EP 570 – Rocket Your Retirement With Self-Directed IRA’s With Rocket Dollar Featuring Dan Kryzanowski

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This is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for pennies on the dollar. Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host CEO of We Close notes, Scott Carson.

Good morning, good afternoon, good evening everybody. Welcome to this episode of the Nutclose show. As always, Scott Carson. Excited to be here with you today. I'm even more excited to have a fellow Austinite on the podcast. Many of you guys know we have such a big network of people across the country. Austin is such a different market though. But I'm really honored to have the self proclaimed rocket man join us from down and I say kind of mid Austin down by off of camp Mabry and 45 and then neck of the woods. But this guy, I'm really honored to have him on the podcast. He's doing an amazing job. He's an active real estate investor and fundraiser leveraging checkbook controlled self directed IRA accounts and solo 401ks to create a diversified real estate portfolio yielding double digit return for himself. He specializes in self storage investments, multifamily hard money residential property loans. He has personally raised millions of dollars from family offices and individuals and empowered his partners to raise seven figures on multiple occasions. So we're talking about our good buddy and longhorn extraordinaire, Mr. Dan Krasnowski, everybody. How's it going man?

Fabulous, Scott. Thanks for having me. And yeah, it is a true honor to have two Austinites here. I saw your slate of the first 500 plus and I was just, I was a fanboy for everybody. So I'm honored to be on the list, I'll tell you that much.

Well, thanks man, I appreciate we're honored to have you. And it's a great thing. Austin's such a different market for a variety of different reasons, but why don't we dive in? Why don't you share a little bit about your background? We're going to dive in. For those that are listening, we're diving a little bit. Some of the do's and don'ts with checkbook IRAs and some of the other things as well too. So Dan, tell us a little bit how you got started as an investor and kind of your backstory.

Sure. And I've shared this in some of our common groups here in Austin. Is born in 78, so my first 30 years in life were very, I think linear, probably Like a lot of folks here, you went to school, you went to college. I grew up in Northeast Pennsylvania so to be very apolitical, but for both sides of the aisle. I played on Biden's little league field. I rode with Trump Jr. At UPenn. So no more politics. I just had a great experience, I think right place, right time, Merrill lynch, ge big companies. So coming from little Scranton, Pennsylvania, my dad was a principal, high school principal, my mom was a social worker. But did have a good fair amount of family that were probably the first generation that were entrepreneurs. Some had some land, some real estate. So things kind of seeped into my brain a little bit. I had the benefit with GE Capital to have a taste of Austin. So if you can imagine actually living on the east side next to Franklin's Barbecue and them giving you a flat screen TV just to move in for a six month lease. That was my first experience in Austin back in 07. So nice. With that as a backdrop, I rarely go against my gut, but did was going to work for Republic Tequila. The bottle's in the shape of the state of Texas. Ken MacKenzie married a gal from Guadalajara. It was the first true organic product. And then I didn't. So it took us about three more years to get back here in 2011 and right around this time of year, the kite festival, I came down, got a job offer, one way ticket and GE said thanks, good luck in life and probably a pretty good move in hindsight. And we've been making our way since.

Awesome, awesome, awesome, awesome stuff. Yeah, it's Franklin's Barbecue. The best barbecue in the world.

Not just in Texas, history of the world. Yes.

Well known on the Food Channel and all that good stuff there. He does a great job over there. Sells out often before you quite often. But anyway getting back to that kind of. So what dove into kind of making that change into the real estate side of things going from that, I mean obviously corporate one thing and then what was kind of your real estate background?

So you know, two things. I mean at ge I was with GE real estate, your typical CRE stuff, you know, one mint money claim to fame. Our Mexico portfolio did not lose money in 0809. So I was in the marketing side there. Coming down here, I was actually co best men in a wedding. And the gentleman said hey, I flip houses. And I was like that's interesting. What's that? And he said 15% and that's all I heard. That's all I needed to hear. And then he said, did you know you can Use your retirement dollars. And this was like the magic rainbow going off in front of me. So this I think was the start of what at least just giving hard money loans, the residential side in the early 2010s. And then I think the second side of this is I had the benefit through the Capital Factory network to work for Sparefoot. So I think right place, right time coming in, you know, a guy with a little bit of gray hair and able to double revenue, I feel put a fair contribution into the ultimate acquisition. And I got to realize there's, I mean, tremendous players, personalities in storage and ultimately who I felt were some of the top operators and marketers, they have since gone on their own. So kind of as I evangelize my story and what I've been doing, it's been pretty easy, at least in my opinion, based on my backstory, to share how you can go from maybe just owning your primary residence or secondary or having a REIT, maybe in your call it fidelity 401k to actually being very active. So either personally earning the depreciation benefits, etc. Or more. So my sandbox is really, really leveraging your retirement dollars, taking advantage of them to have a tangible asset in your community that pays a dividend, double digit returns with somebody you know and trust that you can see, feel and touch every day. So I think that's a warm fuzzy in my hypothesis where I think the mindset of the average American is going to go with their dollars in 2020 and beyond.

