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Passive to Prosperous Podcast

PTP S2 1 | Mindset

Get Your Mindset, Vision and Business Skills On Point With Jen Steward and Dan Zitofsky

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Are you doing enough to achieve your goals? It always comes down to your mindset. Join Dan Zitofsky from Passive Wealth Academy and Jennifer Steward from Phone Pheonix Agency and Powerful Property Solutions in one of today’s most powerful podcasts. Jennifer Steward is an off-market estate acquisitions and disposition specialist who has helped over a dozen real estate investors build successful companies through virtual processes. Learn how to get your mindset, vision, and business skills on point to overcome almost any obstacle in life and business. Do you want to be free and happy while earning an income? You have to believe that you can succeed too. It is in your power, and you are in control.

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Get Your Mindset, Vision and Business Skills On Point With Jen Steward and Dan Zitofsky

Breakthrough With Your Vision And Mindset To Overcome Most Any Obstacle In Life And Business

I have a special guest on the show. Let me tell you a bit about her. Jennifer Steward is the owner of two amazing companies. I’ve watched her grow through this industry to become a rock star and now there’s a waiting list to get on with her to do any business. She owns Phone Phoenix Agency. She runs an amazing inside sales call agency setting up sales calls for over 100 employees that she works with, trains, sets up to work for some high-level companies doing amazing lead gen, sales calls and all those things.

She also started Powerful Property Solutions. She’s an amazing wholesaler. She has dispositions and acquisitions in place. She put her systems in place. We’ll talk a bit about that. She’s done that and she’s going to be taking this nationwide soon. We’re going to see her balloon nationwide. I’ve had Jen on my mastermind group. When somebody comes to my mastermind group, I see a lot of hype and interest in the first couple of days. I got two messages where people are like, “How can I work with Jen? This is amazing. I’ve watched the training four times,” which is unreal that they’ve watched that four times since that.

I knew I wanted to get Jen on the show. I knew we had to do this. We’re both busy. Jen is heading out to an event to meet with some high-level people at NoteExpo, somebody I love like Eddie Speed. Jeff Watson will be there. We’re in the same network. When you’re on the same network, it’s pretty cool to see somebody come through the ranks and move up. I wish I were there to see her in person as well.

Once again, if you like what we’re doing, give us a five-star. Share this with a friend and somebody you think can help. We’re not in this business to make money on the show. We don’t have any advertisers. I can’t say I won’t do that in the future, but my plan is never to do advertising on the show. It should just be pure content to bring out what I do in my business and more importantly, this is more about mindset, not how to do the business. We got on a call, we’re 40 minutes into it and all of us can’t shut up about mindset. We love it. Thanks so much for being on, Jen. I appreciate it. It’s an honor to have you and it’s a blessing.

Dan, thank you. It’s an honor to be here. I did very much enjoy that conversation about mindset because it’s what changes your whole life, what you feel like you’re capable of and your why. Why do you get out of bed and how do you implement things in your day? It all comes down to your mindset.

I’m going to ask you a lot of questions because you’ve taken what I think I’ve taken over the years maybe at a slow pace. You’ve been on a VIP fast lane. When I first started watching you on social media, it might’ve been maybe in 2020. I saw you and you were this great employee personality, working hard tirelessly. I even tried to hire you one time. You’re like, “I’m so busy working for all the people. I can’t do it.” You were so ethical and moral. You wouldn’t take on other people. You were like, “I work for this person and that’s it.”

You didn’t just open a business. You’ve projected this business to where most people would dream to have a business and you’re even going further. What made you go from that employee mindset and having this amazing vision? I call it visionary. You could open a business because I think you’re a visionary. If people aren’t following you, they’re crazy not to. They’ll eventually want to work with you, but they should at least follow you because you’re as real as they come. How’d you go from that point A to point Z?

I find it very gracious that you said I was on a fast VIP track because when I was fifteen years old, which was years ago, I read this little book called Rich Dad Poor Dad. I know everyone reading this knows what that is. That was the year 2000. I was reading that and I knew that the way the world had been set up was not for someone like me because I value my freedom. I took a long time to get where I was wanting to get to by building out my knowledge base. Whenever I had a friend ask me years ago, I had graduated college. It took me a while to graduate because I was working part-time.

I had my son and then decided I needed to change my life. I finished college at age 30. I get out and I have my second son. I graduated Summa Cum Laude, seven months pregnant with my second son with a Science degree in Psychology. I’m walking across the stage with this big belly, all these medals and all that but I have to get out and get a job. I know I want to do what Robert Kiyosaki says, but you have to start with a good skillset and/or capital. I had neither. I had a degree, but I didn’t have a valuable skillset that I knew of.

I had a friend. She said, “I’m working for this real estate investor. I want you to come. I know you’re extremely good at being able to determine people’s motivations.” She had known me since I was quite young. We’re the same age. She said, “I need someone who can get on the phone with these people and determine whether or not they want to sell their property.” She wanted to pay me for that job. It was $5 an hour because that’s what they were paying their VAs overseas. This is crazy but I took the job because I saw the potential in learning what she was saying that I would be good at.

I thought, “If I get good at this for $5 an hour, then I can eventually become the investor. If I can figure out if people want to sell and convince them to sell their property to me at a discount, that’s the hard part.” Everything else is easy after that. I became that employee as a necessity to learn the skill that I needed to learn to become as free as I’ve tried to be since I first read that book in the year 2000. What Robert Kiyosaki doesn’t tell you is you probably will have to get a job first, unless you are a trust fund kid or something like that. That’s what my dad told me when I first read the book.

What it takes is some serious planning to transition from being an employee to being a true business owner. We’ve all seen the cashflow quadrant and everything like that. I’m not in the I space yet. I’m not going to pretend I’m in the I space. We talked about ego. I’m not in the I space. I’m not lending my money out as a passive investor like some of the people investing in my company to do transactional lending, etc. Those people are in the I space. I look forward to being there in my golden years, but now, I have no shame in saying I’m in the hustle space.

I still have most of the pigment of my hair. Although a lot of it is now hair dye. When my hair is looking like yours, Dan, I’m ready to be in the I space lending out that passive money for nice returns to the people who I met and hopefully, that I can trust bringing those good deals. I’m the one bringing the good deals, Lord willing. That’s my job every day.

If you don't have that inside track on which systems are working, you're going to get left behind. Click To Tweet

That’s how I transitioned. That’s a plan that I had had since I was fifteen years old. I knew that I needed the skillset to get the sales to get to a place where I could become a business owner. It was a long-term plan and I had to do my time in the employee space. That’s all there is to it. Have you ever seen the movie The Shawshank Redemption?

I love that movie.

Andy puts in his time. He bides his time. That was me. I felt like Andy in The Shawshank Redemption. I knew I was going to get out, but every day I was digging that tunnel a bit more. Staying up late, working those long hours that you noticed because I’m digging that tunnel to get out.

I don’t know if it’s put out because it’s every industry. “Get rich quick, lose all the weight.” Everybody wants the snap your fingers easy process. I feel like social media takes advantage of people. They tell you how easy it is. I always say I’m willing to do the work. All those I’m willing to do now to live a life others wished they could live later. What attracted you to me business-wise, is you saw the life I was living. I didn’t put out pictures of my cars and I have them. Sometimes we’re on the boat and you’ll see it.

I didn’t put up pictures of my watches. I wear it because I like it, but I put out pictures and I talked about this with my marketing team. They’re like, “You got to put some of that out there.” I’m like, “It’s not me.” What’s me and what I’ll brag on is the time I have, the experiences I have with my family and friends. My friends don’t care. They’re happy for me that I’ve driven a Lamborghini and Maserati. They’re happy with me. I had a Bentley. That’s not what they care about.

We went to an event and we got out of our car and we parked the car. We walk inside a restaurant. We get together for dinner. They’re not talking about the car. They’re talking about what’s going on in their lives. We’re at a deeper level. I believe that people aren’t willing to do what it takes to get that. They don’t see the grind and the hustle that we paid to get there over the years.

I’ve watched you do it. I’ve watched you grind. What’s the difference between where you were before and where you are? I said I saw a huge difference that you believed in yourself. You have a vision. You work with a lot of companies. I know why people aren’t successful in business or why they won’t take that step.

Why won’t they get a mentor? People that don’t get a mentor, I’ll say this and you can give me your feedback because you work with a lot of people. At first, I didn’t think that I had enough in me. Who am I to coach somebody? Who am I to be their mentor? I believe coach or mentor is two different things. Who am I to be either one of those? What do I have? It took me a little while to get my mindset right. I have a mentor and every mentor should have a mentor. You got to be constantly growing. Sometimes you have to change your mentor to get to that next level.

My mentor tells me, “You’re being selfish by not sharing what you know with somebody else.” You don’t have to share it for free, but how can I charge them for it? I didn’t value what I had. I wanted to give it away. The problem is I did in the beginning and it crushed me because everyone I gave it for free did nothing. I couldn’t remember one success story of anyone I’ve worked with. I’m talking about truly mentored, not answered questions.

Somebody that I truly mentored for free, I can’t remember it ever working. The minute we charged, I didn’t consider it a cost. If somebody says, “How much do you charge?” I don’t want to work with them because it’s not a cost. You’re investing in yourself. You’re investing in yourself to become a better version of yourself.

I’ll be paying for it the rest of my life, Dan.

It made you a better version of yourself. You have a degree in Psychology and it helps you understand people. You should invest in yourself, if you don’t value yourself enough, even in your health. I love coaching people and I’ve done a great job in health and I’m digging deep. It’s caught my interest because it’s not about weight. I want to be healthier for the long-term for me and my kids and grandkids. I want to coach people because as I help them in real estate investing, building wealth and their lifestyle, I can help them in health as well.

People who want to get healthy but they don’t want to invest in themselves time and some money. They’re not going to do it. It’s a shame because they don’t value it. I would say to somebody, “You’re going to value my information for free but if you invest in yourself, you don’t value it.” I’m very particular about who I work with as you are as well in business. You’re in the grind of working with different business owners. You see some that are probably successful and have great people that follow them. You probably see some that are terrible leaders and they triple their fee. What do you see is going on in the industry there?

PTP S2 1 | Mindset

Mindset: Mindset is what changes your whole life. What you feel like you’re capable of and your why, why do you get out of bed and how do you implement things in your day. It all comes down to your mindset.

 

I have a lot of insights on that because I have worked with so many different companies over the years. What I’ve seen that makes people more successful is a couple of things. Number one is you do need capital. There’s no way around that. You need to have the capital behind your marketing and you need to make sure good money goes behind good money. We don’t want to put good money behind bad money. We need to have capital and the right processes that work. You need to look at the people in your industry who are doing the things that are successful.

You need to emulate that and then improve on it. Having that inside track into what the successful people are doing is the value of mentorship and coaching masterminds, etc. If you don’t have that inside track on which systems are working, you’re going to get left behind. Even as long as I’ve been doing it, I’m always keeping my ear to the ground for new vendors and software because if every business person is getting a bit better every day and I’m not, then I’m going to be the blockbuster to Netflix. We have to stay humble enough to be ready to innovate, even though it’s uncomfortable.

It may hurt our ego. We may have to change all of our business processes and that is painful. There’s the inertia. We’ve worked so hard to build up the system that’s successful overall these years. God forbid, we have to change it because that’s too painful. What’s more painful is being left behind, technologically displaced. We’ve got to have capital. We have to stay on top of the processes technologically. Third, you and I were talking about this before. The big one that I noticed is people blame their people for lack of success. That is the biggest mistake I’ve seen.

If you’re blaming people in your industry or business for you not being successful, then those are the people that I can predict are going to fail. I’m not saying other people don’t have an effect on what we do, but it’s our job as leaders to either incentivize them properly or unfortunately, maybe find someone that we can incentivize. We were talking about the difference between an employee mindset and a leadership mindset. A leadership mindset is, “Is everyone around me taken care of?” If they’re taken care of, then I’m going to be taken care of.

People who are successful in business make sure that everyone who’s contributing is being rewarded monetarily in an equitable fashion. If you’ve got in our industry an acquisition manager who’s killing it and you’re not paying them on time. When things close, you’ll say, “I’ll catch you on the next closing.” You’ve got to make sure that you’re being competitive in your pay if you want people who are competitive in their output. People try to be cheap. They try to be cheap with their employees and that’s how you’re going to lose good people. That’s what I’ve seen, a lack of capital, processes and compensating talented people.

I call it kneeling your employees out. I had a conversation with somebody I was consulting with. Real estate investment companies bring me in to consult. I get a lot of dentists bring me in to consult their practice. I get insurance companies too. For whatever reason, I get those that come in and they say, “Come out and consult us for 2 to 3 days and help my business.” One is an accounting practice. I worked with them. They were doing a great job in their practice. They were doing well but the culture wasn’t a fit.

They were doing well with money but when I spoke to the employees, I could see that the culture wasn’t the greatest in that organization. I spoke to the owner of the practice and here’s the thing. You could be a great CPA, but you can be a terrible business owner. You can be the greatest dentist in the world, but it doesn’t make you a great business owner. It makes you great. Sometimes, if you find that you’re not a great business owner, hire a consultant. Bring them in and let them handle that CEO service. Just because your name is on the paper as the owner, it doesn’t mean you should be the CEO of your company.

That’s the hardest ego cut to a lot of people. I remember this one story. I worked with a CPA firm. They were doing great money-wise, but they were cranking away. They wanted to get to another level. I felt like the employees were grinding. They didn’t feel bought. They didn’t buy-in. They didn’t tell me this, but you could see. Every time I talked to them, there are things like, “I make good money. It’s pretty good here. I get to take off if I need to.” I spoke to the owner and he said, “We do quarterly meetings with our team. We get together with them and we talk about what’s going on.”

I said, “Why do you do those?” He says, “We meet with a certain amount of people every quarter in the conference room different times a day.” I said, “Did you ever think about taking your team away to a resort and doing a quarterly meeting there?” They gave me all the reasons why it wouldn’t work. When I’m done, I sit down with the owner and give him a list of all the things I recommend. They swore to me they would do this every quarter. They’re taking their team away. They went the first time to Clearwater. They rented a resort. They had 40 something people.

They said next time they’re bringing their significant others with them if they want to. They said they saw such a change in their office. The accountant could have said to himself, “This is not worth it. It’s too much money. I got to spend all this money.” First of all, it’s a tax write-off and they know better than that. Once again, is it a cost or is it an investment? I see everything as an investment.

We go out to dinner with my wife. It’s an investment. I spend $100. It’s an investment in our relationship and our lives. It’s an investment in her. I’m honoring her. I see things like that as an investment. The reason I changed my mindset a bit from buying all those expensive cars is because those cars to me are costs. It was an investment in my happiness but after 3 or 4 months, I lost the happiness. It was just a cost.

The payments are still there if you financed them.

Now, I’m working harder to keep up. What am I doing this for? It’s so I can live my vision. My vision is to do what I want when I want and with whom I want. I can’t do it if I’m working 100 hours a week to keep up to impress people. Anything that you probably see in these owners that are failing, they probably consider people like you as a cost. You should be an investment. Anyone that hires you, if I pay you $5,000, you should bring me at least $6,000.

In business, you are going to take risks and you need to invest in yourself in a different way than you have ever done before. Click To Tweet

I have had people say, “I can’t afford you.” I said, “What you can’t afford are these people who are calling for $3.50 an hour. I’ve listened to those calls. You might as well set that money on fire because that’s not going to convert at all.” If I’m spending $3.50 an hour for a cold caller who is converting nothing or I can spend $10 an hour for someone who’s doing an awesome job and I’m getting one lead per hour, which one costs more? The $3.50 an hour caller who in an eight-hour shift got zero leads. This happened for a company I was consulting with.

The guy said, “Build me out the system.” I listened to this caller for $3.50 an hour. To his credit, it didn’t take much for me to convince him, “We need to shift gears to a better company, someone that I know and trust. I’m happy to plug Amber Calls With Love. I brought her into my agency because she’s so good.” I said, “She’s impressed me. Let’s go ahead and bring her team in.” I was all about sticking to as little as possible in this budget. We’re going to get this cold caller for $3.50 an hour. It all comes down to which one costs more? Spending that money or not spending that money.

Sometimes not spending that money costs a lot more. I understand the hang-up because how do we know that this is going to pay off and not going to be a hustle. That’s where I want to give people a bit of credit for being rational is how do we know that somebody is going to be good versus not? We have to build a network and branding. I had a guy who gave me his business credit card. As we talked about putting money in my account, why did he do that? It’s because he trusts me. Why does he trust me? Because he’s paid attention to me like you have. I’ve built a brand. I’ve networked and I spoke in front of an audience with him.

Because of that association, he trusts me, and he should, because I take my fiduciary responsibilities extremely seriously. That’s why it’s important that before I think we put ourselves out there, we are correspondingly building a brand as responsibly as possible. I think you do a great job of that, Dan. I feel like you build a great brand that is very service-oriented. You’re not like some guy who is flashing the cars and the watches and everything like that. We know you have nice things, but you make it about success as a community. That’s a great leadership quality.

Part of my process when I’ve mentored people is a breakdown and my mentor did this to me, “Who are you?” A lot of people don’t know who they are. Who are you as a person? Jen, what are you? It’s like, “I’m a mother.” That’s probably first. It might be, “I’m a God-fearing woman. I’m a mother.” It’s nothing in there. The first part of who you are doesn’t say, “I have a company. I’m a lead gen company.” Who am I? I love mentoring. I love helping people change their lives.

When someone tells me, “I want to help people.” I call BS on them all the time. I had a conversation with you about somebody I was talking with. He said, “I want to help people.” Why can’t you help them? You can go out and help anybody. There are homeless people. You can go out and help them. If you want to help, there are a lot of volunteer opportunities to go out and help people. Peel that onion back on who you are. Who are you as a person? What is your vision? What do you do personally? What do you do in your business vision? That’s what I learned through my mentor. It’s such a deeper level than most people.

They’re so superficial when you ask them. When I work with any business, I want to know who that person is, what their why and what their vision is. As I said, I watch them. I don’t want to jump in bed with somebody. On business, it’s so much of a deeper level. When you want someone to jump in bed with them, it’s not just the relationship. It’s like, “We want to work with each other day in and day out. We want to serve you and honor you as best we possibly could because, in return, it’ll serve us and honor us.” Nothing here in my vision said, “I want to be a millionaire.” It wasn’t part of my vision.

Who are you? You are a God-fearing person. You’re a Christian, father, grandfather, son, brother or uncle. I’ll go down the line and it’s like, I’m a coach. I coach football and businesses. I’m a visionary. I’m an entrepreneur. That’s who I am. I say this because I had a situation. You’ll appreciate this. Somebody came to me. It was probably about in 2020. They came with this great business plan and it was great, to start a roofing company. They started a roofing company and I was jumping on it. We were talking about over $1 million gross a year.

It’s good profits in that business, I hear.

I was jumping on it. I spoke to my mentor about it. He says, “Why would you do that?” I said, “It’s a great opportunity and a great partner.” He says, “What in your vision says that you want to be a roofer?” I said, “I don’t want to be a roofer, but I’m a real estate investor.” If we get up on the roof, if it’s fixable, we make money. If it’s not fixable, maybe that person wants to sell the property. We don’t even have to deal. We could refer it out to other roofing companies. His answer, “What in your vision says you want to be a roofer?” I finally got it. I understood afterwards.

I was chasing the money. It went back to the whole process of who are you? When you work with people and I see you’re pretty good at it. You’re better at most in cutting somebody off if they’re going to be a time vampire to you and they’re not serious or they don’t have these ethics and morals that you do. You’re not going to work with somebody who says, “I want you to hook me up with leads where I can rip people off.” Jen’s nice. She’s great. You would probably give some choice words that you don’t want even to put on here if they were like, “I’m going to rip somebody off,” because that’s not who you are.

It’s not a sustainable business model either. From a selfish perspective, it brings more regulation to all of us. There are certain exit strategies I don’t even discuss publicly because I don’t want to bring regulation onto them. A lot of people don’t know of certain types of exit strategies and I feel that if more people knew, then the wrong people are maybe going to get ahold of that information. If someone wants to have me as a coach, then I’m going to tell them those more creative exit strategies because at that point, I’ve got a feel for them and I can trust them.

Are they going to bring more government regulation on some of my favorite exit strategies? If they are, I don’t want to tell them because we’re all dealing with more government intervention. If you can find a space where you do not have to deal with all the rules, regulations and more paperwork, you can provide solutions to your property sellers.

PTP S2 1 | Mindset

Mindset: It’s our job as leaders to incentivize our employees properly.

 

It’s not even about me, it’s about, “Can I solve this person’s problem?” The more people who take advantage of those solutions by extorting people who are in a situation that truly where they need our help, they do a disservice to our entire industry. They make us all look bad. I don’t want to deal with people that make us all look bad.

We’re dealing with that now. I’ve been involved in this business for a long time. Thank God for people like Jeff Watson and John Hyer. These two, if you’re not following, you need to follow them. Not only is Jeff somebody I consider a friend, but he is also a trusted advisor to me and a visionary in the industry. John is somebody I follow and I love. I don’t know him personally. I feel like I do because there are certain people, no matter what they do, I’ll be all in with them. Jeff was part of the Seller Finance Coalition back when Dodd-Frank came out.

That hurt my business a lot back then. When the market got rocked in 2007, 2008 and 2009, I switched to seller financing to owners because banks weren’t giving loans to them. I was selling funds to properties with owner-occupants and I was doing a great job with it. I was doing it ethically and morally.

What happened is you have people come in. When it’s easy money, they come in and they start taking advantage. Big hedge funds were taking advantage of sellers. I specifically remember it happening out of Baltimore. If you heard of Dodd-Frank, that was started and that killed seller financing to owner-occupants.

You could still do it, but the regulations are so heavy that it made it not worth it because I was seller financing properties to people who didn’t have W-2s. They were contractors, realtors and landscapers. They couldn’t get mortgages. I was helping them. They made money. I never had to foreclose on any of them.

I’m grateful for that. That came in place. It hurt the good people, the people I was providing housing to. I then went to investors. I’m seeing it because wholesalers are taking tremendous advantage of sellers, almost criminally. They’re taking sellers’ homes, putting them under contract with no intention of ever being able to close.

