How To Create A Million Dollar Game Plan | Part 5: Uncovering The 10 Hidden Assets


If you want to know how to make a
million dollar real-estate game plan, you have to know how to take any and all
kind of assets that are out there, the 10 hidden assets and how to rearrange
them. J.B Shae, 1800’s economists said that
growing wealth is just moving money from low yields to high yields. We’re going to do
that actually right now. So does freaking time to roll up the sleeves. For me, this
is when it gets fun. See, this is when I put myself in someone’s shoes and say, “Oh,
if I woke up today with your finances and I didn’t care about any of your
beliefs, what would I do with your money to become a millionaire?” And have to say
it that way because by the way, do people have strong feelings about their beliefs
about assets? For example, if someone were to take equity out of a home to put it
in real estate, what can that create for some people? Dude, you deal only
with like a married couple. And the woman, she’s going to be like… You want to touch my
house? You want to take some of that equity? You want to put that into real
estate? And I swear you were messing with mother bear and mother hen right there. So that’s a sacred cow. Everyone has ideas. By the way, if someone is an
end-of-the-world prepper, how do they feel about their gold and silver? Sacred
cow. You can’t touch it. If you’re dealing with someone who’s been a high-powered
like CEO in that space, how do they feel about their stock brokerage account?
Crazy strongly. So by the way, I do game plans as if I don’t really give a rip
about your belief system. I’m agnostic. I’m just literally saying, “With
everything I know, what would I do if I were you?” So, you need to understand when
you’re building these game plans that it’s a touchy subject for people because
they have strong feelings about money. And most people are financially jacked
up. They’ve got weird ideas in their head
about wealthy people, rich people, those who have money vs. don’t. That it takes
money to make money. They’ve worked hard to accumulate what they have. It’s not
enough but most people are so deeply engrossed in to a scarcity mindset that
on the one hand, this is terrifying. But on the other hand it’s also what?
It’s exciting. Why? Because they’ve never seen it. Someone’s about to step in their
shoes and say, “I’m going to show you some things to give you some options.” So, when
I do a game plan, I always tell people’s like… “Listen, I’m going to put myself in your
shoes. I’m going to tell you what I would do financially if I were you.” You’re not me,
I’m not you. I don’t know what’s best for you. But I know how to make money. And
I’ll show you how I would do it with your assets. So, I create a little bit of
space for permission. And to do that we have to
the 10 hidden assets. This, Derrick is like game on 100% where you and Denise
and the rest of the team like jump in. Hidden asset number 1, you guys have
the manual, what is it? Okay, 401K. I’m going to give you everything
you need to know about this little bastard. 401Ks, good or bad? I hate them.
And now by the way, there’s 2 kinds of 401Ks. Bad and really bad. You have
what’s called a current 401K and then you also have a rollover 401K. Rollover
us from where? It’s from past employment. Current means that’s their current job.
So by the way, I’m an engineer and I was working for 10 years and I put 80
thousand in my 401K and then I switched to a different engineering company. And I
rolled it over into the new 401K and then kept adding to it. Now my 401K has
$160,000 in it. But how much of it is roll over?
80,000. And that means that how much is new? 80. So, they’ve got 80
current, 80 rollover. They have 160 total. Here’s the good
news and the bad news of a 401K. If they wanted to touch their 401K and access
it, they’re going to have to pay a penalty. I call it cost of business. Or
it’s the cost of being uneducated or was the cost of the choice that you made.
That 10% penalty, you cannot avoid. I’ll show you
one way that you can avoid it but it’s not dreamy. If you wanted to avoid the
penalty by the way, well first of all, if you pay the penalty, then
you have to pay what? Then you have to pay taxes. And for most people, you know,
depending on how much you’re pulling out, there could be another 10 to 25 percent that you’re going to pay in taxes. So, most people are going to flush
20 to 35 percent of that money right down the drain for accessing
it. Now, for that reason alone, people were like, “I can’t do that. That’s not a viable
option.” Pause. Can you do anything to avoid this tax? You’re going to pay it
sooner or later. You can’t avoid it. So, don’t think that way. That’s
broken thinking. The penalty. Can you do anything to avoid it? Guys, not really… So
guess what it’s called? A cost of business. So, you just suck it and eat it.
