How To Create A Million Dollar Game Plan | Part 2: Two Secrets To Make A Million Dollars

There are ultimately 2 secrets that
it’s going to require for you to transcend society’s broken gameplan. And
learn how to make millions of dollars in real estate. Today as a team, we’re going to
break that down. I don’t care what department we work in. I want any of one
of us to know how to be on the phone with the client. Look at their file and
know where they’re at and know what their next steps look like. They need to understand their
million-dollar game plan just like we need to understand it. And so today, what
we’re talking about is if you looked at the last video part of the training we
talked about this. How do we freaking get to a 20% ROI? How come real estate
can do this when 401Ks and IRAs can’t? How can real
estate can do this? -Rental income. -Okay. So, you have a rental income. There’s
multiple streams of money such as the rental income. What else? -Appreciation. -You have massive tax right offs. You guys pay too much in taxes. Like you need to do
more real estate. -Property value appreciation. -So, the properties appreciate. By the way, in
real estate over time, if you actually look at any graph from like 1900s to
present, what does that graph look like? It’s always doing that, right? So, there’s
multiple ways of getting income from it, right? What’s another reason why real
estate can produce a 20% ROI? So, it’s going to appreciate and go up in
value because they’re not creating any more of it.
Another one of the reasons that I want to point out is because when you
actually look at the value of real estate, one of the reasons why we’re able
to get that ROI is because we get this thing called leverage. If I have 50 grand,
I can buy how many stocks worth of 50 grand? I mean by $50,000 with the stocks, with
$50,000? But in real estate, traditionally $50,000 will actually buy
me how much real estate? -At least 2 -250,000, why? Because you can put a 20%
down payment and the bank will actually carry the other 80% of it. This means
that you can take ROIs and you can really bump up really heavily. We’ll look
at some examples later today on our performance. But when you look at that
really high ROI, if you were to buy the house cash, do you know what happen to
ROI? It would go down. Which is good news. Because most people
kept high house cash anyway. -Why are they just willing to do this and not the same for like stock market or IRAs investments? -Okay. It’s a really good question.
Banks are willing to actually do this for a number of reasons. One, they
understand this. They have historical track records that actuaries, they know
what real estate does. And then real estate is not a stock that can go up and down
based on people’s feelings. It’s a hard asset. It runs on supply and demand of
population. In America, as long as people are making babies and as long as
immigration laws are positive, we can predict the need of more supply of
houses. And that will continue driving the price up. I don’t mean that throw is
a need for it. Guys, when the stock market tanks, every 8 to 10 years
statistically, the top of stock market will tank. And it tanks because people
lose confidence. It’ll take 3 years for it to recover. When Tesla or
Google or Microsoft like takes a 30% hit in a stock value, do you really think
that it’s because that company is worth 30% less? No, it’s a reflection
of people’s confidence and feelings. Which is why it comes back because
there’s an actual real intrinsic value. But the banks don’t know how to evaluate
the way they know how to do that with real estate. So, there are some reasons
why real estate is an absolute yes. Understanding that, there are the 2
things that everyone should be trained to do with their money that would allow
you, me and every one of us here to get ahead. We don’t have to make millions of
dollars. But we do have to do 2 things. The first thing that we have to do is we
all have to learn how to do this thing here called P-Y-F. Stands for what? -Pay Yourself First. -Okay.
And by the way, how much should you be paying yourself? What’s the goal? I think the
goal should be over time to get to a point where 40% your income… By the way,
your biggest bill you will ever have in life is to the government. And they could
extract up to 40%. Now, hopefully, if you own a lot of real estate, you’ll never be
in that bracket situation. But this is your biggest bill that you could ever
have to pay. So, I think that I should be paid more than whoever my biggest bill
is. But I do want to say that initially, people need to learn how to get to 20% And if people are checked to check, they need to start with 5%. And
they need to challenge the budget and then they need to do a little bit of
a makeover to get to the point where they can get it here. Paying yourself
first is the first part of the million- dollar gameplan, why? [Inaudible voice] -Yes. And people like to say, “it takes money to make money.” That is always true 100% of
the time. It doesn’t have to be your money. But it’s easy to control if it is.
