Real Estate Fire Sale: Is it Time to Buy?

We are live, everybody. Is it a fire sale in real estate? Is it time to buy real estate? I hope to answer that question for you today and explain what's happening in the market. Frankly, I think it's turning into a buyer's market. We should be looking or at least thinking about it. I'm going to explain why. My name is Mark Kohler. I'm a CPA attorney. I've got a great explanation as to why real estate should be a part of your portfolio, how it can make you more money. Why real estate should is a part of of all my wealthy clients portfolios. And I'm excited to be here. I own real estate and I'd like to buy more real estate. So we're going to break it down now. I'm also going to give away some books today. The Tax and Legal Playbook, one of the best selling books on the market for tax strategy planning. I'm going to give those away. For those that are attending, I'd love to answer your questions if you're able to join me live. We're going to talk about real estate and I'm going to give away a free ticket to my real estate tax summit in Austin, Texas at the end of this month. It's the first real estate tax summit for two days I've ever seen out there. We're going to hit 18 topics on short term rentals, long term rentals, real estate professional strategies with S Corps asset protection, integrating it with your tax planning, my top 10 tax strategy for Realtors and real estate professionals, developers and flippers, 1031 exchanges, opportunity zones. Whoo. Seg. We're going to hit it all. So that's later this month on September 29th and 30th in Austin, Texas. It'll be a virtual event as well. You can get to markjkohler.com to sign up and I'm going to give away a free ticket here to those that are here near the end of this presentation. I'm going to keep it tight. I will not keep you here long. And this is going to be power packed. I want to go to the whiteboard. Guys want to go to the whiteboard. By the way, I've got a little after school special going on on Labor Day. My tickets to the workshops, several workshops and my books are also all 25% off this weekend. So if you want to check that out. Okay? Now I'm coming to you live every week to talk about small business and real estate and crypto and making money and building wealth and protecting it and today it's about real estate. Now here, here's where we're at now. The across the country, we're seeing anywhere from real estate values freezing to also good, going down 5 to 15% in a variety of markets. Real estate values are going down. Now some of you are like, well, Mark, interest rates are going up. It's not the time to buy. Interest rates suck right now. Slow down. Let's back up and figure out how did we get here? Why are, why are real estate values coming down? So here on the whiteboard, let's throw this out. Here's what happened in the last two to three years. Besides, you know what? Okay, interest rates were going down. So when interest rates go down, there we go. Interest rates are going down and the government is dropping in. Let's see into our world. $5 trillion of stimulus money. What do you think is going to happen to real estate? Real estate values have gone up, all right. We all have seen that. Many would say it's been a seller's market, right? If you wanted to sell, this may be the time to cash in. This is where we've been the last two years. All right? Now all of a sudden we get the big I word inflation. Oh, no, what's happening? Now we have inflation. And so with inflation, what happens? Interest rates go up. Now let's see what happens to real estate values. What's kind of cool here is as interest rates go up now, you know what, I want to back up and say this, this 5 trillion in stimulus and interest rates going down. I think of the F word frenzy. It turns into a frenzy. Everybody's freaking out. I got a, I got to buy real estate. Interest rates are down, you know, and I'm staying home, I'm working, you know, more from home. I want to buy a home or I want to, I want to buy rent. I get the real estate. Real estate market went nuts for the last two and a half, three years, right? We're on the end of this kind of 10 to 12 year run. And so this frenzy creates a run up in values. Now with inflation hitting, all right, and then interest rates going up, oh, what's going to happen? Well, if interest rates go up now, this is kind of cool. If interest rates go up, what happens to your payment on your home or a rental property? Right, the payments are going to go up. So we have a higher mortgage payment. Okay? So a lot of people, I've had college students come up to me and go, yeah, I wanted to buy a home now. But you Know what? Interest rates are