And then you go out and actually invest in a real estate. Problem, the 80,000
rollover, you can touch. Once they’ve left one job whatever they had built 401k,
they can access. The current stuff, there is a very small likelihood of being able
to access it. They could call their HR director and say, “Can we do an in-service
distribution?” Which is a the formal way of saying, “Can I have my current 401k
money?” 10% of the time they’ll say “yes”, 90% of the time we’ll say
without hardship, the answer is “no”, okay? So, with 401Ks,
the bad news is is that some of it can’t be touched. If there’s some of it
rollover, I immediately look at that and I’m going to… What do I see at this? I see
houses. This I say “Want to change jobs?” Then you can free up the other 80,000,
right? Guys, we don’t want anyone to ever financially be hurt. Every home makes
them better off because they get cash flow, tax benefits from where they’re at.
There is an option called a self-directed IRA. A self-directed 401K.
This is where you say, “I’m going to avoid the penalty. I’m going to avoid the tax and
I’m gonna put it in a self-directed account.” And pretty much for the most
part, all you can do with this is by real estate cash. If you buy real estate cash,
what happens to your ROI? Plummets. So, does this defeat the purpose? Yes. So, none
of my partner’s self-direct their 401Ks currently. None of them. There can be some
rare exceptions that I will tell you about. But outside of that, they’re going
to pay their taxes, they’re going to pay their penalties. And now that they can
access part of their 401K or when they quit or leave or move on jobs then they
can access the rest of it. So, that’s really important. I’m going to give you
guys 4 scenarios. We’re going to actually play along a little bit and I’m actually
going to roleplay you with different assets. So, that our fulfillment team can
actually know how to build these different game plans. Okay, tell me about
IRAs. How are these different? Is that the second one? Okay.
Hidden asset number 2: An IRA. How does an IRA work? First of all, there’s a
couple different kinds, right? There’s Roth IRAs, there you’ve paid your taxes
upfront. And then when you pull it out, you might have to pay a 10% penalty but
you don’t have to pay taxes. Most people put it into a
tax-deferred IRA like a SEP IRA. And you’re going to same thing. You’re going to
have to… Ultimately, you’re factoring in. Your penalty which is how much? And your
taxes. You may not have taxes if it is a Roth. But other than that, when I look at
an IRA, what do I see? I see houses, okay? So, my rollover is the only part of my
401K I can touch. I can touch every part of an IRA. And do you know how much I
will hesitate before pulling it out paying the taxes and penalties put in
real estate? I will freak out once I know I have one. And I will be thrilled the
moment it is liquidated. Because I don’t believe in that vehicle path. By the
way, you can throw that one in with mutual funds. Did you know that less than
5% of all mutual funds will even make money with inflation? Guys, joke. Our
economy is being run by financial idiots that control our money. There are only
one person that is actually approved to be a financial planner in your life. And
you know who that is? That’s you. That’s what we’re teaching people how to do. We
educate them and we let them make choices. But we’re giving them choices
that have a shot of getting them where they can go versus making choices that
have a guarantee of never getting there. So, IRAs are just like rollover 401Ks. Taxes and penalties. And then it’s real estate. Hidden asset number 3.
Alright. Let’s define home equity for a moment.
What do we mean by home equity? It’s difference between the value in the… So, if I have a house and let’s just say for a moment that that house is
valued at $300,000. And let’s say I owe a $150,000 on it.
Then what is my equity? The equity is the difference between what I owe and the
value? In this case, it’s going to be how much? 300 minus 150, $150,000.
