I Invested $1,300,000 In This...
Published on: December 4 2022 by Hayden Bowles
I Invested $1,300,000 In This...
Table of Contents About I Invested $1,300,000 In This...
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| 00:00:00 | 00:00:03 | today we are going to be toking about |
| 00:00:01 | 00:00:06 | how i sort of spent about |
| 00:00:03 | 00:00:07 | 1.3 million dollars this year just on |
| 00:00:06 | 00:00:09 | one |
| 00:00:07 | 00:00:11 | asset class so if you're new to the |
| 00:00:09 | 00:00:12 | channel welcome my name is hayden on |
| 00:00:11 | 00:00:15 | here we tok a lot about business |
| 00:00:12 | 00:00:16 | primarily real estate and e-commerce |
| 00:00:15 | 00:00:18 | we've also dabbled in other things with |
| 00:00:16 | 00:00:19 | cars and stoks and toking about my |
| 00:00:18 | 00:00:21 | portfolio |
| 00:00:19 | 00:00:22 | in this video specifically i want to |
| 00:00:21 | 00:00:23 | tok about one asset class i want to |
| 00:00:22 | 00:00:25 | tok about |
| 00:00:23 | 00:00:26 | why throughout the craziest global |
| 00:00:25 | 00:00:28 | pandemic that i think has pretty much |
| 00:00:26 | 00:00:30 | ever gone on in the last century |
| 00:00:28 | 00:00:31 | there's a lot of opportunity and i've |
| 00:00:30 | 00:00:32 | slowly been chipping away at that |
| 00:00:31 | 00:00:33 | opportunity |
| 00:00:32 | 00:00:35 | by the end of this video you're gonna |
| 00:00:33 | 00:00:36 | understand how you could do the same |
| 00:00:35 | 00:00:38 | you're gonna understand |
| 00:00:36 | 00:00:39 | why i've actually kept a lot of focus on |
| 00:00:38 | 00:00:40 | my business through |
| 00:00:39 | 00:00:43 | what could be considered both the |
| 00:00:40 | 00:00:45 | roughest time ever as well as the most |
| 00:00:43 | 00:00:47 | opportunistik time especially for the |
| 00:00:45 | 00:00:49 | business structure that i'm in |
| 00:00:47 | 00:00:51 | being e-commerce with all the retailers |
| 00:00:49 | 00:00:52 | having issues going out of business and |
| 00:00:51 | 00:00:54 | different restrictions |
| 00:00:52 | 00:00:56 | online sales has exploded so i've |
| 00:00:54 | 00:00:59 | definitely kept a lot of my focus on my |
| 00:00:56 | 00:01:00 | companies in that industry specifically |
| 00:00:59 | 00:01:02 | just because there's so much opportunity |
| 00:01:00 | 00:01:04 | but in this video i want to tok about |
| 00:01:02 | 00:01:06 | real estate i want to tok about |
| 00:01:04 | 00:01:08 | why how even things did not go as |
| 00:01:06 | 00:01:08 | planned at all for me throughout this |
| 00:01:08 | 00:01:11 | year |
| 00:01:08 | 00:01:13 | i was still able to double my portfolio |
| 00:01:11 | 00:01:15 | in terms of real estate value |
| 00:01:13 | 00:01:17 | and acquire two more great new |
| 00:01:15 | 00:01:18 | properties that'll be perfect rentals |
| 00:01:17 | 00:01:20 | so if you're excited for this video make |
| 00:01:18 | 00:01:22 | sure to smash a like down below let me |
| 00:01:20 | 00:01:23 | know if you want to see some more real |
| 00:01:22 | 00:01:25 | estate |
| 00:01:23 | 00:01:27 | investment type videos and if you have |
| 00:01:25 | 00:01:28 | any questions let's have a conversation |
| 00:01:27 | 00:01:31 | in the comment section down below |
| 00:01:28 | 00:01:32 | so in this video let's get into some |
| 00:01:31 | 00:01:34 | specifics there's four things i want to |
| 00:01:32 | 00:01:36 | tok about relating to these purchases |
| 00:01:34 | 00:01:37 | just to be open and honest right up |
| 00:01:36 | 00:01:38 | front so you don't have to wait through |
| 00:01:37 | 00:01:41 | the whole video to figure out one thing |
| 00:01:38 | 00:01:43 | i purchased two properties in 2020. my |
| 00:01:41 | 00:01:45 | plan originally was to close on the |