up, Mortgage payments are up. That's not good. That's not good. Okay, well, whoa, whoa. What happens when these interest rates go up and inflation goes up? Finally, we're seeing home prices go down. So home prices are coming down. Rental properties, commercial property are all adjusting, like I said, anywhere from 0 to 15 to 20% in a couple unique markets, real estate prices are down. So we're going down because the interest rates are going up. Now, here's the beauty of this, people. When home prices go down, what goes down in order to get into a home or a rental property? I'm going to put this in red because I love this. Okay, what happens now is your down payment goes down. So as your down payment goes down, you have more capital to use. And so you may say, well, mark, my higher mortgage payment is 2 to $300. My mortgage payment is up right now. I can't afford that higher mortgage payment. Well, let's turn around and go, yeah, but you couldn't get into a home because it needed such a damn down payment. You couldn't afford it. Right, Such a large down payment. So now my down payments down. So let's say, and I'm seeing clients of mine and family members and friends saying I'm now able to afford a home because prices have come down and I can get into a home and that I can save 10 or 20 grand. So my down payment may be $20,000 down or less in down payment. So I just saved money that I don't have to use as a down payment. Now, yes, my mortgage payment went up. But look at. You're in with less capital. Now let's say your mortgage payment goes up 300 bucks because of higher interest rates. But your down payment, you're able to get into a home for $20,000 less people. That's almost takes. That takes five years of higher payments to make up for that 20,000 that you can use somewhere else to make money. See the beauty of this? So real estate investors are going, hey, interest rates are up, Mortgage payments are up. Okay, that's cool. But I don't have to come in with as much down payment to get into the deal. And then, you know, the added bonus on all this, Guess what happens with inflation? Rents go up. So if you can get into a rental property now, see, and I want to put these in a different color even here too. Okay, so we get a lower down payment. It may take five years. This is number one. So I'm going to put number one. It may Take five years of savings really before I start that mortgage payment that's increased starts chewing into my down payment that I would save. Rents go up. And guess what? When rents go up, property value goes back up. So this a lot of property values in the rental market, even mortgage companies and buyers are looking at the cash value or the cash on cash return or the ROI or the cap rate. And so if we can get into a property for less down payment and over the upcoming years, yes we have a higher mortgage payment, but we've saved money to get into the property, rents are going to go up which then increase the property value. What this means to me folks, which I love about this is we got to look at buying because again, prices are down but that mortgage payments fixed while rents go up. That's what's, that's why they call real estate a hedge against the inflation. Because once you buy that property, that mortgage payment is fixed. You're, you can increase rents of the tenant in the house, but your payment is fixed even though prices are going up around you. So inflation's going up but your payment for that home is the same. And you can increase the rent for your tenant, but your payments the same. That's the hedge. You're hedging against increased prices by getting a fixed payment for a piece of real estate. Boom. Now I think that's pretty freaking amazing. So once you get into a rental property and I want to give five reasons why, the rental property then takes you to the next level. And this is stuff we're going to be covering at the real estate tax summit. Breaking it down, 12 hours of education and did I say there's a freaking after tax party with the live band. You and you wear a cowboy hat or cowboy boots. You get two drink tickets. It's going to be a party. We have an after tax party on Friday night after the event. So if you come in person and we've already sold out half the tickets, we only have 100 tickets left. It's going to be 200 people live in Austin, Texas for this two day event and once it sells out, it's done. And this band is freaking rocks. We've got Mark Odom coming, plays with George Strait. It's going to be a lot of fun. Okay, sorry. I get distracted because I want to have fun. Okay, now I want to give you five reasons or five tax reasons why this rental property. So let's say you go out and buy that rental