Home equity is going to be different on an investment properties at primary
residence. Let’s talk about primary residence. In most economies, banks will
allow you to access (Marianne is right) 90% of the equity. Some banks
might be more conservative, 80. But usually, it’s up to 80% on an
investment. Sometimes 70. You can go up to 90% off and on the home
that you live in. So by the way, if you take a look at this,
what’s 90% of the value of 300,000? It’s 270,000. Simple way to do that math. I had all day long. As I just say,
“What’s 10% of that?” 30 grand. 30 grand from 300 is 270. So I say, if I owe 150(K) and the bank might allow me to access up to 270(K), how
much usable equity do I have? $120,000. By the way, when I see this 120,000, what do I see? I see houses. I see 2, 3, 4 homes. But by
the way, this money is different. When I pull this out, this is free money free
capital. This capital has a cost depending on how you access it. There are
2 ways to get home equity. One is with a HELOC which stands for… By the way, if
you guys are engaged in watching this, I’m literally giving you every detail on
the science of how I build a million dollar game plan. Even if you don’t have
a home equity, learn this right now because the neighbor next to you does, a
parent does, other people do. So, a home equity line of credit, how much does it
cost to set one of those up generally? It’s free. Most community credit
unions, I’ll go to 2 different credit unions and I’ll say, “What can you do for
me?’ And they have an internal way of simply doing either a drive-by or
looking up things online. They’ll tell you what they think to the value of your
houses. They’ll tell you how much they’ll give you. Within 2 weeks, you can have a
home equity line of credit usually. So, a home equity line is like a revolving
credit card. I have 120,000 on my “home credit card”. If I
don’t use it my payment is what? If I use i,t my interest is what? Most of these
range between 3 and 7 percent. Is this expensive money or cheap money? Okay,
I want to teach you a word. It’s called arbitrage. Here’s what arbitrage means: My
investment is producing a 25% ROI. Of the 25%,
my cash on cash is 7%. I can borrow my money, in this case, let’s call
it at 5%. How many of you would trade 5 for 25? Yes. But you
need to look at the cash on cash number. Because you need to say, “Wait, if I borrow
it 5, will I have a payment to make?” Will you have a payment to make?
And you have to look at how much of your investment is going to give you a cash
flow to counter that. If you’re pulling in 7 and you’re borrowing at 5 on
just these 2 numbers, are we still positive?
That’s called a positive arbitrage by 2%. That means after my return
pays off what I borrow, there’s 2% left over. Is this a big number or
small number? No. And depending on the performance of
the property, this could go up a little or this could go down a little bit? Does
that make sense? This is a break-even arbitrage. If I did it, I would be doing
it for what over overall ROI? This one. This is a long-term play. This
is not a cashflow play. If I free up my 401K or my IRA, do I have payments on that
money? No. Just my tax and penalties and then my money is free. So, the cash flow I
get doesn’t have an obligation. Home equity has an obligation. True? If it’s a
HELOC, the other way is to do what’s called a cash out refi. A cash out refinance is basically
restructuring your loan. And the bank will say, “Oh, your mortgage was 150. Now, we’re going to make your new mortgage $270,000.” Did my payment go up? Your payment went up. But by the way, a
lot of times people are on these stupid 15 years and other kind of loans. Or they
can get low rates with so they can sometimes take money out and actually
lower payment. In this situation, your payment’s going to go up because you’re
taking out 120 grand. But now you have your $120,000
out and available. QLAC, you’re only charged on what you use. When you pull it
up this way, you’re charged on everything whether you use it or not. Does it make
sense? Which one’s better? The answer is, “it depends”.
Here’s what it depends on. Okay. So, if this is variable, then you might be
thinking, “Hey, this percentage can go up and down if I do a cash out, I might be
able to lock it into a lower permanent rate.” So, one of the things that I do with
people is I’ll say, “Start with the HELOC, buy your houses and then you can
restructure it into a refinance after you buy your houses and lock in a low
interest rate.” Does it make sense? Does everyone understand what I just said
here? Okay. So by the way, home equity. When I see home equity, this is a sacred cow
for people. They’re saying, “You want to touch my equity?” And
sometimes they’re terrified. The only reason why they’re terrified is because
they’re locked in an accumulation mindset that says what? “I need to get my
house paid off”. When is the right time to pay off a house? Let’s just say you win
the lottery. This is your house. And right now, your house, you owe 150 it’s
valued at 300. And you just won $150,000. If you’re
worried about debt then you’re going to take that 150 cash and do what? Pay off
your house. Did your residual income increase? Did your investments increase?
Did your tax advantages increase? Did you make your life better?
