#19: Real Estate Investing 101 - How real estate can grow and protect your wealth (w/ Brady Marlow, CFP of Carson Wealth)

In the last 42 years, how many times do you think the stock market was up, finished the year up in last 42 years?

I'm going to take a random guess of 1734 times.

So the stock market's up three out of every four years. So it's good averages, even with last year's downturn, maybe 10%. But the stock market has been negative intra year all 42 years. So think about that. And that means sometime during the year you're going to be watching CNBC or somebody's going to tell you why the sky is falling. And some people just don't like that volatility, you know, not that real estate doesn't have volatility. And sure, if you're In Vegas in 2008, you might beg to differ about volatility. So the stock market, it does, you'll just don't have the stomach for it, can't understand it. So it is nice to have assets and not, I mean, cash. People use all kinds of different assets to, you know, take off that, that systematic risk of the stock.

On today's episode of Heading west, we talk about how real estate investing can grow and protect your wealth with senior wealth strategist Brady Marlow. Steve, this is, this is a fun conversation because it's when people think about investing in real estate, they really think about two areas of real estate. And one is areit real estate investment trust? And they think, well, I'm invested in my 401k so therefore I'm investing in real estate through that. And you know, so I've kind of got a check the box real estate. The other side they talk about real or think about real estate is buying a second house and becoming a landlord. Those are both good areas of, of investing in real estate, but they're not the only ones. And we often think those are the only ones. See. So there are three ways you can generate income through real estate. One is passive income, two is through the tax savings, and three is through the appreciation. Those are the three biggest value adds of investing in real estate. The problem with REITs and the problem with buying a second home is you negate a couple of those benefits through the reit. You don't get the tax savings through the second home, you don't get the passive income. It's very much not passive at that point. But I think that this episode really broadens the horizon of what other areas can you invest in for real estate?

You know, Jake, that's absolutely right. There are those three ways of earning income and and wealth from real estate. And one of the great things we learned from Brady is that whether it's you're investing in stocks or wealth or giving program, going to somebody like Brady to be that central Hub and Quarterback, CFO for entrepreneurs and etc. Is a very wise thing to do. And from that perspective, and then the same thing goes for real estate for passive investors. It's critical that if you want to get into invest in real estate through a syndication and be that limited partner, is that you've got to team up with that, that guide, that mentor that can lead you through the process of owning real estate passively. And it's critical that you find that person. And that's what we do at Skyline Point Capital.

Yeah, and I love that Brady, he kept using the words personal cfo. Brady and his team at Carson wealth, they are your personal cfo. They're going to walk you through this journey. You don't have to be a financial genius in order to start investing. You just, you just go to Brady, you go to his team carswealth and they guide you, they mentor you through the process. And it's the same thing we do at Skyline Point Capital. You don't have to be a real estate genius to get started. You just build this knowledge through these, these episodes of real estate investing 101. And then you find a mentor, whether it's Skyline or anybody else. And you get started today because tomorrow is too late. So I think this could be a fun episode for people to listen to. So stay tuned as we discuss how real estate investing can grow and protect your wealth with our guest, Brady Marlowe of Carson Wealth. This episode is brought to you by Skyline Point Capital. If you're anything like me, you're always considering where to invest your money. Stocks, bonds, crypto and rental home. The list is literally endless. As we've all seen over the past year, the stock market is unstable, the housing market is just weird, and inflation is on the rise. In times like these, the clear place to invest my money is in multifamily real estate, AKA apartment complexes. Here's why. Returns on real estate investments have little to no correlation with the stock market. There's lower volatility, stable income streams, and the tax benefits are insane. And let's not forget that the apartments will typically appreciate in value over time, which means you can walk away with a pretty nice return when the complex is sold in three to five years. Best of all, multifamily investing is passive, so you get all the benefits without the hassle. And headache of your typical rental home investment. Getting started has never been easier. Head to skylinepointcapital.com to learn how you can start investing today. Well, Brady, we're so thankful that you could join us today. You're an expert in the topic that we're discussing today. Over the past few weeks, we've been breaking down, we've called it essentially real estate investing 101. We've been taking these topics and working our way through them so our audience can really understand the benefits of, of investing in real estate, but also just the practical foundation items that a lot of our investors have questions about. And today's topic is really one of those questions that comes up pretty frequently is how does real estate grow and protect our wealth? Really? How does real estate fit into our wealth strategy? And we've, we've talked a lot to past guests about. Your first call should be to your financial advisor, your cpa, your attorney to help kind of build that plan for how does real estate fit into this? And so I'm really thankful that you're here to really help shine some light on this. So let's just jump right in. It's typical that a wealth strategy has some sort of real estate built into it, right? If it's, if it's a comprehensive plan, maybe you've got a REIT that you're investing in as sort of a way to diversify. But can you talk about just in general, how does real estate fit into a wealth strategy?