I don’t use that word lightly. I truly hate whenever people don’t buy deep enough. If you can’t buy deep enough, refer it to a realtor. Do some seller financing. Get a hedge fund that’s going to pay $0.70 to $0.80 on the dollar. Don’t get it under contract for $0.70 to $0.80 on the dollar and then try to hound your buyer’s list. Nobody wants that. Not with the way costs and materials are. If you’re not buying between 50% and 60% ARV, don’t wholesale it because nobody wants it. They can’t afford the low margins for the costs of labor and materials.

Why do you think people are jumping on those deals and writing contracts over a price? What is your thought on it, especially now? We saw what happened to Zillow. They’re shutting down their online buying and laying off 25% of their workforce. It’s the telltale sign of things to come. Why do you think it’s happening? Why do you think people jump on deals and overpay for deals? What are your thoughts? I know I have mine. I want to hear yours real quick.

It’s because they don’t have the teaching that I did. If I hadn’t had the great mentors that I had, to your point, I would honestly be in the same boat as them. It’s a sexy industry and everyone loves real estate investing. That’s where Arnold Schwarzenegger became a millionaire. Even actors and actresses want to be good at real estate. Even in my kids’ shows, the people are like, “Now, I have this money. I need to invest it in real estate.” These are cartoons. This is a sexy and glamorized industry.

Why don’t we mentor them? I wouldn’t mind mentoring Rocky Balboa. He is one of my favorites, also, Chris Rock or Eddie Murphy.

Bring me Brad Pitt, please.

Let’s do it. What do we call that company? We got to do something.

We’re going to teach them all how to invest in off-market residential real estate. Commercial is very sexy too. They are starting to come back, which is good. There are a lot of opportunities there, even the retail space. It’s such a sexy industry for lack of a better word. Without proper mentorship, you’re going to end up in a bad way. I’m going to name-drop my best mentor in this industry. He does not bring attention to himself. His name is Joseph Terrio, out of New Hampshire. He taught me, he says, “Jen, you need to buy deep at 50% to 60% and here is why.” He has one of the best wholesaling and dispo sites in the country with a constant inventory. He does not bring any attention to himself.

Leadership mindset is making sure everyone is taken care of. Click To Tweet

I don’t even know him. That’s crazy.

He’s not just good. He’s the best.

If you’re telling me he’s good, I trust you like there’s no tomorrow.

He put up with me when I was very ungroomed. I needed a lot of grooming. He did the hard work with me, mindset and training.

I know we’re going to keep going and I want to bring it back to something you said that my alarm went off. I want people to hear this. This might be the most important part of the show. When Jen said, “He put up with me with my grooming and all of that stuff.” I’m saying this because I cannot tell you. I had somebody give me a nasty message on Facebook Messenger. They came to me with questions. I answered their questions over and over. We got on the phone with them and answered them.

They never went to any of my trainings. They wanted to learn how to do hard money. I got on the phone with them. I looked at the dates. This was years ago. For three months back and forth, I got on two phone calls with them. I didn’t charge them anything for it. They didn’t take any action. They complained the whole time. “What could I do?” At this point, I was like, “It’s going to take a couple of months to teach you everything I do. I put it all online. I’ll give you a discount. Get it. You’re not even paying me. It’s going to my marketing team.”

I don’t even care about the money at this point. Go through and learn how to do it. I got a nasty message from them years later, “You kicked me when I was down. You didn’t help me. I had somebody else who was willing to help me for free and the deal got done. Sometimes you should help people when they’re down.” It was right after I spoke at the mastermind and then I read it and it was bothering me.

It was a gut punch to me. I talked a bit about I didn’t want to coach early because I felt like I couldn’t help people and everything I do is to help others. I did help her. I had to put the brakes on like the Flintstones. I had to say like, “I did help her. This is her garbage, not my garbage.” She’s projecting her negativity on me.

I’m willing to bet she’s still not successful.

The reason I want to stop you is because you’re like, “Joe worked with me and he talked to me and helped me.” Everybody’s green in this industry at one time. Don’t be scared to be green. Don’t be scared to ask questions. People like us love when you ask questions, but you bring value. We understand people are starting but it’s not, “What can you do for me?” It’s, “How can I help you help me?” You were a little different. It’s not that you were green and he helped you out. It’s because he saw your mindset. I don’t know how long before that you’ve been out there, but I’ve been watching you and I saw your mindset.

We talk about our circles are very tight and who we work with. It’s funny how you and I know a lot of the same people and we’ve never even been in person together at once. Hopefully, we get you to speak at our event. Hopefully, I’m at events with you when I speak. Hopefully, I will see you and I can build you up. I want to see you come through and you’re shining a light on so many people. That’s why he helped you. The reason I want to stop you is because I want people reading to understand that you have to have the mindset that Jennifer Steward has and people will be a magnet to you.

It’s all about the mindset. It’s all about your personality. It’s all about how you present yourself on social media. We talked about it. I’ve watched you for 6 to 9 months before I answered your message. I was like, “I don’t know what you’re doing, but I like seeing what you’re doing. I like your work ethic. Is there anything we could do together in my business?” Your ethics, you’re like, “I would love to, but I’m loyal to who I’m working with.” That got me. You don’t see that. You didn’t even come to me and say, “Pay me $10 an hour for my callers. Pay me $2,000 a deal.”

You didn’t say any of that. I know now what you made before, which was ridiculous. You were loyal to a fault to yourself. I don’t like to interrupt, but I want to stop you. This is not a show on how to do the business. We did that in my mastermind. If people are following you for a little bit, they’re going to understand that you’re the real deal. It’s about mindset.

PTP S2 1 | Mindset

Mindset: Successful leaders are making sure that everyone who’s contributing is being rewarded monetarily in an equitable fashion.

 

There are, if not hundreds of thousands, millions of people in this industry who call themselves investors. There might be 200 or less that I think I would value in this business. That’s crazy that you’re in Texas and I’m out on the East Coast by Philadelphia and Delaware and a New Yorker. Texans and New Yorkers love each other. It’s a love-hate relationship except for the Cowboys and the Giants.

We love coming to those games. Those are my favorite games every season, for sure. I love when the New Yorkers come to Dallas and we like to go to New York.

I was there years ago at the Cowboys game. We lost, but I was there. One good friend of mine from California is a Cowboys fan. I want people to drive this home to understand that if you show your mindset, that you believe in yourself, you’re going to be great. You’re going to go from good to great. I asked you that question about why do you think they do deals? My answer to that is and it’s very similar to yours. Yours is a lot deeper than mine. They think that they’re successful if they do a deal.

They’re building their ego so much and I see it because I see some other people do. They think success is having a deal. They think putting it on social media, “I got a deal,” even when it’s not a deal makes other people say, “Good job.” You got to look at it. Are you setting yourself up for failure? Is it good? The best deals are the ones you don’t do because they can make you that much greater. Jen, the best clients are the ones you don’t take because it’s going to allow you to work with the ones you should work with. It’s okay to say no.

I have. The more experienced you get, the more you do.

I’ve learned that a long time ago. This one lady, it was three months and I finally had to say to her, “If I took all my time with you where it’s not going anywhere and you’re not helping yourself, I’m not to blame for you not helping yourself. I’m going to work with people who want to help themselves.” Once again, we talked about it. When people don’t pay, they don’t apply. I don’t believe that all the time, but it’s very hard to find somebody who values themselves enough to jump in. Let’s be honest, this business is not easy. Everyone out there puts that it’s easy.

There are a lot of moving parts and a lot of capital.

It doesn’t even have to be a lot of capital and I’ll say that because of this. Years ago, I funded a newer investor who I believe was the male version of you. He worked his butt off. I didn’t do it right away. I watched him. I watched him fall. He would go on his knocking on doors, finding the phones, calling himself and bringing me deals. He was wholesaling to me for at the time $3,000 to $5,000. That’s what the market was back then. They weren’t getting crazy wholesale fees back then. He wanted to know he could hold something, make a deal and get it to close.

It wasn’t even the marketing because he didn’t have the money. He’d get a bit of money, put it into marketing and then busts his butt. This was a good 6 months to 1 year that I watched him. I finally said, “Why don’t we do this? I’ll put up all the money for marketing. You do all the work. We’ll split the deals.” I get my money back from marketing. If I put $2,000 or $3,000 into marketing, that comes back first, and then we split the deals. I’ll always have the money to close the deals. You’ll never have to worry, and you can market. I watched how he worked. I watched the value he brought. Did he have any money? Absolutely not. He brought value.

If you bring value to somebody with money and you could probably do this across the United States, you don’t even need your money. You could probably bring this to people across the United States and do it. People will do that. If you say to somebody, “Give me money to market,” and you don’t bring any value to them, why would they work with you? You got to think if you want to wholesale or you want to get into business, you don’t even need money. Just bring value. That’s what you did to Joe. He saw you delivering value.

To dig a little deeper into that story and give him credit, he had hired me to run a cold calling team. That’s what I was doing and where other investors would tell me, you can’t do this or I’d get in trouble for trying to educate myself. “Why are you spending time learning this that has nothing to do with what you’re doing for me?” I would get in trouble. It reminded me of the chattel slavery in the United States history where slaves were getting in trouble for learning how to read and write. That’s how I felt. I got in trouble for going to do things like masterminds, etc.

I resented that. I did. I felt like Andy Dufresne in that movie where I’m trying to get out of prison. Joe was the one investor that I can remember. I’m not saying there weren’t others. He’s the only one that I can remember that I worked with and he said, “You can do this yourself. I don’t know how we’re going to help each other, Jen, but I’m going to teach you how to do this.” I said, “Joe, I need a little something to feed my family. Please give me a minimum wage and I’ll do anything that you ask. I will get up early.” I did. I go to 8:00 AM meetings and work until 11:00 PM to learn the business.

That’s what I did. There were times whenever I said, “Joe, I don’t like this business. I feel like we’re taking advantage of people.” I was messaging him crying at 3:00 in the morning. He’s dealing with his dog dying and I’m being a total pain in the rear end. This is what I mean about digging deep and caring about people. The next morning, he takes a meeting with me and he says, “Jennifer, we are not taking advantage of these people. These people can’t sell their house any other way, otherwise. Some of these people are crazy and can’t handle doing walk-throughs. These people don’t have money to fix up and sell their houses. You’ve got the wrong mindset. We’re giving people a fair price for what their house is worth.”

People try to be cheap with their employees. And that's how you're going to lose good people. Click To Tweet

He went through all the budgets and showed me what it costs to fix up a house, what an investor that we sell our property to is going to need in order to make it worth their time. He made the business, mindset and numbers make sense. I didn’t believe in myself, Dan, because I’d been told by so many investors I’d worked for that I couldn’t close.

I couldn’t be a closer. I was just a cold caller. Joe said, “We’re going to get you closing virtually.” That’s where Jerry Green helped me. We’re talking about Jerry Green. I went to his Virtual Acquisitions Training and the little things that he’s put together over the years made me go from maybe closing one a week if I was lucky to, on average one every other day to every day, depending on the marketing budget. It’s little things like that. I was a pain in the rear end who didn’t believe in myself but I wanted to believe in myself. I wanted to get good at what I was doing.

I wanted to help people, but I also wanted to help my family. My degree is in Psychology but even if you’re a good therapist, you’re only going to be making $70,000 to $100,000 and that’s like at a tippy-top end. What can I do that still helps people, but I’m able to give my children the life they deserve? I decided that being in real estate investing and doing discount home buying because I’m still helping distressed people like I would as a therapist. I’m also helping my family by making sure that they’re getting the type of income they deserve to have the future they deserve.

Whenever I’m talking to home sellers, it is like what I learned in my degree in a therapy session. I’m having to be a great listener, an active listener and present solutions to problems. I make things easy for them in the selling process. I go way far above and beyond what other wholesalers would do. I was talking to a guy that owns a PPC lead company.

He said, “I’ve got all these leads in these areas I can’t close. How can you help me?” This may be in a tertiary or secondary market but before I even start acquiring, I make sure that I have developed good property management in that area. Do you know why? I’m sure you know why. Why do you think the first thing I do is develop a good property management team before I start acquiring in a virtual space?

I teach that in a group. They’re your eyes and ears. They are your project manager. They’re going to tell you exactly where you should buy and you shouldn’t buy. They’re going to know who the good contractors are. They’re going to tell you what the rents go for an area. They’re going to tell you everything you need to know because those are the properties they want to manage. I teach my students the same thing.

I said, “The first people you can meet with is the property manager. Forget the wholesalers, contractors and realtors. Call three property managers. Go to investor groups, find out who they are and meet with them. Drive down there and meet with them. In-person, talk to them. Take one out to breakfast, lunch and dinner if you could.”

They will give you your business model by that day. I’ve done that. I did a mentorship with two people. We took a road trip and I said, “Pick the market you want to be in.” They gave me two markets. We did it. We took them in three days through two markets. One of them bought nine properties in four months. You see them on social media. They’ve gone crazy. A good property manager is everything to you. That’s my reason. I know I get on a little tangent, but I love that you said that because I mentor on one of my trainings on How to Build A $10,000 Rental Portfolio in an Emerging Market. That’s what it’s called.

That’s exactly why it’s because that’s how I build my buyer’s list. Otherwise, pretty much we’re in a market that’s hard to get buyers list. If I can find the cash buyers on PropStream who’ve paid cash in that area but if I get them a property manager, then all of a sudden, they have the capacity to take on more properties. That’s what I was telling the guy who is on the PPC lead company is that if we can build out competent cash buyers who can handle the volume, then we’ve created our market. We’ve created our own demand. What you’re going to do is you find a broker and with every broker, there’s someone in that brokerage who knows a property management company.

You don’t just want people who are managing A-Class properties. That’s almost easy to find. You need to find a property manager that can handle your B and C Class properties because that’s where a lot of your secondary and tertiary market rentals are going to be. That’s how you create a market. What my point is, I try to go above and beyond what most wholesalers would do to make it easy for the sellers. In order to make it easy for the sellers, I’ve got to first make it easy for the cash buyers. Some people have opposite opinions on that, but in my opinion, I need to create a healthy cash buyer community because I know I’m going to get good deals or I’m not going to acquire. You get the deals first.

What you’re doing is you’re getting an open checkbook by doing that. It’s smart. You’re not working in reverse. You’re going out shopping for your buyers is exactly the way you should do it. Jen comes to me and she knows exactly what I want. She knows she can focus her time and that’s why we would be a perfect pair. I’m thinking out of range because I know what I want 100%.

I’m laser-focused. This is the type of deal I buy because they fit my portfolio and the investors that I seller finance to. I have a whole business model, different than most people, where we make some pretty serious returns on our money and that’s what’s created our passive to prosperous wealth. It’s not just rentals, seller financing to investors, holding the note and helping investors.

We help investors create wealth. If I tell Jen, “I’m looking for this.” She knows that she can go out and find this. She knows she doesn’t have to worry about getting paid. She doesn’t have to worry about somebody screwing her over and not paying her or somebody not closing. Jen gets me this and this market. That’s the business model you need to be with somebody. When I say getting in bed with somebody, that’s what I mean, getting in bed with somebody who aligns with you 100%. There are so many people who don’t do that. It’s the tail chasing the dog.

PTP S2 1 | Mindset

Mindset: You’ve got to make sure that you’re being competitive in your pay. If you want people who are competitive in their output.

 

It’s like the shiny object syndrome, “I’m going to try this.” Do what Jen’s saying. She said it perfectly. She’s like, “Figure out exactly what your people need and go out and do it and go deep. Don’t go wide.” People are like, “What’s new? What are you doing now?” I’m like, “I’m pretty boring.” To be honest with you, I do the same thing over and over again because it works. The people like the Jerrys, Jeffs and probably Joe, they do what works. They don’t try, “We’re going to do multis this week.” I have a mobile home park. It came to me. I’m not out there. I’m not doing assisted-living facilities even though I know it’s a great business model.

I’m not doing rehab homes, which is my partner in North Carolina does them. It’s a great model, but it’s a business. I do a couple of Airbnbs. It’s a business and great money but I don’t talk about it all the time because I’m laser-focused on what I do. I create passive income being the bank. The way I do that is by taking properties and turning them into turnkey rentals in great emerging markets with great property managers. I help investors buy, not one, but multiples. That’s the business model. I know how laser-focused I am and there are all the people like Joe McCall. He’s laser-focused on wholesaling lease options and people are laser-focused on what they do. They do great.

We can’t do it all. It’s like the little Bruce Lee saying, “I’m more afraid of the guy who practiced one kick 10,000 times versus the guy who knows 10,000 kicks and only did it one time.” I paraphrased. I don’t think that’s exactly how he said it, but it’s true. I’m impressed with what everyone else is doing. “Jennifer, why don’t you have rentals with your knowledge? Why don’t you do this?” Eventually, I will, but only for the purposes of depreciating my active income for tax purposes.

We know what your genius zone is. It’s setting up people, processes and systems. That’s your genius zone. I can put you into the roofing company. I can say, “Jen, I need leads on my roofing company. I need virtual assistants to be calling these leads.” You could be like, “I got you, Dan.” It doesn’t matter what you’re selling or what you’re doing leads on. It’s people, processes and systems. You get those three, it can work in everything.

If I take you off at anything, “Jen, you’re good at this, but I don’t have the time. I want you to start handling the project managers, contractors, property managers and realtors.” I took you out of your genius zone and I’m muling you out. When you mule people out, that’s why I bring this up and have them do everything, they don’t do anything good. I would hate to see you jump around because it’s so easy to do it. You’re going to see other people doing well with flips and rentals.

I know that’s a whole separate business model. I don’t want to flip because it’s going to slow me down in my wholesale acquisitions. If I had a whole other branch of a company that maybe I put capital into and someone else ran it completely, that’s fine but I don’t want to flip because that’s slower than getting one acquisition across the nation per day. That’s what I want to focus on. I want investors who do flip to know that I’m always going to bring them a solid profitable deal. I want to be a trusted brand of discount home sources.

If you go to Joe’s website, that’s what he has. That is what I want to do as well because if you have a trusted brand of discount, everyone’s going to flock to you like, “You got a deal. Where are your deals?” It’s always going to be solid. That’s what I want to build a brand around, not as the great flipper and short-term rentals are awesome.

I love the high profitability with that but that’s not my specialty. Alisha Merriman is great at that. She came to me to get me to help her with her first wholesale deal. She is the queen and the guru at doing the short-term rentals. If I ever get one of those, I would come to her. All of these different things are their separate business.

They all stay laser-focused. Once again, you told me before, what attracted you to what I’m doing is you saw the videos of myself and my daughter.

I did want to bring that up. I will tell that story about you and your daughter at the beach. I’m lying there one morning. I’ve got to start work. Again, this situation that I told you about wasn’t the best in this particular employment situation. I wasn’t being treated with a lot of respect, but I was learning a lot. I was feeling like, “What am I doing with my life?” I was very unhappy, even though I was learning a lot because I didn’t have that self-belief and I didn’t have that freedom that I’ve been working towards. I get on my Facebook. I’m one of those moments where my head is under the covers, dark, but I’m scrolling and I’m not happy.

You popped up on my scrolling screen there and you’re sitting on the beach with your daughter at sunrise. You’re talking about mindset. You can build your life however you want and it’s up to you. The sun is rising and you can hear the waves and your daughter’s sitting there. I’m like, “Why am I not sitting on the beach next to Dan, with my son having a cup of coffee, talking about what’s going on in the market? Why am I limiting myself with my self-limiting beliefs?” It’s because it’s safe. The bills are barely paid and I don’t want to take risks but seeing you there I saw, “Jennifer, why aren’t you doing that?”

If you're not happy unless you're free, then being a business owner is probably your only option. Click To Tweet

Seeing that was a big catalyst for me and taking that risk to do something better because I can always go back to work, God forbid, if I failed in starting my own business. I will say, thank God, I’ve been more successful than my wildest dreams but it took a couple of months not having any income. It took a couple of months of was I irresponsible or worse? Am I crazy for quitting my job as a mom providing for my family? Seeing your video helped me focus on a vision of freedom, it’s not being at the beach and looking cute in a bikini.

It’s that quality time with the people you love and the freedom to sit on the beach with them at sunrise. That freedom and seeing you do it appealed to me and made me feel like I would be doing a disservice to myself if I didn’t at least try to do what you were suggesting. That had a deep impact on me. After I watched your video, I took my head out of the covers and I said, “We’re going to take some risks and we’re going to invest in ourselves in a different way than we have been before.”

I hope that resonates. Those videos are a blessing. I do those and it’s going to change somebody. I know it. It’s going to get somebody out from under those covers and they’re going to believe in themselves. Sometimes they need that little bit to believe in themselves, for your kids and you to believe in yourself. I feel like I had a part in that. I got goosebumps. We’ve been there. I’ve been there too. It’s hard. It’s a dark place when you don’t believe in yourself and you got nobody there.

We’re in a world that’s a very tough world to be in because our sphere of influence, our network, our family and our friends that we grew up with don’t understand this. You’re the outcast. You go to these events and they look at you a little differently like, “He’s too good for us.” You drive these nice cars and you show up and you almost feel embarrassed because they look at you like, “You’re too good for us.” We don’t ever feel like that.

It’s their own beliefs about themselves that they try to mirror on to us. That’s why I say, you’re going to shed that skin of that network you have because they don’t get it. I say misery loves company. How many times do you hear people say, “It’s Sunday. I hate to go back. I can’t stay on Mondays.” or “Thank God it’s Friday.” To me, thank God it’s every day. The only thing I don’t like is when it’s miserable out. I love the warm weather. I love the sunshine. I believe in sundowners. I think I might have it. When it’s sunny, I’m a whole new person.

The only thing that stinks about the weekdays is my daughter’s in school. She’s not home. I don’t dread Mondays. I don’t love Fridays any different than Mondays. I love every day because every day is a new experience. If I don’t like it, I’ll change it. I have the ability to do that. Jen got her head from under the covers.

I was sad too. I don’t even know how to describe it. It wasn’t like dangerous sad. It was, “I can’t keep living like this.” I saw no way to change it. I didn’t know how to change it, but I knew I wanted to. I had hoped that I could. I didn’t know-how. I was like, “Let me start thinking of how I could and how I can do it. How do I start putting all these pieces together to be in business for myself?” It’s not like it’s easier. That’s one thing I want to distinguish. Being a business owner is not easier than being an employee, but it is more free.

If you have the type of personality like mine to where you’re not happy unless you’re free, being a business owner is probably your only option. I want to validate anyone who is reading and they’re wondering, “Should I be a business owner?” If you’re miserable without freedom like I am, then being a business owner may be your only choice. Even though I have a lot more responsibility and stress, I’m a lot happier because I know that number one, I’m making a lot more money. That helps. Number two, I have all the freedom in the world to say, “I’m not going to take clients this week.”

