1 00:00:00,200 --> 00:00:03,320 Speaker 1: I used real estate to buy ten times more bitcoin 2 00:00:03,560 --> 00:00:06,120 Speaker 1: than most crypto investors ever will, and I'm about to 3 00:00:06,160 --> 00:00:09,119 Speaker 1: show you exactly how I did it. Now, most people 4 00:00:09,119 --> 00:00:12,200 Speaker 1: think you have to choose real estate or bitcoin. But 5 00:00:12,240 --> 00:00:14,760 Speaker 1: what if I told you that's the biggest wealth building 6 00:00:14,800 --> 00:00:17,880 Speaker 1: mistake that you could possibly make. There's actually a way 7 00:00:17,960 --> 00:00:21,680 Speaker 1: to use real estate as a bitcoin accelerator that most 8 00:00:21,720 --> 00:00:24,960 Speaker 1: investors have never even heard of. We're talking about the 9 00:00:25,000 --> 00:00:29,000 Speaker 1: difference between buying bitcoin with leftover income versus having an 10 00:00:29,080 --> 00:00:33,040 Speaker 1: endless money machine that feeds your bitcoin stack every single month. 11 00:00:33,560 --> 00:00:37,080 Speaker 1: One path keeps you broke, the other builds generational wealth. 12 00:00:37,240 --> 00:00:39,760 Speaker 1: Now I've flipped over one hundred properties, I've built over 13 00:00:39,840 --> 00:00:42,120 Speaker 1: twenty million dollars in real estate projects. I've owned over 14 00:00:42,159 --> 00:00:45,199 Speaker 1: two hundred rental units, and today I've sold all my 15 00:00:45,200 --> 00:00:47,720 Speaker 1: rentals for bitcoin. I'm a partner at a leading bitcoin 16 00:00:47,800 --> 00:00:51,000 Speaker 1: venture fund, and I'm all in. But I still own 17 00:00:51,040 --> 00:00:56,680 Speaker 1: an eight figure real estate portfolio. And here's why. All right, 18 00:00:56,720 --> 00:01:00,720 Speaker 1: the old raging debate bitcoin versus real estate, and it's 19 00:01:00,760 --> 00:01:03,440 Speaker 1: completely wrong. It's the wrong question to ask. That's why 20 00:01:03,720 --> 00:01:06,040 Speaker 1: ninety nine percent of people get it wrong. But now 21 00:01:06,040 --> 00:01:08,119 Speaker 1: you we're going to fix that for you right now. Okay, 22 00:01:08,160 --> 00:01:10,759 Speaker 1: so there's sort of a few different ways to look 23 00:01:10,760 --> 00:01:13,840 Speaker 1: at this now. I ran a poll on Twitter, not 24 00:01:13,880 --> 00:01:15,920 Speaker 1: a poll, but I just asked the question, what do 25 00:01:15,959 --> 00:01:18,240 Speaker 1: you think about bitcoin versus real estate and the debate? 26 00:01:19,040 --> 00:01:20,880 Speaker 1: What is misunderstood? I said, I'm going to make a 27 00:01:20,920 --> 00:01:23,360 Speaker 1: YouTube video. I want to break this down, and I 28 00:01:23,400 --> 00:01:26,800 Speaker 1: asked people to give me what they're number one point 29 00:01:26,880 --> 00:01:28,920 Speaker 1: that you think is crucial from me, either a bitcoin 30 00:01:29,000 --> 00:01:32,039 Speaker 1: perspective or a real estate perspective. And I grabbed all 31 00:01:32,080 --> 00:01:34,160 Speaker 1: of these comments. I think we had, I don't know, 32 00:01:34,200 --> 00:01:36,480 Speaker 1: over one hundred comments. I threw it all into chat 33 00:01:36,520 --> 00:01:38,920 Speaker 1: GBT and we kind of summarized it and I kind 34 00:01:38,920 --> 00:01:42,679 Speaker 1: of broke it down into three different types of people here, Okay, 35 00:01:42,840 --> 00:01:45,560 Speaker 1: Number one, we sort of have like the hardcore bitcoiner. 36 00:01:45,760 --> 00:01:49,120 Speaker 1: The hardcore bitcoiner basically says that it all has to 37 00:01:49,160 --> 00:01:52,080 Speaker 1: do with easy financing and leverage every bitcoin versus real 38 00:01:52,160 --> 00:01:54,360 Speaker 1: estate debate obviously, and acts as if they're purchased in 39 00:01:54,400 --> 00:01:59,000 Speaker 1: the same way with cash. That's actually pretty insightful because 40 00:01:59,000 --> 00:02:01,960 Speaker 1: they're not purchased this. That's interesting. We're going to break 41 00:02:01,960 --> 00:02:05,280 Speaker 1: that down. I saw here, it's simple. You can't live 42 00:02:05,280 --> 00:02:08,200 Speaker 1: in your bitcoin. That's the bitcoin of perspective. That's the 43 00:02:08,240 --> 00:02:10,520 Speaker 1: most common response I get, with the second being that 44 00:02:10,760 --> 00:02:14,040 Speaker 1: with bitcoin there is no yield. So real estate has 45 00:02:14,080 --> 00:02:17,080 Speaker 1: cashel bitcoin has no yield, both of which you already know. 46 00:02:17,160 --> 00:02:19,800 Speaker 1: So I'm sure you'll be offering solutions. Cheers. Of course, 47 00:02:19,919 --> 00:02:22,360 Speaker 1: we're going to break that down. Don't worry. We have 48 00:02:22,400 --> 00:02:25,080 Speaker 1: another response here. This one was a little bit longer. 