In this training, we are going to talk about like… We’ve got Mavericks here in
this room. You guys are actually buying real estate. How homes have you bought? You
bought 4 homes. How much money did you put into those 4 homes? You put no
money in, right? So, there’s clearly ways of buying real estate without needing
money. But did it need somebody else’s money? -Yes. -It did. By the way, while you
make more money, what should all of us be doing with our money? -Pay yourself first
of preparing it for what? -Yeah. Because by the way, if I’m using someone else’s
money, that means I’m sharing profits with them. Is that okay? But if I put my
own money into a deal, then I don’t have to share it. Is that a part of a million-dollar game plan? -Yes. -So, paying yourself first is like it’s the first key. So, you
guys know that one inside and out really well. Here’s the second thing that people
need to learn how to do. They have to learn how to tap into hidden assets. Now,
hidden assets is a term that we use for some of the things that we see here. And
do you know why I call him hidden assets? None of these things are in your bank
account. I’ll never forget. This is when it hit me.
I was talking to a pilot. He had been a pilots whole life and then his career
got slammed back in the… And the pilot pay really went down. But at that time, he
had 937 thousand dollars in his 401K. So, almost a
million dollars. I’d never seen a 401k that big in any one up. Up at that point,
I’d never see the bigger 401K. But the man had $200,000 in his bank
account. And he acted in his mentality just as poor and broken as if he had no
401K. His 401k paid him nothing. His 401k gave him no benefits. And it moved up and
down with the stock market. And then he was told, “If you touch it…” What will
happen? 10% penalty. And by the way, if he wanted to then take a 10% penalty and flush off under grand down the drain, then he would also
have to pay taxes. By the way, you can’t evade that.
So, what’s tax is on $900,000? 40%. So, he’s going to give 370
whatever thousand dollars down the drain. he’s going to lose almost a half a million
dollars if he tucks his 401K. So, by the way, did he want to touch his 401K. -No. -He
was terrified of it. And because he had 2 grand at the bank, acted like he had
no money. Everyone eventually… And just to be clear, big taxes
for me isn’t bad. Like, I believe wholeheartedly in paying the goose that
lays the golden egg. It is so easy in our day and age to make money. It’s so easy to
control our financial destiny. Anyone who’s not as simply not acting on
education that’s available. It is so easy for us to actually get ahead financially.
So, I love paying my taxes. I support roads and hospitals and you know, law
enforcement all sorts of good things by doing that. Don’t get me wrong, I will do
everything in my power to reduce my taxable liability. But whatever I do at
the end of the day, I’m going to pay. So, hidden assets. People have money in a
401K but they don’t act like it because they don’t know that they can actually
spend it. We’ll talk about that today. IRAs, stock market, home equity. They’re
stuck in an accumulation plan that says, “Pay off my house, pay off my house.”
They don’t realize that they’re screwed if they focus on that. The time to pay off
the house is when you have enough residual income that you can afford to
pay off the house. Because again, what would you rather have? A million dollars
or $8,000 every month growing at 10% for the rest your
life? You can budget a lifestyle of 8 grand. You cannot budget a lifestyle on a
million. You try to budget a lifestyle a million, you’re going to buy this paid off
house and you’re going to buy this boat you’re going to buy this thing. You’re going to
have little left in the bank. None of it produces a residual and you will lose it
and consume it in time. Because we need an active income to survive. Hence, learn
how to control your active income and set money aside. And then whatever assets
you do have, in fact, do you guys know how many total hidden assets there are? There are hidden assets that we’re going to go over in great depth today. And by the way,
do they have to be your hidden assets? By the way, there are trillions of dollars
in this country alone of these assets that people are unhappy with
producing this 5% garbage saying, “Show me a better way.” How many of you could be
the ambassador’s of showing a better way? That’s what we teach people how to do if
you can get a handle on these 2 things and coming up next, I’m going to really
dive into how do you do this. But if you can be discipline to save money and then
you can get those hidden assets going from low yields to high yields like real
estate with the benefits that you talked about, then you have the ability to go
someone else’s and crush it.


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