is amazing. And I would say the amount of investors who come into our investment investments and choose to compound, like it's over 75% now, because people are really getting it. They're like, oh, wow, I don't need this, the disbursements. I actually am still living off active income. I don't need my passive income giving me this cash flow. Like, I'm just going to go ahead and choose to comp and then I'll wait to start receiving disbursements on this money because it's growing so fast. I'll choose like in three years maybe. Now I say I want disbursements, Right. I change it at that point in time. So a lot of people are really starting to understand this and I think it's super powerful. So I thought it would be great to talk about because for those people who are just like, you know what, in 2023, I had this amount of money sitting in my bank account and now they can go, what would I have earned if I would have just invested it? You know, and what would I have earned if I would have chose to compensate? Compound it, right? How much more money would I have today? And this is how you start to beat inflation.

That's right.

Right. And all the things that are coming at us with the economy and things that we cannot control, here's where we take a little piece of control back and we say, you know what, our money's gonna go to class, it's gonna make more friends, and it's gonna come back home. I love that we're totally just gonna keep on saying that because I just love the example. So the one thing that I'm going to say before we end this segment is now think bigger. And we may do another episode that gives you the math on this. Now think bigger and think about how you could use your retirement income. And so you take your 401k and you move it into a self directed IRA or you take any of your other IRAs or Roth or whatever and you move it into a self directed IRA where you can choose where that money goes instead of putting it in the stock market. And my brother, I remember him texting, going, I looked at my account and I lost money again today. Or it hasn't risen, you know, as high as he wanted, or fees, you know, of the companies that are managing it are being taken out, just so, so frustrated. And that doesn't happen. Like we don't have fees being take out, taken out of people's investments for managing their money. We keep things as simple as possible. You invest the money, this is what you get in return. And so you take that and you use your retirement account for this. Like everything just got put on steroids. And why did that get put on steroids? Because that money is tax advantaged. So depending on if you're in a Roth or if you're in an IRA and you're investing before taxes or after taxes, whatever it is, it's tax advantage money. And it's money you're not seeing anyway. It is money that you have said, this is for retirement. I'm getting, you know, I'm getting tax advantages for investing this way. So it's like money that's like you don't even think about, right? It's just money in this other bucket you're gonna like, look at when you're 59 or maybe you're gonna take a loan on it. Who knows what you're doing with your retirement accounts. But it is money that people just sometimes go, oh, I actually have this money over here. And we did an episode in 2022 about even how to find lost money. Because people forget that they had money in this retirement account over here. And now they're not at that job anymore, but it's still sitting in that retirement account. And they didn't realize they could grab that money and put it into a self directed IRA and now invest in real estate, get a higher and more predictable and reliable return. Do the compound thing like, oh, like we are shouting from the rooftops. And as a result, we are, we are serving so many people right now that it's super, super exciting. So if you want to learn more about this, I highly, highly encourage you to jump on a strategy call with our team. Go to chatwithfreedom.com you're going to get on with Ben or CJ to talk specifically about the liquidity fund and this ability to compound. But jump on their calendar. They are available, they Are eager to talk to you. They will. It's no obligation. You don't have to invest with us. You could just be calling to get to know us, see how we work, what opportunities are available that you can invest in. That's what we're, like, geeked out about. About helping other people. Do. Do. Because we're excited about doing ourselves. And if we're excited about it, it means that. That this can help other people too. Right. So anything. Sorry, I'm just gonna.

Yeah, yeah, yeah, yeah.

I got all excited. What else? Flip?

Absolutely nothing. You can even. How could I top that? No, I mean, it's exciting. And it just. The compounding interest is, like you said, it's the eighth monitor of the world.

Yeah.

You know, and it's just. I was like, oh, yeah, that's. That's cool. And then. Then all of a sudden, when you start to do the numbers, like, holy beep.

Yeah, that's pretty awesome.

Yeah, that's pretty awesome.

And I think people just don't understand how simple it is.

Yeah.

That's what I really wanted to say is, like, you don't have to do anything. That four hours is the max amount of time you're going to spend. And you could take more than that. You could take more than four hours. You can keep calling our team and asking questions for the next three months. It doesn't matter to us.

Yep. We're not rushing you. Yeah.

The amount of time that you invest into learning about this is really an investment into your future. And you can take as much time as you want. We're just saying, on average, four hours is probably longer than most people take to ask the questions and invest the money. And you don't have to be active in real estate, so you don't have to be like, real estate is so overwhelming. I don't know what to do. I don't know which path to take. I don't know who to trust. Which is our top three questions. Right. And everything that we talked about at the beginning of this episode about all the different ways that you can. What. That you can have opportunities in real estate. Those are mostly for active investors. And if you're not an active investor, don't let it overwhelm you, because you don't want to actively invest anyway because you don't want another job. You have a job, and you maybe like your job a lot, and so you just want to put your money to work, and that's what we're here for, and that's what we get excited about. Because we love helping people and this is the way we found that we can help people best. So, anyways, I think that we did a good episode in our new location for, like, the second time.

Our new digs. Yeah.

Yeah. So again, if you would leave us a review. Be so kind to leave us a review. Let us know how we're doing. We're super excited to be doing this Freedom show for you this year, and we're going to continue to think of new ideas to be able to make it better, and we'd love to hear from you. So thank you again. We're excited about the next guest next Wednesday. And that's it.

That's it. That's all for now.

Okay. Bye, everybody.

Bye. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss pushing you at all.

The amount of time that you invest into learning about this is really an investment into your future. And you can take as much time as you want. We're just saying, on average, four hours is probably longer than most people take to ask the questions and invest the money. And you don't have to be active in real estate, so you don't have to be like real estate.