No. So, I would call that premature. Let’s say that I win a $1,150,000. And with the million, I’m able to create investments
that produce a residual income that replaces my job. And then I have 150 grand leftover. Could I then pay off my house? I do it after I’ve
established my what? So, most people, guys, the last thing that they’re ever going
to do is pay off their house. The last thing. Unfortunately, most people make at
the what? The first. And what they do is they tie up their money. And that means
it can’t be invested. And the biggest thing that they lose is time. This is how
people screw themselves over every day long because they’re afraid of their
liability. They’re afraid of their debt. -So, one of the ways I’ve looked at it is, is the ROI paying off debt? When you are ready to earn 4, 5 or
6 percent, as opposed to 25% that we talked about, that’s when you pay off the house. -So, when you can afford to earn
low ROI is like Chris just said, 5% pay that house off. Super smart.
Great way of looking at it. So, by the way, the math that we’re doing right now is
an economics principle called opportunity cost.
Now, some people are watching this video by the way they’re like, “Kris, I don’t
even know why you’re freaking posting this online. It’s like going right over
my head.” Everything you need to know about making millions of dollars is in
this conversation. So by the way, if you don’t understand something, you should
raise your hand you ask. If you don’t understand any part of this conversation,
you get a mentor a coach or somebody and you say, “Teach me. I need to be an expert
on this few set of tools.” -Kris, do you coaches they can talk to? -Do you have coaches? Yes. Anyone can click a link on
any video ever haven’t talked to my expert team and actually get a custom
game plan. You’re funny, dude. So, by the way, what we’re performing here is called
opportunity cost. That’s what? And it’s just… This is earning me 5%, these homes
could earning me 25. What’s the difference between 5 and 25? There’s a 20%
difference. That’s a 20% positive arbitrage. Arbitrage is a really
important word. It’s the difference between what am I making versus what I
could be. Opportunity cost, what’s the next best investment I’m missing out on
based on my choice? Now, I need to bring this up because someone know ultimately
is going to say, “But Kris, high ROI equals risk.” Right? How many of you hear this?
Dude, this is scary stuff. What is scarier? Contributing every day
to a financial game plan? You guarantee by math will never work.
Guaranteed failure is what most people are facing. Is there risk in what we’re
doing? Could you go a month or 2 or 3 without a tenant could a tenant?
Could a tenant beat up the house and create an expense you weren’t planning on? Are we prepared
for it? Yes, we are prepared for it. But when
you’re brand-new, there’s this fear of all of the unknowns. What you should be
terrified of is if you’re following society’s game plan. Because it’s
guaranteed to fail over and over and over again. -What about if we have an investment
property as hidden asset? -Alright. Let’s do that one. 1, 2, 3…. Here’s number 4, if you
have an investment property, will banks do home equity lines on investment
properties? Generally speaking, no. With rare exception. So, the only way to get
money out of an investment properties to do 1 of 2 things.
Cash out refinance or sell it. And by the way, I believe that all real estate at
some point needs to be sold. At some point, all real estate needs to be sold.
When I was in Israel, I had a chance to observe the Dead Sea and the River
Jordan. Along the river Jordan, everything next to it was lush. You walk out a mile
and everything is dead again. So, in that car part of the world, water equals life.
Dead sea, nothing can live in it. Everything is dead. Most people have an
investment strategy that is like the Dead Sea. Nothing is turning. They’re not
earning multiple are wise on their money. And there’s stagnation. 5% with Kris’s
3%. Inflation takes 40 years to double your money. I would call that a dead sea
strategy where you are dead. Living waters, we need our money to flow. So,
let’s say that I had investment property that was valued at 300 and I owed 150.
And most investment properties… If you look at the bell curve on profits, it
looks like this. You’re going to reap your biggest profits in the beginning
and then you’ll get diminished returns with time. So, on average, I hold on to my
homes how long? 5 to 7 years. Why? Because I’m trying to get the juicy
stuff and I don’t want the drags. I want the good stuff and not going to switches. So,
I look at this property I’m like, the bank will not allow me to go up to 90%.
The bank will allow me to go up to 80 or 70%, Jaden. So, let’s just say it was 70%,
everyone of you needs to know how to do this.