| 00:01:43 | 00:01:46 | property that i closed on in january |
| 00:01:45 | 00:01:50 | which was a single family home |
| 00:01:46 | 00:01:52 | for 390 000 within two weeks i had a |
| 00:01:50 | 00:01:52 | tenant in that home it's been an amazing |
| 00:01:52 | 00:01:54 | rental |
| 00:01:52 | 00:01:56 | i got a great interest rate at the time |
| 00:01:54 | 00:01:58 | and i actually just refinanced that |
| 00:01:56 | 00:02:01 | property along with my duplex |
| 00:01:58 | 00:02:03 | because rates are continuing to drop so |
| 00:02:01 | 00:02:03 | that's actually our first point in this |
| 00:02:03 | 00:02:06 | video |
| 00:02:03 | 00:02:07 | one of the huge reasons i continue to |
| 00:02:06 | 00:02:09 | put more attention on |
| 00:02:07 | 00:02:10 | real estate throughout this year is |
| 00:02:09 | 00:02:12 | because number one |
| 00:02:10 | 00:02:14 | starting in about april i really notiked |
| 00:02:12 | 00:02:16 | stuff going on with the interest rates |
| 00:02:14 | 00:02:18 | as the pandemic picked up towards the |
| 00:02:16 | 00:02:20 | end of february and into march |
| 00:02:18 | 00:02:21 | eventually the feds started lowering |
| 00:02:20 | 00:02:23 | interest rates that piqued my interest |
| 00:02:21 | 00:02:25 | and those rates kept going down |
| 00:02:23 | 00:02:27 | now that means a few things first of all |
| 00:02:25 | 00:02:27 | from a mortgage perspective in real |
| 00:02:27 | 00:02:30 | estate |
| 00:02:27 | 00:02:31 | it's gonna cost you less here's what |
| 00:02:30 | 00:02:32 | people don't realize this is what i |
| 00:02:31 | 00:02:34 | wasn't taught in school maybe it's |
| 00:02:32 | 00:02:35 | because i dropped out of high school and |
| 00:02:34 | 00:02:36 | just didn't get to that class but |
| 00:02:35 | 00:02:38 | nonetheless |
| 00:02:36 | 00:02:39 | from a mortgage perspective let's say |
| 00:02:38 | 00:02:41 | you're at a three percent interest rate |
| 00:02:39 | 00:02:43 | versus a four |
| 00:02:41 | 00:02:44 | on a four hundred thousand dollar house |
| 00:02:43 | 00:02:46 | normal 20 |
| 00:02:44 | 00:02:47 | down payment your payment difference |
| 00:02:46 | 00:02:49 | might be 200 |
| 00:02:47 | 00:02:51 | a month okay so if you think well by |
| 00:02:49 | 00:02:52 | refinancing from a four percent to a |
| 00:02:51 | 00:02:54 | three percent |
| 00:02:52 | 00:02:56 | roughly just for easy numbers i'm gonna |
| 00:02:54 | 00:02:57 | make an extra 200 |
| 00:02:56 | 00:02:59 | a month in cash flow you would be |
| 00:02:57 | 00:03:01 | correct but there's another number you |
| 00:02:59 | 00:03:02 | have to look at |
| 00:03:01 | 00:03:04 | and a lot of people think oh you know |
| 00:03:02 | 00:03:06 | the one percent difference just means |
| 00:03:04 | 00:03:08 | one percent of the total value of the |
| 00:03:06 | 00:03:10 | property right wouldn't that make sense |
| 00:03:08 | 00:03:11 | no you have to look at the amortization |
| 00:03:10 | 00:03:13 | schedule of a loan |
| 00:03:11 | 00:03:15 | so that one percent difference could |
| 00:03:13 | 00:03:16 | literally mean a hundred thousand |
| 00:03:15 | 00:03:19 | dollars or more |
| 00:03:16 | 00:03:20 | over the course of a mortgage so it's |
| 00:03:19 | 00:03:22 | really crazy it can even be |
| 00:03:20 | 00:03:24 | way more than that it's crazy to see the |
| 00:03:22 | 00:03:25 | breakdown in the numbers and that's why |
| 00:03:24 | 00:03:28 | the interest rate is so |
| 00:03:25 | 00:03:29 | expensive so one of the things you have |
| 00:03:28 | 00:03:31 | to look at when the interest rate like |
| 00:03:29 | 00:03:34 | it did this year starts dropping |
| 00:03:31 | 00:03:34 | significantly typically people are going |
| 00:03:34 | 00:03:36 | to be |