So let's take a little step back there. You mentioned a couple things that many of my listeners may not know. Can you explain what the Capital Factory is there because you dropped it. People are like, huh, what's that mean? Printing press, sure.

So for those of us who will be here in south by Southwest, trust me, you'll want to get in and have a VIP badge. But it's the Glass Hotel downtown. It's basically, it's the center point for everything Austin. And there's some, it's a great backstory. Josh Baer of course runs it now, but the original founders and some of the companies that have come out, our WP engine, Sparefoot, of course was a great success. And what it is, it's an incubator. I know folks talk about WeWork and a lot of these other thematic incubators, but this was, I'd say the first one once again going back, you know, pre iPhone almost downtown Austin where everybody comes to. And I just say there's a tremendous amount of also servant leadership with the amount of events and I think the big thing when people look back in Austin in 50 years, the win is going to be there's many from the diux, many military, we'll call it military startups or groups within the broad military. There's five different offices within a few block radius and the eighth floor where Capital Factory is. And there's my three year old, loves all the robots but there's some amazing technology ideas and what these guys and gals do on a shoestring budget is amazing. So all of this is kind of together collective, all the diversity events, you name it. And Capital Factory I think is sharing their magic in Dallas, Houston, the Texas Triangle. So yeah, for those of you during south by it's almost guaranteed you at least whether it's a startup crawl or a private meeting with, you know, some very notable folks, you'll be in Capital Factory. And finally, if you have an idea, even something, you know, I know folks are maybe doing one step above flipping, adding some sizzle to the real estate or real estate tech. You can also hop in for a few hundred bucks a month to grab a desk there.

Yeah, it's basically a great place to go and really brainstorm and be a nice think tank co mingle, rub elbows, co vulcan, mind melds with some great people, you know what I mean? That's a beautiful thing is it's networking and it's ultimate for the most part for those that don't know about it. So yeah, thanks for explaining that for our listeners out there for you now. So you had somebody tell you you can get a house flipping at 15%, you started feeling that sizzle, you know, excited about things even now in good knowledge. Yeah, let's talk about how did that evolve from that to where you guys are at today?

Yeah, so I mean this is just me personally. I mean also on the side I felt I was doing the equivalent of crowdfunding before the Jobs act was even passed. You know, even from the first bar on Rainey Street. A few other things on the east side, I've had tremendous success with female entrepreneurs which the numbers don't lie. Plus I feel it's very impactful how this money replicates in their sub communities. But on the real estate time as things have gone along, it was funny. I was on a plane to Money 2020 which is the large fintech show in the world. Saw Henry Yoshida, this was after his success with Goldman Sachs buying Honest Dollar and me always being the salesman, I guess, to be blunt, said hey Henry, might want to look at the storage deal and then I shot on a PDF follow up that probably said if you do fill out this form and this form and this form and find a fax machine and a scanner, then you can use your retirement dollars. Really not knowing Henry's deep background and that he's 100 times smarter than me on the retirement side. So in short, I think this is one of the founding stories and there's a few other that puts it together. For Rocket$, what we're really doing is democratizing, I would say, the ease, the education, the empowerment that folks are made aware they can use their retirement dollars to invest in notes in private real estate. And then secondly, the other thing that we realized early on, these have been around 50 years, it's not country club cool, as they say. So even here in Austin, whether you're wearing the suit or the jeans and boots, you don't want to tell somebody, hey, I gave somebody a 25k note, but I was on the phone for two hours and I do this every quarter and it was great when I was using my piggy bank checking account, but now with this retirement were stuck on the phone all this time, it just, it wasn't great. So, you know, our thought was that being that, you know, I even say well over 90% of folks making six figures are completely unaware of this world exists. We wanted to make it quick and easy, almost like if you sign up a wealthfrontbetermint.com just super easy and to get up and going with very, very simple pricing.

And what do you mean by Rocket dollar? What is Rocket dollar out there?