Yeah. Thanks for having me, Jake. Steve, awesome to be here. I've listened to the show in the past. I know you said the term experts, but you've had some real experts on here. So I've learned a lot by tuning in. So thank you for having me.

Love to hear that.

And so at the very micro level, yes, almost everybody has some real estate in their portfolio if they know it or not. Even if they have a 401k, they probably have a, a diversified, maybe target date fund. Now within that target date fund is going to be maybe a publicly traded REIT or something like that. So something involved in real estate. Now, we, we work with entrepreneurs and often we're not always the ones bringing the wealth creation vehicles to the table. So there might be private or direct real estate, and we're helping them position that more like a personal CFO and understanding liquidity needs and tax and how that fits in. But at the global level, most people do, either publicly, if they know it or not, or even intentionally will maybe directly go into adding REITs as part of the portfolio or individual stocks have to do with real estate where you own your home or maybe you own a vacation home. So sure. Real estate, as I'm sure we'll talk about today, really has a lot a large swath across the, that industry.

Why is real estate a good investment overall? Let's start, let's go into that. Like what real estate as in of itself, why is it a good investment? But then why is it good to pair it with all the other things in which you can grow your, your wealth? Is there, is it a balance of diversity, a balance of risk? Is it, are they not correlated, you know the stock market and real estate? And so therefore it's smart because when one might be up, the other one might be know balanced and one might be down, the other one might be up. What's the real strategy behind including real estate?

Yeah, you really hit it, Jake. There's, you know, when we were younger it's always just about trade offs. Like I think about a financial trade off decision. When I was 20 and in college working at the TGI Fridays it was, I have to give up my Friday nights but I make 200 bucks. That was, that was a big financial, financial decision at that time. As we become more successful, as we grow our portfolio, as we have more resources than just wealth, there's time, energy, talents and how do we, how do we weigh all that? And as we think about diversification, is the, is the real estate correlated with the stock market? The short answer would be yes. Most investments have some correlation with the stock market. So we think about systematic risks. So systematic risks, not to get too to professor style for you, but systematic risk is risk. You can't diversify away. So the market's doing this or it's doing that. Your investment's generally going to track with that. So real estate, if you look at most publicly traded real estate stocks that you can buy in, has a correlation of about 0.5. So that's if you think about another stock, say like Apple, it's going to be closer to one. So one is perfectly correlated and point five, that means it's, it's half of its risk is not the same type of risk. So there might be the same factors, interest rates that affect it, unemployment, inflation. The same factors are affecting it but in different ways.

Brady, you mentioned that there's, there's real estate stocks and you have clients that own second homes or they're actually invested in owning other type of assets. Can you elaborate on that? What is available? What do you see your clients doing to offset that risk and what type of investments those are.

Most of the clients we work with are entrepreneurs. They like things you can touch soil. The stock market just feels like it's on paper. You have something like the Silicon Valley bank crisis, even though that doesn't directly it doesn't have the same impact on your stocks. But it feels scary when you can't touch something. So for one, I think it just puts a great deal of comfort for our investors to have something tangible. I own that building, I own that property. I can understand the cash flows. So that's one and two, it actually does have a tax benefit. As you guys know. There's depreciation you can pass off. Even publicly traded REITs will. Those dividends will be qualified a little bit differently. And if you're directly owning or you're partnering with somebody, the tax benefits and the leverage is really what I believe the investors like for diversification that you can't quite do in the stock market.