| 00:03:34 | 00:03:38 | buying more and more so what happened |
| 00:03:36 | 00:03:40 | this year was no exception |
| 00:03:38 | 00:03:42 | right now there are more people buying |
| 00:03:40 | 00:03:44 | homes because they can afford to buy |
| 00:03:42 | 00:03:45 | more house because it's still going to |
| 00:03:44 | 00:03:47 | cost them the same money because |
| 00:03:45 | 00:03:49 | borrowing that money is cheaper |
| 00:03:47 | 00:03:51 | well what has that caused in the real |
| 00:03:49 | 00:03:52 | estate market right now it is the lowest |
| 00:03:51 | 00:03:54 | point it's ever been |
| 00:03:52 | 00:03:56 | in terms of inventory so at least here |
| 00:03:54 | 00:03:58 | in arizona there is 50 |
| 00:03:56 | 00:04:00 | the average inventory on the mls than |
| 00:03:58 | 00:04:02 | there normally is well that means |
| 00:04:00 | 00:04:04 | there's a lot more competition |
| 00:04:02 | 00:04:05 | from my standpoint and experience in |
| 00:04:04 | 00:04:07 | arizona specifically |
| 00:04:05 | 00:04:09 | homes under the six hundred thousand |
| 00:04:07 | 00:04:10 | dollar mark are selling within a day two |
| 00:04:09 | 00:04:12 | days three days they're waiving their |
| 00:04:10 | 00:04:13 | inspections they're selling for above |
| 00:04:12 | 00:04:14 | list price |
| 00:04:13 | 00:04:16 | it's very competitive now that doesn't |
| 00:04:14 | 00:04:17 | mean you can't find a deal |
| 00:04:16 | 00:04:19 | but interest rates is obviously one of |
| 00:04:17 | 00:04:21 | the reasons that i myself |
| 00:04:19 | 00:04:23 | also wanted to continue buying real |
| 00:04:21 | 00:04:25 | estate so in january i closed on that |
| 00:04:23 | 00:04:27 | property as planned i found that deal in |
| 00:04:25 | 00:04:28 | december before the pandemic stuff |
| 00:04:27 | 00:04:31 | started fast forward |
| 00:04:28 | 00:04:33 | my plan this year was to buy a 5 to 15 |
| 00:04:31 | 00:04:35 | unit mini apartment complex |
| 00:04:33 | 00:04:37 | and get into the commercial loan side of |
| 00:04:35 | 00:04:37 | things for residential multi-family real |
| 00:04:37 | 00:04:40 | estate |
| 00:04:37 | 00:04:41 | that did not go as planned continuing to |
| 00:04:40 | 00:04:43 | find deals |
| 00:04:41 | 00:04:44 | was difficult i was looking i was |
| 00:04:43 | 00:04:46 | constantly going and visiting stuff |
| 00:04:44 | 00:04:48 | as well as buying more courses and just |
| 00:04:46 | 00:04:51 | trying to learn everything that i could |
| 00:04:48 | 00:04:52 | so in june i actually found a great deal |
| 00:04:51 | 00:04:53 | it was someone who was in a squeeze |
| 00:04:52 | 00:04:55 | because of the pandemic |
| 00:04:53 | 00:04:56 | and lo and behold i ended up with this |
| 00:04:55 | 00:04:58 | home that you guys have seen before |
| 00:04:56 | 00:04:59 | which i'm currently sitting in |
| 00:04:58 | 00:05:01 | that was purchased for just under a |
| 00:04:59 | 00:05:03 | million dollars now i believe over the |
| 00:05:01 | 00:05:05 | next three years i'll make probably 250 |
| 00:05:03 | 00:05:07 | to 300 000 |
| 00:05:05 | 00:05:08 | or more tax-free on this house and it's |
| 00:05:07 | 00:05:10 | also going to be a great |
| 00:05:08 | 00:05:12 | rental so as i'm filming this you might |
| 00:05:10 | 00:05:13 | notike a slight mess behind me i |
| 00:05:12 | 00:05:14 | apologize |
| 00:05:13 | 00:05:15 | it's really weird there's no desk in |
| 00:05:14 | 00:05:16 | front of me right now normally i kind of |
| 00:05:15 | 00:05:18 | like rest my elbow |
| 00:05:16 | 00:05:20 | on a desk here but i'm in the process of |
| 00:05:18 | 00:05:21 | moving in two days i have a tenant |
| 00:05:20 | 00:05:22 | moving into this home |
| 00:05:21 | 00:05:24 | and i'm going to be in another house |