49 00:02:25,160 --> 00:02:26,600 Speaker 1: I'm not going to read the whole thing to you, 50 00:02:26,960 --> 00:02:29,120 Speaker 1: but it says he's basically talking about what should I do. 51 00:02:29,480 --> 00:02:31,880 Speaker 1: I'm thinking about refining my real estate. Maybe I could 52 00:02:31,880 --> 00:02:34,000 Speaker 1: buy more bitcoin. Maybe what I should do is I 53 00:02:34,040 --> 00:02:37,040 Speaker 1: should sell calls or puts on the bitcoin ETFs. Then 54 00:02:37,080 --> 00:02:40,160 Speaker 1: it could be a happy medium. And so he's overwhelming himself. 55 00:02:40,240 --> 00:02:43,360 Speaker 1: It's an analysis paralysis. So we sort of have the bitcoin approach. 56 00:02:43,600 --> 00:02:46,519 Speaker 1: We have the people that don't understand there's leverage being played, 57 00:02:46,680 --> 00:02:48,640 Speaker 1: and then we have people who just get so caught 58 00:02:48,720 --> 00:02:52,160 Speaker 1: up and analysis paralysis. So let's end all of that 59 00:02:52,360 --> 00:02:55,040 Speaker 1: for good. Let's break this down. So the first thing is, 60 00:02:55,080 --> 00:02:57,720 Speaker 1: like I said, asking which is better bitcoin or real 61 00:02:57,800 --> 00:03:00,560 Speaker 1: estate is the wrong question to ask, and it's really 62 00:03:00,600 --> 00:03:04,440 Speaker 1: false choices. Okay, if you're asking that question, you completely 63 00:03:04,520 --> 00:03:09,440 Speaker 1: missed the point. What I say, spoiler alert, is what 64 00:03:09,520 --> 00:03:13,160 Speaker 1: if buying both I could end up with more of both? 65 00:03:13,680 --> 00:03:16,120 Speaker 1: What if by buying both at the same time, I 66 00:03:16,120 --> 00:03:19,919 Speaker 1: could end up with ten times more bitcoin? Okay, let's 67 00:03:19,919 --> 00:03:21,560 Speaker 1: break that down. So the first thing, like I said, 68 00:03:21,560 --> 00:03:25,720 Speaker 1: the camp number one is these bitcoin maximalists, real estate's dead. 69 00:03:25,760 --> 00:03:29,040 Speaker 1: Bitcoin's the only asset you should be buying. Okay, real 70 00:03:29,160 --> 00:03:31,920 Speaker 1: estate maximalists, you can't live in the bitcoin there's no 71 00:03:32,000 --> 00:03:34,920 Speaker 1: cash flow. Okay. And then the Camp three, the confused 72 00:03:34,960 --> 00:03:37,600 Speaker 1: people in the middle. But what if there's a fourth group? 73 00:03:38,240 --> 00:03:41,480 Speaker 1: All right? So real quickly my story A lot of 74 00:03:41,520 --> 00:03:43,160 Speaker 1: you have heard it. In two thousand and eight, I 75 00:03:43,240 --> 00:03:45,760 Speaker 1: had the wake up. Right before two thousand and eight, 76 00:03:45,880 --> 00:03:47,600 Speaker 1: I was twenty eight years old. I had built up 77 00:03:47,600 --> 00:03:50,360 Speaker 1: two different businesses. I had two big high value exits. 78 00:03:50,560 --> 00:03:53,920 Speaker 1: I basically put everything into real estate, so sold my businesses. 79 00:03:54,200 --> 00:03:56,160 Speaker 1: I thought I was set for life. I had a 80 00:03:56,240 --> 00:04:00,640 Speaker 1: portfolio worth multi multiple multimillions. I was good. I had 81 00:04:00,640 --> 00:04:02,520 Speaker 1: it all figured out. But when two thousand and eight came, 82 00:04:03,200 --> 00:04:05,640 Speaker 1: I got wiped out. I found out that the market 83 00:04:05,680 --> 00:04:08,320 Speaker 1: collapse overnight, and I went from feeling really rich because 84 00:04:08,360 --> 00:04:10,840 Speaker 1: I had a lot of net worth on paper to 85 00:04:10,920 --> 00:04:13,960 Speaker 1: feeling broke right away. I had millions of dollars in 86 00:04:14,080 --> 00:04:18,240 Speaker 1: mortgages that I couldn't afford, and I was trapped and 87 00:04:18,240 --> 00:04:20,120 Speaker 1: I had no way out because I sold my businesses. 