Brady, you were talking about the tangible aspect of real estate. In my, with my prior companies, one of our landlords in our industrial building, you could tell time by when he drove his Crown Victoria around the building and every day he would come. But that's one of the things he wanted to see his buildings, he wanted to touch them. He wanted to know that there's something other than a piece of paper. And boy, it's interesting seeing when you see that Crown Vic go by. But that's what he's looking for.

It's funny that you mentioned entrepreneurials, entrepreneurs having that level of skepticism. And I think I've, now that you pointed out, I think, I think I see that just about every entrepreneur. We had John Hoychon recently for an episode and he talked about he loves being able to feel his assets. He loves being able to have it right in front of him, whereas the stocks, he's like, you know, I never know exactly what's throwing it up or what's throwing it down. It seems like there are a lot of things that wouldn't correlate with stock market that affect that actually do. I once had a, I heard a, an entrepreneur say if I could bury my crypto in my backyard, I would. And there's just this level of like skepticism in things you can't tangibly touch.

That's right. And Jake, in the last 42 years, how many times do you think the stock market was up, finished the year up in last 42 years?

I'm going to take a random guess of 1734 times.

So the stock market's up three out of every four years. So that's good averages. Even with last year's downturn, maybe 10%. But the stock market has been negative intra year all 42 years. So think about that. I mean, so that means sometime during the year you're going to be watching CNBC or somebody's going to tell you why the sky is falling. And some people just don't like that volatility. And it's not that real estate doesn't have volatility. And if you're In Vegas in 2008, you might beg to differ about volatility. So the stock market, it does, you'll just don't have the stomach for it, can't understand it. So it is nice to have assets and not, I mean cash. People use all kinds of different assets to, you know, take off that, that systematic risk of the stock market.

Hey Brady, the you're talking about the risk and getting into real estate or the stock market. One of the things I hear with our investors at Skyline Point Capital is they wish they would have gotten into real estate sooner, earlier than life and then instead of right now in their 50s, in that time frame, what do you see in when people are investing? When should they be adding a piece of real estate in their portfolio or a little bit? Because right now you see people adding crypto right now in that side. Do you have any thoughts on that?

Sure. I think crypto, definitely more speculative. That's in the speculation phase. That's squarely on speculation. So the underlying assets don't drive it as much. Real estate actually has, I mean net operating income, you can actually understand it. I think that's why business owners like it because there's an actual business associated with real estate. And as far as when you should invest in it, for me, it's kind of like a tree. When should you have planted a tree? 20 years ago. That was the best time. And if you have that option, today or yesterday is the best time. So we recommend real estate and all of our portfolios in some form or fashion if people don't have the availability or just don't want to invest the time in doing it on their own. Typically we'll do what are called alternatives, which can give a more direct like feel but nothing like what you, you guys are doing. So we, we always recommend it. It's, as you look back, you're able to leverage it. It's really a great wealth creation tool. I don't know if I have any entrepreneurs that don't have real estate either from their business, second home, something. Everybody we work with has some type of real estate. And I think it's a huge wealth creation tool.

How do you help them think through what type of real estate to invest in? Is there a one size fit all or is it. I know the answer is no to that, but how do you, how do you help them decide where they should allocate their funds and in which type of real estate?

Yeah, I think it's really challenging today because there, there is so many ways to invest. You could invest in a stock, you could invest in an index fund that tracks real estate investment trust. Those, I feel like, start to take on, if you look at the numbers, those start to take on more of the characteristics of the stock market. So the stock market goes up, those ETFs are going to go up and down with those. So I really look at it as we're somebody's personal cfo. So before they, you know, they'll come to me and say, hey, what should I do with this hundred thousand or this million or $1? And then it's always just backing out and looking at the personal situation. And liquidity is the first thing that I'm thinking about, do you need the liquidity? And then second would be do you need income? And then third would be, what's your tax situation? So it really for us becomes on an individual basis to understand which type of real estate to invest in.

Hey, Brady, can you elaborate also on like the rates and how the, the income and the gains are taxed as compared to actually owning real estate where you've got cost segregation, bonus depreciation and etc. Because some people think, oh, if I just invest in real estate, I'm taxed the same.