| 00:05:22 | 00:05:26 | that i have here in arizona as well as |
| 00:05:24 | 00:05:27 | my home in puerto rico |
| 00:05:26 | 00:05:29 | so that'll be a topic for the another |
| 00:05:27 | 00:05:32 | video but that's the first point |
| 00:05:29 | 00:05:33 | interest rates that's why i took out 1.3 |
| 00:05:32 | 00:05:35 | million dollars of total value with |
| 00:05:33 | 00:05:38 | about a million of that being debt |
| 00:05:35 | 00:05:39 | so at 20 years old i added another |
| 00:05:38 | 00:05:42 | million dollars in debt |
| 00:05:39 | 00:05:42 | onto my balance sheet well if you think |
| 00:05:42 | 00:05:44 | about it |
| 00:05:42 | 00:05:46 | for me i don't view that as just like |
| 00:05:44 | 00:05:49 | bad debt like for an example a car |
| 00:05:46 | 00:05:50 | debt i only have a total of 20 000 worth |
| 00:05:49 | 00:05:52 | of car debt |
| 00:05:50 | 00:05:54 | and for me that that was just something |
| 00:05:52 | 00:05:56 | to build credit from three years ago |
| 00:05:54 | 00:05:57 | i don't like to hold debt on stuff that |
| 00:05:56 | 00:05:58 | doesn't make me money so i don't |
| 00:05:57 | 00:06:00 | consider the real estate |
| 00:05:58 | 00:06:01 | debt because the tenants pay me every |
| 00:06:00 | 00:06:03 | single month and that |
| 00:06:01 | 00:06:05 | more than covers not only the mortgage |
| 00:06:03 | 00:06:07 | but all the expenses as well as produces |
| 00:06:05 | 00:06:08 | cash flow so number one |
| 00:06:07 | 00:06:11 | the reason i made the investments and |
| 00:06:08 | 00:06:12 | continue to do so in a decently sized |
| 00:06:11 | 00:06:13 | way throughout this year |
| 00:06:12 | 00:06:15 | number one into that real estate |
| 00:06:13 | 00:06:15 | category was because of the interest |
| 00:06:15 | 00:06:18 | rates |
| 00:06:15 | 00:06:19 | number two diversification and a hedge |
| 00:06:18 | 00:06:22 | against |
| 00:06:19 | 00:06:22 | inflation this is a topic for maybe a |
| 00:06:22 | 00:06:24 | more |
| 00:06:22 | 00:06:25 | breakdown type investment video showing |
| 00:06:24 | 00:06:28 | my portfolio |
| 00:06:25 | 00:06:29 | people buy stoks people buy cars that |
| 00:06:28 | 00:06:30 | are |
| 00:06:29 | 00:06:32 | appreciating value i have friends who |
| 00:06:30 | 00:06:33 | actually do that very successfully |
| 00:06:32 | 00:06:34 | people buy different things right they |
| 00:06:33 | 00:06:36 | invest in index funds maybe they buy |
| 00:06:34 | 00:06:39 | actual currency and gold and whatnot |
| 00:06:36 | 00:06:40 | well i don't want all of my money to be |
| 00:06:39 | 00:06:42 | in one place and as a business person i |
| 00:06:40 | 00:06:44 | don't consider myself an entrepreneur |
| 00:06:42 | 00:06:46 | as a business person i typically keep |
| 00:06:44 | 00:06:48 | basically 100 of my money |
| 00:06:46 | 00:06:49 | in the business and i keep 100 of my |
| 00:06:48 | 00:06:51 | focus there as well |
| 00:06:49 | 00:06:52 | so it's kind of become a habit of mine |
| 00:06:51 | 00:06:53 | to just skin some of the profit off the |
| 00:06:52 | 00:06:54 | top |
| 00:06:53 | 00:06:56 | and put that aside for different |
| 00:06:54 | 00:06:58 | investments so that's uh number two |
| 00:06:56 | 00:07:00 | is just for diversification as well as |
| 00:06:58 | 00:07:02 | being a hedge against inflation |
| 00:07:00 | 00:07:03 | because that three percent loan rate on |
| 00:07:02 | 00:07:05 | average that i'm getting right now |
| 00:07:03 | 00:07:07 | that's the average rate of inflation so |
| 00:07:05 | 00:07:09 | it's really nothing too crazy |
| 00:07:07 | 00:07:11 | it's actually very close to free money |
| 00:07:09 | 00:07:13 | in terms of borrowing |
| 00:07:11 | 00:07:14 | that capital from the banks to buy a |