Yeah, so Rocket dollar is basically, it's a fintech company in Austin, been around two years. Voted by Money 2020, one of the top two fintech startups in the world. Shaquille O' Neal actually swatted us the second, which is kind of a fun experience. Yeah, so Rocket Dollar is basically we empower individuals. So there's two sides to the coin. Individuals, anybody listening here can tap into your old retirement dollars or if you're self employed, contribute up to 56,000 a year to having checkbook control. So full access to your retirement money at all times to invest in what you want, when you want. So there are a few minor exceptions such as you're primarily yourself or you're living your family. So not your startup, not your kids company, can't live in the primary residence. But everything else is in play. You want to invest in a crypto fund, you want to do a self storage facility, you want to do notes, all of that is there. So that's what Rocket Dollar is empowering you to do. There is some stuff in the background that we take care of. But I said it's, you know, even though we call it Rocket$, it's not Rocket science. And we also want the experience to be quick, smooth, easy, and no fine print in the pricing. I mean it's $15 a month flat. There's no AUM, there's no per transaction. God forbid you make a good investment, we're not going to charge you more. It just doesn't make sense. So you know, at our standpoint, I think from the kind of the mission spirit is, you know, Even if you're 25 years old, starting career, you're middle aged, you just went through a divorce, you got to get back on your feet, very good faith at 15 bucks a month. And if you have a few grand that you can either roll over or put in this account, in many ways you can be dangerous, whether it's from a note, crowdfunding a big property. So we're empowering all of this ecosystem that in some we call 21st century diversification.

So you're basically, basically helping people put self directed IRA accounts together. Self directed checkbook accounts, correct?

Yeah, correct. And I would even order and it took me a little time to think through this, but we even say that rocketteller offers checkbook control, self directed accounts. Whereas the other players that have been around 50 years, it's a custodian that offers a self directed IRA. And if I could just to share a little bit in the difference. So historically you would be able to open an account, but you would not have access to your money. It's almost like checking in with mom and dad. You'd have to fill out paperwork. The person let's say you're investing with or lending to would also share their paperwork. There'd have to be a lot of check marks and there was no value add to the details. There was no help with the due diligence. It was for, in our opinion, filling out the sake of third party paperwork. The best analogy I can give is a health savings account where we need surgery, we can go get surgery or we fall and break our arm. We want to go get manicure pedicures, whoops, kind of below board, same deal. The laws are very clear what you cannot do in these accounts. So based off of that and Rocket Dollars proved this out. I mean the first nine figures of assets, first thousand customers, nobody has played in the gray area because we've made it very clear to say we're going to give you a checkbook control self directed account. By checkbook control you have full access to your money at all times. For most people that's all they really need to know. It's not even is it an IRA, is it a Solo 401K? And I'll talk about those differences in a minute. But they say I need my money. I'm going to roll it over and I'm going to for the next four quarters do 425k checks. That's great. I hope this takes five minutes of my time every time I do. And that's what we empower to do versus maybe spending five to 10, 10 hours when they're just writing, you know, giving a loan to their best friend.

So okay, that's good to know. Is there not fees on the front end to set up the IRA accounts or the LLCs or stuff like that?