If someone’s already paid me, I’m going to do what I need to do but let’s say I want to go to Mexico with my family. All I have to do that week is not take a client or let my acquisitions guy take over on all the acquisitions. Let my dispo person handle all the deals that are going through. It’s not like the old days where you go on an international trip and you’ve got to check in with the one-way call from the phone in your room and hope to God it didn’t cost you $5 a minute. With WhatsApp, we can do business all over the world for free as long as you have internet access.

PTP S2 1 | Mindset

Mindset: Being a business owner is not easier than being an employee, but it is more free.

 

 

There’s no reason you can’t make a call or two and delegate. If you’ve got a job, taking a vacation, requires someone else’s permission. I don’t think humans are designed to live that way. I could be wrong. Maybe most people are happy like that, but I’m not. I think it’s why antidepressants are pervasive. This is coming from someone with a psychology degree. I know everyone has their own brain chemistry. If people felt free, there would be a lot less antidepressants. It’s like the 2nd or 3rd prescription in this country. Why is that? Because people don’t feel free. The cost of living is high and wages are low. How do we even that out? Those are big and tough questions.

On that note, before we wrap up, it’s so true. That’s why in Europe, they have their siestas. I was in Greece and it’s crazy in Greece. It’s a financial demise out there. People are getting crushed. I go to people’s houses. We went there with a businessperson. We went to his cousin’s house. They made dinner. It was great. You walk around and at 10:00 to 11:00 at night, little kids, one-year-olds are in the park on swings, getting pushed.

There are chain smokers out there. There is no cancer. There is no crime out there. It’s in financial distress. Where else in the world? People are happy. They live their life. Even the clubs shut down when the last person leaves. There is no timeline. Nobody’s telling you what to do. People don’t work to live. They live and they work. Here, people work to live. It’s like a grind.

To barely get by, even. Sixty percent of Americans couldn’t come up with $4,000 if their life depended on it. That’s so sad. That’s why they’re getting their insurance from their employers. They’re going there and getting antidepressants. It’s horrible.

I know you’re getting ready to leave for an event. I know this was longer than normal. We should have probably broken the show up over 2 or 3 episodes because you and I can go on for days with this stuff. Are there any parting words you have for anybody who is about to get started, needs to believe in themselves or is in the grind? What can you give somebody with some parting words and then we’ll wrap it up?

You have to figure out what it is that makes you believe in yourself. For me, that’s knowledge. If I take the time to invest in my knowledge base, I’m going to believe in myself. For someone else, it may be being with the right people, losing weight or whatever it is. You know for you, if that keeps you from believing in yourself, take time to invest in that and your life will be so much better. Stop watching TV. Whatever it is that you’re spending time doing that you don’t have to do, start putting that time and not to be crass but even your time in the bathroom or you’re in the shower.

Listen to something that’s going to get you where you need to be when you are driving. As one of my mentors, Connor Steinbrook says, instead of listening to rap music, techno music, country, whatever it is, put on a podcast two times and listen to it quickly. By doing those little things, your belief in yourself will start to increase enough to where one day you’re going to be able to take that massive action that changes your life.

Guys, write that down, put it on your mirror. Look at it. Once again, I’m going to have Jen back on the show. Once again, I’m going to ask you. If we come to the top of the list, we’ll be able to do a lot more of these. Share this out with at least five people that you know could help. If you believe it was a great show, give us that five-star review. If you don’t, give us a five-star review anyway. Jen, thank you so much for your time.

Thank you, Dan.

I honor it. I honor your time. It’s a blessing to have you on here and to call you a friend. Have a great time on your show. We’ll speak again soon. Take care. Bye-bye.

Important Links:

About Jennifer Steward

Jennifer Steward is an off market, real estate acquisitions and disposition specialist who has helped over a dozen real estate investors build successful companies through virtual processes. She has been in sales for over 20 years, and is a mother of two. She graduated with a science degree in psychology, then started a successful business development company that helped companies in several industries build out a customer base before eventually finding a niche in off market real estate.

She currently has an agency of virtual business development specialists that cater to all industries, and continues to help investors build their acquisitions and dispositions departments.”

PTP 14 | Tax And Retirement Strategies

Tried And Tested Tax And Retirement Strategies

By | Passive to Prosperous Podcast, Podcast | No Comments

 

You can read almost all there is being written about taxes and retirements, but you can always shortcut your way through your goals with a couple of handy strategies. In this episode, Dan Zitofsy and his co-host Logan Hassinger share the tax and retirement strategies they use in their daily business as entrepreneurs and real estate investors. Though not licensed accountants, attorneys, or financial advisers, they still provide some insights that you need to be aware of, especially great opportunities at hand that you may be missing out on. Open your eyes to taking control of your destiny in the tax and financial space. Follow this episode as Dan and Logan help you create true wealth and prosperity for your family tax-free.

Listen to the podcast here:

Tried And Tested Tax And Retirement Strategies

Learn Under The Hood Strategies We Use As Entrepreneurs.

This is going to be an important show. We’re going to talk about some topics like tax strategies and what we do. We are not accountants. I’m going to put that up there upfront. Logan Hassinger and Dan Zitofsky are not accountants. We’re not attorneys. We’re not financial advisors. We’re going to share with you what we do under the cover in our business that’s helped us build either a taxdeferred or tax-free income from some of the strategies we use. These are all legal strategies. We both have accountants and attorneys on our teams. We’re pretty crazy. We go as far as reading the tax codes to see what’s going on and seeing how we can make it benefit our business and our investors. Welcome to the show, Logan. It’s great having you on here as co-host. What do you think about our topic?

There’s a lot of power in putting some of these strategies to work. I always think back to people ask me, “How do you know all this stuff?” I didn’t years ago. I knew nothing about any of these things that I was telling people that I’m using. To your point, we’re not trying to advise anybody. We’re not licensed in any way to be giving out financial advice or tax strategies. From workshops and other business owners, networking and trying to figure out, “What are you doing?” I take it back from my CPA and say, “What do you think? Let’s see what we can do.”

Isn’t that a breath of fresh air? Especially you go to social media or events. There’s always somebody talking about, “Do this life insurance policy.” A financial advisor is like, “Invest in this.” I don’t know when you’re going to be reading this but now everybody is a crypto expert online. They’re all going to affiliate relationships or multi-level marketing relationships. We’re telling you what we do. We’re not selling you anything. If there’s nothing I can tell you now, you cannot invest your money into a mutual fund with me that I manage. I’m not a life insurance agent. I’m just showing you exactly what I do in my business. Logan’s going to show you what he does in his business. Maybe you could start asking those questions. 

It’s unfortunate. I might piss a lot of people. I might piss your financial advisor, your accountants or even some attorneys off but I don’t care. I didn’t get to where I’m at by being nice to everybody. I’m going to be honest, no financial advisors can invest their way out of a paperback. I implore you to ask your financial advisor to show you what they’ve done in their own portfolio. Unfortunately, they can’t do anything. What they do is most of them are selling what their company tells them to sell or their banks. I’m not going to mention the banks or the investment firms. They have you sell in certain products. You can’t sell all the products. When they tell you can self-direct in real estate, you’re not self-directing in real estate. You can’t buy 1, 2, 3 main street with your IRA, 401(k), life insurance or anything like that.

The same thing on accountants. A lot of accountants, unfortunately, finished their accounting degree, even if they become CPA, they get lazy. They like the nice, easy tax returns, W-2 pay stubs tax returns. I start telling some of my students who are self-employed, “Have you set up a management company and pay your kids?” I always tell them, “Check with your accountant. Trust and verify what I tell you. You can Google and type in, ‘How much can I pay my kids under eighteen years old tax-free?’” There’s a certain way you have to do it. You can’t just give them money but you can do it. Once you know you can do it, you can follow a stream to do it. I get it all the time. They go to their accountant and they’re like, “My accountant says that I can’t do that. I shouldn’t do it. It’s risky.” I don’t know why it’s risky. It’s written into the tax code for a reason. Think about it.

We’ll talk about different strategies but think about paying your kids tax-free. Your kids can invest in multiple things. I’m not going to tell them what they can invest in. It could be real estate, notes, lending, gold or silver. There are so many things it could be. They could invest in stocks, forex, mutual funds, auctions. There are one million things they can invest in. You’re paying your kids tax-free for the work they’re doing for you. They’re learning life skills. With the money they make, they can pay for their college. They’re not taking on these heavy student loans. Even if they don’t go to college, they can turn around. Let’s say your kid goes out to the movies. You’re going to give your kid $20 to go to the movies. You’re being double taxed on that money. You’re now getting taxed on the money when it comes in. You’re essentially not saving any tax on the money when it goes out.

Imagine paying your kids $20 to shred all your papers. They work for two hours. You’re paying $10 an hour. “If you want to go to the movies, shred all my papers for two hours. Go clean all the weeds on the rental property. Here’s $20.” You’re going to give them $20 anyway. They now have money to go out to the movies that they earn. You’re not paying tax on that money because it’s an expense to you. It’s not truly payroll, but it’s an expense to you that goes out to your kids. There are ways to do it. We can talk a little about how to do it. If you’re an entrepreneur and you have your own business and your CPA or your accountant is not in tune with what you’re doing or says you can’t do stuff like this or has not given you some ideas to look at tax strategies, that’s where all wealth is made. It’s tax strategies. We can all make a ton of money but if we don’t save any of it, we’re not building any wealth. We’re paying 40%, 50% out in taxes. We’re working much harder to be partners with the government.

When I think about tax strategies, in the very early stages of my investing, I didn’t think twice about it. I’ll worry about that later. I didn’t ask a lot of questions. I didn’t dig into what I probably should be doing. When the time came to pay the tax bill, it only took one year where I had to shell out a sizeable check. I was like, “I should have looked into some tax strategies.” That was a few years ago. Ever since that, we’ve done something every year to take advantage of how the tax code is written. There are no loopholes. We’re following a playbook that has been handed to us. It’s very lengthy. There’s a lot to it. We pay people to make sure they understand what’s going on. I didn’t think twice about it. Looking back, I’ve been able to save a whole lot of money and be able to reinvest. That’s the key piece. That compounded return of taking your dollars, putting it in, keeping it invested and then the dollars that you do end up owing tax on, how do you mitigate that and get it working for you again. The more cash you can have working for you in your sleep, the better. That’s been my strategy over the years.

That’s the reason the government put these strategies in place. They didn’t put it in place so Logan and Dan could take the money, sit on it and do nothing. They wanted the money so you recycle the economy so we can keep investing. When you invest in the economy, the economy keeps growing.

No financial advisors can invest their way out of a paperback. Click To Tweet

Talking about how capitalism works.

We can get into a political conversation here. This could go on a deep end. You and I could do that for sure. I’m not going to do that but I do believe that it’s the smartest thing they do. It’s to get investors to have their money constantly used and then incentivize them to invest because as we invest and hire, we’re bringing in the cost of goods, employees, companies. Every asset that we buy, whether it’s a property or a note, I can’t tell you how many people we employ, how much money gets changed hands from doing that. That’s the reason that they do that. Not just so Dan and Logan can save money on taxes. They’re trying to change the tax code. If they do, it’s not in our favor. Unfortunately, what’s going to happen is Dan and Logan are probably going to stop selling off some stuff because it’s not going to make sense. We’re going to hold, sit back and do nothing.

It further accelerates the slowdown.

You bust your butt to do all this and turn it around to get hit with 40%, 50% taxes. That doesn’t make sense there. That’s what we’re looking at on that side. I don’t want to go down that rabbit hole. Some of the things we do that you might be able to do is practice using solo 401(k)s, self-directed IRAs, Coverdell accounts, HSA, life insurance accounts, life policies that I started doing. I wish I knew about them years ago. We’ll break each of them down a little bit.

Those indexed annuity life insurance policies, people are so quick to say, “That’s the most expensive plan you’re probably sold.” I will agree with most people. The plan is mostly sold to people that don’t understand. Knowing what I know about those policies, they are so powerful.

Can you imagine having one?

Yes. It’s amazing. We’re starting to employ it. We’ll probably be going to get it ramped up in January of 2022. We’re just getting things in order in 2021. That’s a strategy that will be taken on. It’s another stream of income years from now.

That’s how the Rockefellers built their wealth. I’m going to break it down simply. You got to think like the bank. How does the bank think? That’s how it is. We’re building our own banks. We’ll fund everything ourselves out of our own bank and our insurance policy. I’m not going to teach life insurance policies on this. I’m also not a life insurance agent. There are enough people out there. You got to get somebody you trust and learn about it. It took me a good year before I jumped in and did anything.

I was skeptical for many years. One of my good friends from college tried to sell me an index whole life policy right out of school. Looking back I’m like, “That was shady.” That was not the policy for me because I hadn’t yet exhausted 401(k)s, HSAs, IRAs, Roths. There were so many other things at your disposal that you need to max out first that are tax-advantaged, and then start looking at non-tax advantage plans to invest into your retirement. It’s another tool in the toolbox. I was gauging it on a short leash back then. Everybody’s situation is different. It’s the old attorney or CPAs coming back. It depends. People hate that. Using that policy depends on your situation.

PTP 14 | Tax And Retirement Strategies

Tax And Retirement Strategies: We can all make a ton of money, but if we don’t save any of it, we’re not building any wealth.

 

I’m in a situation now where it’s great for me. It depends. If you’re a business owner what should you be doing? To me, if you’re a business owner and you don’t have a Solo 401(k), Health Savings Account and Coverdell set up for your kids, you’re out of your mind to not be doing those. That’s where your money should be going first. Solo 401(k), you should max that out. A company can do a 25% match. Let’s say you and your wife worked for your own company. You both could have a Solo 401(k).

The limits now are $110,000.

Per person, it’s $19,600.

It’s $19,600 or $19,500 plus the company’s contribution up to $56,000. You’re looking at $112,000 between you and your wife.

You also have to be careful. We aren’t going to throw $112,000. What we say is you got to look at your income. You don’t want to kick up your employment tax to pay just so you can do that. You need to get an accountant that can work with you. You have to make a salary that makes sense congruent to what your business is. You can’t say, “I’m making $5,000 a year. I’m making $1 million a year in my company.” Let’s say you’re making $50,000 a year. You put $19,600 in at $50,000 a year. Twenty-five percent of $15,000 is $12,500. Let’s make it $19,500 to make it easy, plus $12,500. You’re at $32,000 for you. If your wife’s making the same $50,000, she’s at $32,000. That’s $64,000 a year that you got to put in, that you’re not paying tax on that money upfront. When you take the money out, depending on how you do it, you’ll be paying tax later on.

At $60,000 something, you could turn around and invest that into real estate, notes or whatever you want to invest in. You can dump it all into crypto. You could put it into an auction play. You can do stock mutual funds, gold, silver. There are business syndications. You can be a limited partner and somebody’s multifamily syndication. Throw $50,000 in there. There’s so much you could do to grow that. That’s one avenue. If you’re a business owner, that’s a Solo 401(k). You could also do the Health Savings Account. You put money in the tax rate. The gains are tax-free as well. One of the best investments in the world is a Health Savings Account.

When you distribute them out to pay for medical expenses, they’re tax-free. That’s our plan. For years, we’ve been putting for our family, the limits now are $7,100. They’re always moving around. We’re up to $15,000, $20,000 in there. My investment is in the stock market with that account but eventually, when it gets to a balanced big enough, I’ll roll it over to a self-directed HSA custodian. I want that account to be self-funding. I don’t want to depend on Medicare, Medicaid and all the things down the road or ongoing medical expenses that everyday life has.

For us, we’ll build that account up to a $50,000 to $100,000 balance. Buy rental property or a note. Something that has re-occurring income in it for us, at least that’s the strategy we’re taking on. Have it a self-fulfilling health plan. For every time we spend $500 at the doctor’s office, I got $500 coming back in more from the investment that we hold in there. That balance continues to grow. It pays for itself versus paying for medical expenses. Maybe you hit the threshold for being 10% over your adjusted gross income. You get to deduct it from using itemized deductions versus standard. There’s a whole other way to go about it. I’m using the HSA to get that accomplished.

If you’re an individual, it’s $3,550. If you’re a couple, you could do $7,100. If you were self-employed. You have my own business and you’re paying your own medical insurance, I have a high deductible medical insurance. I pay about $600 a month for the family. It’s a $1,500 deductible which I can use my Health Savings Account to pay for the deductibles. The money that I pay comes out of my business. I worked so my business pays for my medical. Business dumps money to my HSA. It’s considered income. It becomes tax-deferred from there. You can see exactly what Logan does with his Health Savings Account. You can invest in it. You can build that thing up. You can take that and roll it into syndication.

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We’re talking about $60,000 something for Solo 401(k). We’d have another $7,100. We’re at almost $70,000. You could pay your kids under eighteen years old whether if you have 3 kids, 2 kids, 1 kid. Logan happens to have three daughters under eighteen years old. It’s $12,000 a year. Every year it changes. They add a couple of hundred dollars. Logan essentially can pay his kids another $36,000 total between the three kids out of his company. You don’t want to pay out of your S corp or your LLC. What you want to do is you want to set up a family management company, which is a sole proprietorship. It’d be like Hassinger Family Holdings. You go on based on your Social Security number, not your EIN. You do not pay out of your corporation. You do not do that.

There are ways to make sure this happens the correct way.

There’s a triangle. Your corporation pays your family holdings. Your family holdings pay your kids. You can’t just give them money for nothing. You have to document what they do. You can’t pay them $100 an hour to shred paper. Let me ask you this. With modeling, how much the models get paid? I know Kim Kardashian doesn’t get paid $10 an hour. You can decide you want to do modeling with your kids. I did that. I used to own a mortgage company. I had my kids throwing up $100 in the air. I used them for modeling but I also taught my kids a great lesson. My sons used to clean out all my rental properties. He went on to start a side business doing cleanouts. My daughter does all my marketing, advertising, paperwork, admin. She was valued way over the maximum. My youngest has done everything from design, shredding, filing, scanning, emails.

I put them to work. The cool thing about putting them to work is not only is this money tax-free, which I should say tax-deferred, eventually depending on what you use it for. It could be a tax rate. I teach them a great life lesson. That’s what I use it for. I’ve taught my kids great life lessons. My two older ones are doing great things with what they learned. My younger ones are already planning to do great things with what they learned. The cool thing is they invested their money in real estate deals as when they were younger. That money was able to take care of their college education.

I’m not here to push that you go to college and be like, “College is a waste.” That’s up to you. If you don’t want to use it for college, use it for something else. I’m telling you, my two older kids use that money so far and had no student debt while using that money. There are many benefits. We’re talking about people or entrepreneurs who own their business. That’s what we’re talking about. That’s what this is about. We haven’t even gone into self-directed IRAs. That’s where I’ve used this money. If you got anything to add there, let’s jump into self-directed IRAs and talk about people looking at it.

We’re getting there. My girls are 7, 5 and 9 months old. The seven-year-old will eventually start doing some modeling for the short-term rental stuff. I know that’s in the near future. We got the 7 and 5-year-old in there. I’m not comfortable paying the nine-month-old for being a model. She’ll sit on the sidelines. She might be in the photo but she won’t get paid. She’s free labor. I’ve seen you put it to work for years. I know other business owners that are doing the same thing. It’s a very powerful tool that if you don’t know, you just don’t know how to ask. You don’t know how the strategy works. The biggest thing that I want to get across with all these strategies is to plant that seed and to get somebody thinking about that next step, even if they’re not a business owner but want to be years from now. There are multiple strategies that you can start putting in place or at least have ready when you make that jump. Plant a seed and get your thinking. That’s what I want somebody to take away from this. Self-directed IRAs, that’s where I first got started before I had the company. I had some old corporate 401(k)s that I rolled over.

Before we go into this, talk about the roll-overs. A lot of people here have lost their job, left their job, retired. That’s the biggest question I get from potential investors, “I work for this company. How do I self-direct my IRA?” Talk a little bit about that.

To be honest, it’s a very simple process but until you’ve gone through it, it seems daunting. I’ve been with two companies prior. I had 401(k)s at both of those companies. I had left. I didn’t know about consolidating and rolling them over to a certain company. Once I got to my third company, I started contributing there. That’s where I was introduced to the self-directed IRA. I’m using this individual with a custodian and all the LLC stuff so that we can direct in the things that we want to invest in. Consolidate those two accounts from the two prior companies, roll them over to a custodian. It’s a very simple process. I went to both of those 401(k) companies and said, “I’m rolling the funds out.” There’s usually an online form that you fill out and submit. It can take anywhere from 1 to 3 weeks to get it processed and the funds change hands.

You roll them over to TD Ameritrade or Fidelity, one of the big brokerages. You’ve got a little bit more control over what you can invest in. Sitting at an old 401(k), you’ve got twenty mutual funds to pick from. Half of those are usually target date life funds, “I’m going to retire in 2050.” Every five years you’ve got another fund for that. You’ve got some small growth, large-cap, all different stuff in there that you can invest in. It’s usually 20 to 25 funds. The minute you consolidate, roll over it to a Fidelity or TD Ameritrade, you open it up to the entire stock market. If that’s your thing, stay with it and invest in other mutual funds or other things.

PTP 14 | Tax And Retirement Strategies

Tax And Retirement Strategies: One of the best investments in the world is a Health Savings Account.

 

By keeping that old 401(k), there are also small fees that you’re absorbing, planned maintenance fees, third-party administration fees. There’s a lot of stuff in there. They’re not big dollars but things add up. By rolling it over to get them all together in one account, go from there and start being a little bit more self-directed about it. That self-directed IRA thing always cracks me up. To a brokerage house, self-directed means you get to pick whatever stock you want, but self-directed means you get to pick whatever investment vehicle you want. If it’s stocks, awesome. If it’s gold bullion, I’ll go do that. You kicked the door open to what you can self-direct versus what the brokerage count.

That’s where I got weird about them being a true fiduciary. They’re truly being a fiduciary to you, putting you in something that might or might not be the best investment vehicle for you. I’m not saying this about every financial advisor. One of my best friends is a financial advisor. I always got to be careful. He knows. He talks to me, “We’re not touching the returns that you’re pretty much doing.” I asked him, “If somebody comes in, let’s say they’re top-heavy in whatever. It could be stocks and mutual funds. You know that they shouldn’t be investing your money in other avenues. Are you allowed to tell them to do that?” He’s like, “We got to be careful. We can tell them to do it but we can’t do that for them.”

