EP25: A Think Outside The Stocks Milestone Episode: Summarizing our learning and strategies

First things first, I do want to thank you immensely for tuning in for listening and making our podcast top three person in the entire world out of 3.5 million podcasts. Yes. That's incredible. And I couldn't have done with your support the way you have been tuning it in, listening in and providing me your feedback. It has been greatly, greatly helpful for us. Thank you. This is what helps us to keep this motivation and bringing this diversified information to you because I know that you really like it. And by the way, not only we are top 3% globally, but in India, we're actually number 17 in the business podcast. So that is an incredible achievement that we have achieved together. I have to give it to you. So thank you. Thank you so much. I am so grateful that we are in this together.

Are you frustrated watching your hard earned money ride the knee jerking Wall street rollercoaster? 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 wealth. Madhvi 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 back to a very special, special episode with Think Outside the Stocks. It is our 25th episode and I am so excited to have you on this journey with me. I am so excited and grateful for your Support on this 25th milestone episode. What is going to be different about this episode? Today, I'm going to have just this one on one really truly connected conversation with you where we are going to look at together what our journey has been so far and where are we going from here. But before we go ahead, I do want to mention that this is information and education purpose only. Whatever we are providing as an education on this podcast, please be sure to do your own due diligence on it. Consult your tax professionals, your lawyers so that you can implement this strategy in your financial structure. First things first, I do want to thank you immensely for tuning in, for listening and making our podcast top 3% in the entire world out of 3.5 million podcasts. Yes. That's incredible. And I couldn't have done with your support, the way you have been tuning it in, listening in and providing me your feedback, it has been greatly, greatly helpful for us. This is what helps us to keep this motivation and bringing this diversified information to you because I know that you really like it. And by the way, not only we are top 3% globally, but in India we're actually number 17 in the business part podcast. So that is an incredible achievement that we have achieved together. I have to give it to you. So thank you. Thank you so much. I am so grateful that we are in this together. Today being our 25th podcast episode, I want to take this opportunity to look back, look back what we have achieved. Well, we started from understanding the problems you did not know you had. We started understanding the problems with 401ks, your retirement account. We started understanding the problems of your saving institution, that is the bank and we also started discussing the solutions for it. We talked about infinite banking strategy as a saving strategy and we also talked about commercial real estate focused syndicated real estate investment opportunity to diversify outside of the stock market. Think outside the stocks. Right, Think outside the stocks. It's not just the out of the stock strategy by the way, it is that out of the box strategies, out of the stock mentality, out of the box mentality that we bring it to you. The problems you try to understand in your saving institution it not only the fluctuations of the interest rates but also taking that taxes away from what interest that you have been earning and hence eroding to the inflation while keeping your hardened money into the savings account, into the bank in the institution versus creating a compounded snowball within the infinite banking system with mutual companies which have been in existence for for over 150 years, hence creating this saving structure for whatever you want to use it, whether it's your savings, your emergency, your kids education, your retirement. This is that secure blanket that you actually have which is the foundation of your financial structure. On the other hand we did look at the rental real estate, that being the passive investment strategy and how it has been difficult as a landlord with skyrocketed home prices, with high interest rate and the recession that is the market cycle that is fluctuating the house values. Now beyond this we looked at different problem areas of being a landlord and top one being the tenant toilet and trash, the problems with the tenant and compared to that for busy professionals like you to invest in completely passive syndicated real estate investments where you can literally get that mailbox money, get that money, the distribution and the upside in your bank accounts Directly without lifting a finger, as I say. But hey, you do have to lift a finger to check your bank account to click and see if you are getting that distribution and also those newsletters that updates that you keep on getting periodically. So we talked about these problem areas and we talked about the solutions too. Over the period of this last 24 episodes. We also talked to the variety of guests from you know, the top selling author to a coach to woman powerhouse in this industry with billion dollar portfolio, the mad scientist of multifamily, the first lad of lending and variety of experts. We also heard really, really touchy stories about people who started in real estate with like 130,000 in debt or creating their first rental