property. Now a lot of people, I go through my four quadrants. I love the four reasons for rental real estate. The values appreciate. So we're going to have appreciation, we're going to have mortgage reduction, which I love, and then we're going to have tax benefits and we're going to have cash flow. This is why my wealthy clients and why I buy real estate. I want these four benefits. Appreciation. Sorry, it's a little ugly. Mortgage reduction. My tenants paying the mortgage for me. Tax benefits, cash flow. Now on this tax benefit side, I want to hit five tax benefits. See, a lot of people don't break that out. So what I like are these five benefits. You're getting tax deferred growth. What that means is you're not paying taxes until you sell the property and you may not even pay taxes when you sell the property. There could be 1031 exchanges, op zones, installment sales, different things to help charitable trust to help mitigate that cost. But you get tax deferred growth, you get capital gain treatment, you get a lower tax rate when you sell rental property. So lower tax rate and then we can generate, nine times out of 10, we're getting tax free cash flow from rental properties. See, these are all the tax benefits that I think are just. I want to put that in red. These tax benefits of these four quadrants, these are five benefits within the tax benefits. And I usually don't explain it this way. I'm kind of loving it. Okay, so then number four is. Oh, sorry, I got to get rid of this thing here. Okay, number four is we get tax write offs, including depreciation, maybe cost segregation, who knows that generate pass through losses that you might be able to use against your other income. And I'm going to go to Q and A here in a minute and I'm going to give away some books and I'm going to give away a ticket to our event, a virtual ticket. And then number five, what I, a lot of people don't realize here is that you've got. There we go. Number five is you've got exit strategies that are unique to real estate that are so fun. We've got 1031 exchanges, we've got charitable remainder trusts, we've got opportunity zones, just to name a few. I'll leave them at that. Boom, boom, boom. We got, well, I'll throw in installment sales. These are all different strategies you can use when you exit real estate. So in summary, people, rental real estate is alive and well. I have clients that are shopping for rental properties every day. Prices are down, interest rates are up. But as we discussed, this is a hedge against Inflation, that can work to your advantage. And that's what rich people do. They use the market against the. They use strategies against the market to build wealth. I just freaking love it. So, all right, I want to give away a book. I want to get off the white screen, and I want to answer some freaking questions. Teen Out New Jersey. By the way, people, if you see any message, any message at all that refers to, oh, I love what's going on with Bitcoin and all this bs. These are tax. These are bots that are scams. Stay away from them. I'm not posting on here. I should have given that disclaimer. Please be careful and don't click on any of these links that have to deal with some sort of crypto bullcrap. Okay. All right, I'm going to go to Brett's question. He says, mark, how would you handle deferred revenue for a successful crowd funding campaign? Well, deferred revenue, people, means you haven't earned it yet. It goes into a liability because you've got to produce something in order to get that revenue. It. I guess it can be. Some people look at it as an asset account. It's an asset you haven't earned yet. It's. This is contra accounting for you CPAs out there. Forgive me, you're like, mark, deferred revenue, is this. Okay, so sorry. I'm worried about strategies at the moment, not AICPA financial accounting rules. So forgive me, but here's the issue with deferred revenue. You haven't earned it yet, and so you've got to just book it. That way you can't treat it as something you can spend because in a crowdfunding campaign, you're raising capital to get your product off. And then once you deliver to your crowdfundees what you've promised them, then you can have the revenue. So a lot of times I want clients to. They're not going to claim that as taxable income because they haven't earned it yet. So it's kind of this deferred revenue that you get to wait to claim until you actually earn the money. So not really related to our real estate conversation, but great question and hope that's a little helpful, Brett. You're going to be wanting to work with your accounting team very, very closely as you do any sort of crowdfunding. So you want to be careful there.