| 00:07:13 | 00:07:16 | property with |
| 00:07:14 | 00:07:17 | now number three might seem like a crazy |
| 00:07:16 | 00:07:19 | way but in |
| 00:07:17 | 00:07:21 | march i notiked people going into a full |
| 00:07:19 | 00:07:22 | panic and for understandable reasons i |
| 00:07:21 | 00:07:24 | actually myself |
| 00:07:22 | 00:07:26 | went to my local walmart albertsons in a |
| 00:07:24 | 00:07:28 | couple of grocery stores |
| 00:07:26 | 00:07:30 | and just being transparent i spent over |
| 00:07:28 | 00:07:32 | two thousand dollars on food |
| 00:07:30 | 00:07:34 | on water now that wasn't i wouldn't have |
| 00:07:32 | 00:07:35 | personally done that but someone who was |
| 00:07:34 | 00:07:37 | close to me is like hey we need food we |
| 00:07:35 | 00:07:37 | need food at the house i'm like okay |
| 00:07:37 | 00:07:39 | fine |
| 00:07:37 | 00:07:40 | we'll go buy some food right i wasn't |
| 00:07:39 | 00:07:42 | really worried about it worse crumbs are |
| 00:07:40 | 00:07:43 | worse i grab a gun i go up to the woods |
| 00:07:42 | 00:07:45 | and shoot a deer |
| 00:07:43 | 00:07:47 | that that's how i think about things but |
| 00:07:45 | 00:07:48 | nonetheless i prepared a little bit i |
| 00:07:47 | 00:07:49 | wanted to see what would happen i was |
| 00:07:48 | 00:07:51 | very curious |
| 00:07:49 | 00:07:52 | people are flash selling their homes |
| 00:07:51 | 00:07:53 | then they're you know they're losing |
| 00:07:52 | 00:07:54 | their jobs they're going into a panic |
| 00:07:53 | 00:07:56 | understandably so |
| 00:07:54 | 00:07:58 | and so when everybody starts selling and |
| 00:07:56 | 00:08:01 | everybody's reacting a certain way |
| 00:07:58 | 00:08:02 | well if you notike over the last century |
| 00:08:01 | 00:08:04 | and i've tried to study this as much as |
| 00:08:02 | 00:08:05 | i could over the last five years and i |
| 00:08:04 | 00:08:07 | continue to do so |
| 00:08:05 | 00:08:09 | there's a trend whenever the market |
| 00:08:07 | 00:08:11 | crashes that's actually when |
| 00:08:09 | 00:08:12 | some of the largest amounts of wealth |
| 00:08:11 | 00:08:14 | gets created |
| 00:08:12 | 00:08:16 | because people are able to move against |
| 00:08:14 | 00:08:17 | the trend so when everybody's doing |
| 00:08:16 | 00:08:19 | something you can't do that one thing |
| 00:08:17 | 00:08:21 | and expect different results |
| 00:08:19 | 00:08:23 | so what i did is when everybody was |
| 00:08:21 | 00:08:25 | selling and looking absolutely |
| 00:08:23 | 00:08:27 | terrified in this in a space which is |
| 00:08:25 | 00:08:30 | very understandable again i'm not saying |
| 00:08:27 | 00:08:32 | that i wasn't but nonetheless i looked |
| 00:08:30 | 00:08:34 | for opportunity all throughout that i |
| 00:08:32 | 00:08:35 | wasn't not looking for a deal |
| 00:08:34 | 00:08:37 | in fact i was searching 10 times harder |
| 00:08:35 | 00:08:39 | to find a deal and when i found that |
| 00:08:37 | 00:08:41 | deal it wasn't the deal i thought |
| 00:08:39 | 00:08:42 | but it was this home and it was a very |
| 00:08:41 | 00:08:44 | very good deal |
| 00:08:42 | 00:08:46 | therefore i ended up picking it up now |
| 00:08:44 | 00:08:49 | the fourth thing and the fourth reason i |
| 00:08:46 | 00:08:50 | spent a total of 1.3 million on real |
| 00:08:49 | 00:08:51 | estate this year that's just on real |
| 00:08:50 | 00:08:53 | estate |
| 00:08:51 | 00:08:54 | the reason i did that is because not |
| 00:08:53 | 00:08:56 | only is it |
| 00:08:54 | 00:08:58 | smart for the long term in terms of cash |
| 00:08:56 | 00:09:00 | flow in my opinion |
| 00:08:58 | 00:09:01 | but it's also something i have a huge |
| 00:09:00 | 00:09:03 | passion for and i understand it's not |