88 00:04:20,400 --> 00:04:23,360 Speaker 1: All Right, The lesson that changed everything for me, and 89 00:04:23,400 --> 00:04:25,720 Speaker 1: I'm gonna teach you right now, is that the crash 90 00:04:25,760 --> 00:04:27,919 Speaker 1: taught me the most valuable lesson of my investing career 91 00:04:28,120 --> 00:04:30,200 Speaker 1: is to put all your If you want to put 92 00:04:30,200 --> 00:04:33,080 Speaker 1: all yourggs in one basket, make sure that you have 93 00:04:33,760 --> 00:04:37,560 Speaker 1: a way out, make sure that's properly risk mitigated. And 94 00:04:37,560 --> 00:04:39,279 Speaker 1: I'm gonna break that down for you. But let's go 95 00:04:39,320 --> 00:04:42,240 Speaker 1: back to the lesson. Okay, first of all, the wrong math. 96 00:04:42,640 --> 00:04:45,880 Speaker 1: So most people think, well, bitcoin's certainly better than real 97 00:04:46,000 --> 00:04:49,200 Speaker 1: estate because scenario one. If I put one hundred thousand 98 00:04:49,200 --> 00:04:52,080 Speaker 1: dollars into bitcoin and it goes up by let's say 99 00:04:52,120 --> 00:04:54,320 Speaker 1: twenty five percent a year for the next ten years, 100 00:04:54,760 --> 00:04:57,839 Speaker 1: then I'm gonna have about nine hundred and thirty thousand 101 00:04:57,880 --> 00:05:00,080 Speaker 1: dollars a bitcoin. But if I put the same one 102 00:05:00,120 --> 00:05:03,320 Speaker 1: hundred thousand dollars into real estate and real estate goes up, 103 00:05:03,360 --> 00:05:06,839 Speaker 1: I only let's say five percent a year, plus I 104 00:05:06,880 --> 00:05:09,040 Speaker 1: reinvest some of the cash flow that comes in. I 105 00:05:09,080 --> 00:05:12,200 Speaker 1: only have about two hundred grand, So obviously the nine 106 00:05:12,279 --> 00:05:15,440 Speaker 1: hundred grand is more than the two hundred grand, right, 107 00:05:15,760 --> 00:05:18,440 Speaker 1: how many people think that way? The problem is you're 108 00:05:18,480 --> 00:05:20,760 Speaker 1: missing a lot of the benefits of real estate. So 109 00:05:20,839 --> 00:05:23,640 Speaker 1: let's go to the next scenario, which is still not right, 110 00:05:23,960 --> 00:05:25,960 Speaker 1: but some people think it's better to think about like this. 111 00:05:26,080 --> 00:05:29,279 Speaker 1: So what if I didn't put one hundred thousand in 112 00:05:29,279 --> 00:05:33,120 Speaker 1: real estate instead, I only put twenty thousand down then 113 00:05:33,839 --> 00:05:37,200 Speaker 1: on a one hundred thousand dollars property. Now the property 114 00:05:37,240 --> 00:05:40,599 Speaker 1: grows again the same five percent over ten years, and 115 00:05:40,640 --> 00:05:43,080 Speaker 1: the property is worth now one hundred and sixty two 116 00:05:43,120 --> 00:05:45,760 Speaker 1: thousand dollars, which means I had a profit of sixty 117 00:05:45,760 --> 00:05:49,800 Speaker 1: two thousand. However, and I have twenty four thousand dollars 118 00:05:49,800 --> 00:05:51,880 Speaker 1: of cash flow coming in let's say two hundred bucks 119 00:05:51,880 --> 00:05:55,640 Speaker 1: a month. So I made eighty eight thousand dollars from 120 00:05:55,640 --> 00:05:59,600 Speaker 1: that deal. Now that's not on the one hundred thousand 121 00:05:59,600 --> 00:06:02,360 Speaker 1: dollars pit, it's only on the twenty thousand that I 122 00:06:02,440 --> 00:06:05,680 Speaker 1: had put in. The twenty percent down. Now, the ROI. 123 00:06:06,120 --> 00:06:08,120 Speaker 1: The return on my investment of the twenty thousand is 124 00:06:08,200 --> 00:06:12,160 Speaker 1: four hundred and thirty five percent. Now we're getting a 125 00:06:12,160 --> 00:06:14,880 Speaker 1: lot better. We're getting a little bit closer to bitcoin. Okay, 126 00:06:14,880 --> 00:06:18,000 Speaker 1: But now what if we start combining these Okay, So 127 00:06:18,160 --> 00:06:20,680 Speaker 1: now we didn't pay cash for the real estate. We 128 00:06:20,720 --> 00:06:23,520 Speaker 1: only put twenty thousand down. The eighty thousand that we 129 00:06:23,560 --> 00:06:26,520 Speaker 1: didn't deploy, then we put that into bitcoin. So now 130 00:06:26,520 --> 00:06:28,960 Speaker 1: we put eighty thousand into bitcoin that's going to continue 131 00:06:28,960 --> 00:06:31,440 Speaker 1: to grow at the twenty five percent rate for the 132 00:06:31,520 --> 00:06:33,440 Speaker 1: next ten years that we're talking about. Now, it's been 133 00:06:33,480 --> 00:06:36,159 Speaker 1: going up about fifty five percent for the last five years, 134 00:06:36,240 --> 00:06:37,800 Speaker 1: so let's just say over ten years it goes down 135 00:06:37,880 --> 00:06:41,120 Speaker 1: to about twenty five percent. Now the investment period ten years, 136 00:06:41,400 --> 00:06:44,359 Speaker 1: the growth multiplier is nine point three times, and my 137 00:06:44,640 --> 00:06:47,760 Speaker 1: final value of the bitcoin is seven hundred and forty 138 00:06:47,800 --> 00:06:51,480 Speaker 1: five thousand dollars. That is a bitcoin ROI have eight 139 00:06:51,600 --> 00:06:53,640 Speaker 1: hundred and thirty one percent. So the real estate went 140 00:06:53,720 --> 00:06:56,960 Speaker 1: up four hundred and thirty five percent, but the bitcoin 141 00:06:56,960 --> 00:06:59,760 Speaker 1: went up eight hundred and thirty one percent. Did better. 