Sure. So I'll get into. So there is an upfront free. So with our core product it's one time upfront of 360 which basically is just the wash. So I'll get into some of the products. Trying to do an apples to apples. If folks are familiar with this space with the custodians out there just said there's what rocketteller does not do. There's no asset under management sort of thing. There's no per transaction fee. It's like Netflix. You want to go, you want to watch Game of Thrones, that's great. You want to go document comedy, great. You just want to watch one little program. I think I'll watch Parasite this month. That's it. That's it. Game, set, match. But it's only $15 which is great. And it also doesn't eat into your balance. So let's say you have 10,000 in a Roth. That's the minimum. You're not going to wake up like oh I'm 999 and you can't get in the deal. So. So you know, with that. Yeah, there is an upfront that said from there the checkbook portion, there's other folks, there's a very few. So the solo 401k if I could share a bit is for anybody with self employed income. So what this means generally speaking if you have 1099 income, are you, are you and your spouse have a business without W2 employees? So the 1.3 million realtors in the world, any of, especially here in Austin, a lot of consultants, a lot of folks that retire to the extent you're doing a fair amount of gig economy, that would qualify all this qualifies you. Now you can just maybe qualify and then roll money in or you can actually, much like your W2 friends, contribute the 19,000 and then 20% of your net earnings by this equation, up to 56,000. So let's just use a round example. Mary, she's a consultant, one woman shop makes 100k. The first 39,000 she can actually contribute into the Solo 401k. That's extremely powerful. And then have checkbook control, maybe 25k for a note and that she's going to do a personal loan for a few female entrepreneurs and then a few crowdfunding campaigns. And she'd be doing that just like she could from her piggy bank checking, but keeping all the tax benefits. And a final point, without going too much into detail, in the Solo 401k umbrella, under the single price, you can have a pre tax checking account and a post tax. So going back to Mary's little example, let's say she's also a mentor at Capital Factory with me and she has the opportunity to put 5,000 in this startup that's going to be the next Facebook. The seed versus tree analogy, she would probably want to pay taxes on the 5, not let's say if it was 20x in the future, the 100. So that's something that you can also do within this account. So very powerful. I share this in a bit of detail. Thanks for listening folks. Because a lot of the legacy players in the space will not offer the Solo 401K, will not offer the checkbook control. And as more and more of us have at least a side gig, just realize this is available. So that's a Solo 401K and that's really the product we came out and got the notoriety. And that's where all the VCs out west and even Shaquille O' Neal said we'll let you on stage as one of the top two in the world. So that was cool. And then on the flip side, the self directed ira, we do the IRA LLC model. So what this means is that you're basically funding an LLC on day one. We have different custodian partners in the background that checks the box to say this is a good asset and then you have this checkbook control. So it's very similar. And frankly, I think that's where the world is moving to. People want to know what they're investing in when they're getting charged. So this is what Rocket Dollar does for the individual. The pricing, very simple, one time upfront, 360 15amonth flat. In addition, where it's been beneficial as raising money. So I'm sure you're well aware of this. For folks that are raising money off preface with you're not getting charged anything or it's not going to pull you away from your time and resources. But what we provide is very simple copy paste marketing that you in turn can share with your audience. So Scott, let's say you're raised, you're buying a house, Cedar park. You're going to raise some money for it. You can say hey friends, you know me, you love me. We're already been in touch. Did you know you can also use your retirement dollars to invest? And what you're going to see, lo and behold is say we have 100 people first. Most are going to open the email because they're engaged with you. Half are going to say this is great and I get to learn in private because some folks are a little introverted or don't want to be called out potentially. But it's also a cool learning. So that's why in our FAQ and HubSpot, Salesforce's partner or not partner competitor I should say for those that don't know HubSpot, we were voted one of the top FAQs in the world. You can self educate here. So all of this comes in. So you as the deal sponsor are not basically spewing what I've been for the last 10 minutes. We have this all on our website and ultimately within as soon as two weeks you're going to get more money from less people faster from their retirement than accounts to potentially close your raise.

You're actually sending that email out to your database if you're with a client.

So it's a one. This is with folks that are raising money. So you can imagine going to, I mean anywhere from a real estate lunch and meet up to some of these shows. Sure there's going to be investors. On the flip side, there's many people that are raising money and it's not the easiest thing just even for folks pretty tenured out there to raise money. So this is an added boost. I know one of our earliest partners, John Maintenance from Pinnacle has been doing this. Tommy Prate with Magnify Capital here in town has been doing this for years and lo and behold, about 20% of all their dollars that come in are coming from retirement dollars because they have educated. It's as simple as a two Sentence paragraph on say their monthly newsletter or deal packet. And it's just awareness and to show how big the opportunity is, your quote unquote old 401k. So let's assume we all worked in Dell, we're all here in Austin, in the aggregate across the country, that totals 10 trillion. Trillion with a T. And then behind that there's another 20 trillion of say your current company's 401k. So let's just stick with the 10 trillion for now. Oh and by the way, let's not count all the Uber drivers and everybody, the self employed folks we talked about, that's probably 40 or 50 by some DCF calculation. So with that of the 10 trillion only 100 billion, only 1% are actually used in these self directed accounts at this. So it's a huge opportunity and I think as most folks get aware, particularly in something such as real estate, it's a relatively easy conversation and it's a relatively simple transaction to set up the account and make the investment.

Yeah, okay, I'm still not following you on one thing there.

Please.

So like you said that you've got some templates that you provide people to talk about that they could set up their deal in the templates and then are you guys actually sending this out to your guys client list or is this for us to send out to our own clients, our own contact?