Yes. If you're, if you're in a really publicly traded one, you're not going to achieve most of those tax savings. If you do some private REITs, they can pass along some of the tax savings on your dividends, but ultimately you're, you're not getting the leverage from the depreciation that you would and the direct investing.

And does it matter whether it's industrial, retail, multifamily or anything like that in the type of investing?

Well, I'm going to ask you that one, Steve. That sounds like a leading question. So what's going on in your mind there?

No, in the sense of, there are some asset classes that have better bonus depreciation. Multifamily is one of them. Depending then retail can have some industrial, somewhat Less just depends on the building itself. And if you're into car washes, they have great bonus depreciation very fast. And that's one of the things that we like is that buying real estate that allows for max depreciation. And that's really an advantage for our investors that they get a chance to participate in that aspect. As compared to a REIT or something like that.

Totally. I mean, we have one investor who is in, I'll say the oil ish business then went into car washes. But that was the main reason. I mean, put all the money back in because you get different tax treatment. As you know, with oil and gas, it falls into that category.

Can you, can you. I want to roll back a little bit. You had said there were three sort of criteria for how to, how to decide where to invest in which real estate they should invest. The tax was the third. What were the first two?

I believe I said, do you remember the liquidity and income needs?

Okay, so, so hypothetically, you're sitting down with your investors or your clients and you're walking them through this criteria to say, okay, well what is your, what's your liquidity needs, if any? And you're walking down through each one and then that helps you dictate, okay, we're doing a REIT or we're doing a passive real estate or, you know, private real estate investing, like what Skyline Point does, or if it's a second house or rental, you're helping them really plan out what they should be doing with this cash as far as real estate goes. Is that I hear you correctly on that?

Yes. And I think that's where people can get into trouble. They maybe wait too much the opportunity and don't look at their personal situation. So if liquidity, if they tie up all their money and then they need to get out, they're probably going to take some type of haircut trying to get that money back. As Warren Buffett says, you know, the market redistributes wealth from the impatient to the patient.

Oh, that's so good.

So we love, so we love real estate. As long, as long as your time horizon allows for it. Awesome way to generate wealth.

Yeah. I love that you have. And it's not surprising because Carson wealth is the best at what they do. But I love that you have a criteria. We had talked to on a previous guest, Paul Young, we've mentioned him a couple times on this podcast. But one of the, I think one of the most profound things that, that not only he talked about, but that I think has come out of Heading west podcast is he had established an investing criteria. And one of the key things was how does this fit within my tax tax plan? Right? You just can't. If you've got excess cash, you can't just throw it into real estate because it's the flashy thing to do, it's the sexy thing to do, or it's the buzzword you really have to take into consideration. And this goes for all real, all, all investing. But we were talking about real estate and he said you can't just throw cash in it because it might completely throw off your whole tax situation, your whole tax plan. And he had had that happen where he had a. One of his CPAs, just didn't quite know the rules and didn't give him good guidance and he ended up owing a lot in taxes at the previous year. And so he made it a rule. Every time I make an investment, whether it's in real estate, whether it's in a business, I will sit down with my cpa, I will sit down with my advisor and we will figure out does this deal make sense for me? Because not every good deal is a good deal for me. And I thought that was such a profound piece of advice and it seems so intuitive, but I hadn't thought about before, so I guess it's not that intuitive. And that's.

And I think about that even on stocks too. If people are, say, day traders and it's almost once again Vegas that it reminds me they'll tell you about all their wins. So they're up. They hit it big. They bought Tesla, they doubled their money. The only thing is, if you're, if you didn't hold it for a year now you're paying income, regular income tax bracket rates on that, that money, you're not getting the capital gains treatment. And then maybe you sit in cash for a while and then your next investment doesn't go so well. So when you start to average it out, you didn't take in the tax computation and your net return might actually be less than, than if you'd have just invested in a, in the overall market.

I find it interesting, quite a few of our investors in real estate, their goal is not to pay any taxes and they're using real estate to have a zero tax liability year after year. Now, as you know, is when you go to sell, at some point, when you stop investing in real estate, you're going to have some capital gains and some tax on that site. But that is the goal. Save taxes today so they can invest more today to take advantage in the future.