Love to give Brett a book, if you don't mind.

Yeah, let's give Brett a book. All right.

Another great question over here. How is rent tax free?

Cash flow Trees on the beach says, how is rent tax free cash flow. But Brett Canney, this book is yours. The Tax and Legal Playbook. I love this book. And if you email, I'm going to say James mark J. Kohler, jamesarkjkohler.com and just give him your contact info. We'll make sure we mail this book off to you right away. Okay, so people, let's go to the whiteboard. Someone says, how is rent tax free cash flow. Okay everybody, now watch this. You're going to freaking love this. Okay, so let's say, okay, you've got 1000amonth in rent. So you've got 1000amonth in rent on this little property. Now when you buy a piece of property, remember that the land is not depreciable. The land is usually 20% of the purchase price. So if you buy a property for 150 grand, so let's say that's our purchase price, we're going to allocate about 30 grand to the land and that just goes on the books. Then this other 120 grand is your building. Right? So we've got this cute little building here and I'm trying to do 3D and it is not working out but okay, I'm trying. So we've got 120 grand allocated to the building. Well, you get to depreciate that. You also get to write off. Well, hold it. You're not making the mortgage payment, the tenants making it for you, but you get the write off. So you get to write off the mortgage, interest, the property taxes, the insurance and what we call this is piti, principal, taxes, interest and insurance. We want to like look at this piti. And you want to make sure your rent is covering these items. So if you can. A lot of people call that a break even property. The cash flow is covering the principal and interest, taxes and insurance. So if we can cover piti, we're off to the races. Now where I'm going with all this, sorry people, is we've got this piti. So we're writing off this with our rent. By the time we write off depreciation, interest, property taxes and insurance, home, office, electronics, travel, computers, tax, legal, dining. When I write off all these expenses, you're going to be losing money on paper. See, I want you losing money on paper even though the property is going up in value. So you're getting increased appreciation and the rent covers piti. But you've got all these other write offs that you're going to write off anyway. And so the average rental loses on paper in our and we help clients with thousands and thousands of properties over the throughout the year and so and filing their tax returns and all these goodies. And so we see on average rental properties losing about two to $3,000 a month in losses on paper. But are you really losing that? No. Your rent is going to cover your principal interest, taxes and insurance and then some. I have a lot of clients that say I'm cash flowing 2 to 3, $400 a month. But when you add depreciation on top of that and all these other expenses that people miss out on, you end up losing money on paper. So you can cash flow on a property but on paper have losses. How do you, everybody listen. How do you think Donald Trump paid $800 in taxes the year before he became president? Everybody was pissed. Like how did he do that? Because he had write offs from all of his hotels and real estate that offset his income from the Apprentice and the pageants and his retail stores. His real estate losses wiped out his other income. Even though his hotels were making money. The depreciation on these billion dollar locations wiped out his cash, his taxable income. So you can have cash flow but have losses on paper. This is what every realtor and broker and contractor and real estate professional I've been teaching for 20 plus years. This is what we do. Real estate freakin rocks. So we have tax free cash flow and we're not. But we're making money and putting value in our back pocket, but we're not paying taxes on it. That's the beauty of rental real estate. That's why rich people buy rental real estate. That's how it works anyway. Okay, I'll sign the books too. I'll make sure the books are signed. If you win a book. Okay. Watching from Virginia, dad just closed with a 1031 exchange and is looking for the best market to buy rental property. Any areas we should be checking out. Oh wow, Christy. Not my forte. I'm going to stay in my lane. My, my job is to set up your LLC in the state where you buy your rental. Make sure you get all your freaking tax write offs that you report it properly and you're saving taxes. Now I'll give a couple general points of interest here for everybody out there. I don't know if you want to buy rentals off the retail market. If you can get a property that was just posted on Zillow for sale by owner. A property that has a problem, an estate sale, someone is back, you know they can't afford the property anymore and they're in trouble. If you're going to go out and buy rental property on the retail market, you've got to make sure the numbers really work. So that's point number one. Number two, usually you're going to be looking in second and third tier markets out in the areas where these Fortune 500s are moving their company warehouses and their, their call centers. I don't know if you want to be in the major cities unless you're looking for some low income housing or some developmental areas where you can get a deal. But in. So I'm seeing people that are out in smaller cities in these tier 2, tier 3 cities rather than in coastal markets where real estate values are generally inflated because they're areas where people want to retire and live. We want to go inland and go to the small rural towns and look for one of those deals. So by the way, if you're here, ping, that is my phone. Ignore it. I, I gotta just pause that. Christy says I have the tax and legal playbook. I've learned so much from your videos. Thank you so much, Christy. I appreciate that. That's