Gotcha. Great question. No, so what we are Rocket dollar is not a broker dealer. What we're not going to do, we cannot say. You know, Scott has a deal in Cedar park that pays, you know, 8.5%. We do have a partner page though. So we do list because some folks say get the call, I'll pick on the doctor lawyers, you know, the smartest folks out there say oh I learned of this thing, I don't want to pay taxes, I have no clue what to do now. So we say go to our partner page and you'll see there's some self storage, here's some crypto, here's a venture fund, we'll give you a flavor and we mix up. But basically what it would do is link back to some folks that we've engaged with or potentially realize. We also do podcasts, webinars, like something like Acre Trader. If you want to own part of a parcel of an almond farm in California, you can go through Acre Trader. And I think it's a really cool thing that's fun to talk about. So we've been on different podcasts, webinars together. But ultimately in this little example Acre Trader will go back to their clients. We will never say Acre Trader returns are better than the others. Just, yeah, they happen to be one of 50 folks on their partner page and then go from there.

That's great though, that you're showing. Hey, here's some opportunities. You still have to do your own due diligence on them. But these are some people that we've worked with or other things like that out there.

And the real reason, I mean, think of probably the why known example. Try to talk to them more from my folks back home. But the Yale University endowment, there was a lot of papers that came out, I think in the early part of the past decade. It's not just stocks bonds or stocks bonds, mutual funds. There's three shades of gray. They're of course in private real estate. They're international. They might be in some bitcoin. There's many things that they're in. So I like to say we're really pretty in a pie. When you think of a pie chart in terms of Overall what true 21st century diversification. And it's not that much of a long shot because a lot of folks here, and I think especially Texans, tend to have a second property, tend to do some things on the side. So with your Piggy bank checking account, you do have this 21st century diversification. And it's amazing how folks for one reason or another think, oh, this retirement, it's so far away or I can't touch it. What we're doing is empowering you to have that same sort of portfolio now with your retirement.

Okay, makes a lot sense. Now, are you guys looking for people that are looking to start their new ira, set up their new accounts and start putting into it, or are you looking more for people that already have accounts? Maybe they will begin to roll over, have a little more access to their funds and flexibility with what they're doing.

I'll say the big yes with the hook of horns. So yeah, it's actually both. You're right. So a lot of let's talk. Maybe there is no like typical account holder. But a fair scenario would be somebody married, two kids, early 40s, probably on their call it a VP of some company on their third corporate job has half a million sitting at the likes of a Fidelity. Their buddies doing some real estate. Let's just say self storage is what I know best. And they can put 50,000 into a deal or 100,000, dip their toe in the water. So for them, they have an existing retirement account with an existing custodian maybe they move 100 on day one and then call it a year or two down the road. They consider, am I going to move more of this money for private deals? How do I want to diversify? Or say the deal they invested in sells with dividends, then they can choose what they want to invest in. So that's one. The second thing, as I said, is for the self employed person, or maybe you're going through a life situation post divorce, et cetera, whatever you want to say, your balance of your kind of existing is probably, probably lower than you want it to be. Here's where you can also contribute. So as I said, just like you would always pick up fidelity because I have them. But you know, you're 6,000 or so a year into your IRA, you can do that into your self directed IRA. And then as we talked before in the solo 401k especially say if you're over 50 and married, I think you're looking at 62,000 times two, you know, 124. Just say a gross of say rough 250, 300 or say even if it's more of a side gig, you and your spouse. Here's that if you're over 50, here's 50,000 right off the bat that you're putting away. So we see both and what we're seeing some of the fun stories and we've had folks as young as 18. I talked to a night we had somebody in their 90s, one gentleman, a great friend now of the company, he's a retired pilot and so he's seen the world and said, you know, wouldn't it be cool? I'm going to buy a condo, but then with my retirement I want four other condos in the Caymans are somewhere and hey, what a better use of your retirement than that. So all good, There you go.

Good stuff, good stuff.

I love it.

Now you've hinted about being a big fan and knowledgeable in the self storage side. So let's get into some of those things there for you.

Yes.

Crowdfunding into some different deals or you're buying some stuff for your own portfolio. How's that kind of working for you?