Absolutely. And yeah, there are some downsides. You think about recapture section 1245, where you may have to pay different tax treatment on the other side. But any of those calculations that I've ran because of the depreciation, you're getting more money to work and you're using leverage that it offsets any tax treatment down the road.

It, we, you know, we've talked to, we've talked to CPAs, you know, we talked to advisors. We had your colleague Paul west on a few months ago. And in this Real Estate Investing 101, these episodes we've talked about, we've said, and I just said on this episode, talk to your cpa, talk to your advisor. But do you, I imagine you guys talk to each other, right? Like if you're working for Steve and, and, and managing his, his finances, then you're also probably talking to his cpa, right? Steve's not the go between on, on trying to make these decisions. Is that right?

You really look at. Entrepreneurs are awesome at building businesses, whether they're using traction or they've created a leadership team and the org chart, delegation, getting people to do what they're best at. But on the personal side, a lot of times it's all in their head. Right. And it's, it's, it's made them super successful. But when there just becomes too many variables, then it, it, you really do have to delegate. But the component that's missed, if you think about a business, those people are talking all the time. They might be in the same building, they work together. There's some type of team meeting at least once a month or maybe every week. On the personal and professional side, the CPA mate almost never talk to the attorney or vice versa. Or we find the business owner, he hears or she hears one thing and then has to translate it back to the other professional. So we just treat it like a business and make sure the people that need to be communicated with or consulted with are consulted with at the right time.

That's so good.

And we really do look at different asset classes for US Stocks. That's just one, that's just one component. And we start to think about, I mean, yeah, you typically have real estate, most people have private equity. Most entrepreneurs, that's how they created their wealth. So they're very interested in the communities around them. They understand investing in other business opportunities. And that's just one of the reasons too. We love working with entrepreneurs because to a person, all the people we Work with. They're, they're really interested in building people around them, the community around them, just nurturing the ecosystem around them. So we really take serious private equity and real estate. We don't try to talk anybody out of that. That's typically when people come to us what's made them successful. We just want to put that personal CFO hat on and keep the communication. So as the dollars and the zeros become bigger, that being a little more due diligence in those decisions.

Yeah, that's one thing I like about Brady and Carson is in what they do. They're like the quarterback, they're in the middle, they're like the hub with all the advisors around. And the other thing they do really well is then talk with you about how your giving program is as entrepreneurs as they create wealth and et cetera, what do they do with that wealth in the community. And Carson does a great job walking through those steps of how to make a big impact.

Yeah, I like that you said CFO that, I mean that stands out every time you say it to me because you know, I've, I know financial advisors, a few of them through you know, past lives and a lot of times I've, I've noticed that those, those advisors are really executors in the sense of the client dictates what's going on and they just, they, you know, they take action and they incomplete it. And I love the idea of CFO in that this is more, you know, you as my personal CFO are taking, you know, my desires, my goals, my needs, take them into consideration and putting together a plan that makes most sense because I'd like to think I know a fair amount about, I'm financially literate, but I do not want to be in charge of my, of my long term wealth. I will sink that ship so quick. And I love that you keep using the CFO because it makes it sound like, you know, we're, you're really in lock step with your clients to make sure that you're, you're considering what immediately needs to be done and considered as well as the long term future. And I think that's a, that's a much more helpful place to be then, then I tell you what to do and you just execute it. We're going to sink that ship real quick.

And I love this industry. I love helping people. I don't think I'll ever do anything different. It'll always be in some form or fashion helping people. And it's, it's evolved over time. I mean, it's very much product sales in the 80s, you know, by this mutual fund paying 8% commission, very much more product oriented. And if you shift all the way to today, a lot of the work we do here is more around behavioral coaching. And the important part of that is to make sure that Our Advisors, the 125 partner firms that plug into us as a resource, that we're helping influence them to ask better questions. Because we have all the technical expertise we don't really need. I mean, we have tons of CFAs, and all the information's out there. What we really need to know more about is the person. So if we're able to extract and help people articulate what success means to them, maybe, you know, I've had changes in my life where success means different today than it did 10 years ago. So as long as we're able to draw that out, then it becomes much easier to match the possible solution. I have a question for you guys. My best friend having lunch this week and he's never owned real estate outside of his personal residence. And I said, am I doing you a disservice? Because like I said, most of the people that I work with have, have generated wealth through that. And he just said, it's, I don't want to worry about, it's too much time. I don't, I don't want to, you know, be pouring over the numbers. So what would you guys, what would you guys tell him?