so nice of you. How do I take into account paying myself in taxes if I'm a brand new wholesaling business? Okay, everybody, we're gonna go to the trifecta now. If you haven't learned the trifecta, please get to YouTube and type Mark Kohler trifecta. You're gonna love this. So what we do with the trifecta is, is at the bottom of your plan is your trust or your 1040 tax return. Okay? Then we split your life in half. And typically over here we're going to have your LLC for your rentals. So we put our rentals over here. And then you might have your IRAs or your Roths or your 401ks and you're building up your tax deferred assets. But if you're a wholesaler, you're going to have an LLC that is going to quickly get morphed into an S corporation. Every realtor, broker, flipper, contractor, landscaper, rehabber, wholesaler that's making more than 30 or 40 grand a year, you're going to be an S corporation. So the question being, how do I take into account paying myself and taxes if I'm a brand new wholesaling business? So if you're brand new and you may have a day job paying the bills, you're going to start with this LLC over here. So start with the llc. Get your bank Account tax ID number. Your revenue from wholesaling is going to go in here and you're going to start, you know, capturing all the rev that you're making. That's great. Put it in your business bank account. I want you to take all the write offs we can. I'm going to do my top 10 real estate tax write offs in Austin. You can Register online@markjkohler.com for the virtual version, but I'll go over those there. So your write offs, anywhere from home office to auto to dining to computers and electronics and kids and blah, blah, blah, we're going to take all our write offs and whatever you net, so like you just pay yourself, you just take a draw. So at the end of the day, the week, the month, you don't have to wait till the end of the quarter. Whenever you have profit, just whenever, whenever I want you to take a draw, you just take the money, whatever you take home and put into your personal bank account. I like to see you take 20% of that and just set it aside in a savings account. I talk about my daughter Sydney, who's a realtor out in Orange County, California. If you're looking for a beautiful home and the oc, you know, email me, I'll hook you up with Sydney. She's amazing. But 20% of your draws should go into this savings account. And that's what I told Sidney to do. She's a brand new realtor. Well, she's been working on it for three years now. But if she takes money out of her LLC or her S corp, you're going to take draws. I won't talk about payroll right now, that's another strategy. But you're going to just take draws. And I want you to set aside about 20% in a savings account. This is going to go towards taxes at the end of the year. And if you say, well, Mark, I've got rental property or I've got other stuff and I don't end up using that money for taxes, well, guess what, that becomes your down payment for your next rental property. Boom. So we're going to have a reserve here just in case. And I like to tell clients, whether you're running a restaurant or you're a wholesaler, take 20% of your net, set it aside in a savings account and make deposits with the IRS as well. That's another, you know, got all sorts of information on that. But I'm just trying to give you the general. At least set aside 20% of whatever you're making. Send it to the IRS. Put it in a savings account, make deposits with the irs. Coordinate this with your accountant. Okay, next question here. Is an Airbnb the same as rental income? Yes. Now, everybody, the IRS has been very clear about this and I love it. I think this is a great thing. So on your 1040, a lot of people think, well, an Airbnb is a short term rental, so that must be short term income. Which means I better put that through my S corporation because I heard Mark and he said short term ordinary income goes through a S corp. That's true. But an Airbnb goes into an LLC and it's treated just as if it was long term rent. Now, there's a special exception to that that some of you might want to take advantage of. But there's a seven day test and all these little things. And I just want to tell you the gist of it. 95% of all my clients were putting their Airbnb over here on the right. It's passive income and you would never put it in your S Corp. Now, I've got an article on this on my website, markjkohler.com if my guys in the studio over there, if you go to markjcohler.com blog type short term, that short term rental article, you can just put it right in chat. People might appreciate that. Now, someone said, I bought your book on Kindle. I wish it was on Audible, but not complaining, Rodney. I thought my taxonomical playbook was on Audible. I've got to double check on that. I thought it was. I had to actually audition to be my own voice for my own damn book and I lost out. And, you know, my voice apparently was annoying to someone. Okay. Joel says, whoa. So, Mark, I love your piece on S Corp Holding Co. IUL by the way, I'm crazy deep into reading. Did you write a book on that? I'll sue you up for being a guest on my show. It starts with me. Well, Joel, I would love to talk. You get in touch with Jack, my business development director, and we can talk about being on whose show and whatever. But the S Corp holding company, Revocable Living Trust. I know you may be talking about universal life insurance. Not sure if that's what you're referring to. I've got sections on that in my new ebook. But people, I call this the trifecta. This right here is the trifecta. And we want to put our passive income on this side and our active income on this side and really build a system to protect our wealth and grow it and you would love it. Keep. Keep studying, people. Okay. Should all property be purchased in a trust? Well, black McBain, should all property be purchased in a trust? Very interesting.

