EP 2: Why Should You Think Outside The Stocks?

Are you frustrated watching your hard earned money ride the knee jerking Wall street roller coaster? Are you looking to diversify into alternate investments and set them on autopilot to achieve financial freedom? It's time to learn the ways of the wealthy. It's time to think outside the stocks with your host Madhvi Jain, an immigrant from India and ex IT professional who will bring you industry experts to illustrate a passive and holistic financial approach to build not just passive income but also your generational we Madvi is on a mission to change the financial trajectory of one family at a time. And a thousand more to go. Are you going to be part of this vision? And now without further ado, here is the host of Think Outside the Stocks, Madhvi Jain.

Hey hey hey. Welcome to episode number two with Think Outside the Stocks. I am so glad that you are here and today we are going to start a short course about making active cash flow with completely passive commercial real estate investments. So let's get started. I do want to mention that this is an educational information purpose only. This is not an investment offering. So please keep that in mind. And with that I want to mention that episodes 2, 3, 5, 6 and 8 together is going to be that short course for you. And if you are a visual person like me and if you do want to access this short course you can in a presentation mode go to our website www.thinkoutsidethest.com, join our membership and get access to this short course in a presentation mode. So let's get started. Episode number two. I'm your host Madhavi Jain and we are starting a short course about active cash flow with passive commercial real estate investments. In this course we will have five different modules. The module number one that's Today we will talk about why to think outside the stocks. In episode number one we briefly touch base it but we will elaborate it in this episode episode number three which will be module number two we'll talk about is the real estate even right choice for you? The third module we will talk about can rental real estate be really passive? In module number four we will actually open that key to passive real estate investments. And we will talk about you don't need millions of dollars to invest in multi million dollar properties. And lastly we will talk about the process to invest and how you can participate in these investments. So let's get started. Let's talk about why you should think outside the stocks. We talked about your top three or four reasons. One being the roller coaster ride in the stock market. Number two that you are tied to your W2 income and you want to create that systematic financial freedom approach. Number three is your increasing tax liability and you do want to create that cash flow with the tax month strategy. And number four, to find out if the real estate is going to be a right choice for you and how you can passively invest in the real estate world. We also talked a little bit about me in episode number one. But today I will actually jump in my story and tell you how did I get here? How did I, the first generation immigrant coming to the country making to the top five consulting firms started my journey in the reverse engineering way in real estate and how did I create this alternate path of income in real estate? So let's start about it all the way in the beginning. I am a first generation immigrant from India and in my childhood actually I grew up in a household where men were supposed to take care of the financial structure of the household and women were supposed to take care of the household. Being a girl child actually I did not had any interactions with financials of my household. I actually didn't even go to the bank or know how to transact in a bank till I was 18 years of old. My parents however gave me different opportunities and insisted that I complete my post graduation. So education was really really important. Well, fast forward. I came to this country as a first generation immigrant in 2002, 9,000 miles away from my roots. I literally started my life from scratch with my husband and with couple of suitcases and few hundred of converted dollars. Like many, I struggled to the visa issues and I was the fortunate one who actually could transfer from a dependent visa to work visa and started working and when I landed a job in one of the top five consulting company, I was living a dream. We had great jobs, we had kids, we purchased our first home and we were living a dream. But then 2008 happened. 2008 happened and both me and my husband lost our jobs on the same week when I was pregnant with my second child and I was about to give the birth and that's when we moved from California to Austin, Texas for the job and we lost our primary home in California to 2008 market and we restarted our life from scratch all over again in 2008 in Austin. In 2015 however, my story took another turn and because of health I had to quit my six figure corporate job and my corporate career came to a screeching halt. And now with my daughter in a middle school, I had that education in mind for her and I started my financial freedom journey In a reverse order, when I exited corporate in 2015 and started my real estate, I thought that the rental real estate was a of part passive income strategy. And I started building my rental portfolio and also had an Airbnb. But I soon realized there is nothing passive about this rental real estate. And I had tremendous, tremendous amount of problem especially with one tenant who literally trashed my house so much that I had to pay $5,000 to take his stuff out of my house and we had to spend another $15,000 so together $20,000 to just bring its glory so we could rent it to the next tenant. This house was making merely $200 cash flow so it would have needed hundred months to just break even. And this is when I found the key to this passive real estate world. And I was mind blown. I was mind blown. I was happy, but I was actually restless. I was restless. The community that is working hard, saving every dollar possible and putting their hard earned money in stock market, they still don't know strategies. And that's the passion that pushed me to start think outside the stocks passive real estate investments and couple of other tools that I found from wealthy's toolbox is what became my passion to bring to my community so I could educate them and also bring in those high quality investments for them so they can look at it, review it and invest in this hassle free, completely completely passive income strategies. And now as an active commercial real estate investor I have a portfolio of about 790 unit apartments and 170 million in value which I have invested as a CO GP and partnership with my passive investors and very strategic relationship with great syndications. I also like to educate about infinity banking system and very strategically create this strategy to make your savings efficient so you can create your own banking structure. Now going back, let's talk about why you should think outside the stocks to get a glimpse of how well they think. The rich dad of our country, Robert Kiyosuke has come up with this