Mike Minutes Mastermind 06/15/2022

Good morning, Guest nation. Hope you're all doing super well. I'm a little early this morning. I have some appointments I have to get to. More around next in the next hour. So I didn't know if I was gonna be able to get back in time. So let me go ahead and just knock this out today. I got three questions that came in on the form. I don't have any real new announcements. So if you missed yesterday's video, check your email. Whole lot of announcements yesterday. So please, please, please go watch that video. Lots of announcements, one click estimate emails, brand newer in there, et cetera. So make sure to check those out. Let's go ahead and get started with questions, though I didn't briefly look over these questions and they were pretty good ones. So let's see what we got. Thomas Mid your thoughts on placing money in an index fund for the year versus a savings account, knowing you're going to deploy it later this or the next few years. Is the market too risky right now or should we just hold cash? This is important because although, although the market is volatile and, and although cash is losing value, cash is still going to be more stable than the market all the time, even if it's losing, you know, a few percent a year because of inflation. You know, it'll probably cool down, cool off here in the next year to 4 or 5%. Like. But if you need the money, the time horizon in which you need the cash is extremely important as to what investment vehicle you're using. If you need the money in the next six months, a year, even two years, cash is going to be what you're going to want to keep it in.

And because, like, there's no point in getting, like, putting all that money at risk if you're going to need the money in six months and it could potentially go down 20 or 30%. I'd rather just have a guaranteed loss due to inflation of a few percent versus the risk of losing everything over the next six to 12 months. Now, an index fund, though, over the course of if your time horizon for that investment is 20, 30 years, absolutely.

An index fund, right? Same thing as real estate. Like if someone's like, well, I want to like, buy, I'm going to need the money, though, in six months. You're basically betting on whether or not the market's going to be up or down in six months. When it comes to real estate, in my mind, you buy it with never thinking about selling it. And the only reason you would sell it is if the market is at Peak and you can just crush the deal. Right. And so whenever you compress your investment horizon, you're limiting your options and you're also opening yourself up to more risk because there's the. If you need the money, there's a chance that you might have to sell during a downturn. Right. So whether you're buying an index fund or you're buying investment in real estate, whatever it is, if you need that money, I would keep that in cash because there's no guarantee that that index fund is going to go up. And if it goes down 30, 40%, now you need the money. Now you're going into debt to try to whatever you need the money for when that time comes. So I would recommend staying in cash. If you need the money within the next one to two years, that just be my recommendation, though. Otherwise you're just gambling with it. And in this market where it's so volatile, it could go up 30%, it could go down 30%. So I'd rather. If, you know, you need the cash in the next two years, I'd probably keep cash. Dustin, would you be willing to share your contract or rental agreement you have with the renters? Can you also share maybe the numbers behind a good real estate deal and a bad real estate deal? Yeah, I could. I wouldn't mind sharing this. This is a agreement that is expensive to make. So if you're ever trying to make a rental agreement, hit me up. I wouldn't mind sharing mine. You do. You would need to take it to an attorney for your state because every state is different in terms of their tenant laws. But I could share mine. Liz worked hard on it. I worked hard on it. We made sure it would pass in our state. So you could probably take it to a local attorney and like an hour they could review it and make sure it's good for your state and. But I could definitely share it because these are expensive to make from scratch, you know, thousands of dollars if you're actually getting an attorney to make them. And you also don't want to just like make one up on Rocket Lawyer because they don't hold up in court. So it's very important to have a really good rental agreement. So if anyone is ever wanting to rent, you're actually going to be renting out real estate. I would be happy to share my rental agreement. It'd be with a big asterisk that is you still go to go see an attorney in your state to make sure it's. It's correct for your state. Every state is very different. Washington state is very, very pro renter and so the landlord doesn't have a whole lot of rights. Whereas in other states you can put stronger verbiage in there about things like eviction and stuff. So we're actually in the process of someone right now. It seems like it's gonna be a civil kind of eviction. They like don't have the money kind of thing. But still you got to have everything in writing of how that eviction process rolls, how you have a three day notice to, to pay a vacate, how that's going to look and how after that certain date you can't accept funds because if you accept funds after you've given the rules for eviction a notice for eviction, you can get in trouble. So there's a whole bunch of little stuff like that. It's in our, in a rental agreement and then yeah, I'd be happy to share that.

How are the smaller, cheaper push mowers working for the Bellingham shop? I am, I'm about to need to replace some of my commercial mowers. They're getting old and very unreliable. Yeah, we didn't really do it as a change to the residential HRX Honda mowers because of us wanting to. We really had to because there was no, like we cannot get commercial Honda push mowers in Washington state for months like regardless of what you want to pay. And they've gone up like 80% in terms of cost a few months ago and you could buy them. But I can't even find a Honda commercial mower right now. Cannot find one in our state. So we almost had to move down to the, the residential HRX. So we use the 709, the 700, 600, $700. So far so good. The guys like them because they're lighter and they're a lot lighter than the commercial and then they're way lighter than the 30 inch x marks which are just very, very, very heavy. So so far no complaints. And I've actually been surprised that even on the long taller grass they haven't had a lot of complaints. And we live in a wet environment and we have to bag couplings. Like we have like the worst when it comes to push mowing in terms of having a bag and it gets wet here a lot. So we haven't had a lot of complaints from the guys. And I think whatever they would say is a loss of power or like, you know, the brute force of the commercial is probably made up for the fact that it's Just way less wear and tear on their bodies because it's just such a. So much lighter of a. Of a machine. Like I saw this morning out in the field, one of the guys just pick up the mower, just like throw it in the back of the truck. I was like, I like that because otherwise that in the past would have been, hey, can you come help me put this in? But they're so much lighter, so you can just throw them in and. And again, if something breaks, we're talking about a mower that is 7,800 versus right now, like a commercial. Honda 21 is like 2 grand. In the past, I would have said 500 versus 1200. Well, now it's 700 versus 2000. Literally, as if you can even find a commercial. So it's not like we wanted to switch to commercial. It's like we couldn't find any other mowers. But so far the guys have liked them, and I'm very inclined to keep buying them. Honestly, they're in way more supply. Like, you can just go pick them up anywhere. Basically, we get them from Lowe's, Home Depot, you know, a dealer, wherever the dealer does fix them, they have the parts. They're Hondas. So it's not like I'm using some weird off brand that I can't get parts for unless I replace it from Home Depot. So, yeah, it's been really good. I actually think it's. It's a good move for us. We've been trying. We've tested out a few standards recently and other mowers, and still the push mowers, like, belts break on these. These standards, you know, pulleys go out, spindles. Whereas, like, these push mowers, man, they just. They just keep tanking along. So obviously, in larger markets, you're going to need the larger mowers. But the amount of wear and tear and maintenance on those larger mowers, expensive. And right now, finding belts is not necessarily easy in other parts like that.

All right, guys, hope you have a great day. We'll see you tomorrow.