I said, “How many people do you tell that they should go and talk to somebody else, real estate, notes, private lending or syndications?” He says, “We don’t tell that.” You’re not truly a fiduciary. If you’re working for a bank or an investment house, you’re selling pretty much what they’re telling you to sell. For me, it doesn’t sit right. There are investors that have been with me. They invest a lot of money with us in our deal. They’re like, “What do you think? Is the market going to sink?” I always say, don’t put all your eggs in one basket. Do your research. I’m not a financial advisor. I’m not a stockbroker. Try to pick some funds that you think work best for you. Talk to your financial advisor. You should probably put some eggs in that basket too. I never believe in putting all your eggs in one basket. You’re right about that. It’s very important.

People get confused with the difference between LLCs, S corps and C corps. I’ll break it real easy and then I’ll give it to you, Logan, to go a little deeper. LLCs are there to protect your assets. That’s what an LLC is for. People think that if they follow this LLC, there are tax write-offs. They’ll be able to do all these crazy things. Unfortunately, that’s not what LLC is for. I’m not telling you to go out there and set up an S corp or a C corp upfront. You have accountants, CPAs, attorneys. You want to talk to them. They’re the experts. They’re licensed. I’m not. I’m telling you what I do. LLC is good if you’re going to buy assets like houses, rentals, maybe notes. LLC is pretty easy to set up. It protects your assets if you do it the right way. I can tell you this. I can guarantee that almost everybody out there that has an LLC or even S corp does not do it the right way. I’m not an attorney.

I didn’t do it the right way when I set my stuff out two years later.

I have fears about almost everybody’s LLC and S corp. I’m not an attorney. If you got an attorney that has half a noodle on corporate law, they’re going to destroy your LLC and S corp. If God forbid somebody gets hurt on one of your properties and you think you’re protected by your LLC or S corp, I can almost guarantee you that you’re not doing it correctly. Here’s what it comes down to. You’re probably not spending the money. We’ll go back to this whole mindset thing. You’re not investing in yourself the right way. You’re trying to save a couple of dollars. I’m not going to mention companies where people are out there using to form their own LLCs, S corps and legal docs. It’s not just the legal documentation, it’s the fact that when you have any corporation, there’s a process.

You have to have corporate minutes. You cannot commingle funds. There are many things that people screw up. I’m telling you this upfront not to scare you but I want your light bulb to go off and talk to your attorney and accountants and say, “What am I not doing right?” There are companies out there to help you do this. You’re not going to be able to go and do it yourself for $199 and think you have all your legal docs done. It’s not the way it’s going to work. If you do that, you’re probably wasting your time. It’s not even doing anything because you’re probably not protecting yourself. How do I know this? It’s because I have the mastermind and a bunch of students. I’m at events. I speak to people. I was like, “What is your company minutes?” They’re borrowing money personally, giving it to the company, paying themselves back without corporate approval.

The simple fact of you can borrow money from your personal accountant into your business but that business now owes the personal interest on that money. We did that. I paid $5,000 interest on it to myself but it was still good.

You have to pay the interest and get corporate approval. Whoever owns the company, even if it’s you and your wife, you have to sit down and put in your minutes, “We agreed to pay ourselves back alone for purchasing furniture for one of our rentals.” It’s ways to do things the right way. Let’s talk about some of the income. We called them the active and passive. We’ve mentioned the active income. You could probably dive a little bit into that.

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On the active and passive stuff, I’ve got interest in limited partnerships through syndication in Phoenix, Arizona. I invest in those things. I have those through passive entities. I’ve got active income, the stuff we’re doing in Broken Bow, the short-term rental stuff. Any consulting income that I receive runs through my S corp. I’m generally flipping houses. That’s active income. That would be flown through an S corp. Your passive stuff is pretty easy. Your rental properties and anything that you’re passively investing in that you don’t have a say so. You’re trying to put a very fine corporate veil around so that you’re not touched if something were to come up.

For tax strategy-wise with my cabin rental stuff, I charged my cabin rental an asset management fee. I pull some of that income out of there into my S corp as active management so that I can help with the salaries and then also in turn with 401(k). There’s a reason behind all of this that comes together. They’re not isolated companies trying to figure out what this one’s doing and what this one may be doing. They’re all working together to fit a tax strategy. It’s my tax strategy. It’s not yours. Yours is different from mine. Anything that we’re saying is ideas to get people thinking about how can I get mine to have those types of synergies?

As your business grows or slows, whatever it might be, that could change. You have to stay on top of this. This is not a set it and forget it. Logan mentioned something where I don’t do. I have rentals inside my LLC and a short-term rental inside my LLC as well, but I don’t charge a management fee personally through my LLC, which is a great idea. It’s another way to move money over and pay your salaries out of your S corp. That’s the thing you got to think of. Maybe my accountant should have caught that and said, “Why aren’t we doing this? Maybe we should be doing this.” In a way, it’s one way, half dozen the other because it’s not a huge deal but these are great strategies that you can use.

You can start maneuvering that money into other deals. Why leave the money in your LLC where it’s not getting any tax benefits out of that LLC? You can maneuver that money into your S corp, and then the S corp, you can invest that money into 401(k)s and stuff like that. That’s awesome. We gave a ton of information. We got to spend two days in a seminar giving this information. I’ll have an accountant and an attorney with us so they can verify it. There’s so much more. We’re just giving basics when we talk about paying your kids and the $12,400. You can pay them more than that. There is a lower tax bracket. There are so many ways to pay more.

Let’s say you pay them $16,000 and they get $3,600 over the minimum. You pay tax on the $3,600. They’re at 10% and so it’s $360. There are many other ways you can do things. Logan and I want to open your eyes to what’s out there. We’re not able to teach this all to you because we can’t teach it all to you. We don’t know everybody’s situation. When I mentor somebody in my mastermind and I get a one-on-one, I go through the situation. I have friends that I sit down with. We have other friends that are doing business and have been doing it for years. They don’t want any personal names. They’re not getting any tax write-offs or anything on us. Now it’s getting real. I’m like, “You got to set something up.” Even if you set up a sole proprietorship at first, you got to start something. You got to roll it into S corp. Start thinking about long-term investment vehicles or retirement vehicles.

On the S corp, C corp, LLC, a CPA is going to help you figure out which way is the best way to go. For years, I had my business that wasn’t ready to go as an S corp. The threshold at the time when we did the test was $45,000. It’s net income, not gross. After you take out all of your expenses, we were consistently doing better than the $45,000. He said, “It’s time to convert your S corp.” We could retroactively change it for the prior year. We did different things. You’re not going solo. For somebody who’s coming out of traditional W-2 income or if you’re still in it, it doesn’t matter. You’re able to go on TurboTax and you’re like, “Why would I ever pay a CPA?” I had that same thought years ago. Why would I ever pay a CPA? TurboTax walks me through 100% of it. They do but they don’t. They don’t know these other strategies that are going on because it’s not for that. TurboTax is for the 95% of the workforce that has married, filing jointly, filing separately, all the questions you’ve gone through, you answer and you’re done in 30 minutes with your taxes. I’m still ongoing. We filed an extension because we’re still working on it.

Most of the time you will be. You’re going to be working on this. You have multiple investments. You have syndications where you’re a limited partner. You’re waiting for the K-1s on that or 1099s. It’s okay to file extensions. It’s not the best thing. They don’t have to get your K-1. You can’t have your taxes on time if your K-1s aren’t even there. Here’s the thing with TurboTax and this online. I used to do that. I was submitting it because it was easy. The fact is you want to be able to sit with a CPA or an accountant that says, “You’re doing this but if you start thinking about this, maybe we could save on here.”

TurboTax is allowing you to put in what you put in instead of for a pure basic. There’s nothing that comes out and says, “You’re doing a side business. You’re making t-shirts and selling them. Have you ever thought about starting a business?” In that business, you can write off losses up to three years where it’s not a hobby. Maybe you start buying real estate rentals. You know that your real estate rentals with the depreciation, you can show a loss for a certain amount of years, even though you make income because you’re depreciating. You have a bunch of properties. Do you know if you’ve got a multifamily property or commercial building, you do an accelerated depreciation in year one? If your accountant is not doing that, you want to start looking around for an accountant that fits wherever it is.

PTP 14 | Tax And Retirement Strategies

Tax And Retirement Strategies: Take control of your business, your retirement, and live in prosperity.

 

If you’re an Amazon store, if you do one of those stores, you want an accountant that’s familiar with that. If you’re doing short-term rentals, you want accountants who are familiar with that. I know you have loyalty with your accountant and your attorney, but it’s okay that you outgrew them. A good accountant should say the same thing. “Logan, I love everything you do and you grow in the great lens. I’m not the best fit for what you’re doing now.” The person who used to do my personal tax returns doesn’t do my tax returns anymore. They can’t handle all the businesses and properties I have. I said to them, “If this is not for you, let me know because I don’t want to put something on you that you’re not comfortable with or don’t know how to do.” We both get ourselves into some hot water because something’s not followed correctly, then I have an audit. I have to pay a penalty.

Unfortunately, the accountant is never responsible for the penalties or late fees. They put these tax returns together. We don’t know what the heck they’re putting together. It’s a shame. It’s like a foreign language when I look at the tax returns. I don’t know what they’re putting together. I tell them everything I’m doing, they put them together, we sign off on them. If there’s a penalty or interest that comes back to us. This whole thing, we can sum it up and say take control of your business, your retirement and live in prosperity.

That’s what this show is all about. Everything falls into one of those two verticals. It’s living in prosperity and living in passive income. A lot of this is going to help you live in passive income. If this is not one of the best shows on business that I’ve heard, done or been interviewed on, I don’t know what it is. We’ve done some great shows on beliefs. Go back, read this again, write notes. Make sure you ask your accountant or attorney. If they say no, trust and verify what I’m telling you. Go to Google. Type in, “How much can I pay my minor under eighteen years old tax-free? How much is the HSA? How much can I put into a self-directed IRA? How much can I put into a Coverdell account?”

Look up all those things. There’s a ton of information out there. If your accountant is saying, “You can’t do that,” and you’re self-employed or even if you’re not self-employed, if you can’t do things like IRAs and stuff like that or life insurance policies, then you might need to look at a different accountant or a different attorney. Your financial advisor, it’s the same thing. Trust and verify everything we tell you but challenge them. Don’t just take what they say with a grain of salt. I love when people trust and verify me. I want people to question me. People make me proof up things. I’m not 100%. I could be wrong on some things. I’m very careful because what Logan and I were telling you might not work for you because of your situation. At least you understand it. You can ask those questions and you research them.

Change your situation. You’re maybe in a position where your CPA is giving you advice or you’re willing to do X, Y, Z. We can do exactly what you brought to me but you need to change something so then you can be more focused on your business that next tear and take advantage on some of these strategies. There are even more strategies than we could talk about. These are some of the more powerful ones that we’re putting in place for us. My whole thing with this, I love sharing these topics. We’re just planting the seed and getting somebody thinking about how they can do it outside of what you see on a TV commercial. All you see is what comes over on TV, free online trading, this and that. There’s more to it. There’s more out there.

Do you have anything else? I think we gave so much. You’re drinking from a fire hose on the show. This is Logan’s idea. He’s like, “Let’s bring this up to people.” I’m like, We’re going to crush them with information.” I hope they take it. We love doing this. The only way we can continue to do this is if you show the love so we can keep coming up there on the rankings. If you like what you read, give us those five-star reviews. It’s so important. Share this out. Share the link out on social media and with your friends. We ask that every one of you share it out with at least five people so you can live that true Passive to Prosperous mindset. You can share this information with your friends and family. There’s not one person who shouldn’t read this show. I’m pulling and share it out with at least five friends. I would love to see you share it out with 100plus each because that means you want to help the world live that better life. Thanks so much for being on. We’ll see you next time. Take care.

Important Links:

About Logan Hassinger  

PTP 13 | Business PivotFrom the beginning, Logan had a goal to work in real estate doing what he loves, and wanted to share the passion of real estate with others. Through the years, he has developed a solid foundation of real estate knowledge, the expertise necessary to navigate any transaction; and have the integrity to follow up on promises. Early on, as he began to develop the company and carve his niche in the vast world of real estate, he quickly realized that there is a distinct need for certain real estate services he originally did not foresee. After the 2007-2008 financial crisis, it become apparent that millions of homeowners were losing their homes. So he transitioned from owning rental properties in the Dallas/Fort Worth market to buying distressed mortgage notes with the intent of working with the homeowner to keep them in their home.

Completing in excess of 4 Million dollars in real estate transactions since 2013, Logan and Sage Notes, LLC is excited to be assisting homeowners experiencing financial hardship. We aspire to continue contributing to the continued goal of home ownership along with economic rejuvenation of the areas we serve and its neighborhoods.

As he began to pursue the Chartered Financial Analyst or CFA® designation, he realized that Real Estate was the path for him. They say we grow more from our failures than our successes, and this is a testament to that very saying. He failed the Level 1 exam and the rest is history. He began with a rental property 5 months later acquiring a distressed property and assisting the seller in their situation. Logan continued to add small multifamily properties to the portfolio and protecting his Lenders over the 3 years.

Logan loved the idea of being able to do what large financial institutions couldn’t provide. He was able to provide modification plans to distressed borrowers and keep them in their homes. The portfolio quickly grew to 60+ mortgages in less than a year working with Banks throughout the country.

PTP 13 | Business Pivot

Pivoting Your Business: Having The Correct Mindset During Market Changes With Logan Hassinger

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When the economy throws you a curveball, do you clam up or make a pivot in your business to adjust with the times? When COVID-19 hit the world, businesses of all kinds were affected, forcing most companies to adjust. Logan Hassinger is one of those people who learned how to adjust and pivot his company, Sage Notes. Join your host Dan Zitofsky and his guest Logan where Logan shares how he found his niche in the real estate industry from distressed debt and notes to pivoting into short-term rentals. Find out how he achieved the scarcity mindset for his business. Learn how to invest in yourself, build a dedicated team, and go from a newbie in the industry to a master. 

Listen to the podcast here:

Pivoting Your Business: Having The Correct Mindset During Market Changes With Logan Hassinger 

Logan and I havent seen each other. We have been both so busy in our businesses. We still work on our businesses but we are both adding layers to our business because, as we know at this time and date, things change in the economy and real estate. Logan and I both talk about this offset all the time and its how we add ventures to our business but we stay laserfocused in real estate. I think we are both of the same mindset as you. You’ve got to learn who Logan is over the last couple of episodes and leaving his 9:00 to 5:00 job and who I am over the last several years. 

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One thing we both agree with is dont force the market. I talk about dont force or shoehorn a deal together. Dont force the market to work for your strategy if its not there or if right now prices of houses are through the roof. Wholesalers are charging an exorbitant amount of money. Banks might be charging a ridiculous amount of money for non-performing notes. Make your own deals. In 2020, I have been making a lot of my own deals in both build-to-rent and shortterm rentals. Logan is crushing it. I will let him talk a little bit about what hes doing in the shortterm rental gameI bought my first two shortterm rentals, so its the student teaching the teacher at this pointLogan got my juices flowing. We’ve got some big things happening out in Broken Bow, Oklahoma. 

 

Logan, it’s great to see you again. It has been a little while. 

It has been a while since we last talked and things are changing quickly. You’ve just got to roll with itI have been up to Broken Bow and itabout a threehour drive from where we are here in DallasFort Worth. Over the last couple of days, I have been up 4 or 5 timestrying to hammer out some stuff and making sure weve got a good pulse on contractors andall the moving parts with the people that we are partnered up with from agents, buildersvendors and land developers. There are lot of moving pieces up there but all good stuff. To Dans point, this has all come about since June or July 2020. We went up there on vacation with some family and friendsI left with like, “How do we own one of these things? These are pretty cool.” 

We have been doing that for years but this time I looked a little bit harder into it. After seeing what COVID had done to the travel industrythis place was packedI was like, I dont understand. No, I do understand why itpacked. How do we get into it? made some phone calls and here we are. It turned into buying one, putting one under contract for build and then got that finished up in February 2021I have partnered with a builder to build even more of them. It habeen a good relationship with both the builder and the agents. They have been there for a long time in Broken Bow and they have seen how it could evolve into what it is now. I have been able to with trustconnections and relationship-building to fly in with them and see some stuff that I wouldnt otherwise see. Exciting stuff is happening and we will have some things to share verysoon. 

PTP 13 | Business Pivot

Business Pivot: When markets change, you have to maneuver. Go to a new market, not shut your business down.

 

Im looking forward to sharing them. Im looking forward to what we do together on this thing. Itfunny because we build our teams and we get so satisfied in building on our teams. As entrepreneurs, I call it the entrepreneurs curse. I get so damn bored. We do it so well in the note spacethe private money space and the passive income space. You get to the point where you say, I want to get to this point where I enjoy that.” I dont care what we say. We cant go out on a boat 24 hours a day, seven days a week and vacation seven days a week. It is not feasible for most people. 

No matter what we say, we love buildingdoing things and creating. You and I are very similar like thatI think what we both align with so much is that we enjoy creating an amazing experience for others. We enjoy going above and beyond. Money is not our object as crazy as it sounds. People who are reading now, you were like, “Yeah, right.” There are ways to make so much more money in what we do. We can make more moneyshortcut certain things and cannot put all the best. When you build a cabin, you could maybe go a little bit less on the finishes. You can get a piece a lot thats not as advantageous for people to come up and see itYou do it because you want people to have an amazing experience. It’s not about, “I want to do it because I want to make the most money. 

It’s the same thing at what I do. We build these teams because we did it in the note business and the turnkey rental business. We built these teams that I call in emerging markets. You cant be in your backyard. Itreally easy if its your backyard but markets change. People ask me all the time, Dan, why dont you stay in the same markets?” When markets change, I’ve got to maneuver. I’ve got to go to a new market. I dont shut my business down. 

Once I learned how to build, people, I’m talking about four things, the four pillars of starting business. One is the culture. You have to have that culture. Once you build that culture, then you have the three pillars. It’s like a bar stool. Its always people, processesand systems. They never change. Theres no rocket science. Im not the smartest guy in the world but I do the same thing in every business Im involved in. Not to give too much here but you had a potential person that was partnering with you and he didnt have the right mindset. He wasnt the right person because he was chasing the money.  He was screwing clients, so you had to cut ties with somebody like that. You can stay with him and made more money but that wasnt what your vision is. Your vision is not about chasing money. Its about chasing the experience, being helpful with peopledoing the right thing and mindset. 

Thatwhy I asked you to be a co-host with me on this showI have had a lot of people ask me to cohost podcasts and I havent done it because there are people I love out there but I dont feel like we align 100%It’s crazy because all the people in this industry I know for many years now, the students I have had, the partnerships, the deals I have done, there are two people, you and maybe one other person I would do this withI appreciate you being who you are and always playing full out and being honest with everybody. You are a giver. You always give and I say ityou were like, “Why am I putting all this out there? It’s because I want you to have the right content. I want you to know for real what it is.” Enough so that you have even been pissed off a couple of property managers, I believe. 

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There habeen some turbulence. We’ve got up there and like any new investor to a market, you start joining some Facebook groups or you join some real clubs or whatever it is that ties you to that market and learning with everybodyIve got a background in corporate finance, rentals and using property managers or not using property managers, just a different perspectiveI was sharing my perspective and that didnt align with somebody elses agenda at the end of the dayI was removed from the groups and I was like, I dont know where this leads,” then yousuggested later, “Why don’t you create your own group?” 

was like, I dont know.” Ita lot to do and to manage. To metheres a decent amount of responsibility with thattooI said, I do still want to keep giving the information that I have.” I created the group and I think we are close to 900 members in about 3 or 4 months and I provide as much information as I can. I own two rentals and a lot of the people that are joining the group are looking at it from, how do I gauge if its a good rental or not? What are the numbers? What is occupancy? What are average daily rents? What are the fees? What are the expenses? All this different stuff. 

I basically produce my P&L on my cabins and put it into the group and say, “Ask questions. Let me know what you see and its a learning opportunity for both of us like, I think you need to look into your number over here.” I have people every day saying, “Thank you for sharing. Actually, I dont want to do this. I dont want to build a cabin. That’s great. Im glad I saved you the heartache of having to go build a cabin and realize you didnt want to do it or vice versa. I cant wait to get started then they get 2 or 3 under contract and they get rolled one. 

I had somebody message me, “I found one of your threads in the old group I have been removed fromI tried to tag you in it and it wouldnt let me tag you and then I noticed that you were not in the group.” They were like, “What happened? I was like, I have been removed. Come over here. They were like, I dont understand. You are being so helpful and everybody seemed to like what you were sharing. I said, “Yeah.” 

Im not going to sit here and badmouth the other person. That goes against everything that I have tried to buildIm not here to try to stop anybody elses growth. Even if it doesnt align with how I want to do things, its differentIm right back into what that person is or what this group isis if Im on the other side talking bad about them or trying tostop any growth that they may have. You go dowhat you want to do and I will do what I need to do, what I thinkhow a business should be run and it’s okay. We are not the same. 

Its crazy whats going on with peoplePeople live in such scarcity right now. Its like the minute you share something that doesnt help them make money or they believe in competitionWe have almost 50 people now in the mastermind groupI was on a call with people and they were like, I will share it.” They get into that, “I donmind sharing with you because Im not in your market. Im like, “No, absolutely not. Thats not how it works. I dont care if you are my nextdoor neighbor.” You share what you share your content with people. People think. Why do you think Lowes and Home Depot open next to each other all the timeWhy do you think Burger King and McDonaldare next to each other all the time? Theres something to this. 

Thats a great way to look at it. 

You cant look in scarcity. I never look in scarcity. If someone says, “Whos your lender? Im not going to give you that. If someone says, “Whos your contractor and whos your property manager? 

Can’t wait to share those, people. 

If they do a great job, why wouldnt you want to pay them back by referring them to somebody else to help them with their business? I watch people that live in that and they never see success. 

I partnered with five people when I did this group, mortgage lender that people wouldnt need to go out and get a loan onIm a property manager, an agent, a builder and a designerI called each one of these individuals up and I explained to them what I wanted to do. I wanted to share how they have helped me and I want to put them out to others so that they could reach people. They were like, I dont understand why. How much do I pay you? What are the referral fees? I dont want anything. I want people to experience the awesome experience that I received during my build. I said, “You guys did a phenomenal job in your respective areas. Go crush it for others.” They were like, “Weve got to give you something.” I was like, “No, you dont. I said, “We are going to grow together because every person that wants to work with you is going to call me in. For every person that calls me in is going to want to work with you. Itgoing to be this circle of continuous giving and theres nothing that we need back from each otherother than to grow each others businesses. What more do you want? 