Just take $300,000 and multiply it by 0.7. And that will tell you what 70% of
that value is. 70% of 300,000 is how much? It’s 210(K). So,
if I go to a bank, I can likely pull out the difference
between what I owe in 210. Which is how much? $60,000 of usable equity. 150,000 is
my actual equity. Like, Marianne said, 60,000 is my usable equity. Or
what’s my other choice? And if I sell it… By the way, you have some
selling costs. You got 6% selling costs. It’s an investment you might have to
renovate it. You know, let’s just say that you end up netting 270 as what your real
sales price is that you get to keep. Take home 270 out of 150 is how much? $120,000. I can refinance, keep the investment and get 60 grand. And I
would do that if it was a good investment that could still make sense
after the refinance. Or I liquidate it and get 120 grand. By
the way, which one of these will get me more real estate? The 120 liquidation. But the real question is I make my decision based on 3
letters. Which is what? ROI. Which means not “the location is so nice. We
just did this remodel.” That’s where people… Which one will make me
the most money? Guys, its arbitrage. It’s like, if I hold onto this investment
after pulling out 60 grand, let’s say my ROI is 14%. By pulling out this money
and selling it, I can average 25%. Which number is bigger? 14 or 25? So, if this
were the actuality, what would I do? I would sell it. If after pulling out 60
grand, for whatever reason my ROI was 25%. Then what might I do? Keep it! Let’s work.
Let’s movement. Less expenses, less fees. Refinance it and put in more money. Does
this make sense? The highest level of positive arbitrage with the highest
level of relative safety is how we build a game plan. Alright. So, that’s
investment property. Make sense? Okay, what’s number 5? Land. How do I
feel about land? Guys, is land real estate? That is real estate that I hate. Why? It
doesn’t make me anything. It’s not productive. I mean maybe I lease it for
the land for cows are grazing goats or I don’t know. But like… Like right now, land
is usually the worst real estate investment, period. There’s usually
sentimental or emotional reasons associated with this or timeframe on
when you bought something during a dip. But usually, whatever the value of the
land is… If I have two parcels of land and there
worth $50,000, what do I see? Houses. By the way, do I like houses more than land?
Everyone understands why. Hidden asset number 6, what do we got? Alright. How
do I feel about a stock market? It’s adorable. I actually don’t mind the stock
market as a way of diversification after I have a real plan making me real money
with real ROIs. But the stock market the S&P and 500 we talked about is just
shy of 10%. And 9%, what’s 72 divided by 9? For all of my
mathematicians out there. I’m doing my rule of 72. It’s 8. So, it means that I can
double my money every what? I can double my money every 8 years. Is that
better than 40? Is it better than 15? Is it as good as real estate? It’s a great
diversification. But it is a backup to a real full plan. A real plan means that in
the time that I want to retire I can make enough money. By the way, what is
enough money? Enough to produce the residual income to live off of. If you’re
not sure what that number is, it’s probably your current lifestyle for
starters. So by the way, if I make $60,000 a year,
then I need to have $60,000 coming in residually. And then at least
my job income is replaced if it came to that. Does it make sense? So, in the stock
market, if this 9% gets in the way of this number as soon as I want to
get there, then what am I going to do with my stocks?
I see stocks and I see what? I see houses. Hey, what I love about the stock market?