tremendous concept called cash flow quadrant where he talks about four quadrants. The self employed, the employed business owners and investors. As a self employed you are actually paying more taxes. You are paying the employee part. This is the highest tax bracket you would have as a W2 income earner which most of our listeners are today. You get the income paid first, then you pay taxes and then you start paying for your expenses and the tax liability for you is increasing every year. The business owner, however they get their income, they pay for their expenses first and then they pay the taxes. By flipping this switch between paying the taxes later after your expenses, the business owners are saving a lot of money. And the investors, the wealthy of America actually are creating that passive income streams first, then applying multiple tax write offs on this income, then paying for expenses and then paying for taxes. And as a result they are the one ending up paying no to zero taxes. Another reason that you should think outside the stocks is when you go to a typical financial advisor and you talk about diversification, they will provide you diversification option within the stock market. When you mention about the real estate, they will provide you a real estate investment option within the stock markets, which is typically REITs, right? But the wealthy of the country have completely different approach when it comes to diversification. When the financial advisor offer you real estate investments in REITs, it's a very tiny portion, about 5 to 7%. But wealthy of the America about 25 to 45% of their portfolio goes in direct real estate investments. And very interestingly, according to the Gallup survey, America's top investment pick is real estate, which is about 35%. Then stocks and mutual bonds in 21%, series in 17% and so on and so forth. The problem as a W2 employee is that you are constantly exchanging your time for money. When you spend time, that's when you get the money in return. But wealthy of the America think a little differently. Wealthy of the America are creating 7x income by creating these seven streams of simultaneous passive income. So when you are exchanging your time for money, when you have that 8020 proportion of the time and the money, the wealthy of the America are doing the 20:80 proportion where they are spending minimal amount of time but making the maximum impact to their income. For you to start thinking about that financial freedom, it has to be a very systematic approach. First of all, your W2 job is very, very important. This is the job that is going to help you create that equity, that cash, so you can invest passively in this income streams. So number one is to create that investable dollars from your W2. Number two is to diversify into passive real estate. Now remember, I'm saying passive real estate. I'm not just saying real estate, but passive is a really important word here. And the way to achieve this passive income through real estate is syndication. Syndication is that key to passive real estate. And we will talk about that in next episodes and further modules. So here is the reason why you should consider passive real estate. Your W2 income creates the investable dollars. The passive incomes creates that multiple passive income streams for you, which leads to the financial freedom. And then you can focus on that purpose and passion. Because I'm sure each one of you have that purpose and passion in mind that you want to spend time in. Whether it is going to be a yoga studio, a philanthropic effort or or even a spiritual path or hiking to Annapurna base camp. The your purpose and passion is waiting for you around the corner. And every day of every month of every year that you're not spending time in your purpose and passion, there's this one person, one life who's supposed to get inspired by you is being deprived of this inspiration. So think about what you can spend your time in the purpose and passion when you will start creating this financial freedom for you. Again with Think Outside the Stocks I like to focus on beyond this financial freedom the ways of wealthy to grow, preserve, protect and pass. That is also important. And how do we take this holistic approach to generational wealth? I like to look at it from the Maslow's pyramid structure point of view. You need to create a solid foundation of your financial structure. This is the foundation where you have your risk free efficient savings so you can sleep well at night if something happens tomorrow to your job or you need emergency fund. This is your sleep well money that you build your foundation on. As you start going up in this pyramid, you start investing into direct investments and indirect investments. As you start going up, your control is going down and your risk is going high. And these are the investments that you are participating as indirect investments. And we will talk about these multiple streams of income. Further and at the top sits the speculative investments where you have this high risk, high reward kind of ratio and this is your stock market investment. Most of the people and my investors that I talk, they have this pyramid in an inverted triangle. They have the speculative investments as a broad base of their financial structure. So we think outside the stocks podcast when we are talking to this industry expert we will focus on creating all these layers of passive income in a very risk managed way. And finally we will talk about these four cornerstones of your financial structure. The tax planning, the legal asset protection, the life protection and estate planning so you can grow, preserve, protect and pass this generational wealth from the toolbox of the wealthy as we talk to the industrial experts. So again to wrap up we think outside the stocks. We will talk about multiple diversified options in commercial real estate like multifamily apartment complexes, self storage, industrial mobile home parks and more. We will talk about the holistic approach about getting your savings efficient with infinity banking systems. We will talk about tax, legal estate planning, life planning, protection and we will bring industry experts. We will get their point of view. We will also ask them how do they think outside the stock so we can learn from their successes. With this we have come to the end of episode number two and in the next episode we will talk about is the real estate right type of investment for you. So stay tuned. Thank you so much for joining again and I will see you in episode number three.

Thanks for tuning in to the Think Outside the Stocks podcast. If you enjoyed today's episode, please like and subscribe. MADVI is on a mission to change the financial trajectory of one family at a time. With a thousand more to go. We hope you'll be a part of this vision. Please join our growing community and to get your journey started, visiting thinkoutsidethestocks.com to download your free guide on active income with passive real estate investments. If you learn something new, please share it with one person today. And if you have 60 seconds, please leave us an Apple review to help us reach more people like you. Tune in for the next episode.