PTP 13 | Business Pivot

Business Pivot: Scarcity and limited beliefs are the two things that will destroy any entrepreneur or a person in business.

 

People lost that and once people get that back, we can start getting on with this world. I say, “Hakuna Matata.” Its like the circle of life but itreally true that in that mindset, people aren’t used to it because there are not many peopleI challenge you all reading to look in the mirror and think about it. Be honest with youDont say, Im doing this. Thats me. This is not you probably, tbe honest, with you, Im not going to start mouthing off and cursing and get mad but its not you. 

see it out there. I watch social media and watch people in my groups. I cant tell you how many people I have helped. see they have a so-and-so. Maybe they have a really good paint guy. Helike, “I can’t. Hebusy now. I cant even do my stuff. I cant share.” You dont live in the right mindset. Don’t make that decision for the paint guy. Let the paint guy say, I can get to you in a month from now.” He’s not going to give him to you. You take him. 

He never comes back to my jobs. I don’t want to lose a good painter. 

You are never going to grow that way. I can tell you thisIm doing this for a long time, not in real estate investingbanking and lending I am. I have been doing this a long time in business and I have been part of Corporate America. I have been a Vice-President of sales. I built some big companies. I have taken the company to a multimillion-dollar sale. We won 500 entrepreneurs a year. I have done a lotIm not saying this to impress. I have never seen anyone in business who doesnt share their expertise or people they know with a team do very well. They live in scarcityThere are only so much you can do yourselfYou have two things that they fell on. Im going to give you two things. You can pick. You walk down the streethave a conversation with somebody and said, “This girl lives in this or this guy lives in this.” You are going to live in scarcity or you have limiting beliefs. Those are the two things that will destroy any entrepreneur or a person in businessscarcity and limited beliefsThey are different spans. 

Limited beliefs, I will give a really easy. You dont believe that you are enough to be successful. You want to invest in yourselfbelieve everything is a costdont join masterminds and dont go to a coach. You dont do anything because you dont believe that you deserve enough. You have these limited beliefs that you are not going to be successful. Thats a real overview. I can go deep into this for hoursLiving in scarcity is exactly what I said before. Logan is not going to share any of his people because hes living in scarcity. He wants to hoard them all to himself. You are doing short-term rentals, but you are doing in your market so I could share how to do it but Im not going to share it here in this area. 

Logan, if you want to make a business like a shortterm rental consultant, theres nothing wrong with it. People would like to come to you and pay you, so they are handsoff and they dont have to worry about, “How do I design it? How do I handle the belt or how do I handle the bank? Why wouldnt they pay? If you dont want to pay Logan for that, hes not charging but he doesnt have this business right now. Maybe in the future, he will. If you want to pay him, why wouldnt you pay him? It’s because you have limited beliefsThat’s living in limited beliefsYou dont believe its an investment. You believe its a cost. In all honesty, Logan was one of my students. He paid me for me to help him and by doing that, I dont think thats the only reason but its one of the reasons that he has gotten to where hes at. How much money were you able to raise? 

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We are probably somewhere between $5 and $10 million. 

If Logan didnt invest in himself a few thousand dollarsnow hes still might have done it. It might have taken him longer. 

My issue was a little bit limited beliefI think it was more of the scarcity mindset of, I dont want to share my strategies, my tactics, my secret sauce of how Im getting deals done whether it was buying rentals offmarket, doing fix and flips, buying notes, trying to network with people and now here with the short-term rentals.” It was more scarcity and I was trying to figure out a way to get over that. One of our 1st or 2nd sessions was you’ve just got to share your information and people will, in turn, look at that as you as an expert in your field and your marketplaceI didnt believe it, we started doing it and it wasnt overnight. Now, Im starting to see the fruits of all of that. It’s cool. I never want to go back to a place where Im hoarding information and not allowing people to benefit from the same guidance and the same information that I was receiving. 

There were a couple of thingsI was trying to figure out how do I take it to the next level and I didnt knowI was looking at somebody that seemed to be at the next level and wanted to pick their brain. It wasnta cost. It was like, We are going to do this. We are going to see what this investment turns into.” If it comes back in six months or a year, I will get my money back and we will figure it out from there. It’s done more than that. 

It wasnt easy, I would sayI didnt make it easy on you. I made you work and it was probably three months worth of work and then for you to get out of school at that point. Now you had to go do the work and you did itYou are one of the people every time I talk about raising private money, I use your story. I hope you dont mind because I love that you were working that 9:00 to 5:00, making six figures a year with a wife and two kids. Your wife got pregnant, had another babyyou woulcome home and then you built the note business, enough that you were able to leave Corporate AmericaI do that because, in your own mindset, thats where you didnt live in limited beliefs because you believe you deserve more. Everybody comes to me and says, I dont have time. The first thing I said to them, “Go watch the videos with Logan. Go listen to the podcast about how Logan left his 9:00 to 5:00 to give himself a life. 

It wasn’t fun. It was hard. It took a lot out of me but at the end of the day, I had a goal where I wanted to be and Im enjoying that every day now. 

You have to take your daughter to schoolI hit you up. You were like, Iat my daughters soccer game.” That’s what its about. That’s livingI call it lifestyle but my point is lifestyle by design. I would say living your best life but thats my buddyStevepoint, too. I cant do that. I believe you will live in lifestyle by design. You design what you did. When they were talking about crushing it, you were crushing it. You were grinding, Im talking about working a full-time jobcoming home and doing this on the weekends. Let’s be honest. We met together at a mastermind. You spent money to go to his mastermind that I was invited to come to speak at to the people. You always invested in yourself. That’s one thing I look at. 

Do you believe enough? Why would I partner with you if you dont invest in yourselfI had people all the time that come up to me and say, Dan, will you partner in this deal with me?” If I had my mastermind open, which is literally dirt cheap. It’s no money at all. There are two things. That money goes to pay for the technology and my team. It$97 a monthIm having the most fun in the world I have ever had to do a mastermind because I have almost 50 people that are actually excited about doing deals together. 

If people wont even invest $97 a month, why in the world would I ever partner with them on a deal? Here’s the thing. How many times do people pick up the phone or hit you up on messenger and say, Dan, can I take you out to coffee and pick your brain? Thats the most disrespectful thing you could ever say to meYou are going to buy me a cup of coffee and pick several years of my brain. I have a friend, LarryHe has a real estate school, the best at school, and he says, I love when people ask me that because I’m sure, I will send you my reservations. You book me on a firstclass ticket to Paris. I don’t care of you meet me in the coffee shop. You can buy me coffee.” It goes to mindset. Every time we get on a call, we have a topic and we start going into the mindset. 

That’s where it is. One of my best friendsI wouldnt say hes struggling with it but hes getting there. He’s trying to get through the scarcity and the limited beliefs mindset. Every day I remind him. We talk every dayI also do business development with a real estate brokerage here in town and Im helping them grow as well. Whether its helping real estate agents, Im not an agentbut I’ve got some contacts and ways to help them grow in their businessHes trying to find a way to get there as I did years ago. It starts with mindset. It’s just the way it is. 

PTP 13 | Business Pivot

Business Pivot: In order to be successful, you need to give back to the people who helped you grow.

 

That’s what I said. It keeps coming back to mindset. Everything we talked aboutthe root of everything is mindset. I didnt plan to say that but as we were talking and Im like, “We have this show. We want to talk about how to pivot in this market. That’really where our topic was. We talk a lot offline. We dont get on here and talk the talk. We dont want to hear ourselves. If we have nothing to say, we dont do a show. We are not like everyone else out there and its like, “We have 2 to 3 shows a week. We’ve got to sell ad space on here.” We’ve decided upfront that we dont want to sell ad space right now. 

Now I dont know in the future if we will because Im not going to say we never will and it would have to be a company that we either use or we would use. Those are the only people we put on there but obviously if we put them on there, you have to have an investment in it to grow it. We paid to put our show out there. Every time we talk about it, it comes back to this. Im thinking about mindset and every topic we talk aboutleaving Corporate America, stop chasing the money, vision and building a team are mindset. 

I pivoted from distressed debt and notes, not to say that I would still dont own notes now and it still provides me a good amount of incomeI pivot into the short-term rentals and my first thing was, how do I build a team? I know how to do that. Share what I have learned and what I haveexperienced and then grow this team based on relationshipstrust and honesty. Again, it starts with the mindset side of things. It was about giving back to the people that had helped me grow in my little twocabin, short-term rental space and saying, “How do we make this bigger for everybody thats involved? I may not know you but we can all work together to help everybody. It just came together, slowly but surely. People look at me still with like, You have only been here for maybe a year and you are further along than I ever was in this market years ago when I came up.” 

Be honest, why are you further along than others? I see it too becauseas I said, I had the mastermind with almost 50 people in it right now. We are going to go to people and then do live events again. I watch it in the mastermind peopleDo you know who’s further along than most? It’s the newbies. 

They have the ground to make up in a short amount of time. Its amazing. newbie misjudges how quickly they can make up ground. I was a newbie in this little Broken Bow cabin market. I was a nobody. There were 1,300 cabins, call it 1,000 different owners and everybody is up there trying to do the same thing. Make some money with some shortterm rentals. We were going up there because the returns look goodI put money into solid investments that I see panning out over the long-term but it was, “I want to be involved long-term outside of just owning some short-term rentals. “How do I give back to people that have helped me? It was as simple as that. That wamy question. 

The real estate agent I partnered with, was the number one Oklahoma agent for Keller Williams in 2020. Do you think she needs a couple of referrals from meNo. It was this simple gesture ofI want to help you grow and you are number one, so where else are you going to go? I just want to partner with you.” From a property management standpoint, I said, I have had an awesome experience with you. You have a lot of knowledge. You have been in the marketplace since 2003. I want to share your services with anybody else out there.” There are tenplus property management companies you could pick from as an investor there. Why choose you? I helped communicate why I chose you and how that relationship has grown something, the same thing with the mortgage lender and my interior designer. We’ve got a cabin right now that started up in February 2021. We’ve got our owner statements on the fifth with a check and we are bringing in revenues that are unheard of. 

Are you thinking you want to see these all year long or ithese twelve months a year you are going to see this? 

Our worst months, January, February and March 2021 are behind us. We’ve got a strong year ahead. I tell most people on short-term rentals in this market specifically, look 65% to 70% occupancyNow, we are experiencing 85% to 95% occupancy. Don’t pencil that in for long-term analysis but we are hitting numbers that we would never have thoughtCOVID was a great thing for short-term rentals. It wasnt a great thing for the virus. It helped the market get a face. 

You said COVID is a great thing but thats a really good point you madeIm joking about it. I made a little joke to bring light to something terribleI want to say this because what this show is about is pivoting a little bitCOVID did hurt our note business. How it hurt our note business is the courts got closed down. They werent doing foreclosures and evictions. What did the people like us do that are buying nonperforming notes that need to foreclose? We are not buying performing notes. We are nonperformers and we need to go to foreclose on these from people that arent willing to make payments. After that, we have to now do evictions to courts that arent doing evictions. Put our head in the sand and did nothing. 

That’s where we pivoted. We said, People are traveling. People still need to get away. They want to be outside. They dont want to sit in their house anymore. Thats why COVID has been a great thing for the short-term rental business. Here’s the thing. What happens when everything opens back up? That area will sustain. Logan has done a ton of research in the market. He doesnt throw a dart on the board. This is not the show for how to do the shortterm rental. We would do it on a webinar, maybe in the group on why that market is good. We were having people hitting us up, “How do I invest my money in that market? I dont want to own it but I want to invest in you. I get that too because Ive got my second shortterm rental now on the contract out by the beach. I liked that market that Loganexamined and I like the opportunity thats out there. Think about it because its pivoting. 

When something happens, I dont believe that in any marketgood or bad, that you cant make money and you cant reach what you are doing. We dont want people to think that we are all over the place like a dog chasing its tailIts not shiny object syndrome. Its adjusting as the marketI have students that tell me like, Dan, you said you are not doing this.” NowIm very careful. I said, It’s not that I wont ever do it again but this is what I do now.” I might in the future change and start buying these types of assets again or I might stop lending these kinds of assets again. Right nowthis is what I do. You were all in on Cleveland 100%. I was like, “Yeah, I was but that was a few years ago.” 

It’s very expensive and had point of sale inspectionsI put my money in all the places that were easier for me and more profitable. At this point, I made a lot of money in Cleveland and in Memphis, Tennessee. I did very well now at Birmingham and Huntsville, AlabamaIm trying to do very well in Charlotte, North Carolina but its so expensive already. It might be that point of too expensive. I adjust. It’s not shiny object. I pivot to what the market gives. It’s like stock traders. The market is high. They are putting boots on. If the market is low, they are buying callsIt’s the same thing. You have to learn in this market. This is what this show is about. How do we pivot? 

In 2020, I thought short-term rentals were silly. 

I still think they are a little bit silly. I dont think they are 100% because I tell people this whole time and Im very careful. They were like, Dan, you are a passive income guy but that’s not passive income. You are right. Itnot passive income. Its a businessShortterm rentals are a business but if you have the right team in place, its all about your team. You have to have boots on the groundLogan and I are putting that together. You have to have the right team in place. 

That goes back to a show topic that I want to do next. In the group that I mentioneddidnt align with the agenda of the group. The majority of the people in that group were selfmanaging their own rentalsI wouldnt have proponent either way. I was, I cant afford.” I dont mean money-wiseI couldnt afford to manage time myself. My thing was, “You can still make money with having a proper manager in place, even when they are taking 30% of my gross revenue.” People were just like, “There’s no wayI cant part with 30% of my gross revenue.” Im like, “The minute that I part away with the 30%I can go focus on the things that make me 60%, 70%, 100% more than what I was doing.” It’s not about chasing the dollar. Its about freeing my time up. Again, lifestyle by designI didnt want to manage a short-term rental. I dont want to have phone calls with tenants. There are experts in that field waiting for me to hire them. I found a good one and I put them in place. 

You say 30%. Let’s sayit$1,000 a month. You are paying $300 that you madeInot for the net and all that stuff. You made $700. You went and you’ve got yourself ten properties. Now, you are making $7,000You wouldnt have made $10,000 because you wouldnmanage two properties with 30%. You made $1,000 yourself instead of paying 30% on two properties. Let’s say even four properties, three hours away from you, self-manage, things are going to break. You just cant do it. You made $4,000 a month on four properties that you self-manage, but now you took your time back and you were able to get 10, 20, 30 properties at $700 each a month. Ten properties are $7,000. Wouldnt you rather take $7,000 to the bank than $4,000? 

I didnt have to. You were thinking about it but then again, you were not. 

I’ve just got a text as Im sitting here now that says someone is checking in my Airbnb. Ensure they have to check details and so on. Automatic messages go out. I dont even have to think about it. They have their checkin details. They have their checkout of the details. If anything goes wrong, the property manager will take care of itI think about it. You are right. Its not really hands-off. I could turn around and I could save money by doing it myself 100%. 

There was cost thing. It’s limited belief of this is a cost to hire a property manager. No, its an investment for me. 

Every dollar you invest should bring you back $2 or $3. Your question after that should be how many dollars can I invest then? If I give you $1 and you give me $2 back, my next question is, “How many can I give you? That’s the mindset. As you said it, Logan, you hit it on the head. Thats limited beliefsYou think, I will have to give you $1. No, that $1 bought me back my time to go make $2. I can go out and cut my lawn unless I really love cutting lawns and say $40 a cut. For me, to cut that lawn because I dont have all the equipment will probably take me a few hours. Even if its only an hour, is my time only worth $40 an hourEverybody can do the job and make $40 an hour. Why the hell would I go cut the lawn that I hate doingI can go and cut my lawn every week and say, I save $40. That’s limited beliefs. That’s your answer to what limited beliefs are. We are coming up almost on the hour and I know you are busy. I’ve got some stuff going on nowtoo. I love these shows. I love the mess. I love giving back content as you do. Thats what I have. Do you have anything to wrap it up with and we will jump on. 

The root of everything is a good mindset. Click To Tweet

Hopefully, nobody gets tired of us talking about mindset because it is funny, you brought up a great point. Every show has come back to it andits not by design. It’s because thats the way you and I think, and thats how you and I have got to where we are. We are going to have topics. We are going to jump on and we are going to discuss them. Somehow, they are going to lead back to mindset and all that stuff. If there are things that you want us to talk about a little bit more or have a webinar in the group or whatever, shout out, put something inthe comments or review and let us know. We would love to hear some feedback, good or bad. 

Once again, our cost to you is because we don’t have ads now. We just ask that if you enjoy this, you give us a good review. If you dont enjoy us, let us know why. Share this out with at least five friends. By you doing that, it allows us to keep putting on the show. If we put up the show and nobody is hearing it, we are wasting our time. We love doing it but Logan and I could be on the phone for an hour masterminding and come up with a business plan or help some of our students out. Probably raise a couple hundred thousand dollars making an investor calls for what we are doing. We ask that you help us help you because we love bringing this. We do get feedback that people tell us, “I love that episode you had. That was a great topic. You opened my eyes or you put me in the right direction.” We want to do that for more people. As I said, we dont charge. We dont have ads on here. We are not wasting any time listening to ads right now but we want you to share this outWe will see you next time. Thanks so much for spending your time with us. 

Thank you. 

 Important links: 

About Logan Hassinger  

PTP 13 | Business PivotFrom the beginning, Logan had a goal to work in real estate doing what he loves, and wanted to share the passion of real estate with others. Through the years, he has developed a solid foundation of real estate knowledge, the expertise necessary to navigate any transaction; and have the integrity to follow up on promises. Early on, as he began to develop the company and carve his niche in the vast world of real estate, he quickly realized that there is a distinct need for certain real estate services he originally did not foresee. After the 2007-2008 financial crisis, it become apparent that millions of homeowners were losing their homes. So he transitioned from owning rental properties in the Dallas/Fort Worth market to buying distressed mortgage notes with the intent of working with the homeowner to keep them in their home.

Completing in excess of 4 Million dollars in real estate transactions since 2013, Logan and Sage Notes, LLC is excited to be assisting homeowners experiencing financial hardship. We aspire to continue contributing to the continued goal of home ownership along with economic rejuvenation of the areas we serve and its neighborhoods.

As he began to pursue the Chartered Financial Analyst or CFA® designation, he realized that Real Estate was the path for him. They say we grow more from our failures than our successes, and this is a testament to that very saying. He failed the Level 1 exam and the rest is history. He began with a rental property 5 months later acquiring a distressed property and assisting the seller in their situation. Logan continued to add small multifamily properties to the portfolio and protecting his Lenders over the 3 years.

Logan loved the idea of being able to do what large financial institutions couldn’t provide. He was able to provide modification plans to distressed borrowers and keep them in their homes. The portfolio quickly grew to 60+ mortgages in less than a year working with Banks throughout the country.

PTP 12 | Building Rapport

How Building Rapport With Sellers And Asset Managers Can Change Your Investing Game

By | Passive to Prosperous Podcast | No Comments

PTP 12 | Building Rapport

 

More than excellent deals and fast transactions, nothing could ever beat having the right sellers and asset managers in the world of investment. That’s why the first step to long-lasting relationship with the most trustworthy people is by building rapport from day one. Join Dan Zitofsky and Logan Hassinger in their discussion on what it takes for your investing career to forge the most rewarding relationships with the leading individuals and have deals pouring into you almost daily. They dive deep into the various responsibilities of every buyer, from keeping an authentic self and being clear with what you want even from the start. Moreover, the two of them underline the importance of taking it easy with your transactions and avoiding the false investment stories that usually circulate on social media.

Listen to the podcast here:

How Building Rapport With Sellers And Asset Managers Can Change Your Investing Game

I’m welcoming you for being on here for another great episode. We’re looking forward to this. Once again, like every other time, me and Logan get caught up before the show, probably doing a whole other show. We’re going to bring you some action-packed stuff. We don’t have any advertisers and sponsors on here. We decided at the beginning of the show not to do that. We’ve been offered the opportunity, but it’s not about making money for us. It’s bringing great content to you and trying to drop the golden nuggets to help you on your journey to create passive income, passive wealth, and living a prosperous lifestyle. We’ve both done. If you liked this show, the only thing we ask you is our cost for doing this is to share this with at least five friends that you think this will help. Five people that you help live in that mindset of non-scarcity, help all the people get to their journey like we’re doing for you. We’d love your review. If you love what we have to say, give us that five-star review and share this out. Thanks so much for being on, Logan. It’s great seeing you again.

We started off with a little pre-show talk of some different things going on down here in Dallas. It’s always an interesting time given where we are in the market.

Remember years ago, we used to have those bloopers and all that stuff on TV. Usually, our pre-show is the stuff that people say, “If I could be a fly on the wall for Logan and Dan and hear what they talk about.” We talk about some heavy stuff a lot of times and a lot of times it’s private what we talk about like the under links of a business, how it works and uncovering numbers that people really want to see. We try to summarize it and bring it to you in the show. We’ve been talking about this a while, but people ask us all the time because Logan has his own Facebook group and I have my own Facebook group. People ask us all the time, “I’m able to get the money maybe now. I have the mindset and I want to get started. How do you build a relationship with those?”

PTP 12 | Building Rapport

Building Rapport: You might have the demand, but without the supply, you’re going to run dry.

 

Logan and I both buy a lot of deals from asset managers. At different times of our investing career, we buy a lot from asset managers, non-performing notes, REOs and a number of things it could be. They are going to be vacation rental space now and working with some hedge funds. How do you get those relationships with asset managers and sellers? We talk about this all the time because people ask us those questions and we give them advice on what we do. I either don’t see him doing it upfront. I’m putting the work in or don’t or they go out front and they ask what the asset manager could do for them.

They don’t understand. It’s not about what the asset manager can do for you, it’s what you could do for the asset manager and how do you help that asset manager. What do you see on your side? I’ll get into what I see a little bit more on my side. Hopefully, this helps people to get in the mindset of how to build a relationship with asset managers and direct sellers in the market, wholesalers, or whatever it might be, because that’s so important. You might have the demand, but if you don’t have that supply, you’re going to run dry.