Yeah, so I buy a few things. So I just love, as much as you can tell, I love the retirement community. I just think storage is such a great asset. So we'll try to go real just for my little brain here, real elementary to say, say we can't officially call anything recession proof because I think one of the REITs went down half a point when the Rest of market went down 30, 40% in 08 09, but it's pretty recession resistant. So let's think. Why? Well, divorce, grandma dies, the kids are out of town, they got to figure out what to do in this minimalist, which I think is great. As you can see, not much on the walls here, but stuff is in storage. This was all Christmas trees, Hanukkah trees, everything before me. So it's for cleanliness and finally nonprofit and other endeavors. Whether it's for legal reasons or just peace of mind, you have it elsewhere. So, you know, the demand kind of never goes away. And especially like Texas, with the influx of population, it's here. So with that as the backdrop, it comes down to operations. So I spent a lot of time at Sparefoot and thereafter talking to. I felt one of the top coos, top DMOs in the space to really get a feel of, you know, how do you get more people in the door faster? What is your asset mix? What is economic occupancy? So, you know, with all that, for me, it was an easy. Not just for me, my widowed mother, my, you know, my son right when he came out of the womb, my wife, we've invested in storage. And it's great seeing those dividend checks come in all the time. So that's one. So secondly, as I share my story, it's very easy, I think, for an initial asset because it's many ways, like multifamily, it's multi tenant, but there's not even people, which is something great. Super worst case. As I tell folks, if it doesn't sell, you're probably still going to coupon forever, or you really have a true brick and mortar property that can be refurbed. And these are kind of ultimate worst case under bad mismanaged scenarios that we don't see. So that's the high level of the market. And then from here, I think when folks get a taste, say maybe you put in 50, 100 in a deal, you're getting your 8% dividend, you're like, this is really great. Looks like the valuation's going up. A lot of folks, gentlemen and ladies, are pretty quiet with their money. They might come around and then put half a million or a million. I'm sure you see this with your notes all the time. You provide good service, good return. So I think we're seeing more of that where it's not as much the money. It's still finding the right deals because Time magazine is still saying if they were to put storage on the COVID oh, Too much supply, sure, maybe across the country, but this is a very hyper submarket thing and it all depends what your flavor is. I mean you want to be in fifth street or downtown Austin and buy into public storage. Publicly traded reit, they have great economies of scale. It's probably a good public stock to go into. Folks that want to be in places like Bernie Naggadocious, these secondary tertiary markets, likewise with the right operations, these can also be very lucrative. So you know, for those on the call that do the real estate meetups and I've heard Brad Sumrox and them of the world talk about what's the potential that you would pay to get a higher return. This is kind of the scenario I think you see in storage, right?

So you're investing into funds or other in operators on self storage, is that correct?

So this is actually really I think topical and timely and great question. So I go into individual properties now I would go into smaller funds. But what we're seeing is. So as I view funds it's kind of two things. I feel that it's either these open ended. Call it think of a Vanguard fund, you know, more publicly traded where it's open ended or somebody's raising 100 million for specific project. I feel the days when somebody says I'm going to do a 10 to 15, $40 million fund, fill it up over three years. Investors even from like high net worth and family office, they're not as warm and fuzzy. They want to say well no, what are you really investing in? So generally what we see is either it's deal by deal or somebody might say here's my history and I'm going to raise 5 million for three properties worth of equity. That's or you know, maybe 10 million. So I don't know if I don't want to be as levered as much. And that's basically what we see at this point. It's a deal by deal transaction, not as much into funding. Now that said in between, I think with everything the key to trust and respect is the education. So whether it's your shows, podcasts, so many ways to be educated these days, but what sort of property? So as an investor, personally I like where there's existing revenue coming in, something fully baked, but then also knowing that out back there might be literally a plot of land that we can build, we call them squares, build some more squares or maybe throw some boats on and pull some revenue. So other folks say I love the ground up build. I love that potential of the 40 IRR I don't mind if my money sits. You just got to get to know I think the operators and the timeline going into it and pulling it full circle. Especially Even if you're 50 years old with the retirement account both called the instant dividend and the long term development play, you really can't touch the money without penalty until you're 59 plus, so you might as well.

That makes a lot of sense. There's definitely. And I've got a buddy, Jim Ross who actually puts on online self storage. Someone actually was speaking to him this morning.

Awesome.

And spent some time with him in New Orleans recently at a virtual summit conference. So it's a small world, man. He gets smaller every day.

And Jim's a great steward of education. So, you know, I wholeheartedly double down. I mean just for education. If folks want to listen to Jim, I think for storage you're going to really. He brings on the best. So that's great. Yeah, definitely.