| 00:09:01 | 00:09:04 | for everybody people get mad at me i |
| 00:09:03 | 00:09:05 | have friends who own millions and |
| 00:09:04 | 00:09:06 | millions and millions of dollars with a |
| 00:09:05 | 00:09:09 | cryptokurrency |
| 00:09:06 | 00:09:10 | dude i won't buy a penny of it because i |
| 00:09:09 | 00:09:12 | don't understand it i don't know it and |
| 00:09:10 | 00:09:13 | that's not the type of investment class |
| 00:09:12 | 00:09:14 | that i like |
| 00:09:13 | 00:09:16 | so everybody has a different thing you |
| 00:09:14 | 00:09:18 | got to be able to respect that if you're |
| 00:09:16 | 00:09:19 | a stok person that's totally cool |
| 00:09:18 | 00:09:21 | i've chiseled away a little bit of money |
| 00:09:19 | 00:09:23 | into index funds and it's not really my |
| 00:09:21 | 00:09:24 | thing right now i'm sure it will be but |
| 00:09:23 | 00:09:26 | there's a lot of different stuff that |
| 00:09:24 | 00:09:27 | you can do and we'll tok about all that |
| 00:09:26 | 00:09:29 | in some future investment videos just |
| 00:09:27 | 00:09:30 | let me know in the comment section what |
| 00:09:29 | 00:09:31 | you'd want to see toked about on this |
| 00:09:30 | 00:09:32 | channel |
| 00:09:31 | 00:09:34 | but i focused on the real estate but |
| 00:09:32 | 00:09:36 | there's something really unique about |
| 00:09:34 | 00:09:38 | real estate in my opinion |
| 00:09:36 | 00:09:39 | that not really any other asset class |
| 00:09:38 | 00:09:40 | i've seen has |
| 00:09:39 | 00:09:42 | for an example you buy a hundred |
| 00:09:40 | 00:09:44 | thousand dollars worth of stok okay you |
| 00:09:42 | 00:09:46 | put a hundred thousand dollars in |
| 00:09:44 | 00:09:47 | and this is not including margin don't |
| 00:09:46 | 00:09:48 | you should never be using margin for |
| 00:09:47 | 00:09:50 | stoks |
| 00:09:48 | 00:09:51 | anyways hundred thousand dollars it goes |
| 00:09:50 | 00:09:53 | up ten percent cool you made ten |
| 00:09:51 | 00:09:54 | thousand dollars you want to pull that |
| 00:09:53 | 00:09:57 | out capital gains 22 |
| 00:09:54 | 00:09:58 | congratulations okay you take the same |
| 00:09:57 | 00:10:00 | hundred thousand into real estate |
| 00:09:58 | 00:10:02 | let's say you do that well this is the |
| 00:10:00 | 00:10:03 | same type of thing i did 390 000 |
| 00:10:02 | 00:10:05 | property just about a hundred thousand |
| 00:10:03 | 00:10:07 | down that property |
| 00:10:05 | 00:10:08 | not only to have the values more than |
| 00:10:07 | 00:10:10 | gone up ten percent i've gained about |
| 00:10:08 | 00:10:13 | forty five thousand dollars in equity |
| 00:10:10 | 00:10:14 | as of the refinance appraisal so i've |
| 00:10:13 | 00:10:16 | gained about twelve percent in that one |
| 00:10:14 | 00:10:18 | year yes i'd have closing costs and |
| 00:10:16 | 00:10:20 | capital gains if i sold |
| 00:10:18 | 00:10:21 | but there's other forms of income as |
| 00:10:20 | 00:10:23 | well as deductions |
| 00:10:21 | 00:10:25 | so tax deductions which is huge in real |
| 00:10:23 | 00:10:26 | estate you got to play the game |
| 00:10:25 | 00:10:27 | correctly |
| 00:10:26 | 00:10:29 | there's also the cash flow every single |
| 00:10:27 | 00:10:31 | month tax free because as you're |
| 00:10:29 | 00:10:32 | depreciating the property on paper |
| 00:10:31 | 00:10:34 | every single year your cash flow is |
| 00:10:32 | 00:10:35 | going to be tax-free right playing that |
| 00:10:34 | 00:10:37 | game |
| 00:10:35 | 00:10:38 | but there's also one additional |
| 00:10:37 | 00:10:40 | underlying |
| 00:10:38 | 00:10:41 | metric that a lot of people don't think |
| 00:10:40 | 00:10:43 | about let's say you have a |
| 00:10:41 | 00:10:44 | 1700 a month mortgage that's roughly |