That’s where we are on the supply and demand side. I wouldn’t say we’re waiting first stop to hit us but it’s a little dry right now. I’m big on setting up either semi-monthly or quarterly calls with some of my asset managers. They are not looking to nag you or anything. They just want to stay on your radar. They want to keep you up-to-date with what we’ve got going on. If anything changes on your end, hopefully, I’m the first person that they’re thinking about. That’s great for where you and I are now. We’ve got the relationships, we’ve got the context, but how do you get started. I remember back in early, probably January, February of 2019, we were getting started with a lot of the notes stuff on a bigger scale than what I was doing on the side. I was reaching out through LinkedIn trying to find different asset managers for banks and different conduits of sellers that were trying to move notes.

My approach was, I don’t like saying, “Fake it until you make it,” but there’s a small piece of that. You’ve got to look the part. I wanted to make sure that if someone were to look me up, they had a general idea, “You got a good profile picture. He would pay for headshots.” There’s a star versus somebody surrounded by his friends and he’s got beers in front of him. It’s probably not the best image for the first shot from an asset manager who’s doing some due diligence on you because I promise you, they are. From there, learning different terms. If you’re getting into purchasing and doing fix and flips, know the lingo. I made sure to do a lot of different research, reading, and networking with other note investors to be involved, learn the words and the lingo. As I’m communicating with these guys or ladies, it comes across as if I’ve done this before, again, you are going to fake it until you make it, but it worked.

It's not about what the asset manager can do for you. It's what you can do for the asset manager. Click To Tweet

PennyMac, one of the large government entities that were helped servicing for Fannie and Freddie loans. I was able to purchase from one of them early in my note investing career. We still touch base. I haven’t bought anything from him in years, but he thinks it’s cool that for investors in notes and he’s like, “How does this process work?” I talk to this guy about family now. It’s interesting how they would the relationship and in this one instance, it has evolved. In the beginning, it’s projecting an image that you look like you know what you’re doing and you talk like you know what you’re doing.

At that time, I had capital behind me so that was a piece that was needed to be there as well. From there, the relationship grew as I started closing on one office over here and one office over here. I could talk about different states that were involved in. Those relationships helped me in other networking opportunities. Whether that was a broker out of Utah who’s connected me with a seller in California, it starts shifting around. Once you’re labeled as, “He’ll close. Don’t worry about it,” then doors start opening up. We made sure we were going after good deals and stuff that made sense for our investors and slowly grew it. It’s not a get rich quick scheme or anything. You and I have talked about that for a long time, that this is not an overnight success. It’s been several years for me to be where I am now, and I’m still growing.

I know when I talk about hitting the asset manager up and talking to them, I don’t say, “I’m a note buyer.” I’m specific and intentional when I tell them. What do you tell the asset managers? I tell them is exactly what I’m looking for. What do you generally start off telling asset managers when you get them on the phone?

When I get them on the phone, generally, I’m targeted with particular states and even counties depending on how large of an operation that I know that they’re working with. Usually, I jump into states and counties and cities and then balance ranges. I put a limit to, like, “I’m not here to take down $20 million of UPB. I’m probably going to be looking at it at a tape or wherever you have and I’m probably going to be more one-offs. We’ve got the ability to take down a pool of assets.” Being transparent with them too, let them know, “If there are assets that make sense for me and I’ve got a network behind me as well, there may be an opportunity for us to take down 15 to 20 of these, but it would be across 3 or 4 of us.”

It’s being transparent and honest with them, but I am targeted with what we’re going after, but also started off with, “We’re discount buyers. I don’t want to get too far into the conversation.” They’re expecting par pricing or $0.90 on the dollar. I’m like, “We’re probably closer to $60 million, depending on the quality of the assets. You helped me with this understanding, but we’re not going after loans that at the end of the day, we’re not comfortable in the home. That’s a big sticking point for us.” Generally, they know the house that’s backing the loan, like, “You’re probably not going to like any of these.” Fair. I’d rather be targeted with the conversation versus up in the air, “We buy loans and buy them everywhere.” To me, that comes off because I’ve had guys call me now that I’m several years in and guys are calling, “We’re buying loans everywhere.” They’re feeling it out and I get it. I was there. Have a concise sales pitch, an elevator pitch for yourself, and what it is with that you are going after because let’s face it, you’re not going after a loan in every state and every country.

PTP 12 | Building Rapport

Building Rapport: If the loan is underwritten the right way, that’s going for par over par right now, depending on the yield.

 

It’s not as much anymore. I don’t see the gurus coming out and teaching note stuff that much anymore or whatever. It’s maybe because the courts are closed and maybe because the pricing got so damn high. It’s not so advantageous for everybody unless you know and you don’t have relationships. I can tell every time a note class happens with some of these gurus out there.

I befriended a bunch of random people, “I buy notes too.”

They would hit you up. In the beginning, I would try to help them out and then they were so off-based. They would waste your time. They would come in with these low offers or they try to broker your deals to somebody else. There’s a place for brokering, but if you want to be in this business and you truly want to build passive wealth for yourself, you want to come in and say, “Where do I need to be? What numbers do I need to be at to make it work for me and my investors?” My investors, I mean people we raised money from. Our investors always get taken care of. I want to make sure that they’re always being paid back no matter what.

Thank God, we’ve never had an issue where we have not been able to pay an investor back. We’ve always paid them back and they’ve always been happy. That’s why they want to reinvest with us, but we want to be specific. I get people to hit me up and they’re like, “I want to know if I could buy them.” What I generally will do is send them 1 or 2. I want to see how they act. Two things will happen. One is I will get a yes or no from them. If I don’t get a response, a yes or no, when they hit me personally and I send the person 1 note or 2, then I usually strike them. I don’t ever send them anything again.

There’s a lot of no-response stuff that I get.

They come back with a ridiculously low embarrassing offer. They should know better than that. I don’t waste my time with them either. They still hit you over and over because I’m on their email list. They’ll find my name as an asset manager and they’ll hit me over and over again. Logan, we have a couple of hundred assets. We’re asset managers and we manage our assets. Here’s the biggest thing that I talk about is building a rapport and a relationship.

As you talked about, Logan, that you get to speak with PennyMac’s asset manager. When you build that rapport and relationship, that’s everything. If the note doesn’t work, I always tell people, “A no is as good as yes for me.” I don’t sell the note. I’m doing you a favor. You hit me up. I’m like, “Here, let’s test you with this one note. I’ll give you one that’s pretty damn good. Take it. I know the number you should take it at. If you don’t take it at that number, you’re not real in my book. I don’t want to work with you.” Here’s the thing, if you don’t get back to me, you didn’t build a relationship with me.

Even with a deal, I tell people all the time, if I have a property and it comes across my desk, I’m very particular where I buy because I buy real estate, I don’t just buy notes. In fact, I buy more real estate now than notes. Even on that asset, if a deal crosses my desk and it doesn’t fit my portfolio to keep, I will sell it off. I have a specific parameter for my portfolio. It might not work for most people. I bought the upper-end houses, then rents don’t make sense for that price point. It doesn’t pencil out, but for me, I’m buying it cash. I’m not getting a mortgage. I have to spend the money somewhere. It’s a legacy thing for me at this point. I’m not a wholesaler, but if properties hit my desk and they don’t fit my portfolio, I’ll wholesale them or sell them off. If you’re hitting me up left and right for deals, I sent them to you and you don’t say yes or no, because as I said, a no is just as good as a yes. At least I know where you stand. I don’t send them out to 100 people at a time. I try to build relationships with one person at a time. I will give an investor. “I’m going to show you the house at this point, I’ll be there. You come this day. Let me know if you want it or not.” Most of them don’t get back to you.

When you build that rapport and relationship with asset managers, that's everything. Click To Tweet

I was selling notes quite a bit on Paperstac. That side has helped me a lot to move product, but then you get the one-off. I’ve got a good performing note out in Georgia. We’re fourteen months from origination, never missed a payment, great borrower and house. It’s done nothing but appreciates since the homeowner got into it. A little smaller down payment than I would have preferred, but this is a solid-paying note. It’s $85,000 UPB on a $100,000 home, I was offered $55,000 for it. It’s a broker.

The same thing happened to me on a note from somebody we both know. An $85,000 UPB on a $100,000 property. If the loan is underwritten the right way, which I know you have underwritten it the right way and I know it’s professionally serviced, that loan’s going for par over par, depending on the yield. What kind of yield is it making now?

The yield for me is probably around 14%.

People wouldn’t be happy with a 10% yield on that deal.

You should be. They did some due diligence on the property, so I give them some credit, but the initial response was, “The tax records show that this thing is only worth $25,000.” I said, “I’m not sure what the deals that you dove into.” This gentleman talking to me and he’s like, “The property was bought and sold within four months of purchase.” I said, “It was an REO from a bank. It was fixed up, rehabbed and sold to an owner occupant. We bought the note subsequently after that. I partnered with a fix and flipper who buys REOs and had his good contacts. I get his notes at a good price for myself and I can turn around and still allow a second investor on the note side to make money.” He’s like, “It was bought and sold for $25,000.” I was like, “Yes. It’s an REO.” The guy turned around, put money into it and then sold me the note.

What would have been your strike price on a deal like that?

I’m asking $75,000. If you can hit me between $68,000 and $75,000, I’ll let it go.

What’s the principal and interest payment?

$740.

$740 times 12 is $8,880 a year divided by $70,000. Somebody would be looking at about 12.5% yield on their money. That’s a deal.

To be offered $55,000, I was like, “That’s not a serious offer. While I appreciate the reconsideration, thanks, but no thanks.”

Where is it being serviced?

Madison.

It’s being professionally serviced and was it underwritten by an RMLO?

Yes.

I talk about this lot with an owner occupant, it has to be underwritten by RMLO, which is a Registered Mortgage Loan Originator by law to make sure that they meet Dodd-Frank and CFPB compliance. Essentially, this property is worth about $100,000.

PTP 12 | Building Rapport

Building Rapport: Everyone is in their own investing stage. Just because one deal didn’t work for you doesn’t mean the same will happen to another.

 

Give or take it. It’s Zillow/BPO. We had a range of $92,000 to $104,000.

Do you own this in your personal name?

No, company name.

What about licensing out in Georgia?

We’ve got it.

That’s the only caveat in Georgia.

If it’s an IRA, you’re good.

We’re not selling anything here. If Logan’s selling it, that’s something somebody should jump on.

For me, it’s moving cash around to put some stuff back.

Are you selling this now?

Yes, I’m selling now.

I’ll buy it from you.

I’m super transparent too with, “Why are you selling? If it’s such a great note, why are you selling?”

It’s because you’re recapitalizing cash.

I’m recapitalizing cash and I’m putting it into some short-term rentals in Oklahoma. I got nothing to hide.

My deal is I got so much cash coming in that I’m trying to spend it on passive income. I’m not saying that to impress people and impress upon you like, “My cash is sitting around and does nothing.” I generally like to make at least 15% of my money, but this one might be a little shy of it, but we can come pretty close. I know Logan and the type of business he does, so I’m okay with that. We’ll talk about it afterwards. That’s how you work with an asset manager with something like this. Logan’s an asset manager and I’m an asset manager. He has a deal. He’s telling me what he needs. I’m telling him what I can do. It works. If you have IRA money for it, you can make it work. That’s how he did business. If I tell Logan, “I want it,” and I come up with every reason in the world why I don’t want it afterwards, then I wasted his time. I’m a bullshitter.

Even though you take on deals that didn't fit your box, they can still offer a lot from a relationship standpoint. Click To Tweet

You want to close. He knows me. It’s a different story, but let’s say I’m brand new and he sees I close on a deal. I tell him that I close. It’s not a problem. You’re able to do deals. Here’s what I tell people. Be very specific on what you want. When I call an asset manager, I tell them exactly the markets I’m looking for. I even tell them the class areas I’m looking for. A lot of them don’t know class areas, but I tell them, so they understand like, “I’m not looking to be in the ghetto. I’m not looking for that $20,000 valued house. I’m looking to be in a B to C area. I’m looking to be in this price range. The average value of the house is going to be between $70,000 and $125,000. I’m going to be looking for a three-bedroom and 1 to 2 baths. I’m going to be looking for a single-family. I’m looking for multifamily.” Whatever it is you’re looking for, be as specific as you can be with them. Be honest. Don’t come off, as Logan said, fake it until can make it. There’s a difference between faking it until you make it and looking like an idiot out there acting like you’re a big shot when you’re not.

Be honest with them. Say, “I’m a note investor. I could buy one-offs. I could buy a few deals. Maybe we can take down a little bit bigger tape. If you’re willing to let me bring other people in, I could do that. I could share it with other people.” If you don’t like the asset, tell them why you don’t like the asset. What used to happen with me is I used to have one of the biggest asset managers at Ocwen hit me up. This was years ago. This was before Auction.com and Hubzu came out and all those sites came out. They used to hit me up. He would call me up. He doesn’t work there anymore. He’d be like, “Dan, I got offers on this property for $110,000. Give me $70,000 and it’s yours.”

He had offers for $110,000, “Give me $70,000.” “Why?” It’s because we had a relationship. I closed and I solved his problem. He owns the bank. He had commissions on how much he sold before. The thing that I tell people is, “This is how I got it.” I was in on a decent amount of asset management. This is how I got it back in the day with Ocwen. He came to me. I remember I was emailing and calling all the asset managers. He says, “I got something for you.” He hit me with it. He gave me these two assets. They were complete garbage. They were junkers. I had no interest in them, but I took both of them off his desk.

It was the end of the quarter. He needed to get rid of them. I took them off his desk, these two pieces of garbage. I sold the good stuff to other people like Logan back in the day. He gave me the stuff that nobody else wanted. Everyone picked through it like a buzzer and then these two crap deals left, he gave them to me. I had no interest in them. I took them. They weren’t a lot of money. I took them and I got rid of them. I did pretty good with both of them. I didn’t fix them up. I wound up seller financing to contractors who fix them themselves and lived in them. That was back before Dodd-Frank and I can do owner occupants without the whole underwriting thing.

You make a good point there. You took on a couple of deals that you knew didn’t fit your box, but from a relationship standpoint, that was going to lead to a whole lot more. I’ve done that a lot of times. I’ve overpaid for some stuff, simply so I could get access to future deals.

That’s all it was about for me. I remember back in the day, I was a mortgage broker and banker for many years. It’s the same thing with a relationship with anything. We were talking about relationships and it doesn’t have to be notes. Let’s take this relationship. I was in the mortgage banking business. I was a young guy. I was in the Navy at the time. I was 22 years old. I did mortgages as an assistant. In high school, I was playing football. It was something I could get back into on the side to make money. It was good money back from the day. I still look young. I don’t have the experience that somebody’s older mortgage brokers had. I have to go out there and build a relationship with real estate agents, who they all got on locked up.

Back in the day, they used to pay off real estate agents for mortgages. Everyone was on point for a deal. They didn’t care about being legal or not legal. I wasn’t doing any of that stuff. I was running it ethically. I said, “I’m going to build a business.” I had to go out there. I had to beg people for business. I’m knocking on doors, bringing donuts and begging for business. I’m not looking to pay anyone off. They came to me. When those old-time mortgage brokers or bankers couldn’t get a deal done, it flopped, those are the ones, “Do you want some business? Here, get this done.” The junk works that nobody else can get done.

I would work my butt off in any way possible to get this. There was a broker. I’d call all my lenders out there to see who I can get it done with. To see if I can get waivers and variances on them to get these done. If I can get a state of income with no docs, come up with more money, gift money and grant money. I was coming up on everything. I’d get a lot of them done. As I get them done, then they’d still give me the good deals, and I have to do it again. Eventually, I got to the point where I said, “If I’m going to keep doing these for you, I need to have some cherry as well.” They’d have that cherry on the top as well.

You build a relationship, but too many people come to me. Maybe I’m an old-timer but bring value to me. Make my life easier. Come to me and don’t be a pain in my ass for a deal. If you ask me for a deal, come look at the damn thing. If I show up and you don’t come and then I see you sending emails out or your Facebook, “We’re cash buyers. We want deals.” You don’t show up or you come up with every reason why you don’t want a deal, I’m not going to give you the best freaking house in the world that’s all fixed up and you could just close on it, turn around a real estate and make $100,000. It’s not going to work.

PTP 12 | Building Rapport

Building Rapport: If you say you’ll close and you miss something on a deal, you better still close.

 

If that’s the case, I’ll do it myself. I don’t have the time to rehab. Even if I rehab them, they don’t fit my portfolio. They’re perfect for your portfolio. You want to make $30,000 on a rehab. I’m in a different place in my life. Maybe the rent numbers, that 1 to 1 rent-to-value ratio where I live in Delaware, don’t work for me. It works for you. It’s perfect for you, but for me, I want that 0.5% rent-to-value ratio. I want those houses $250,000 and up and $1,400 in rent. I want to be in a higher-end area because those are legacy properties from me. I have the cashflow ready. I’m more looking at building net worth for the family for the generational wealth. That’s where I’m at.

Somebody may be looking at those numbers where you’re saying, “I want a $250,000 house and a $1,500, $1,600 a month rent.” It’s like, “How the hell does that even work?” What a lot of people and I thought the same way several years ago when I was getting into rental properties. I’m hearing somebody else’s strategy or perspective and I’m like, “That doesn’t work.” No, it doesn’t work for me or may not work for you, but it works for Joe or Susan or whoever because we’re all in different investing stages. For me, when you think about a $250,000 house with $1,600, $1,700 rent, look at the intangibles. The type of tenant that property is going to attract, the type of neighbors that are in that neighborhood and the upkeep that’s being taken place versus going and finding a 2% house in the Midwest that will never appreciate.

I’ve got a $60,000 pig that rents for $900. The numbers sound amazing, but what’s the long-term strategy? There isn’t one, because that $60,000, $70,000 house is going to be $60,000 or $70,000 several years from now. If anything, it’s going down because now you’re talking about CapEx and all the other stuff that takes into a place of keeping a home up and running and having a tenant in there. While you’re maybe getting $900, and let’s say rents are appreciating at 3% a year, great, but for me, I need a good balance of equity of appreciation and cashflow. I don’t need to kill it on both sides.

It’s not normal, but we send some crazy appreciation in the Midwest for the last several years. Houses that I was selling for $50,000 to $60,000 are now going for $90,000 to $110,000. It’s crazy, but I don’t ever sell an appreciation out there. When I get those properties, I sell them in cash, their cashflow in a good area. You could still have an $80,000 to $110,000 a house in a B area where it’s a blue to white-collar area.

That’s the key, too. This is a B area, not a D, not a C.

I won’t do D areas. C-plus to B-minus is the lowest I go because I want to make sure my tenants stay there and they take care of them. If you give them a nice house, they have a pride of ownership.

They take care of it. You will have fewer maintenance calls and all kinds of stuff.

That’s the thing is to let people know. You got to know what you’re looking for. I always tell people when they hit me up, “Do you have any houses?” First, “What are you looking for? What’s your goal? Is it big cashflow?” I don’t like someone that says appreciation. Appreciation is a guess.

If you are hedging them long-term, sure. If you’re a 30-year holder, it’s fair. You can probably bank on some appreciation, but I’m not looking to hold a deal for 30 years.

Speculation is the worst thing they do in this business because those are the ones that got hurt in 2009 and 2010. They’re the ones that are going to get hurt again soon. The people who are overpaying for properties are going to get hurt. You have to know. When you call Logan or you call Dan and you say, “I want to buy an asset, a property and a note. I want to be one of your lenders.” You got to know what you’re looking for. If you tell me, “I want to invest in your deals.” I ask you, “What are you generally looking for? What type of returns you look for?” You tell me you’re looking for 10%, 12% to be a lender to me, I don’t need you because right now I’m raising money at 6%. There are people out there that need you. New investors that can’t raise their own money, they’re going to probably want that 10%, 12%.

Speculation is the worst thing anyone can do in the investing business. Click To Tweet

People that I lend money to, I have to make a certain amount because I’m raising money at 6% to 8%. I might be charging 10%, 12%, 14% in 2 to 4 points depending on your experience level, “How much work I have to do with you, how much risk with this deal is and how much you’re putting into the game.” You need to know all these questions, but you need to figure them out before our speak. What I’m saying is even when you raise private money, you need to figure it out first before you get on the phone with your investors or your asset managers or your sellers, whoever it is. Once you figure it out, you need to follow up. You need to stay in touch with them. You need to build rapport. It’s all relationship. You need to do what you say you’re going to do. If you say you’re going to close and you missed something on that deal, you better still close. That’s your problem that you missed it. It’s not my problem that you missed something on that deal.

I’ve had it a couple of times where somebody missed something on a purchase from me. They came back even after we closed months later and say, “I missed this. I’m looking to see if you could do a buyback.” No, I’m not trying to be rude or take advantage of you, but I’m not buying the asset back because you missed something in due diligence. I’ve been there. The first two notes that I bought, one in Columbus and one in Augusta, Georgia, I missed something on both those. I still made money. I’ve still got one now that I’m about to exit. I sold one and got the investors their cash back. They’ve been earning interest along the way, but I didn’t make near as much as what I penciled out.

That’s simply because I missed some stuff. I didn’t go back to my broker and say, “I probably should have paid about $3,000 or $4,000 less.” “You probably should have, but that’s not how it went.” What happened is that relationship with that individual then turned into three more notes and then four more notes. I’ve ended up buying 63 of them in a pool at the end of 2019. That is what took us to the next level from a relationship standpoint, but also from credibility and being able to close because it builds on top of each other. It doesn’t happen overnight. I built a reputation that now I know what to look for on the next one. He sent me deals and it got to the point where I was 1 of 10 investors that he was bound to. He has 3,000 contacts. It was, “I know these ten people will close. I’ll give them first shot.” I was starting to get priority picks and getting good pricing on it simply because they report back to the asset manager.

That’s what’s it’s all about. Logan said something important. He says, “It’s not a get rich quick scheme.” As crazy as it sounds, I’m okay with losing money on a deal, but that doesn’t define who I am. I’ve lost money more than I can even share with you. If somebody says, “I haven’t lost money.” They’re either not in his business at all or they’re lying to you. One of two things is happening because you’re going to lose money if you haven’t lost it yet. You have to look at this as averages. Look at this baseball. If a guy goes out and goes 4 for 4 now, his batting average is 1.000. He goes 0 for 4 tomorrow essentially, he’s batting average is 0.500 because he’s 4 for 8.