That's the view. There's so many different options out there. And here in Texas I think we're kind of blessed as being one of the largest states with one of the biggest footprints for self storage facilities of good ones or if you're looking to operate one, take one down yourself. There's a lot of opportunity out there. One of the largest networks of members as well in the self storage community out there. We market to that and do a drip marketing campaign out pretty on a monthly basis to them to generate leads. And I agree with you. I think it's no matter if it's an up down market or down market, self storage is a solid play because people are always looking to put their stuff away. Once you put it in there, you usually have them hooked well, 24, relatively easily.

I'll give you a funny there's a gentleman. I won't share names, but we're all guilty. And he was in Arizona in the early 80s, ultimately married. Fantastic guy, no kids, but had dirt bikes. Forty years later, guess what? Same storage facility in Arizona. He knows he probably paid $100 for them back in the day and how much he's paying for storage. But it's just. Yeah, there's my dirt bikes. Just in case.

Exactly. In case I decided to go out there and do it. I was just doing some purging here the last couple weeks.

Yeah.

Offices and moving stuff. And you said Christmas stuff in and out.

Yes.

And that's the thing too is people, as we look at what's happened in the last 10 years and still especially real estate A lot of times people are buying less houses because a the price has gone up. I mean, here in Austin, we see that a lot like inventory apartments aren't made with the same type of storage. And we have such a high, still very low vacancy factor, less than 1% here in Austin, that when people have downsized or moved, they don't have a place to really put their stuff. And so that's why self storage has done really good stuff. And I think you hit the nail right on the head. Secondary tertiary markets around those larger markets are a great play too, because there's a lot of opportunity either to own or operate or even maybe take over something that's maybe not being managed properly. Are you seeing some of that in some of the projects you looked at where people have the opportunity for the value adds, taking over stuff that maybe owner operators got into it in their retirement and then decided they didn't want another job, they just created for themselves?

Yeah, absolutely. And I'm going to playfully, because the first club came in Austin, open it up and then look at my value add outside the window that we have here. There's a lot of opportunity here in Austin. I think across the country. I was actually so I Airbnb. I felt like Don Draper. I haven't told my wife about this, but we're going public now. Not that side.

Are you saying you're a war hero who stole somebody's identity?

Well, I just say I'm a dirty New Yorker, so we'll put it there. But I would say fun fact. Well, I believe my mom probably dated the real Don Draper back in the 60s. Get her a few drinks at Franklin's and she'll tell you some great stories with that. Somehow in that spirit. I was in a Costa Mesa, very blessed to be out there a few days ago in California. And my host, we had a great chance to speak and that's what she said. She was probably at her 50s, nobody direct, no kids, no parents directly to take responsibility for. She bought a few places. Now, she did this a few years ago, so she had the benefit of the wave coming up. But her mindset, I think at the time was really, what do I want to do with my time going forward, what sort of contributions? And also, do I have either the trust or am I going to build up my little management team? Can I self do this? Meaning do you own the place across the street or do you know the call it the one property manager for the Square Mile that does all of these houses? And I think she's chose something towards the latter. But ultimately she had her primary place at the Airbnb. She has two others believe that are a mix of Airbnb and then longer term rental. Yes, it was a lifestyle choice. So I think a lot of folks are seeing this. Plus also, I mean as sure. On your previous episodes talked about I saw Jennifer G and others with asset protection, depreciation, all of that. So there's other, I think huge benefits as folks are either inheriting have other lines of income coming in maybe at the tail end of the career, but ultimately it's just a factor of time. It's just once you what level, what's the number as they say. But it's not this end number of 2.4 million. It's what's the ongoing income that you can be comfortable, especially in a state like Texas or the Southwest or Southeast, especially as empty nesters. It could definitely be 100,000. I mean coming in that you can live a very comfortable life. So yeah, I think we're seeing more and more folks that are doing that and going full circle with IRA when MRDs that are now minimum car distributions now when you're 72. But folks are realizing, okay, great, you know, I have a few properties that one rent check, basically I'll live off that and I'll be taking it out and you know, there's no early withdrawals, et cetera. And especially if it's in a Roth account, you're not paying taxes on it. So it's. You're right, you're seeing more and more of this, I think. And I think you're going to see more especially as I think it's going to be a great business opportunity for the, I guess service providers on the management side, as probably more millennials in our generation are inheriting these properties that don't really want to physically touch them. I think it's gonna be. I don't know what it's gonna be, but I think me some pretty cool things coming down the road.

Mm. And we just had a interesting interview with our buddy Brett Swartz from Capital Gains Tax Solutions talking about the deferred sales trust that was eye opening about how to use that to leverage. And especially like you just said, you got people that are retiring and leaving assets or wanting to get out of their property. Their families may not want to operate and take that over. So yeah, good stuff. They're definitely out there. What's the best way for people to reach now? You work with investors from all across the country. They just don't have to be in this glorious Lone star state.