142 00:07:00,200 --> 00:07:03,479 Speaker 1: But what happens if we combine them together. So now 143 00:07:03,480 --> 00:07:05,760 Speaker 1: on the real estate, I got eighty seven thousand. On 144 00:07:05,760 --> 00:07:07,960 Speaker 1: the bitcoin I got seven hundred and forty five a 145 00:07:08,000 --> 00:07:11,240 Speaker 1: total of eight hundred and thirty two thousand. Okay, we're 146 00:07:11,240 --> 00:07:14,840 Speaker 1: getting better, but we're still not there. Let me show 147 00:07:14,840 --> 00:07:16,960 Speaker 1: you a much better way to think about this, and 148 00:07:17,000 --> 00:07:19,400 Speaker 1: this is where most people completely miss it. There is 149 00:07:19,440 --> 00:07:23,400 Speaker 1: a hidden multiplier. The hidden multiplier. Most people have no 150 00:07:23,440 --> 00:07:24,880 Speaker 1: idea about what I'm gonna break it down for you 151 00:07:24,960 --> 00:07:27,360 Speaker 1: right now. Okay, without real estate. Let's say I have 152 00:07:27,360 --> 00:07:31,280 Speaker 1: an annual income of five hundred thousand dollars. Now I 153 00:07:31,280 --> 00:07:33,600 Speaker 1: don't know. You live in New York, you live in California, 154 00:07:33,760 --> 00:07:37,120 Speaker 1: you live in Norway, you live in a high tax area. Okay, 155 00:07:37,280 --> 00:07:39,480 Speaker 1: with five hundred thousand, this is back in an African math. 156 00:07:39,520 --> 00:07:41,680 Speaker 1: Let's say you have a fifty percent taxree because you're 157 00:07:41,680 --> 00:07:44,360 Speaker 1: at the top of the income brex. Okay, so fifty 158 00:07:44,360 --> 00:07:46,840 Speaker 1: percent goes to taxes. That means you're going to pay 159 00:07:46,880 --> 00:07:49,840 Speaker 1: two hundred and fifty grand, or your after tax income 160 00:07:50,000 --> 00:07:53,160 Speaker 1: is two hundred fifty thousand dollars. I made five hundred grand, 161 00:07:53,360 --> 00:07:55,520 Speaker 1: half one to taxes. I have two hundred fifty thousand 162 00:07:55,600 --> 00:07:57,800 Speaker 1: left to buy bitcoin with. So I about ten hund 163 00:07:57,800 --> 00:08:01,280 Speaker 1: fifty thousand dollars a bitcoin. Now another scenario with real estate. 164 00:08:01,600 --> 00:08:04,640 Speaker 1: Let's say that I still make the five hundred thousand. However, 165 00:08:05,640 --> 00:08:09,240 Speaker 1: what I do now is I buy a five hundred 166 00:08:09,240 --> 00:08:12,640 Speaker 1: thousand dollars a piece of property, which gives me about 167 00:08:12,920 --> 00:08:15,840 Speaker 1: four hundred and fifty thousand dollars of write off back. 168 00:08:16,840 --> 00:08:19,800 Speaker 1: Now I have about a ten percent effective tax rate, 169 00:08:19,840 --> 00:08:23,200 Speaker 1: which means I'm only paying taxes of fifty thousand. Or 170 00:08:23,280 --> 00:08:25,760 Speaker 1: that means that I have an after tax income of 171 00:08:25,800 --> 00:08:29,320 Speaker 1: about four hundred and fifty thousand dollars. Now how do 172 00:08:29,360 --> 00:08:31,440 Speaker 1: we do that? Well, real estate has a lot of 173 00:08:31,440 --> 00:08:34,080 Speaker 1: advantages that most people do understand. Like Number one, obviously 174 00:08:34,120 --> 00:08:36,840 Speaker 1: the leverage. I can control a five hundred thousand dollars 175 00:08:36,880 --> 00:08:40,559 Speaker 1: asset for ten percent down, twenty percent down, something like that. 176 00:08:40,760 --> 00:08:44,000 Speaker 1: Number two, someone else can pay off the property for me, 177 00:08:44,040 --> 00:08:46,640 Speaker 1: and I can still get cash flow. Number three because 178 00:08:46,679 --> 00:08:50,199 Speaker 1: I can get long term debt. Inflation destroys that debt 179 00:08:50,280 --> 00:08:52,680 Speaker 1: for me. But more importantly we're talking about here, Number 180 00:08:52,679 --> 00:08:56,920 Speaker 1: four is tax depreciation. Now, thanks to Trump's new beautiful 181 00:08:56,920 --> 00:09:01,160 Speaker 1: big bill, he's reinstating what's called bone this depreciation, so 182 00:09:01,640 --> 00:09:03,680 Speaker 1: I can do a cost segregation on the piece of 183 00:09:03,679 --> 00:09:06,559 Speaker 1: real estate, and I can bring all the depreciation forward 184 00:09:06,559 --> 00:09:09,280 Speaker 1: in year one and I can write that off against 185 00:09:09,320 --> 00:09:11,920 Speaker 1: my income. Now, even if you're earned income like a 186 00:09:12,080 --> 00:09:15,520 Speaker 1: W two for example, there's exclusions for STRs and things 187 00:09:15,559 --> 00:09:18,360 Speaker 1: like that. We can figure that out. Now, this is 188 00:09:18,440 --> 00:09:21,360 Speaker 1: only writing off the cost of the building, not the land. 189 00:09:21,400 --> 00:09:22,680 Speaker 1: So of course you want to buy it into an 190 00:09:22,720 --> 00:09:27,320 Speaker 1: area like San Antonio, Texas, or like you know, somewhere 191 00:09:27,320 --> 00:09:29,320 Speaker 1: in the middle of America in Missouri where the value 192 00:09:29,360 --> 00:09:31,680 Speaker 1: is in the building. But let's say that we have 193 00:09:31,720 --> 00:09:34,880 Speaker 1: something like this. So now I have available for bitcoin 194 00:09:35,080 --> 00:09:38,160 Speaker 1: four hundred and fifty thousand instead of twenty five thousand. 195 00:09:38,800 --> 00:09:40,800 Speaker 1: So now if I buy the real estate first, I 196 00:09:40,840 --> 00:09:44,720 Speaker 1: have more after tax income. I have eighty percent more 197 00:09:44,800 --> 00:09:49,280 Speaker 1: money available for bitcoin before cash flow. So it's not 198 00:09:49,320 --> 00:09:51,680 Speaker 1: about which one is better, it's how do I get 199 00:09:51,720 --> 00:09:53,760 Speaker 1: one to get me more of the other. And in 200 00:09:53,760 --> 00:09:56,560 Speaker 1: this case, we got eighty percent more bitcoin. But it 201 00:09:56,600 --> 00:10:01,079 Speaker 1: doesn't stop there. Okay, Now on top of it, I've 202 00:10:01,120 --> 00:10:04,240 Speaker 1: got more money, I've got more bitcoin, and I have 203 00:10:04,320 --> 00:10:07,400 Speaker 1: the piece of real estate. So now let's think about this. Okay, 204 00:10:07,480 --> 00:10:10,440 Speaker 1: twenty five percent annual Bitcoin growth projected out right here. 205 00:10:10,840 --> 00:10:12,800 Speaker 1: I have the tax savings advantage, so I get an 206 00:10:12,800 --> 00:10:15,680 Speaker 1: extra two hunder grand into bitcoin that's growing at twenty 207 00:10:15,800 --> 00:10:19,920 Speaker 1: five percent in ten years. That becomes one point nine 208 00:10:20,160 --> 00:10:23,560 Speaker 1: million dollars. Then on top of it, I have monthly 209 00:10:23,640 --> 00:10:25,840 Speaker 1: cash flow coming in from the piece of property that 210 00:10:25,920 --> 00:10:28,000 Speaker 1: someone's paying off for me. So let's say that's five 211 00:10:28,080 --> 00:10:30,080 Speaker 1: hundred dollars a month fo one hundred and twenty months. 212 00:10:30,160 --> 00:10:32,959 Speaker 1: That's another one hundred and fifty thousand dollars that I 213 00:10:33,000 --> 00:10:36,480 Speaker 1: can dollar cost average into bitcoin over the time. And 214 00:10:36,520 --> 00:10:38,720 Speaker 1: so now I have total bitcoin acceleration. I have the 215 00:10:38,800 --> 00:10:41,280 Speaker 1: tax savings that I'm able to put into bitcoin, plus 216 00:10:41,320 --> 00:10:43,280 Speaker 1: I have the cash flow from the building I'm able 217 00:10:43,280 --> 00:10:45,720 Speaker 1: to put into bitcoin, and over a ten year period, 218 00:10:45,800 --> 00:10:49,600 Speaker 1: I could have over two million dollars. That's how you 219 00:10:49,760 --> 00:10:53,160 Speaker 1: ten extra bitcoin by using it with real estate in 220 00:10:53,240 --> 00:10:59,400 Speaker 1: the same strategy. Okay, now this sounds really good, right, 221 00:10:59,480 --> 00:11:02,000 Speaker 1: this is back and aftermath. This works, but of course 222 00:11:02,040 --> 00:11:03,720 Speaker 1: there's details. But the one thing I want to talk 223 00:11:03,720 --> 00:11:06,200 Speaker 1: about right now is the dangers. Avoid the trap. I 224 00:11:06,200 --> 00:11:08,200 Speaker 1: talked about my own trap in two thousand and eight, 225 00:11:08,360 --> 00:11:10,559 Speaker 1: so we want to watch out for a couple of things. Okay, 226 00:11:10,559 --> 00:11:13,040 Speaker 1: the first thing is going back and seeing what did 227 00:11:13,040 --> 00:11:15,320 Speaker 1: I get wrong? What did I get wrong back in 228 00:11:15,360 --> 00:11:17,080 Speaker 1: two thousand and eight. Well, the first thing, as I said, 229 00:11:17,160 --> 00:11:19,040 Speaker 1: is I went one