At ten at-bats, he strikes out seven of them. He hits home runs on three or gets hits on three of them, he’s batting 0.300. He’s in the Hall of Fame. You got to look at that. The problem is social media. When I work with a student, the first thing I do now is get them off social media. I’m like, “Get off social media for at least 30 days while we’re working. Let’s put a plan together for you, who you are and what you do. Let’s build your social media up. Your LinkedIn, your Facebook and your Instagram, let’s build it the right way so you look right.”

This is what you and I did.

We did that with you too. Let’s get off social media because you start watching what everybody else is doing and you think you have to be rich right away. You have to put these fake checks out there and you think, “I lost $3,000 on this deal. I’m out of the business. This sucks. I’m staying in the job that I hate.” It’s not like that. You might have lost $3,000 on this deal, but on the next deal, you make $50,000. In two deals, you made $47,000. It’s not bad. It’s an average output of $47,000. You’re at $23,500 a deal. That’s how you got to look at it. I say this because I want people to learn this from what Logan and I are saying. Look at the long-term. Logan bought 63 notes. My biggest no deal is a $5.1 million Fanny pool we took down. Ten people in my inner circle, all took it down. Think about that, especially in the second space. If you buy notes in the second space, you’re going to lose 60%, 70% of them.

One of my buddies here in Dallas, he’s big into seconds. He and Martin are teaming up and getting after it.

Who’s that?

Martin Saenz.

Who else did you say?

My buddy from here from Dallas.

Martin’s a great guy. I know Martin when he came into the business too. I started in the seconds before I went into first. If you buy ten assets, 3, 4 of them, you lose. It’s bankruptcy. You get stripped. Let’s say 4 of those 10 you lose. In about 2 or 3 of them, you’re lucky to breakeven. Now, you’re at about seven. On three of them, you’re making big money on. That’s how the business is. You’re not going to be microeconomic. You’re looking at the macro of this business. I have a good relationship with some asset managers. I’m friends with them and some of them, you’ll see what they sell off at. Some of them, 80% of their assets they’ll lose money on, but it’s 20% that makes their fund profitable. Think about that. If you want to be in this business, you got to start thinking like this, “How do I build relationships? How do I stay in for the long-term? What do I do when I say what I’m going to do and I’ll take this one step at a time?” That’s all I have on this. Is there anything else you got for them, Logan?

You made a good point with the social media stuff. That’s one thing that I see a lot. It annoys me because it’s false. It’s not truly how it happens. The fake checks and showing, “I just closed on this one.” They got six checks lined out and they’re fanning it. If I see any of that in my feeds, I remove that person because it’s not how it happens. Maybe there’s somebody out there doing it. That’s awesome.

It does happen, but it takes a little while to get there.

It’s like the guy that gambles all the time. The only time you hear from him is when he’s winning, but you never hear from him when he’s down. To me and for you too, I like the sharing the losers as much as I like sharing the winners because I’m trying to create rapport with people. Not a fake rapport, but to show people that I’m in it every day and we don’t always win and that’s okay because we’ve got a deal tomorrow and we’ll have a deal next month. We’re looking at it from a bigger picture. It grows. It’s not me. It’s not my personality, but if it is you to flash what you got, cool. There’s nothing wrong with it. It’s not who I am. We’re a product of who we surround ourselves around. I prefer to surround ourselves with more humble people in my opinion. It’s not a knock on anybody. It’s how I prefer to do business.

We’re not going to say it’s a knock, it’s you got to be careful of not them, but how you act, because if you think that you’re a failure because you don’t have those checks coming in, then you’ll be out of business quick. That’s not real life. I’m in this business for several years. Logan’s doing this now for several years. In the beginning, we weren’t that. We haven’t now, so why am I going to do that? I want you to start with one deal at a time, but what I want you to do is build that relationship, know what you want and take action. It’s important to take action. A lot of people are scared to take action and most importantly, do what you say you’re going to do. If you say you’re going to do something, do it. If Logan sends you a deal and you don’t like the deal for whatever reason, and you ask them to send you that deal, get back to him, say, “Thanks so much for sending me that deal. I’m ready to buy. I just don’t like this one because it’s in a rural area. I want to be in an area with a population of at least 10,000 people or more.” Tell him straight, “Next time I get something, I know that this is exactly what Dan wants. I’m sending it to him.”

The guy from Ocwen call me up and be like, “Dan, I got something for you.” I didn’t have to look. That’s how I am with wholesalers I buy from and realtors. Realtors call me up. If I’m around, I’ll go look to hang out with the realtor and have some laughs, but generally, I don’t even look. Sometimes they’ll snap some pictures and send them to me. They know exactly what I want. They know I’m going to close, so they call me and I’m like, “It’s a done deal. Write the contract and send it to me.” We beat a dead horse here and we gave you a ton of knowledge. This should be one of our first episodes you read because this will get your mindset right on how to build those relationships with anybody you are doing business with. Thanks so much for being on. Take care.

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PTP 10 | Goal Setting

Ending 2020 Strong And Setting Goals For The New Year

By | Passive to Prosperous Podcast | No Comments

PTP 10 | Goal Setting

 

It’s that time of the year! Let us end 2020 strong and set ourselves up for greater things in 2021. Join Dan Zitofsky and his co-host, Logan Hassinger as they run through what they are doing in terms of goal setting for the new year. This is a time to reflect on the good and bad in life and business and changes you want to make. It’s time to go beyond the usual financial goals and ask yourself who you really are, what you really want and what kind of legacy you want to leave in the world. Are you ready to step your game up and achieve more in the years to come? Start setting your goals now and don’t you scrimp on them!

Listen to the podcast here:

Ending 2020 Strong And Setting Goals For The New Year

Goal Setting For The New Year

I’ve got my cohost Logan Hassinger. Logan and I have been together for a few years now. I was coaching him as a mentor, a friend, and somebody who’s blasting off in his life and his business. This is a great show to talk about what’s going on. What are you doing for the end of the year? What are you doing for goal setting? Logan and I were hitting each other up like, “What should we talk about?” This is so prevalent now with many things going on. Logan, thanks for being on.  

It’s been a little bit since we were on the campaign trail with you and all this stuff that’s going on down here. I’m glad to be back on. These episodes are always motivating for ourselves as well. It keeps us on track and holds us accountable.

What’s cool about these episodes is I personally take that week from Christmas to New Year because everyone is talking about goal setting and all of that. In the fourth quarter, I always plan for what am I going to do for the end of the year. Goal setting is important to do every single year. I’ll show you a little bit about what I do. I know that I have ideas and I stopped thinking. From the day after Christmas to New Year is where I focus, take time, and put everything else aside. Even if I go away with my family, sitting on the beach, I’m always thinking about, “What is my plan for 2021?”

I always look back while I’m doing it like, “Where was I in 2020? Where will I be 2, 5 years from now?” I write my goals down. I have a black notebook like I had back in school. Every year, I write my goals down, and then I have subtitles and stuff like that. Have you looked back? Have you thought about it? For me, it’s a little different looking at myself, but when I look at somebody I mentored and I looked back where you were three years ago. We had a little talk before the show, where you are now and where you were a few months ago when we started this. It’s amazing.

I’m like, “Everything is showing you. All the writing is on the wall for what you should be doing.” I’m not going to say what you should be doing, but all the writing is on the wall because you’re crushing it. I give you all the credit in the world. We’ve been friends and we talk all the time. We had a nice call on my way back from North Carolina. Have you thought about it? Did you ever think back to like, “Where was I the year before?”  

I always go back to where my story started. I’m trying to figure things out and taking some action from a simple approach of, “How do we go pick up a rental property?” I am putting things in place and moving down the line. I spoke at a youth group event talking about goal setting and it’s a journey. All of the same stuff that we would talk about here. I looked back and these were 18 to 24. I think a lot of what I was saying is going over their head. I wish I had somebody at that age telling me something. It clicked for a couple of them. When you think about goal setting, it’s more difficult when you’re trying to get through school with the younger crowd. Even when you feel like you’ve accomplished all your goals, we’ve talked about that as well, what turns into your mission in what you’re doing? We got into notes years ago and it’s evolved. The note business is not as big as I’d wanted it to be because of some of the things that we’ve got going on there. Everything is pushing me now to do what I’m enjoying. February 2021 is the date that I’ll be heading out of corporate.

I hope your corporate bosses aren’t reading this.  

It’s just a target. I’m still crushing it up there. They’ve got nothing to worry about.

I liked that you have a date on that because a lot of people I mentor, I’ll sit with them and ask them questions. I was in North Carolina with my partner out there in my project. I almost hate saying that because it’s a business. He’s become one of my best friends.  

I’ll share what I’ve got going on coming up in March. He was like, “You’re not working for me. You’re working with me.” He runs a company. I run the company. We’re going to run them and grow them together. I don’t like saying we’re partners, or this is my employee, or whatever. We’re all working towards a common goal.

It’s true. I was with him, we talked, and we met somebody we’re looking to do a lot of business with. I’ve sat with them and I was asking them. I got into my mentor mode with him because I took a liking to the guy we met out there. Warren brought them into my life in my inner circle. He knows that I’m very particular with who I bring into my inner circle. To me, it’s not about business or money anymore. I don’t say that to impress you. One of my mentors, Mark, a friend said, “It still impress upon you that you can make money.”  

I don’t want to say it’s easy to make money because it is a little pompous, but money comes and goes. People in your life don’t come and go. I was sitting with this gentleman. He’s a builder. I’m not going to mention his name because he’s not here. Who knows if his workers or bosses are on there. I don’t want to do that. He was unhappy in his work situation. He was a very good person, ethical, moral, and a great all-around guy. You can see that he’s a family man. He loves his wife and kids and wants to be there for them. He wants to have a work-life balance. I started talking to him and we got into his vision.  

I ran right into his vision and his why. Why is he doing what he does? What does he need? Most people don’t understand that. This is important to know what your goals are every year. You and I have been to mastermind. I remember we sat at one mastermind, but I don’t want to have anything to do with the person. I don’t want people to think that that’s somebody I would back. I was there. It was almost a favor back then because I knew he was bringing in a lot of new people and new business. I got to speak to them and he would ask me all the time to come down and be part of a mastermind. I would go once a year. I enjoyed going because I got to meet you.

I’ve got to say, that was the best favor you did for me.

PTP 10 | Goal Setting

Goal Setting: One of the goals is to make a certain amount of dollars. It’s not the first goal, but it allows you to do the things that you want to do.

 

What’s important is that every time I go to events and meet with people, I started asking them questions. If I don’t connect with them, I don’t even get into it because it’s just, “Why?” If I liked them and I want to help them, I started asking questions like, “Why are you doing what you’re doing?” They give me these BS answers.

You can quickly identify if it’s a partner.

They would say, “I want to make $100,000 or $200,000 a year,” and I asked them why. They have no reason why. They don’t know what they need to make. They think that, “If I make this number, I’m going to be happy.” I can guarantee, if you’re telling me you need to make a certain number and I can help you make that number, you will not be happy because you have not figured out what your why is. You haven’t figured out what your vision is. You haven’t figured out who you are as a person, what you want to be, and who you want to be known as.

I’m saying this now because you’re in goal setting and 2020 is a big part. The fourth quarter is huge for you. We’ll talk a little bit about that too, but you’re in goal-setting mode soon. If you haven’t been there already, you will be. Let’s put the monetary stuff on the side now because you get back into that. Who do you want to be? Who does Logan want to be as a person? Who do you want to be as a father? Who do you want to be as a husband? Who do you want to be as a friend? Who do you want to be as a partner? Who do you want to be as an investor? Who do you want to be as a cohost with me? You’ve got to figure it out.

The little things seem unimportant or immaterial, but they all create who this person is. All of our goals and why’s are different but have one other than a monetary value on it. One of the goals is to make a certain amount of dollars, but that’s the 5th or 6th goal. It’s not the first goal.

You can make a certain amount of dollars, but why?  

It allows me to do the little things that I want to do. The cash for in this situation is a necessary item. We can give back to the community and schools. I enjoy taking my daughter to school, trying to pick them up, going to events, and being involved. If you’ve got a full-time job like what I am doing, it’s difficult to do that. Cash allows me to step in, but it’s not the primary like, “I need more.” It’s like finding that happy medium of getting what I need to accomplish all the little things that I want to do.

It’s not even the job and all that. Right now, you’re taking on a lot. We’ve even talked about that. You’re taking a lot of different events and all these different things about money-making ideas, but I understand why you’re doing it. You’re trying to replace what you had so you can get the time you need. Most people think that that’s what they’re doing, but they’re not doing it. I saw a post of a friend of mine on Facebook. He was talking about her daughter going off to college and he’s grateful that she spent all these years while he is doing all these different things. He put in there, “You can always work harder and make money when you need to, but you’ll never get those times back.”

I have two adult kids. My youngest is almost an adult. I’ve blessed that my wife set me straight back about many years ago and showed me the ways. I have a life. I’m very blessed. I have what I need. I stopped thinking about cars, boats, watches, and those kinds of things. I have what we needed. I’m lucky because I have a wife who’s frugal. I was the spender and she wasn’t a spender so I didn’t have to stop her. She had to stop me.

It is the same with us.

That’s good. I have it right here. It says, “Personal Vision.” I don’t lie. I have a vision station. I have two different visions and I have a map there. They’re breathing and living objects. In my personal vision, I talk about who is Dan Zitofsky. I have these on my computer. I have bullet points on my wall that says, “Who am I? Who is Dan Zitofsky?” I’m a husband, father, grandfather, manager, friend, uncle, cousin, nephew, and a son. I talk about all these things, but nothing in there says that I’m a millionaire or I want to be a millionaire. Once again, I’m not saying this to impress you and not to impress upon you. We hit that status a long time ago and I wasn’t happy. All these people are telling me, “I want to be a millionaire.”  

That’s the exact message I gave last time.

Tell us a little bit about that.

That was fun. That was my first real experience with sharing my story to a live group of kids. These are 18 to 23. I talked about, “I’ve been in your shoes. I partied. I went to college and then failed out in my junior year, sophomore year, and then had to switch schools. I’ve been dating and falling in love and all that stuff.” At the end of the day, my topic for the kids was budgeting, money, credit, and how to leverage credit and different tips and stuff.

Numbers help paint a picture about who you are from a business perspective, but it doesn't paint who you are. Click To Tweet

John, who’s my partner down here said, “Tell them about your financial stuff.” I refrain from talking about that. It’s okay. Numbers help paint a picture about who you are from a business perspective, but it doesn’t paint who I am. He said, “Tell them because I want them to hear this.” I said, “I became a millionaire two weeks ago. I’ve finally crossed that hurdle.” My buddy and I were headed to the store and he happened to ask me, “How are you doing on your goal?” I said, “I hit it weeks ago.”

We kept going. Should I have been more excited? I don’t know. It was just the next milestone. It wasn’t that important to me. I thought it was when I set that goal four years ago. I thought it was going to be this amazing moment where we all go out and celebrate. It’s difficult in the beginning to not think about money but that’s all I thought it was, “How do I get to $500,000? How did I get to $750,000? How do I get to $1 million? Now what?”

Let me ask you this. Why did you think you had to get the $500,000 to $1 million back there?  

I thought I was going to be happy. Every time I hit the goal, it never happened. I was happy at the moment but it didn’t mean anything.

Let me tell you how true that is. We’re starting that prosperity in a circle of ten people. I already started working one-on-one with people in a group. We’re not getting together until our first retreat. I then have the same first three months with everyone I mentor, not like what I mentored you to various private money. That was different, but I have these first three months mentoring somebody. It’s all about who you are. We peel that onion back. It’s powerful. Every single person I work with is a business owner or leader. They play at a very high level. On the outside, everybody looks at them in social media like, “I want to be that person.”

I’ve been mentoring for a decent amount of time. When we pull those layers back, I have not worked with anyone in my whole life that came to me and said, “I was truly happy.” Before I work with them, I make sure they’re going to play all out. I make sure they’re going to be honest. I make sure that you can give 150% because, otherwise, I can help them. I’m not here for you to pound your chest. I’ve worked with millionaires. I’ve worked with multimillionaires. I’ve probably worked with somebody I know right now who owned a ton of land and mobile home parks. He’s probably a billionaire and I’ve worked with him. It’s not about the money.

People make way more than me. Their net worth is way more than my net worth. Every single person has given up their why and their vision to chase it. When we met years ago, we stayed so close, but I still remember. You are over some ridiculously low numbers where somebody was making $250,000 or $300,000 a year. I was weirded out by it because I think you asked me at one time like, “What’s your portfolio look like?” I almost wanted to lie to you and decline what I was doing because I didn’t want you to think that you couldn’t get that.

I do the same thing. That’s why I was talking to these kids because I didn’t want them to shy away from the money aspect of it. I said, “I’m here because this is a Sunday at 7:00. We’re in a barn with a bunch of space heaters running because we want to share what we’ve learned. We’ve got three business owners in here and we’re all sharing our different perspectives. Have you heard of us talk about how much we have in terms of dollars or items?” It has nothing to do with that anymore. I’m glad that I got over that hurdle. It’s a difficult one for a lot of people to take on and say, “What is my why?”

They don’t understand the work that goes into it. People only see the end product. They see that you became a millionaire.

I’ve had a couple of friends reach out like, “Last year you’ve taken off.” I was like, “No, I’ve been working my ass off for six years. Do you think it was an overnight success?” Whether that’s me holding back and not expressing all the things that we’re doing. I’ve got many that look at us and say, “I don’t know what happened this year, but it’s all come together.” I was like, “No, it’s been coming together for years. You only now get to see the things that we are able to afford.” I’m not at work every time so I get to do things with the family. They are like, “I don’t understand how you’re able to do that now. It just all took off.” I was like, “No, it didn’t.”

For most people, it doesn’t. The difference between us is we don’t do one deal and go on Facebook and talk about we are gurus or experts. It’s a little bit of a difference. We’re the quiet storm. Some of the best people I know, you will never find them on social media. That billionaire I was mentoring doesn’t have social media. I don’t even think he has a Facebook page. He doesn’t have an Instagram page. He doesn’t have all the crap out there. You have to do it because it’s on your way to getting content out there.  

Hopefully, we were not charging people. I always say that all I ask you to do on this group is share it out. The reason why it’s on our page is to share it out. The show is going to be live. It is called Passive to Prosperous. Follow the book Passive to Prosperous. Share our show out because you’ll probably hear this on show. We’ve already been offered a sponsor. I’ve already been hit up. People asked me if they could sponsor the page. I’m not saying I won’t do it in the future, but right now I’m trying to keep it clean of ads.  

We’re not doing this for money. We’ll take the time out of our life to change your lives. One thing we say can help you change your life. This is not too much of a show on how to do deals. It’s more on keeping on living the life of prosperity, your why, and your vision. That’s what Logan is more doing. That’s what I’ve done. I have been investing for 30 years. Over the last eleven years, I’ve started living my vision the right way.  

You said 30 years, but only a third of it is when you’re able to connect with your vision. I’m thankful that I was able to start investing years ago and I’m here in the fifth year where I’m finally connecting. That’s something to take note of quickly because it’s not overnight that you’re going to flip a switch. For some people it is, but that’s what this show is about. It may be difficult for somebody to relate to you because you’ve been doing it for 30 years. It’s easier to relate to me because I’ve only been doing it for 4, 5 years. It will happen and hopefully, we can help you get there faster.  

PTP 10 | Goal Setting

Goal Setting: Goal setting is important because it may reveal that the plan you have won’t get you where you’re trying to end up.

 

That’s what I share with someone. A lot of it has to do with your goal setting. I know people talk about it like, “I’m going to make New Year’s resolutions. I’m going to lose weight. I’m going to be better with my family. I’m going to do twenty deals.” If you got nothing else out of this whole episode, make your New Year’s resolution start this way. Start with a personal vision like, “Who are you? Who’s Dan Zitofsky? He is a husband, father, uncle, friend, life and football coach, visionary, business financial and real estate investor, educated, and positive role model.  

My vision is to be able to get out of the day-to-day admin tasks in my business. Something that I would say is I hate admin tasks. I want to spend my time doing what I want, what I’m great at, and what I love to do. I’m not talking about what I hate at. I write it down and then I go back, read, and I change it. This is not one-page guys. I finalize it and I write my goals in my notebook. I’m not just talking about this stuff on social media and telling you what you should do like, “People, set your goals.” I spend time doing this.  

I sit with my wife and my family and talk about it with them. Not one thing in my vision here says, “I want to be a millionaire.” I understand, yes we are. I’m careful saying that align, but nothing here is about money. I understand you need to make money. Let’s talk a little bit about you. If you want to share, tell me your fourth-quarter goals this year and then we’ll start. I’ll talk a little bit about my fourth-quarter goals, what I plan on doing, and how God smacked me right in my face with that. It happens. As my grandpa used to say, “You plan and God laughs, but he’s still great.” He does for us and he gives us where we should be. I believe in him. I’m not going to make this a show about God, but I’m never like, “Why me?” Things don’t happen to me. Things happen for me. Unless you believe that, your life will never be as fulfilled as it could be.  

I always have a quick prayer for myself. I’m always thankful for where I’ve been. I am thankful for where I am now and I have no idea where I’m going tomorrow. I know there’s a plan and I’m going to make sure that I’m doing things to move forward. Whether that’s next week’s school, next year’s goal, fourth-quarter goals, whatever that is. I’m going to set goals and keep moving forward.

I had said goal setting is important because it may reveal that the plan you have won’t get you where you try to end up. I see you living life to the fullest now. I see you’re giving back to a ton of people. I love what you do. You’re new in the business. Over a few years, you are out there providing value to people and living life to the fullest with your wife. Let’s talk a little bit about why. We have a lot of people on here. Warren is on here. He was with me and I had mentioned that I changed this gentleman’s perspective, which is awesome. It’s not about me patting myself on the back. It’s about changing life and that’s what I love to do. That’s why people were like, “Dan, you don’t need to mentor people. You don’t need to have to do your inner circle you’re doing.” I’m charging very little for it, but I’ve turned down a lot of people to come into the group. I don’t like to call things masterminds because I think the masterminds out there are junk.

It’s got a negative connotation with it nowadays.

You paid to get in and that’s your only barrier to entry. There’s no value. Where I met you was a bunch of newbies and it was called a mastermind.

How will we mastermind? I was there for the mastermind. I was a considered newbie in that industry. To call it a mastermind, I didn’t see a whole lot of seasoned investors other than yourself and the guy that put it on who’s moving on past that, but it’s a mastermind.