Do I have to pay penalties? Do have to pay taxes? It’s free money. There could be
some scenarios where there are some taxes or maybe on some capital gains. But
outside of that, guys, this money is… Let’s trade this. Let’s trade. By the who likes
less for more? We’re trading less money for more money. It’s like I put 1
dollar in I get 2 dollars out. If you guys could max out that ATM at 10 grand
a month and put 10 grand and get 20 grand back, who would do it? This is what
real estate becomes. Alright. Asset number 7: Annuity. This is something I
hate with the passion that runs so deep. It’s next to 401Ks. It’s ugly
red-headed step-sister or brother. Here’s what I hate about
annuities: A financial planner convinced someone to take inheritance 401K, IRA and
put it into a vehicle to produce a certain amount of money. And then they
lock it in and say, “If you touch it, we’re going to give you this penalty thing.” If
it’s pre-tax or could be tax implications. But here’s what I hate
about annuity: Every single time in my entire life, I did a game plan for
someone that had one of these. The residual income was like… This would make
sense? Kris, when? When 4% produces enough residual income and for almost like 99%
of us, that will never happen. And the people I’ve seen have this, they need to
be earning 20-30 percent on their money and they’ve made decisions
to lock it at 4% because a silver tongue financial planner makes
money managing your money convinced them that this was a good idea. Number 8,
what’s number 8? Moving on. Okay. Precious metals. My precious. Precious
metals. Precious metals are precious to who? By the way, gold and silver. Gold and
silver. Who keeps gold and silver, generally? it’s people that are preparing
for really bad economic times as if everything will go back to a gold
standard again. There’s nothing wrong with having gold and silver. There’s
nothing wrong with having it as a hedge. It’s certainly a great diversification
tool. But if you’re putting your money here, when you don’t have a realistic
plan to replace your income with double-digit ROIs then I look at
this and I say as foolish. So, do what you need to to appease your prep earnest or
a prayer or your into-the-worldness or those other pieces or sometimes there’s
religious reasons. Honor that, right? But it needs to be in balance. And so, at the
end of the day, do precious metals pay you money? By the way, do precious
metals pay you money? No. Does a stock market pay you money? No, it doesn’t
It does not pay you a dividend. Does it.. Does the land? By the way, most annuities
don’t actually pay the dividend. It gets rolled in. Even more disgusting. Land. Does
land pay you? Yes or no. Investment property? Yes. We finally are doing
something where I put money out and money comes back. We
talk about these other ones. Home doesn’t pay us, IRA doesn’t pay us. When most
of us are trained to be sheeple instead of people. *Baah* I put my money with people
that make money controlling me and I get nothing. Great deal. Alright.
So precious metals. When I see precious metals, I definitely see what? I see
houses. Number 9, what do we got? Okay, cash value life insurance. Okay, by the
way, I am sharing with you the 10 hidden assets… And by the way, my all my partners
are going to save these videos. So, if you’re wondering why we’re recording this
training with our team, it’s for you. It’s because I want you to know why we do and
say the things that we do and say so that you can arrive at your own. Balance
of what feels right for you and we’re going to honor your balance. Cash value life
insurance is not the same as term insurance. Term insurance is, in the next
20 years, if I were to die, I pay this small amount on every month and then my
surviving legacy gets this pile of cash. Cash value life insurance is different. I
put my money in for my term and then I put more money in because I’m gonna earn
a dividend on my cash value life insurance. I love by the way cash value
life insurance, personally. I’m always starting new policies. When I’m
consistently saving money on a monthly basis, this is my number one favorite
place to stockpile money. I just started another policy I’m getting ready to do
another one. And every month, I’m just putting money into these. Now, the reason
why I do is because I put the money in and then I’m pulling it out to put it
into what? I put it into more houses, more projects, more investments. So, this is a
pass-through entity. And just going to do a little plug here. You guys all know that
we’re partnered up with epic wealth. And epic wealth provides insurance to people
all over the world. And so, if you’ve seen Rob Gill or others speak on our stage
about epic wealth, it’s what we’re encouraging people to do is that when
you finally aggregate your money that you want to put into real estate or if
you’re a great saver because your PYFing –paying yourself first, then you’re
passing that money through a life insurance policy and it’s
giving you benefits. Benefit number 1 is what? Aside from death, what are the
living benefits of cash value life insurance? You’re going to get a guaranteed
dividend. That dividend is usually 4 or 5
percent. A bank is typically paying you what percent? Point something. Whatever…
Guys, whatever the numbers if it comes after a decimal,
it doesn’t matter. But this, by the way, if you could be earning 4 or 5 or 6
percent on your money, while it’s just sitting somewhere like a sleep well at
night account. How many of you think that makes sense? Yeah, that’s when I don’t
mind my 4 and 5 percent stuff. Are you kidding me? So, these bank, these
insurance companies are banks. They’ve been around longer than most banks.