hundred percent real estate. I had 230 00:11:19,040 --> 00:11:22,520 Speaker 1: no diversification. I sold my businesses and I was all 231 00:11:22,520 --> 00:11:25,640 Speaker 1: in on real estate. Then I was over leveraged. I 232 00:11:25,679 --> 00:11:28,280 Speaker 1: had used a lot of leverage, and when the market dropped, 233 00:11:28,679 --> 00:11:31,520 Speaker 1: I owed more than the properties were worth. On top 234 00:11:31,559 --> 00:11:34,480 Speaker 1: of that, I had no cash flow. I was only 235 00:11:34,559 --> 00:11:38,640 Speaker 1: relying on appreciation only in California. The properties I owned, 236 00:11:38,679 --> 00:11:41,160 Speaker 1: the values were so high I couldn't rent them out 237 00:11:41,360 --> 00:11:44,200 Speaker 1: to cover the payments. In hindsight, it seems pretty stupid, 238 00:11:44,840 --> 00:11:46,680 Speaker 1: and I had no exit plan. That's why when the 239 00:11:46,679 --> 00:11:49,079 Speaker 1: market crashed, I went from being rich to being broke 240 00:11:49,160 --> 00:11:51,360 Speaker 1: with millions of dollars in mortgage I couldn't afford all. Right, 241 00:11:51,640 --> 00:11:54,880 Speaker 1: But today here's what I do now. Instead, I have 242 00:11:54,960 --> 00:11:58,040 Speaker 1: multiple assets. Right, we're talking about two right here. So 243 00:11:58,080 --> 00:12:00,480 Speaker 1: now I have real estate and bitcoin, and I have 244 00:12:00,559 --> 00:12:03,000 Speaker 1: my businesses. I'm not selling my businesses like I did before. 245 00:12:03,600 --> 00:12:06,280 Speaker 1: Then I use conservative leverage. Whatever that is for you, 246 00:12:06,320 --> 00:12:10,480 Speaker 1: Maybe it's sixty percent LTV seventy percent LTV. I make 247 00:12:10,640 --> 00:12:13,240 Speaker 1: cash flow a priority. So any property that I'm going 248 00:12:13,280 --> 00:12:15,360 Speaker 1: to buy, I'm going to make sure the rents can 249 00:12:15,440 --> 00:12:18,120 Speaker 1: cover the mortgage plus some so I can have my 250 00:12:18,200 --> 00:12:21,520 Speaker 1: dollar cost average strategy. And then I have an extra strategy. 251 00:12:21,559 --> 00:12:24,200 Speaker 1: I can always plan the leverage because I have multiple 252 00:12:24,240 --> 00:12:27,280 Speaker 1: assets because I bought the real estate and I bought 253 00:12:27,280 --> 00:12:30,120 Speaker 1: the bitcoin. So even if the property values came down, 254 00:12:30,400 --> 00:12:33,200 Speaker 1: even if the rents didn't cover for some reason, if 255 00:12:33,240 --> 00:12:35,120 Speaker 1: a rent removed out or something like that, I have 256 00:12:35,200 --> 00:12:37,840 Speaker 1: the bitcoin. I can sell some of the bitcoin. I 257 00:12:37,840 --> 00:12:40,080 Speaker 1: could borrow against some of the bitcoin to cover that 258 00:12:40,240 --> 00:12:43,120 Speaker 1: asset while I need it all. Right now, whatever the 259 00:12:43,120 --> 00:12:46,040 Speaker 1: conservative LTV is for you, you think about that. But cash 260 00:12:46,040 --> 00:12:47,840 Speaker 1: flow first is always going to be the big piece. 261 00:12:48,200 --> 00:12:50,760 Speaker 1: The diversification is going to be big, not like Ray 262 00:12:50,840 --> 00:12:53,160 Speaker 1: Dalio talks about it. But I have bitcoin, I have 263 00:12:53,200 --> 00:12:56,880 Speaker 1: my real estate, and I have my businesses. Okay, now 264 00:12:56,880 --> 00:12:59,679 Speaker 1: there's three phases for you to do the same thing. 265 00:13:00,040 --> 00:13:02,160 Speaker 1: Here's what you're going to do. The first phase is 266 00:13:02,160 --> 00:13:03,679 Speaker 1: you're going to build the foundation. This is going to 267 00:13:03,720 --> 00:13:05,320 Speaker 1: take you the first couple of months, maybe for the 268 00:13:05,320 --> 00:13:07,360 Speaker 1: first six months, you're going to work on this. Number one, 269 00:13:07,600 --> 00:13:10,160 Speaker 1: you need to start building some cash flow. You should 270 00:13:10,200 --> 00:13:12,400 Speaker 1: have some income because this works if you can write 271 00:13:12,640 --> 00:13:14,920 Speaker 1: that off. Write the income off, so you have some 272 00:13:14,960 --> 00:13:18,360 Speaker 1: income coming in whatever you're planning to put it towards taxes. 