No.

The answer is no. Some of it. So let's do this. So here's your revocable living trust. Revocable living trust. And I want everybody to have a revocable living trust for your primary residence. Everybody, your own personal home. We're going to put that in a revocable living trust. Here's your personal home that goes in a revocable living trust with rental property. You're going to use that LLC and that's going to own your rental. Because an LLC gives asset protection. A trust. Everybody, listen to me. A revocable living trust is not for asset protection. It gives you no asset protection. That's what the LLC does. So your trust owns the llc. So we can create privacy and estate planning. That's why we do. The trust is for privacy and estate planning, but the trust owns the llc. And then the title to your rental property goes into the llc. Do not worry about a due on sale clause with the mortgage. Blah, blah, blah. They've already sold your mortgage. They do not care. You can. In 20 years, I think I've had one client have a problem with the bank going, whoa, whoa, whoa. You transferred title to your llc. You can't do that. And I swear that happened because I went in and asked the bank if they could do it. So just transfer your rentals into your llc, get asset protection, and let your trust own your llc. All right, maybe a couple more questions here. I'd like to give away another book. And then we're going to give away a ticket to my real estate tax summit in Austin, Texas, September 29th and 30th. The in person party is going to be awesome. We got a VIP experience and receptions and open bars. And then we've got a rodeo experience and this band at the end for everybody that attends. Super fun. And it'll all be virtually broadcast and recorded. So if you can't be there and you're watching some college football. All right, who's the winner of a book? Give me a winner for our book. What do you want?

Can we give one to Black McBain?

Yeah. Black McBain.

Awesome.