You know, that Brady, that's a great question. Because what we hear from people, their first reaction is, I'm being told to go buy a single family home. I'm being told to go buy a duplex or something. And that's what they, they think that's how they get into real estate. But, well, they've done is taken on a job and hassles and we don't recommend that. But for some people, that may be a great solution for them because they're very hands on and, and that's, that's their job. But what we find is that people want to be involved in real estate, but they don't want to manage. They don't want, they don't want anything to do with operating the, the asset itself. And that's where companies like Skyline Point Capital fit in. Because what we do is that we go buy the property through a syndication. And what that allows you to do is bring investors on that want to participate in real estate, get the quarterly distributions, get the tax depreciation, and when you pull everybody's Money together you can buy very, very nice properties that all the investors get a chance to participate in the benefits of real estate without operating that. And that's what we do. Skyline Point Capitals finds the property, finds the property managers and then acquires that. And then we work on the day to day. It's our job to do all the heavy lifting while the investors can be passive investors and enjoy the benefits of real estate.

Yeah, I love that because I think on the one side where we're talking about a vanguard publicly traded re, I don't really think you're getting the upside that you can out of real estate. And then way on the other side it's while you could go buy the property on your own and you're. What most people are probably imagining is that they're fixing a toilet on Saturday morning and they don't want to do that. So I really like the sweet spot of hey, that you're, you're getting as close as you can to direct investing without enjoying those benefits, without having to do the work. And you probably learned something along the way. I mean one of my favorite books is Exponential Organizations and it talks, talks a lot about how to go faster is just to outsource and learn from others mistakes or partner with others. So I, I think this is a great way to, for people that want to do it on their own to learn or, or if they don't, this is probably the most upside way to directly invest.

Yeah.

And Brady, the other thing too is with our investors, we encourage them to go visit the property. I had an investor that's in our properties and we have a couple in Nashville. He went through the parking lot when he first bought it and then just recently went through it. And he was so amazed how great the property looked, how the, all the changes we made, how we upgraded it. But the neat thing is our investors and partners, they're part of the team, we want them to go visit the properties. We want them to be involved and do and learn about real estate, learn about passive investing. And so they are partners with us, their jots, not just a number. And we encourage all our investors go visit the property. Because you own it.

Yeah.

One of the, one of the reasons why we started this, this podcast series, Real Estate Investing 101 is because we wanted to give potential investors and those interested in real estate investing in general a foundation of knowledge to be able to, to build upon and to get started right away. I think what, what keeps people back from investing in real estate is they think, well, I don't I don't even know where to start. Like, I don't, I don't have the knowledge and therefore I don't really trust myself to do this the right way. You know, it's like if I got started in real estate, my first thought is buy a second house, buy a duplex manager myself. We already talked about the problem with that. And, and I'm not saying that's a bad investment because if that's, if you want to be in the nitty gritty of it, you want to manage it, you want to deal with the tenants, like you should do that. That's a great opportunity to learn, you know, by getting your hands dirty. But if you just want to invest in real estate and trust that somebody else is managing it for you, passive real estate or private real estate investing is the way to do it. And it allows you to get the benefits of real estate investing without having to have all the knowledge. It's like I have a financial advisor. If I took, if I use the same sort of logic for why I don't invest in real estate, I would be managing my own financial investments in day trading. I'd rather just give it to a financial advisor because they know what they're doing, I can trust them and I can learn along the way. And so we found that the private real estate investing allows them to get all the benefits and it allows them to learn along the way.

And I'd imagine as Steve mentorship, something that's you, you've provided to others through your business and through real estate. Now I'd imagine some people that are newer to it, do they, do they end up wanting to do more of it? Do they start to get a bug for it? How does that play out?