273 00:13:18,480 --> 00:13:20,000 Speaker 1: Maybe you could start to sort of put that away 274 00:13:20,000 --> 00:13:23,600 Speaker 1: in a savings account. Number two, Identify how much you 275 00:13:23,600 --> 00:13:26,800 Speaker 1: could potentially save if I buy this property in Texas 276 00:13:26,880 --> 00:13:30,120 Speaker 1: or this property in Kansas or Missouri. How much will 277 00:13:30,120 --> 00:13:32,120 Speaker 1: it cost if I cost our gate, how much can 278 00:13:32,160 --> 00:13:33,880 Speaker 1: I write off? Now you're starting to make a plan. 279 00:13:34,320 --> 00:13:37,200 Speaker 1: Number three, I need to find the property market. Remember again, 280 00:13:37,240 --> 00:13:39,480 Speaker 1: you only write off the home. So like a beachfront 281 00:13:39,480 --> 00:13:42,079 Speaker 1: home in California, most of the land, the values in 282 00:13:42,120 --> 00:13:43,640 Speaker 1: the land, it's not going to work real well for you. 283 00:13:43,920 --> 00:13:45,240 Speaker 1: So I want to buy something where most of the 284 00:13:45,320 --> 00:13:48,720 Speaker 1: values in the property. So in phase one, get the cash, 285 00:13:48,840 --> 00:13:51,880 Speaker 1: identify my savings, and find the property markets. Phase number 286 00:13:51,880 --> 00:13:55,520 Speaker 1: two implementation This is months six to eighteen. Now I 287 00:13:55,520 --> 00:13:57,360 Speaker 1: got to get the property. I got to acquire the 288 00:13:57,360 --> 00:14:01,120 Speaker 1: piece of real estate. I need to deploy the So 289 00:14:01,160 --> 00:14:03,280 Speaker 1: I'm buying the piece of property the money that now 290 00:14:03,320 --> 00:14:05,199 Speaker 1: I'm being able to write off on my taxes instead 291 00:14:05,200 --> 00:14:07,600 Speaker 1: of sending to the government, I can deploy that into 292 00:14:07,600 --> 00:14:10,920 Speaker 1: bitcoin instead. Then, on top of it, as that rental 293 00:14:10,960 --> 00:14:13,600 Speaker 1: property is bringing cash flowner every month, that is now 294 00:14:13,720 --> 00:14:17,920 Speaker 1: dollar cost averaging into bitcoin. Phase three. This is the 295 00:14:17,960 --> 00:14:20,720 Speaker 1: fun part. This is the scaling part. This probably happens 296 00:14:20,760 --> 00:14:23,200 Speaker 1: in eighteen months or two years down the road. What 297 00:14:23,320 --> 00:14:26,920 Speaker 1: we do. We can refinance the property. We can pull 298 00:14:27,000 --> 00:14:28,920 Speaker 1: some cash back out of the property. What do we 299 00:14:28,960 --> 00:14:31,800 Speaker 1: do with that, Well, we can take that equity which 300 00:14:31,840 --> 00:14:34,200 Speaker 1: is debt, is non taxable, and we can buy more 301 00:14:34,240 --> 00:14:36,720 Speaker 1: real estate. When I buy more real estate, I write 302 00:14:36,840 --> 00:14:39,600 Speaker 1: off more of my earned income, which means I have 303 00:14:39,680 --> 00:14:41,760 Speaker 1: even more money back that I didn't send to the government, 304 00:14:41,880 --> 00:14:44,080 Speaker 1: and I can buy even more bitcoin. And now I 305 00:14:44,120 --> 00:14:47,720 Speaker 1: have two rental properties dollar cost averaging into bitcoin for 306 00:14:47,840 --> 00:14:51,600 Speaker 1: me at the same time, and this becomes a flywheel. 307 00:14:51,960 --> 00:14:55,760 Speaker 1: Each phase builds more momentum. Of course, you start with 308 00:14:55,760 --> 00:14:58,480 Speaker 1: one property, you get it going, and then you roll 309 00:14:58,560 --> 00:15:01,880 Speaker 1: to the next, and the next, the next. Okay, now 310 00:15:02,120 --> 00:15:04,240 Speaker 1: here's some common objections. I can already hear them coming in. 311 00:15:04,320 --> 00:15:06,000 Speaker 1: Go ahead and drop them the comments down below. I'll 312 00:15:06,040 --> 00:15:07,720 Speaker 1: read them. Try to reply to as many as I can. 313 00:15:07,760 --> 00:15:10,560 Speaker 1: Objection number one again, you can't live in bitcoin, of 314 00:15:10,600 --> 00:15:14,840 Speaker 1: course not. But you can leverage bitcoin to buy things 315 00:15:14,840 --> 00:15:18,400 Speaker 1: that you want, like a place to live, right. Object 316 00:15:18,480 --> 00:15:20,800 Speaker 1: number two. Bitcoin has no cash flow, true, but we 317 00:15:20,840 --> 00:15:24,120 Speaker 1: can harvest cash flow through it by leveraging it with debt. 318 00:15:24,200 --> 00:15:26,760 Speaker 1: I've talked about this extensively. I'll put a video a 319 00:15:26,800 --> 00:15:28,600 Speaker 1: link to a video down here. I call the five 320 00:15:28,680 --> 00:15:31,680 Speaker 1: year retirement with bitcoin. So we can get cash flow 321 00:15:31,720 --> 00:15:36,440 Speaker 1: from bitcoin. But again gold doesn't have that either. That's 322 00:15:36,480 --> 00:15:39,240 Speaker 1: why we use real estate and bitcoin together. It's a 323 00:15:39,320 --> 00:15:42,960 Speaker 1: rate pairing, of course. Objection number three it's too complicated. Yeah, 324 00:15:43,000 --> 00:15:45,120 Speaker 1: it's complicated if you try to do it all at once, 325 00:15:45,320 --> 00:15:47,600 Speaker 1: which is why I've broken it down in three phases 326 00:15:47,800 --> 00:15:50,560 Speaker 1: so you can sort of grow into it all right Now. 327 00:15:50,920 --> 00:15:54,640 Speaker 1: The master key here is combining both of these together, 328 00:15:55,280 --> 00:15:57,960 Speaker 1: all right. What we're doing is not about either or 329 00:15:58,000 --> 00:16:02,120 Speaker 1: it's about using both together, getting one dollar to do 330 00:16:02,240 --> 00:16:05,880 Speaker 1: multiple jobs. So we want to use real estate. It's 331 00:16:05,920 --> 00:16:08,960 Speaker 1: the foundation and it's the cash flow. It gives us 332 00:16:08,960 --> 00:16:11,600 Speaker 1: the leverage that we need through loans. I gave you 333 00:16:11,680 --> 00:16:14,160 Speaker 1: all those benefits, right, so I get the leverage. I 334 00:16:14,160 --> 00:16:17,120 Speaker 1: get the inflation, destroy debt. I get the cash flow 335 00:16:17,160 --> 00:16:19,960 Speaker 1: from it, I get the tax efficiency, that's the big one. 336 00:16:20,440 --> 00:16:23,440 Speaker 1: Then I put that money to get more bitcoin. Because 337 00:16:23,440 --> 00:16:26,360 Speaker 1: bitcoin is going up so fast, it's appreciating way more 338 00:16:26,400 --> 00:16:29,920 Speaker 1: than real estate is. I have exponential returns. I get 339 00:16:30,040 --> 00:16:33,000 Speaker 1: massive liquidity from the bitcoin, and then I can put 340 00:16:33,000 --> 00:16:35,320 Speaker 1: that back into real estate to write off more income. 341 00:16:35,560 --> 00:16:37,840 Speaker 1: I take the income that I keep from taxes and 342 00:16:37,880 --> 00:16:40,720 Speaker 1: I buy more bitcoin and it becomes a big cycle. 343 00:16:41,080 --> 00:16:45,360 Speaker 1: Now in this together, the sum is greater than the parts. 344 00:16:46,320 --> 00:16:48,440 Speaker 1: Real estate on its own Bitcoin zone, well, bitcoin on 345 00:16:48,560 --> 00:16:51,720 Speaker 1: zone is great. Just do that, but if you combine 346 00:16:51,760 --> 00:16:54,880 Speaker 1: them together, they become even more powerful. That's how I 347 00:16:54,920 --> 00:16:57,760 Speaker 1: was able to ten x my bitcoin by combining them. 348 00:16:57,920 --> 00:17:00,960 Speaker 1: All right, the challenge for you is to get this deployed. 349 00:17:01,080 --> 00:17:03,600 Speaker 1: So what are you gonna do? Stop thinking like everybody else. 350 00:17:03,720 --> 00:17:05,880 Speaker 1: Life is not linear. It's not black or white. It's 351 00:17:05,920 --> 00:17:08,840 Speaker 1: not one or the other. It's both. It's not real 352 00:17:08,920 --> 00:17:11,439 Speaker 1: estate or bitcoint it's how do I use them both together? 353 00:17:11,720 --> 00:17:15,160 Speaker 1: Because remember, the wealthy don't work harder than you, They 354 00:17:15,240 --> 00:17:18,040 Speaker 1: just use money differently. I like to say, the reason 355 00:17:18,080 --> 00:17:20,280 Speaker 1: why you have to work so hard is because your 356 00:17:20,320 --> 00:17:23,080 Speaker 1: money doesn't. So what you want is your money doing 357 00:17:23,240 --> 00:17:25,200 Speaker 1: more than one job. It should be doing two jobs, 358 00:17:25,240 --> 00:17:28,040 Speaker 1: three jobs, five jobs. If you'd like, I have a 359 00:17:28,080 --> 00:17:30,880 Speaker 1: Wealth Engine assessment. It can show you how many jobs 360 00:17:30,880 --> 00:17:32,919 Speaker 1: your money is doing and how you can get it 361 00:17:32,960 --> 00:17:35,960 Speaker 1: doing more than one job as quickly as possible. It's 362 00:17:35,960 --> 00:17:37,679 Speaker 1: a free assessment. I'll link to it down below if 363 00:17:37,680 --> 00:17:39,120 Speaker 1: you want to go through that. It's just you can 364 00:17:39,200 --> 00:17:41,800 Speaker 1: start to plan out what your next steps are. If 365 00:17:41,800 --> 00:17:43,480 Speaker 1: you want to get ahead all right, and if you 366 00:17:43,480 --> 00:17:46,160 Speaker 1: want to learn more about investing in layers and how 367 00:17:46,200 --> 00:17:49,160 Speaker 1: this works, you should probably watch this video right here, 368 00:17:49,480 --> 00:17:50,440 Speaker 1: and I hope to see over there