portfolio or having a police chase around their property and having a tenant in a jail. So all the, all the variety of stories and what we learned is that how the syndicated real estate investments are actually helping them to scale whether they're investing actively in it or passively in very interestingly, we also talked about the case study of our very first syndicated deal when we close on this property. Within two weeks we had a fire incident in this property. Thankfully nobody was hurt. But how we can actually implement our business plan, still survive by taking the right actions, right steps for this particular disaster that was struck and how we exited that deal in 19 months giving great returns to our investors. Now at this point, I do want to address some of the questions that I have been receiving so that I can address those questions for you and help you understand that where you can go from here. Well, with think outside the stocks. We do offer help in both these strategies. Whether it's infinite banking strategy or investing in commercial real estate. Let's take one by one what to expect in infinite banking strategy. People often ask me, hey, I'm a 55 year old person, can I implement this strategy? Well, infinite banking strategy is for everyone. I have implemented this for a person who started his first job right out of the college and I have implemented somebody who's very close to retirement as well. What is really important to understand that you don't need any kind of accreditation to put your money into infinite banking system. That is your own banking system you can implement at any time. I wish in my 20s or 30s somebody had told me about this strategy and had started it early on as early you started, it's beneficial for you what you should expect that once you get in touch with us, we like to understand what is the purpose that you want to implement it for. There are people who want to invest it in the real estate and utilize this strategy. Somebody who wants to put the money away for college education for their kids, they can do that as well. Somebody who wants to retire early and want to create that retirement income, they can do that as well. So first of all, we try to understand what is the purpose that you want to implement it for. Then we understand where you are in your financial structure. We try to understand your income, we try to understand what net worth you have. So we can propose a better model for you that is suitable for your financial structure. Once we start that, we also parallelly provide you that continuous education. Simplified education is something that we are very, very proud of. And we like to help one family at a time to help understand this structure. Once we create a financial model for you, we present it to you. By the way, we can create this model with multiple companies. We are not tied to a particular carrier, we are independent. That means you get an advantage of having this financial model from different companies. Once we create this model now, we tweak it. We keep on meeting and understanding that if this is the best suitable model for you and if we not, we keep on changing, keep on tweaking. Once it's settled, once you like it, we send it to approval to these companies. Once they approve, now you execute it, start funding it and if you want, start utilizing it in the first year itself. So that's how the infinite banking structure works. Infinite banking is not your ordinary life insurance. I want to insist on that. It is not based on your IUL product too. It is a whole life product with a mutual companies which is providing you consistent dividend year after year. This is the only product that can have the work guaranteed tied to it. So remember that when we are implementing this strategy, we cannot utilize a life insurance product that you may already have. Because not many life insurance policies are structured correctly to handle this. In fact, many life insurance agent don't even understand it. Maybe about 2 to 4% life insurance agent understand this infinite banking structure. And the purpose of me going through the license is to help implement families this infinite banking structure. So keep that in mind. Now let's talk about the commercial real estate strategy. Why should you invest in commercial real estate? Because it is a risk managed investment. It provides you true diversification outside of the stock. It provides you tremendous tax benefit. And as compared to the S and P growth, it has been providing consistent high growth for 10, 20 or more years. And the last reason that you should invest is because for busy professionals like you, this is completely, completely passive. A completely hassle fee strategy. You can create an active income using complete passive strategy. Once you decide that you want to move it into this investment, you actually just execute, push that money and just sit back and relax. The syndication team, who are the experts managing these properties, they are the one going to manage it, maintain it, implement the business plan, provide that cash flow to you, provide that upside to you when this property exits after implementing that business plan. Now let's talk about the commercial real estate strategy and how think outside the stocks can help. Well with think outside the stocks, education is the paramount. We are also starting our live education series that is Passive Power Hour to educate passive investors like you to ask those right questions so you can conduct your own due diligence on these investments. So the number one is the education that's important. This