Everybody is different. Everybody is different. And the younger generation wants to get involved in passive investing and they are thinking, what is could I own a 48 plex or a 60 plex in the next 10 years? And then you get the, if you're later in life, you don't want. We have investors that just want to take advantage of real estate, invest in it and let someone else handle all the problems and issues. And it's back to you Brady talking about it tg TGIF on a Friday night. It's that risk in return and reward and how you're going to spend your time. And everybody is different. But the common denominator, they want to be in real estate.

Yeah. And they want to keep doing it. You know, they, I, I have a chiropractor who's who's invested in real estate. And I, I imagine his, his yearly income continues to rise and so he's wanting to, to increase his real estate investing so he could offset his tax burden at the end of the year. And he recognizes that real estate's a great asset to own in order to offset the income taxes he's going to pay each year. And so as he's growing, he's trying to invest more. Every time I see him like, hey, we're ready to start, we're ready to invest what you got coming on.

Jake, before I lose, I don't mean to cut you off, but I'll forget about it if I don't start talking.

Yeah, please do.

One of the things you talk, it's about building of income, right? That's the security that people really enjoy out of real estate. You keep building an income over time. You really aren't worried about any volatility in the real estate market because you understand what your income is going to be. And then of course the 1031, which I think most people listening to this understand, you can't really do that with stocks. I can't sell Apple and then go into Microsoft and it's a like, it's a like stock and not have to pay the capital gain. So those are two things that stand out to me is you can just keep leveraging the tax savings and then just building your income over time. And one more I'll throw, I get if we're really getting into more affluent households where federal state taxes become an issue, those are, those are great assets to end up putting into trust to moving down to next generation. There's just a lot of, excuse me, estate planning strategies that real estate pairs well with.

Brady, you mentioned the income, what we see with our investors, a lot of our investors are earning income by the number of hours they work, the number of clients they see, the number of patients they see. Their income is tied to their activity, their job and et cetera. And what we see our clients doing is building that plan B revenue stream that's not tied to their day job because something could happen and, etc and their income would change. So they're putting money into real estate for that passive investing. And we have some investors that are getting close to supplementing their income of their day job. And especially in the medical field that is totally changed and it's much more difficult in from eight to five working in the medical arena and what we hear from the medical community, I want to work less, I want to work less and what they're using. And they're using real estate to do that, provide that passive income to the point that they can enjoy life on their terms and not have to working hour after hour after hour to get that fund.

I'm so glad you said that, Steve. That's near and dear to my heart is thinking about not just your wealth by your time. We did a. For March Madness, we have a lot of benefits here at Carson, so they did a bracket. And the one that won the best benefit that people voted was flexibility. So it's not. This is, this is the generation, the younger generation, they want more flexibility. They don't want it tied to how many hours they're sitting at their desk. And we also have a find your freedom program here. And really what I think people, if they weren't required to depend on a paycheck, they would maybe structure their days differently. So I think this is really appealing to next generation who doesn't think about things quite maybe the way we did as far as hours in. It's just a really smart way to think to have more control over your time.

Build that plan B revenue stream.

Yeah, call Brady. He'll help you figure out that plan B. Brady, before we wrap up, I want to just check. Did we miss anything? We've talked about a lot of areas, but was there anything that. That that stands out that we should cover before we wrap up?

I would just say when you're. When you're gonna go into something ill. Liquid and it's over and it's in an area that you don't know about, really do partner with somebody. Partner with someone that has been there before. I don't know, like you guys that are in it every day and understand the properties that you're buying or even an advisor that's more well versed in those. Those real estate or illiquid assets.

Not.

Not everyone is an expert in those types of areas. So make sure you find somebody that's been there before.

Love that. Well, Brady, where can people find you if they want to get a hold of you or Carson?

Well, you can go to carsonwealth.com I'm sure we have a bunch of Twitter feeds and handles. I met our PR person, so we're pretty easy to find.

Yeah. Yeah. Well, we'll link everything to this episode. So if you want to get hold of Brady, you can reach out to him directly or Carson Wealth. But Brady, thanks so much for joining us. That was, that was such a blast to be able to chat about how real estate can grow and protect your wealth. I'm looking forward to our next conversation.

It was awesome.

Thanks.

Thanks, gentlemen.

Thanks, Brady.

Good you're doing. Take care.

Appreciate it.