Correct? Correct. Yes. Anybody with basically US tax account right now we Rocket dollar can work with. I would from the real estate side. Like you, I'm fortunate to know many folks even as just a friendly introduction. Somebody wants more about multifamily or storage. I can provide introductions just so then you can do your diligence from there. So we'll do it easy in terms of how do you get in touch with me? Danrocketdollar.com-itdollar.com My last name is a little complicated but or these are for my Philly Fans. A whopping 100 US if you can spell my name, you get it. D Kryzynowski hopefully put this in the show notes but D K R Y Z A N O W S K I. If it makes sense for you to sign up for a Rocket Dollar account, that'll get you $100 off. And then as I said for folks that are raising money, even if it's kind of your first go, it doesn't cost you anything. I call it the copy paste marketing. It literally is that you get to by default you get more money from less people faster. So folks on the other side of the coin raising money more than happy to have a conversation.

That's awesome, Dan. That's awesome. I appreciate it. You guys are doing a great job. You've got the podcast as well. You want to talk about the podcast as well?

Yeah. This is cool. So called Rocket your dollar. It was fun when we were thinking of names, but this seemed the most PC to bring out there. Coincidentally, we hosted that Capital Factory. Your space looks great here. I love the sunlight in the background. It's got Capital Factory. I call it in the bunker because it is on the military floor. And when you talk about this puppy soundproof, it's pretty wild. So don't drink too much coffee or cold brew before coming on. It's fantastic. And we've had. I think you mentioned Brett and we didn't even talk about this before. I think Brett's been on as a guest some other folks and it really has been for the dynamic sort of education for this kind of holistic view that, you know, if somebody even cherry picked what five episodes do I need to listen to? I have my ride home over the next month. We're trying to do similar. So that's cool. Yeah, there's a variety. It's been up. I think it's probably do a weekly episode from here. We'll of course meet a lot of Cool folks. During south by Southwest, I've been doing kind of these one minute clips. The minute with Dan last year probably did about 50 of them too. So I'm sure we can call it the, I call them the bigger pockets community. Jake and Gino, Michael Blanc, Liz Madam Liz Faircloth, Fairless, all the guys and gals, and then even somebody like Jeremy Roll. So we talk about the investors, you know, if somebody, if you are sitting on fair, let's just say a million dollars. And I know that may be far out for folks, but for those that are sitting on or inheriting it, I think now it's the time to take a moment and think, you know, if I passively invested this wisely and was in a relatively lower cost area, can I live off this? And you know, frankly it might be yes. So that's another thing, you know, Jeremy Roll, I would say kind of in the spirit of, you know, these are the types of folks that either have been on or will be on. Very similar to your great kind of resume. I've guessed over the years.

Awesome. Yeah, it's a great podcast. I've been binging to it. Check it out. Rocket your dollar podcast. Great. Great stuff on there. And then you got some big plans for south by Southwest because it's going to be here in like two weeks.

It's coming. It's wild. And it's funny too. It's my wife's birthday, my son's birthday on St. Patrick's Day. It's always eventful, you know, one way or the other. And then in between, of course, it's everything. Capital factories, booming, fintech luminaries. For our fintech friends out there tends to be the best show. And I think you'll see a little more CRE tech. Although I think the major CRE commercial real estate tech probably coming, I think late April, I believe, downtown Austin. There's always something going on here. It's all good.

Well, that's good stuff. We gotta get together for some barbecue or beer at least.

Done right, Dan?

Done.

Good stuff, brother.

Good stuff, man. Well, hey man, thanks so much for coming out and being on the Note Closure show podcast. Thanks for delivering your knowledge as always. And once again, guys, he said go out rocketdollar.com go check it out. Danockitdollar.com if you can spell his name, he'll throw in a hundred bucks into your account when you open it up there. Like he said, reduced fees. And they've got some great opportunities out there for you to take a look if you're looking to put your dollar to work on some things, so go check it out. But more importantly, guys, take action. Like you said, you can put up to $6,000 away right now into your own self directed IRA. Whether it's Roth or traditional, there's a lot of opportunities. You're self employed in putting your solo 401k or a variety of things out there as well. So go out, take some action, everybody, and we'll see you all at the top.

Everybody. Good stuff.

Thank you. Sam.