Winner of a tax and legal playbook. Black McBain. Email James J. A M E S at Mark J. Kohler.com James MarkJ. Kohler.com Tell him your contact info. He'll verify it you and we'll get off and get that off right off to you and I'll sign the book as well. Well, where are we going? What question did you guys. Loving. Okay, all right. Should I ask a really hard one? Okay, we'll do it. Eric Gay. Hey, Mark, thinking about switching gears into debt pay down mode. It would increase our cash flow. True. By 36k a year with all our properties paid off, speeding up early retirement. Any reason not to do this? Well, Eric, yes, there are big reasons not to do it. There are a few reasons to do it. So everybody, let's go to the whiteboard. Here's, here's my concern and I'm going to try to do this with math here as best I can just off the cuff. This is an example of a client that I had that called me and I remember it vividly because it was such a shocker. They were so adamant they wanted to pay off the mortgage on this property. So this property was currently cash flowing about 1,000amonth. Okay. The equity in the Property was about 100 grand. Okay, we're just going to do a basic example and let's say it was worth, oh my gosh, it was worth. I should be prepared with here with the freaking math on this. But I'm going to try to see what I can do with some basic math here. So let's say it's 300 grand. It was. That's the fair market value. Now if they pay this off, the mortgage payment, let's say was maybe $1,000 to $1,500. So if they pay this off, they might get 2,500amonth versus 1,000amonth if they pay this off. Alright, so They've got this $200,000 mortgage in the middle. Now I'm just doing this off the cuff, so forgive me. Now right now they have 100 grand of equity and they're cash flowing 1,000amonth. So that's 12,000 a year. Now if they cash flow, if we can just do, we'll do some math here on mine. If they can cash flow 2,500amonth times 12, they're going to cash flow 30,000. Now the fair market value on this is 30 grand. So if we divide the 30 grand by the 300,000, they're making about a 10% ROI. Now if they're making 1,000amonth or 12,000 a year on 100,000 equity. So we take 12,000 a year divided by 100 grand. And my example is not too dramatic. They're getting a 12% ROI. So what we're trying to do Here is we want to look at the cash flow and divide it by your equity, and that gives you your cash on cash roi. If I sold out the property and just took my hundred grand and went somewhere else, would I make more than 12%? So my cash on cash ROI. Now, in this example, if I pay off the Property, I've got 300 grand sitting there, so I better make in cash flow, $36,000. Now, I know the person here. I can't. I don't know where they went to here on my list, but $36,000 of cash flow, that sounds great, but what is it costing you in equity to get there? If you're 36,000 and you've got 500 grand in equity paid off, or a million dollars in equity or something crazy, let's just say it's 500 grand in equity. So if I take the $36,000 and divide it by 500 grand, now you're only getting a 7% ROI. And this is really what we want to look at. Now, if you're 60 years old, 65, 70, and you're like, mark, I'm done investing. I just want to collect rent and retire. Okay, it's not the best use of your money, but you've got your cash flow to live on, but you're only getting a 7% return. But if I can leverage that extra cash flow and go buy two more rentals, now I'm building up more rental property with my equity. Now my ROI is going up. So the short answer is here, everybody, and let's go off the whiteboard and wrap this up. When you're younger, you want to be doubling down, making sure your equity is getting the biggest rate of return you can. And then at some point, you're going to trail off and go, yeah, I'm going to pay off these properties and just collect rent. It's not the best use of your money, but you feel safe. My properties are paid off now, they become a target for lawsuits. So you better be up in your game on asset protection. But when your cash flow goes up, you need to be dividing that by the equity that you're not investing because you paid off all the debt. And look at that roi. The older you get, your ROI will go down, but your cash flow will go up. While you're younger, you want to really try to get a bigger ROI and use leverage to get build more wealth so it's there in the long run. Hope that makes sense. Well, everybody, I'm going to give away a ticket now to My real estate tax summit in Austin, Texas, September 29th and 30th. The links down below, it's 25% off this weekend if you come. And I think we've got a few tickets left for the rodeo. VIP experience. We're gonna be riding horses and barbecuing on Thursday night. We got a welcome reception with an open bar for those that want to do kind of a VIP experience time with me and Matt Sorenson. We're only doing it for a limited group of people, but everybody gets into the tax party at the end of the event. It's gonna be fun. Who is my winner?

Drum roll. So this. This woman says I have all three of the books and just wanted a signed copy. Lol. So she's laughing at that. So we're gonna have to give her some sort of gift here. And I think she's a perfect candidate for that ticket.

I love it.

Lindsay Webster.

Lindsay Webster. Lindsay Webster. Sorry, rolling that Z over into your second word. Lindsay Webster. She's got all my books. She'd like just a signed copy. But you're gonna get better than that, Lindsay. Today we're gonna give you a virtual ticket, three $400 value for the real estate tax summit. You can, if you want to turn that in as a credit and buy a ticket and fly out to Austin. We'll see you there. But if not, you can be watching from home and everybody gets a recording of the event so you can keep learning throughout the fall and into next year. Lindsay, thanks so much.

Well, everybody, the email address.

Lindsay, everybody, I'm going to just say again. It'll be down in the descript. You email James. Email james@markjcohler.com Lindsay, send James your personal contact info. We'll verify it to you and we'll get you taken care of, get you your ticket. So big shout out to James and Caitlin and Jack in the studio helping make it happen today. They're doing research. They've been over here making sure that the studio looks freaking amazing. They're trying to help spread the good word that you know what the American dream is, real and alive. Real estate is on sale. Real estate can work in your portfolio. It works for my wealthy clients. It works for me. Get out there and go shopping. It's a hedge against inflation and there's some deals. Keep living the dream, folks. See you again soon.