Hundreds of years many of them. And so, I I get a dividend. What else do I get? I
get the dividend grows tax-free. What’s another benefit? It is a little
bit more challenging to touch it’s less liquid. So, it’s great for moving big
chunks of money in and out. Another big benefit to me is that I can borrow it
basically for free. I can leverage it and still get the benefit of whatever’s in
it. I’m telling you right now you can have a dollar sitting here and in real
estate and actually earn money on both. That’s pretty brilliant. Another reason I
love cash value life insurance is that currently to date, this is has been unlegatable. Someone has beef with you, there’s a lawsuit, there’s a something.
Historically known has ever been able to take money out of someone’s life
insurance policy to pay money owed. So, there’s a safety there. So. anyway. Bottom bottom line is there’s a lot of reasons why I love this. If you meet
someone that has cash value, life insurance, I only put money in it for one
reason. To what? Hold it back out and use it. So, if someone as a cash value life
insurance policy, you always need to ask. Some people are confused and they don’t
know how the difference is between that and term. They’re like, “Okay, well tell me
about your policy.” Yeah, it’s like 750-dollar policy.
Does that mean they have 750 thousand dollars? No, it means that
if someone dies, there’s going to be a payout of 750. There’s no
money to get out of term. You have to ask if its whole life or universal life and
it has cash value. You ask how much does the cash value. Well, I don’t really know.
Well, how much do you paying a month? Well, I probably pay $700 a month. Guys, they’re
not paying more than 50 or 80 bucks a month max on the term component.
So, how long you been doing that? Oh for like, 10 years.
So, my math is saying what’s 600 times 10 years. 600 a months. So,
600 times a whole year. What 600 times 12?
7200. Times it by 10. 72,000. There might be $72,000. In other words, how
many houses? I see that life-insurance policy and I see 2 houses. And by the
way, I can borrow that money at what price? Usually a negative 1% arbitrage
point. You do not have to pay the 1%. It just gets taken off of the value. So, your
value goes down by like pennies. So, you don’t have to pay… It’s very cool. Okay.
Anyway, cash value life insurance. Does everyone understand this one? When we
work with our partners and we’re creating game plans, what we’re doing is
we’re combing through all of the different assets and we’re asking what
makes sense. And in a moment we’re going to ask that question,
what’s asset number 10? It’s OPM. Family, friends, others. Friends, we will always
build more wealth with other people than we can ever build on our own. How many of
you get that? The biggest thing that you have that no one else has is you know
about it. And when other people find out and they look at the track record, they say, “I
want to invest in that.” So you guys know how our maverick program works, right? I
mean just really quick, we’ll talk about it more later. But if people become a
partner by way of recommendation of someone else, that person gets actually
included in the ownership of the property. It’s a very, very cool thing. So,
when you want to go faster, OPM. There’s one last asset that is not a hidden
asset that we haven’t talked about. It’s the only unhidden asset. Do you guys know
what that is? It’s money in the bank. It’s cash. This is when you could ask
people, “Hey, do you want to invest in real estate?” Oh, I can’t. I want to but I can’t.
And they’re only thinking of one thing. They’re thinking of their bank account.
We are not trained to have money in our bank account. We’re trained to put our
money in all of these places where we have little to no control. The purpose of
the game plan is to evaluate the hidden assets and say, “How do we restructure
this to actually real estate?” That’s where we’re headed next in the training.
We have all sorts of type of people from all over the world that are contacting
us. Some of us are citizens in the United States, some are not. Some of usable
credit, some don’t. Their money sitting in all sorts of different places. And at the
end of the day, they’re saying, “What’s my game plan? What could I do? What should I
do?” What I’m going to do next is I’m going
to share with you the most scenarios that I see. And we’re going to
actually do a little bit of role-playing. And I’m going to actually show you how we
use this information to actually build a custom million dollar game plan.

7 comments

Hey kris, can you please dm me back on Instagram .rusik_k. I want to get into real estate but I need to talk to a professional first, this is really risky to do on my own, please respond

Could you make a video on the possible risk? unless its already out there. You seem to highlight the process an simplicity of it but realistically, id imagine this doesn't all work so easily an linear as it sounds. need the other side of the coin thnx!

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