podcast is definitely our effort to add value, add that education to your mindset. Join us for Passive Power Hour so we can take this education further. Giving you the education is not sufficient. When I heard about the syndicated real estate investments and I wanted to start investing into it, well, lo and behold, I did end up making my first investment mistake. I fell for the shiny numbers and whatever the projections were reported to me based on that, I invested in that investment. That investment has still not paid me a penny out of the investment, cash flow or anything that's going on. So learning from that access to high quality investments is really, really crucial and we are passionate about that as well. When it comes to bringing high quality investments, we have few pillars. Number one pillar is trust and transparency. We have that in any connection, any relationship that we have, whether it's our relationship with investors like you or our relationship with a sponsor team. The second is risk managed conservative due diligence process. We look at these investments very, very conservatively. We look at their assumptions, especially the financial assumptions, the underwriting process. How are they projecting their growth? How are they projecting that projected returns? Say for example, if they are projecting a rent growth of 3%, which is in line with the historic inflation by the way, versus 7% just because the inflation was higher in last couple of years. If they project the rent growth with 7%, their projected returns are going to fall in a really, really high range. And that's why the conservative assumptions are really, really important. This is just one aspect of it. We do our thorough, thorough due diligence. That's one of our pillars too. Whether it's underwriting the financial, the sponsor due diligence. That is the one key aspect. By the way, a good sponsor can take a good deal and can make it go further. But a bad sponsor can take a good deal and make it really, really go bad. So the sponsor due diligence is really really important. We bring in best in class syndicated partners to partner with them and partner with them to provide you that risk managed growth to your hard earned money. And lastly, the true, true diversification. When we are thinking about diversification outside of the stock market, why just limit yourself with just one asset class that is multifamily or apartment in? Think outside the stocks. With our diversified fund platform we actually bring in different asset classes. Whether it's multifamily or apartment complex, whether it's self storage, industrial, real estate, ATM investments, we bring in different asset classes. So you now can create a completely diversified portfolio based on the blended performance that you want to achieve. Now let's talk about that blended performance. Think outside the stocks. Diversified fund has a very interesting model. Not only we have out of the box strategies, but the model itself is an out of the box model. How, you may ask, have you invested in a fund lately? How do you invest? You maybe take 50,000, 100,000, put it into that fund and that fund allocates that money to all the investments within that fund. You don't get to pick and choose on what particular investment this money is going to get allocated to. But we think outside the stocks. That's not the case. It is not a blind pool fund. Our mantra is your investments, your choice. And how do we implement it? Well, we think outside the stocks. We can bring you multiple investments in multiple asset class with multiple syndicated teams. But you get to choose based on your decision making criteria or your return criteria that you want to achieve. For example, if you have a steady W2 income and you don't care about cash flow but you are really interested in increasing your net worth, then you can go something like a ground up construction which is not going to give you any cash flow during that period of two to three years to build and sell that property. But you are going to get a really heavy upside, the projected upside that they are projecting at the end of the investment. But now if you are interested in creating a blended cash flow as well as the equity returns at the end now you can go in an asset class, something like a multifamily or self storage, where you get say moderate cash flow, 7%, 6% annually plus that 7% 6, 7, 8% growth at the end when the investment actually exists. Or you could be in a situation where you're actually scaling back from your W2 income and the cash flow is really, really important for you. Then you can go in something like an ATM investment which provides you tremendous cash flow, really heavy cash flow, but no principal or no equity return at the end. So you get a consistent cash flow for five to seven years and the cash flow stops. But while it's providing you that cash flow, it's providing you really, really heavy cash flow. So there you go. Based on where you are in your lifetime, you can now create your blended performance. By blended performance, what I mean is to have only returns at the end, little bit heavier side, or have little cash flow, little returns, kind of a blend with the multifamily or self storage investment, or just have heavy, heavy cash flow and no returns at the end, like an ATM investment. So this is how you can actually invest in. Think outside the stocks fund with your investment, your choice. You bring in the money only when your choice of investments are ready to execute and you implement that strategy. So say for example in January, if you bring in an investment, you invest