| 00:10:43 | 00:10:47 | what mine is |
| 00:10:44 | 00:10:48 | well about 600 to 700 of that every |
| 00:10:47 | 00:10:50 | single month |
| 00:10:48 | 00:10:51 | is going to be principal pay down |
| 00:10:50 | 00:10:54 | towards the actual |
| 00:10:51 | 00:10:55 | equity of that loan so it's like not |
| 00:10:54 | 00:10:57 | only |
| 00:10:55 | 00:10:59 | is someone paying you for me 23.50 a |
| 00:10:57 | 00:11:01 | month 20 350 |
| 00:10:59 | 00:11:03 | a month it more than covers the mortgage |
| 00:11:01 | 00:11:04 | which also a piece of that goes back to |
| 00:11:03 | 00:11:06 | me and then the rest of the mortgage is |
| 00:11:04 | 00:11:08 | a tax write-off |
| 00:11:06 | 00:11:09 | but it also covers the management any |
| 00:11:08 | 00:11:11 | repairs and stuff like that so there's |
| 00:11:09 | 00:11:12 | really four streams of income |
| 00:11:11 | 00:11:14 | just inside of real estate and this |
| 00:11:12 | 00:11:16 | video is not me pushing real estate |
| 00:11:14 | 00:11:17 | or saying you should go buy real estate |
| 00:11:16 | 00:11:18 | in fact i think it's way smarter to |
| 00:11:17 | 00:11:20 | focus on your business |
| 00:11:18 | 00:11:22 | or your income stream until it's so |
| 00:11:20 | 00:11:24 | large that you can just start chipping |
| 00:11:22 | 00:11:25 | money away and invest in it whether |
| 00:11:24 | 00:11:26 | that's into real estate or index funds |
| 00:11:25 | 00:11:28 | or |
| 00:11:26 | 00:11:29 | whatever your thing is so i've really |
| 00:11:28 | 00:11:31 | kept a lot of my attention as well as |
| 00:11:29 | 00:11:33 | money inside of my |
| 00:11:31 | 00:11:35 | ecommerce business this year because |
| 00:11:33 | 00:11:36 | with all the retail restrictions going |
| 00:11:35 | 00:11:38 | on and people staying at home |
| 00:11:36 | 00:11:39 | obviously online sales are at a record |
| 00:11:38 | 00:11:40 | high so i've been focusing and |
| 00:11:39 | 00:11:42 | capitalizing on that |
| 00:11:40 | 00:11:44 | as well as spending money on more |
| 00:11:42 | 00:11:46 | inventory now this will be a topic for |
| 00:11:44 | 00:11:47 | another video but i've also dedicated |
| 00:11:46 | 00:11:50 | some money towards |
| 00:11:47 | 00:11:51 | inventory to pre-purchase in advance for |
| 00:11:50 | 00:11:52 | 2021. |
| 00:11:51 | 00:11:54 | the reason for that is since i am a |
| 00:11:52 | 00:11:56 | puerto rican resident and |
| 00:11:54 | 00:11:57 | starting in 2021 i will not be paying |
| 00:11:56 | 00:12:01 | standard u.s |
| 00:11:57 | 00:12:03 | tax at a federal rate well that offers |
| 00:12:01 | 00:12:05 | some incentive for me to legally |
| 00:12:03 | 00:12:06 | take advantage of the tax code that i'm |
| 00:12:05 | 00:12:08 | involved in |
| 00:12:06 | 00:12:09 | to take additional write-offs this year |
| 00:12:08 | 00:12:11 | so for an example |
| 00:12:09 | 00:12:12 | i needed a new laptop it's been two and |
| 00:12:11 | 00:12:14 | a half years since i got one i'm not |
| 00:12:12 | 00:12:16 | really a tiknology person |
| 00:12:14 | 00:12:17 | it's just slow it's laggy so i bought a |
| 00:12:16 | 00:12:19 | new laptop boom |
| 00:12:17 | 00:12:21 | right off need a new phone boom right |
| 00:12:19 | 00:12:23 | off needed a new camera boom |
| 00:12:21 | 00:12:24 | right off needed more inventory for an |
| 00:12:23 | 00:12:26 | e-commerce brand that was scaling |
| 00:12:24 | 00:12:28 | boom right off so taking those |
| 00:12:26 | 00:12:29 | additional write-offs because they're |
| 00:12:28 | 00:12:31 | worth more to me this year |
| 00:12:29 | 00:12:32 | than they ever would be in the future so |
| 00:12:31 | 00:12:34 | that's just one thing that we'll tok |
| 00:12:32 | 00:12:35 | about in another video this is all my |