in that, something else comes in February, you don't want to invest in that, you stay out, something else comes in April, you invest in that, you bring in money only in January, only in April. And the beauty of it is that all your dashboard is going to show you all of these investments together and it's going to show you what is providing you that distribution, what is going to provide you that equity. So you get all the view on one dashboard and wait for it. The best part is you get one K1 that is a one tax form at the end of the year for all these investments altogether. Now if you have been a passive investor, I know how many K1s that you have been getting. It could be 10, 20, 30 based on the investments that you have done so far. But imagine all your passive investments in the think outside the stock diversified fund. It gives you just one K1. And yet you are able to select what investment, what properties, what syndication team that you want to invest in. And you can just trigger your investment based on your decision, your criteria of how you want your returns. So there we go. We talked about, based on your questions that you had that how you can implement either the infinite banking strategy and how you can implement the real estate syndication strategy. Now, real estate syndication strategy. Keep in mind that in our fund you can only invest if you are an accredited investor. And what it means is that if your single earning for past 2 year is 200k or up, or as a joint earning it is 300k plus or not. And or if your net worth, excluding your primary home, is $1 million, you can invest into our fund, which is accredited investors only. We talked about infinite banking as a standalone strategy. We talked about syndicated real estate as a standalone strategy as well. But the beauty of it is that you can actually blend them together and you can utilize the strategy of infinite banking, which is called an and asset, and I will explain that again to you. But now you can implement both these strategies simultaneously if you would like. How can you do that? Let's go back to the example that if you have been saving your investment money in a traditional bank account, say the bank account has $70,000 in it, and now you create an infinite banking Strategy, which has $70,000 in it as well. So now both these institutions have $70,000. When you want to invest from your banking institute into, say, commercial real estate investment with a 50,000, you're going to take that money out, your bank account is going to deplete to 20,000, you're going to take this 50,000 and you're going to invest into the commercial real estate. However, on the other side, with the infinite banking strategy, now you can implement without taking that money out. And this is why it's called an and asset. So with the 70,000 in your banking account, in the infinite banking structure, you're going to go to the bank lenders or the insurance company, say that, hey, can you give me a leverage or a loan for 50,000? Because I have this money sitting in this bank account. Since you have this money, there's going to be no questions asked. This institute is going to give you that money, lend you that money, and you are going to implement that into the commercial real estate project. You might have a cost to it, which you can pay as a simple interest, but inside the banking account, that 70,000 never got depleted. You got 50,000 at some cost from somebody else. You implement in the investment strategy. So your 50,000 is working in the investment strategy. Your 70,000 is working into the infinite banking strategy, which is, by the way, compounding year after year, tax free, and creating that financial snowball for you. So this is, my friend, how you can implement either the infinite banking strategy by itself or the commercial real estate strategy in a diversified fund model with the mantra, your investments, your choice. Or you can blend them together, create an and asset for you, and then whatever purpose you want to build it for real estate investments, college education for your kids or your retirement income, or your emergencies for your business, any purpose that you want to start utilizing these strategies, you can start utilizing it if you want to know more about it and how we can create this structure in your personal scenario. I would love love love to have a conversation with you and help you with it. If you are interested just go to bit ly call, think and schedule that 1520 minute call with me just to help you understand any of these strategies are even right fit for you. As a principal, I do not like to push even though I believe in this strategy strongly. So jump on a call with me and try to understand if this is a right fit strategy for you. And if you want to continue your journey of education with us, join our live educational events where you can come in, learn, get educated, get that information, get to ask questions and also mingle with like minded investors like you so you can understand what are the bottlenecks other people are facing and how they are solving their bottlenecks. So if you are interested I'm going to post links for Passive Power Hour as well. So if you are interested in joining our Passive Power Hour, just go to Bit Lynn Passive Power Hour and register for our bi weekly webinars every Tuesday 6pm Central. I will see you in our next episode really soon. Thank you so much for your support.

Again, 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 central 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, visit 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.