| 00:12:34 | 00:12:37 | opinion consult the cpa when it comes to |
| 00:12:35 | 00:12:38 | taxes but i hope you guys enjoyed this |
| 00:12:37 | 00:12:40 | video what i want to do right now |
| 00:12:38 | 00:12:42 | is open up the comment section let me |
| 00:12:40 | 00:12:43 | know is it stupid for taking out another |
| 00:12:42 | 00:12:45 | million dollars worth of debt |
| 00:12:43 | 00:12:47 | during a global pandemic i know people |
| 00:12:45 | 00:12:49 | who have taken out a whole lot more debt |
| 00:12:47 | 00:12:51 | and i also know people who are |
| 00:12:49 | 00:12:53 | small-time real estate investors |
| 00:12:51 | 00:12:55 | who have sold 100 of their properties |
| 00:12:53 | 00:12:57 | because they are fearful for their life |
| 00:12:55 | 00:12:58 | and their family and their finances |
| 00:12:57 | 00:13:00 | somewhat understandably so |
| 00:12:58 | 00:13:01 | during this crazy time we don't know |
| 00:13:00 | 00:13:02 | when it's gonna end we don't know when |
| 00:13:01 | 00:13:04 | things are gonna you know |
| 00:13:02 | 00:13:06 | change directions and we'll see you know |
| 00:13:04 | 00:13:07 | we're all kind of in it together |
| 00:13:06 | 00:13:09 | so i really hope you enjoyed this video |
| 00:13:07 | 00:13:10 | i hope it offered you some insight into |
| 00:13:09 | 00:13:11 | those four points |
| 00:13:10 | 00:13:13 | with the interest rates the |
| 00:13:11 | 00:13:14 | diversification as well as the hedge |
| 00:13:13 | 00:13:17 | against inflation |
| 00:13:14 | 00:13:18 | the long-term cash flow as well as the |
| 00:13:17 | 00:13:20 | long-term passion |
| 00:13:18 | 00:13:21 | there and going against the grain doing |
| 00:13:20 | 00:13:23 | something different than other people |
| 00:13:21 | 00:13:24 | and that's typically where opportunity |
| 00:13:23 | 00:13:25 | is found so |
| 00:13:24 | 00:13:27 | hope you enjoyed this video if you want |
| 00:13:25 | 00:13:28 | some more information on ecommerce |
| 00:13:27 | 00:13:30 | just a heads up all of the ecommerce |
| 00:13:28 | 00:13:31 | videos here on the channel are going to |
| 00:13:30 | 00:13:34 | be migrating over |
| 00:13:31 | 00:13:34 | and being posted on the ecom season |
| 00:13:34 | 00:13:36 | youtube channel |
| 00:13:34 | 00:13:37 | you can find that linked below or just |
| 00:13:36 | 00:13:39 | search it up that's where all the |
| 00:13:37 | 00:13:41 | facebook ads and google ads and |
| 00:13:39 | 00:13:42 | shopify store videos are going that's |
| 00:13:41 | 00:13:44 | where i'm going to be breaking down how |
| 00:13:42 | 00:13:44 | i consistently make money on a daily |
| 00:13:44 | 00:13:45 | basis |
| 00:13:44 | 00:13:47 | and if you actually want to learn that |
| 00:13:45 | 00:13:48 | in depth and be able to watch me do it |
| 00:13:47 | 00:13:49 | live |
| 00:13:48 | 00:13:51 | over multiple stores and multiple ad |
| 00:13:49 | 00:13:52 | accounts be sure to check out our |
| 00:13:51 | 00:13:53 | ecommerce program |
| 00:13:52 | 00:13:55 | linked below probably the top link in |
| 00:13:53 | 00:13:56 | the description but with that being said |
| 00:13:55 | 00:13:58 | hope you guys enjoyed this video |
| 00:13:56 | 00:13:59 | depending on when i'm posting it i |
| 00:13:58 | 00:14:02 | really hope you had a great |
| 00:13:59 | 00:14:03 | new year and move into 2021 on a good |
| 00:14:02 | 00:14:04 | note so |
| 00:14:03 | 00:14:06 | we'd love to have a conversation with |
| 00:14:04 | 00:14:07 | you in the comment section down below |
| 00:14:06 | 00:14:09 | let me know if you have any questions at |
| 00:14:07 | 00:14:12 | all make sure to drop a like and i'll |
| 00:14:09 | 00:14:12 | see you in the next video |
| 00:14:14 | 00:14:17 | peace |
| 00:14:19 | 00:14:21 | you |