If you’re the smartest person in the room, you’re in the wrong room but there’s nothing wrong with going to events and giving back once in a while. People want to come on to you, then ask you questions. That’s what I love about it. I don’t want to go there. It’s not about ego and saying, “I’m the smartest guy in the room.” It’s about giving back to the community, giving back to newer investors, but please don’t call it a mastermind. Call it a group, meetup or something. Don’t charge people for a mastermind if you’re not truly a master at this. If you haven’t done a certain amount yourself, don’t call it a mastermind. Ours is called the Prosperity Inner Circle because it is an inner circle.  

The last time I did this years ago, we had ten people in our group. Why I got back to it is we did a $5.1 million pool in the note business. We’ve put a pool together, which was the best. It wasn’t like you gave me money. We all did it together. We all put it. We’re all responsible for about $500,000. Either raise it ourselves if you want to be in. We all work together. One person did due diligence. One person did boarding. One person was working on legal. One person was working on workouts. I got away from it. Here’s why I’m bringing it up. It is because my mindset and vision got screwed. I didn’t listen to my vision.  

Remember, I said years ago, I changed how I did everything. This was about 4.5 years ago. What happened is people started asking me in the group, “Dan, could you mentor me one-on-one?” My one-on-one mentorship is $26,000 for six months at the time. I don’t do it anymore. I only do one-on-one coaching raising private money. It’s only two people every three months. I haven’t done it. Throughout the whole summer, I stopped doing it. I’ll do it again in 2021, but it’s only up to two people every three months because I love doing that one-on-one.

I started mentoring people and I would do eight people every six months. I would keep them. Some people would stay for a year. I had a waiting list and I wasn’t charging the most. I should have charged $100,000 for what I was doing because everyone I did one-on-one coaching with was successful. $26,000 investment in yourself to have the knowledge, after six months, it’s no reason you shouldn’t be successful. I went and did that. Think about $26,000 and I had sixteen people through the years for over $400,000. People thought I was nuts to give it up.

What happened is I did that because I was chasing their money. It is against my vision. That’s why it’s so important. I have a mentor too. If you have a mentor that doesn’t have a mentor, probably you are with the wrong person. I have two mentors now. I pay over six figures a year for mentorship, events, and stuff like that. It wasn’t that I disliked coaching. I was just coaching the wrong people. Think about these guys in your life. I was taking people in because they could pay me the fee.

They are also chasing the dollar. What it would become is this chain of, “They chase, you chase.”

Things don't happen to you. Things happen for you. Unless you believe that, your life will never be as fulfilled as it could be. Click To Tweet

When I mentored you on how to raise private money, you were very successful. You’ve raised millions of dollars. I don’t even know how many millions you’ve raised.  

It’s done well but it was a mindset shift.

When I saw it on my calendar, I was doing three people every three months at the time and I knew you were in the group. Everybody in my raising private money group was excellent. Some people will be less successful than others, but everyone has some level of success. They stuck with it after doing it. Most people give up quickly. What I loved about that and why I say I still do the raising private money training is because I look forward. I will look at my calendar, which one week, I’m doing those calls. It was one day a week, I would meet with all three people. It was an hour call and I loved it. It was in my morning or my afternoon. I enjoyed it.

I learned this from my mentor because I didn’t see the forest through the woods. I was like, “No, I’m down. I hate coaching. I’m not coaching. I hate mentoring. I don’t have the patience for it. My stomach turns.” I have to talk to my coach and he’s like, “What is it that you don’t like?” Everything showed me that it was the people I was mentoring. There were some people I was mentoring that I love. He says, “Why don’t you work with those people?” The light went off. It wasn’t about I want to make more money. I should be charging $100,000 for six months. I should be charging that because if you’re getting this business to make $100,000, you are in business.

If you’re coming in as a business and you’re not thinking you could be a millionaire and have the life you want, is that not worth $26,000 on the investment in yourself? If somebody is not willing to invest in yourself, you don’t want them to be with you because they don’t value themselves. How are you going to help them if they can’t value themselves? If they don’t think they’re worth that investment, why would you work with them? If they don’t invest in themselves and you work with them, you’re failing them. If you work with them for free and they quit, those people could have been great to their families. They could have been a great husband, father, wife, aunt, and friend, but they never got it. They are going to quit because it’s not easy. Nothing is easy.

That’s important. I’m being humble and honest here. I have been putting myself on the line here for people. I was hating what I was doing. I have somebody with me with 30 years’ experience. This was in 2020. I was miserable and I didn’t want to coach anymore. People started asking me and I was like, “I have no room.” What I learned now is to work with the people I want to work with. On one side of the paper, I have my perfect avatar of who I wanted to mentor. The other side of the paper is my perfect avatar of who I don’t want to mentor. If somebody meets that, I won’t have them. I had one guy. When I first started in the inner circle here, I had seventeen people I interviewed. I only offered it to three people upfront and I’m only matching out of ten. Even if it’s one person in the beginning, I don’t care. I’ll work with them, then I’ll add another one. It blows up like that. It’s not about the money. The investment is very small to get in but it’s the right people.

The investments potentially cover our retreats and everything we do with a little bit of our time because we want to do three retreats a year. It’s more about I want to work with certain people. If I bring someone like Logan in the group and he’s somebody who’s pounding his chest, talking about how great he is. He lies. He doesn’t play full out with the group. He doesn’t attend. He doesn’t give back. He’s just, “It’s not on my shoulders. I’m just the facilitator.” Why would I want to go if he’s not dealing with it? I’m telling you that your vision has to change. It’s a living moving object, guys. In your eyes, you’ve got to stop thinking about a couple of things. I’m going to go back to Logan, but I want to get this out there because it’s important. Who was in your network? All those people in your network is only about money. Did they lie? Did they talk about how great of a life they have?

Look deep and peel that onion back. A lot of people on social media are talking about how great their life is. They don’t have a wife or husband. Not that they don’t want to be married but their wife or husband might’ve left them. They don’t have kids or the kids aren’t around. They don’t have family around them. They’re only around if you talk about how much money you make or showing all the toys you have. Are they there for people that can’t make money off of? There are a lot of people that have been in my life where they can make money off me. They can be involved in my deals to make money. If they couldn’t make money off of me then I’m out there. I had this conversation with Warren. I said, “Even if you and I never did a deal, we’re great friends.” Logan, we haven’t done a deal yet, but we’re doing some stuff.

There’s a goal to build together.

We’re going to do stuff not because we’re going to make money. We’re going to buy product to make money and we’re aligned like that. We have the same vision. We have the same ethics and morals. I watch what you do, how you are with your family and friends, and how you give back. That’s why you’re a cohost with me on this show. There are a lot of people I can have as a cohost on the show but it’s like, “I don’t align with you. You’re out there hosting all this stuff and all this money you have, but that behind the scenes, I know the real you. I know that you’re not who you say you are. You’re not the person you say you are. You’re great when things are great.” If I’m in business with you, and there was a bumpy road, you’re going to be there. I know that for sure.

When I’m in business with some people and there’s a bumpy road, they start freaking out and cursing you out. You’re not a good guy anymore. They talk behind your back. I see that with people we all know together. That’s not the vision I want. That’s not who I want in my life. I can make millions of dollars with you but if you’re not the person I want in my life, it’s not about money. I’m driving this home so hard because everybody’s goals have to do with finances and health. Those are the two, finances and health, and things. I never see people talking about their why, their vision, what they want, and who they are.

Tim Bratz is one of the good guys out there in the multifamily world. He mentioned something about Sir Richard Branson. He got called and they said there was a company. You can check out Tim’s post. I might not have it right, but a company called up Sir Richard Branson and offered him $100,000 to come to speak at their event for 15 to 20 minutes. He could have got in there, spoke and be home in 1.5 hours on his private plane. They called back and he said, “We are not interested.” They called his staff back and they said, “We’ll offer Sir Richard Branson $250,000 and pay for all his expenses on his private jet to come here to speak for 15 to 20 minutes.”

He could have been home and got there. It was close to where he lives. He could have spoken for about 15 to 20 minutes. He could have been home at about 1.5 hours and made $250,000. He’s like, “Thanks, but no thanks.” They called back and said, “We’re going to offer $1 million. We’ll pay for all his expenses on his private jet, pilot, gas, and hangar. Have him drive over here in the limo and back. He’ll be home in 1.5 hours for $1 million to speak for 15 to 20 minutes.” He said, “No, thank you.” Long story short, $1 million meant nothing to him. Not because he’s Richard Branson, but because it wasn’t his vision to go and speak for $1 million for that organization for whatever reason it was. I’m shortening the story up a lot, but think about that. If I offered $1,000 to speak somewhere, would you speak?  

It depends on who the audience is and what we’re doing. There would be qualifying questions for it. It’s not just $1,000 and I’ll be there.

PTP 10 | Goal Setting

Goal Setting: Everybody’s goals have to do with finances and health. You never see people talking about their why, their vision, what they want and who they are.

You’re different than everybody else. That’s what I love about you because if I asked this question to almost anybody, “If I give you $100,000 to speak, would you speak?” You’ll find a reason for it.

“Give me the place and time, I’ll be there.” That’s usually the response.

I’m not sure if people will believe me now when I say this, but I would be the same way. If it was to come to speak for something you truly don’t believe in for 15, 20 minutes and I’ll pay you $1 million, I won’t do it. I will not put my name behind it.

On that point, I feel like I need to speak with some conviction. If I don’t believe in the groups that I’m talking to and the message that I’m providing, what am I doing here?

I’m not saying this for some woo-woo stuff. You’ll find true happiness in your life and all the money in the world. Money is great, but it’s an object that allows you to do amazing things for amazing people and amazing organizations if that’s what you choose. All the money in the world means absolutely nothing if you don’t have anyone to share that with. Maybe you don’t want to be married yet.

It doesn’t need to be a significant other. It can be a group of people. It can be something overseas or whatever it is.

When your spouse leaves you because of who you are, you wanted to be married. You need to check yourself at the door at that point. I’ve done it. I’m blessed. My wife and I are still together, thank God. I have amazing kids. They come home all the time. My daughter has her own house. She’s been over here now because she’s working from home. She wants to hang out with us.

I have that same conversation. I don’t want them to look back and say, “Dad was always working for another dollar.”

One of the things I do and probably the hardest thing I’ve ever done. If you are one of my students or in my inner circle group, you know this. One of the steps I make you take is I make you write your eulogy. I did it. To this day, it’s the hardest thing I’ve ever done. I tried to have my wife do it and she won’t do it. That’s how hard it is. I was crying. It took me so long to do it. It took me over a day to do it because I couldn’t finish it. I kept going back and I was like, “I have to have more stuff on it than this.”  

The problem was I didn’t. It will hit you. If you’re on here, write your eulogy. What would your wife get up and say something about you? What would your kids say about you? What would your niece and nephews say about you? What would your parents say about you? What would your friends say about you? If all you have in there is you’re a great guy that likes to have fun and has beautiful cars, watches, boats, this and that. It’s giving me goosebumps and I’m choking up a little bit. I’m saying this because it’s a new year. Before you get back into writing your goals for 2021, let’s go back on your life a little bit. Let’s go back on 2020. What have you done differently? Logan, I don’t know if your goal was having another kid.

It’s not going into the year.

You had another baby girl and she’s adorable. I had a grandson.

To hit on that quickly on. We’ve got a four-month-old, but I think back to my oldest who’s six. When she was a baby, I wasn’t there. I was focused on other things. I’m consciously thinking to lay on the ground and play with her. She’s not going to remember any of this but I’m able to slow things down now and not just chasing the dollar. It allowed me to enjoy the time with my new baby. It’s unfortunate that I didn’t get to do that same thing with my first but I am making a change and doing it now.

I love doing this a lot. We do it on Zoom anyway ourselves, so we still see each other. I’m watching your face while you’re saying that. When you said you became a millionaire, you didn’t even blink about it. It was like nothing. You’re talking about your baby, you are welling up in your eyes a little bit. That was awesome. You’re talking about your kids. Most people talk about being a millionaire and nice cars.

All the money in the world means absolutely nothing if you don't have anyone to share it with. Click To Tweet

I didn’t want to talk about it with the youth group on the weekend. It’s not important. It allowed me to do other things that I care about.

The lifestyle you have is awesome. Let’s go through the end of the year for you. This is the fourth quarter. That’s why the show is called Passive to Prosperous because to me, it should be called Prosperous.

It’s not always passive. You want it to be passive, but now it’s pretty active to prosperous. This quarter has been busy. In one of the episodes, we talked about the self-storage deal that fell apart on us, taking and thinking that was going to be my cashflow. That was going to kick me right out of corporate and move on. I had to pivot and I’m still driving hard on the note business marketing and talking to banks and all that stuff every month. I stumbled across the stuff that we have going on in Broken Bow. I had an experience where I was networking with key people and had this vision to bring everybody together, provide the same service that I received, and share that with everybody else interested in doing that. My goals have been to put together a new Facebook group out there to help people and share information. That’s what we have in the description is we own a cabin. We’re investors ourselves. We’ve been in real estate, but that’s the backstory. We’re going to give away everything that I’ve learned.

In my group, we’re going to do a whole breakdown of what Logan is talking about for free in my group. We’re not going to do it here because this is not what the show is about. I’ll post it here. If you’re in my group Become A Real Estate Investor With Dan Zitofsky, we’ll set up a show there. That was part of our conversation. Believe me, I riddled Logan hard.

That’s why I called you.

I thought he was going to hang up on me at a certain point because I was beating him up about it. I do that for a reason. As a mentor, I want to protect him. I want to make sure he’s doing things for himself and his family, not for any kind of money. He said, “I want to give the information about that.” There’s no scarcity in how he talks. There are many other people on social media who talk and may tell you, “I’m doing this and that.” When you ask a question, they are like, “If you pay me, I’ll tell you.” There is time to make money on mentorship. Logan gives stuff back. The reason he became a millionaire in 2020 is because of his content. Part of our mentorship was we talked about giving content. How do you raise money? Give content.  

That’s the biggest a-ha moment.

Do you go through raising private money costs?  

I did in 2019.

If you follow him, everything he does is content. He’s given a ton of content about tax. He’s not an accountant but he’s going through this and sharing what he’s doing. How I did it? It’s because I go through and share what I’m doing. I share to people in my network. I don’t call up and say, “Who’s lending you money?” I’m not going to banks or to my private lenders. That’s not what I’m talking about. I’m talking about if you need a contractor or you need to know if I’m buying. Logan put it out there. I was like, “I’m looking into short-term rentals.” Logan has gone through all the research and he’s just sharing what he’s doing. He puts it together because he’s the type of person he is. I’m going to open it up in my group. I’m not going to tell you to invest or not invest in these.

That is not what it’s about.

He’s not the builder, realtor, or property manager himself, but he’s sharing what helped him and his family. That’s living in non-scarcity. Those people will not live in that kind of mindset. When I talk about mindset, I talk about limiting beliefs. You have limiting beliefs that you can’t be successful. You live in scarcity where you think that there’s competition out there, so you can’t share with people. When we do the group event, we’re going to talk about the scarcity mindset that some people in that community are living in. Logan has gone through some headaches out there.  

That’s not what this is about, but we will share that in the group. Once again, if you’re not in the group, jump in the group. I’m sure a lot of people here are already in our group. It’s a free group, Become A Real Estate Investor With Dan Zitofsky. In that group, we’ll show everything what Logan is doing. Logan will share his group with you, guys. It’s not a paid group. He’ll let you in his group as well, but he’s going to open up the books and show you everything. You can have knowledge. Knowledge is power. You don’t have to invest.

That’s the only thing. I want to put it all out there and then let you make the decision that’s best for you and your family.

PTP 10 | Goal Setting

Goal Setting: If you have limiting beliefs, you can’t be successful. You live in scarcity where you think that there’s competition out there and you can’t share with people.

 

People are putting information out there about what you should see, so you should invest and they can make money. That’s a little different. That doesn’t go far because what happens is you jump onto the next thing next week, next month, and a little bit more about. Are there any other things you’ve been doing for the fourth quarter?  

We are continuing the same marketing efforts with the note business. It’s a little slow right now, but that’s giving where we are with a lot of the moratoriums and things like that. We’ll keep pounding that. That’s another stream for us. I’m passionate about it. I enjoy being able to help out. We’ve got a performing note right now that the borrower lost the home to divorce. He’s been fighting over it for years. Finally, we’re able to mod it and get them back in. I get a call once every two months saying, “Thank you.”

I know we spoke about this in some mentorship, but was it one of the core values that you reached with that?  

The core value in the note business for us is being able to provide assistance to a homeowner that has experienced financial difficulty and having options. For most of these people, it’s their last leg. The loans changed hands multiple times. They’d been through multiple debt collectors. I don’t personally call them but when they get a call from my group, it’s not about, “Where’s my money?” It’s, “What do you need to keep the home?”

You make a profit doing so, correct?  

Yes. That’s why I’m in business. Don’t get me wrong, but the first option is, what can we do to help you? If it’s nothing and you want to walk away, then how do we help you walk away? If it is, “I want to stay in the home and I want to get caught up. What can you do for me?” We throw those some stuff on my page, we talk about it with the borrower and say, “We’ve got a plan.” It doesn’t always work out, but that’s our first goal, how can we help you?

Part of your mission statement is helping homeowners stay in their home while making a profit doing so. I’m bringing that up because there’s nothing wrong with making a profit. Are you making a profit by screwing people over? Are you selling life insurance to somebody who can’t even afford to pay for food right now? What is your mission statement? Once again, that is something I hold near and dear to my heart. I have my mission statement right behind me and all my walls. I’ve got a mission statement laminated.

It’s eight bullet points. It talks about I play full out. I’m going to be honest. I’m going to be the best I could be. I go through my mission statement in my groups and stuff like that, but you should have a mission statement if you have a company because I don’t just do it. In fact, I like working with business owners and non-real estate investors. I like those people in my inner circle because they bring a different facet to the group that I talk about. We help them with people, processes, systems, and culture in their organizations. That has nothing to do with real estate. That’s important that you have it when you work with business owners.

I worked with some dentists out there and consulting them. I’ve worked with contractors and big tile company. When you work with them, the biggest thing we were talking about, the first layer is, what kind of culture do you have? If you’re following Jay Doran, he’s all about culture. He’s spot on. If you don’t have a culture, nothing else matters. It’s like your foundation. The three pillars I talk about are your people, your processes, and your systems. If you don’t have the right people, processes, and systems in any business, it’s like a three-legged table, it’s going to fall down. Those are the important things we talk about. Your mission statement and the company falls into usually the culture.  

If everyone doesn’t buy-in, it’s not going to work. Fourth quarter is important because you have to adjust. For me, the fourth quarter is usually things I want to fix for next year. A lot of times I have these problems. This problem is going on now. I want to fix them and get them better for next year. What was that like? Maybe that’s the wrong person, wrong process, or wrong system I want to fix. To me, the biggest part of my fourth quarter is always taxes. I try to plan all year long, tax planning in the fourth quarter. What happened to me? I just say, “Your plan got lapsed.” I’m a big note holder. I’m in note space and rental space, single-family rentals mostly. I don’t even have any multifamily rentals now. It was just single-family rentals.

You have to watch your portfolio. People hum along all the time with the notes. They pay and every once in a while, one gets paid off. Generally, I don’t have any that don’t pay because I originate them. They have solid finance through investors. I have the skin in the game. They have equity. They’re performing. If they don’t perform, they get fixed, then they stop performing. For them, they’re not going to give up a property for a $400 or $500 payment when they do $20,000, $30,000 on a deal. I had one investor that we’ve worked with for a while. One time, he did a 1031 exchange and he bought fourteen properties from us. He was paying along and with the rates so low. He turned around and says, “We’re going to refi out.” I was like, “No problem.” I thought he’s going to refi one at a time. I got a payment for over $400,000. That is capital gains on me and I did not expect it. I was planning on. Most people would love to get a check for over $460,000 at one time.

There are consequences for that.

I’m always telling you this. I got slammed when I talked to my accountant. I always have two meetings a year with my accountant before taxes are due and we were planning. What does it look like? What do we get going on? Are there any changes? Are we hovering around the same net? We don’t flip stuff. We have rentals to sell finance notes. It’s cool. Our taxes are hovering along. We have our solo 401(k)s. My daughter is on the payroll. She works for us. She does the work. We have our health savings account. My wife and I are on payroll. We’re the only people on the payroll for our company. We have our company vehicles. We have a business percentage and a personal percentage. We’re doing everything you could possibly do, but you don’t expect that $460,000 hit. It’s money in our account. It’s net to us. People out there that are putting these paid checks out there, this is a hit. It’s like, “What in the world do we do?”  

It came at the end of November. We didn’t expect it because everybody is going to refi. I thought it’s one at a time, no big deal, then my servicing account hit me with this payoff. I was like, “What in the world do I do?” I hit my accountant. He’s like, “You’re going to pay some taxes on this.” I’ve scrambled. I am always scrambled because I don’t want to invest in the wrong place. I have to find a good investment, which I believe I found. Now I have to do accelerated depreciation on it. You have to look at costs like projects. That wasn’t in my plan for the fourth quarter, but I’m not complaining. When you plan and got those lapses, you have to be ready for that. It seems like taxes are always in my fourth quarter. If you looked at my driveway, it’s not I’m buying vehicles because I talk about how I don’t spend my money much on cars, boats, or watches anymore. I still have them.  

There’s nothing wrong with making a profit as long as you’re not doing it by screwing people over. Click To Tweet

You do save on taxes.

My garage looks like a new car dealership because every year, I get a new car and truck. It should be over 6,000 pounds. It’s got to be a company vehicle, but those are the planning we do. Who can we pay in advance? We have a funnel system. We pay them a year in advance. Who can we pay off this year? Who could we hold until next year?

It’s all strategic.

That’s my fourth quarter planning. I wanted to give you a little bit. I didn’t want to talk about planning. I want to talk about the fourth-quarter plan, what we do, and then goals for next year. This is such an important show that I hope you guys read to the end. For me, I have my vision sitting out here. My business and my personal vision. I go through them and I start making changes. I go to my computer. It’s a Word document. I constantly update it and make changes. It’s a living and breathing item. I focused on my vision. What do I want to do in 2021? How do I want to make a difference in this? How do I want to leave a legacy? Don’t just say that. That’s BS. People are like, “How do I leave a legacy?” I did it the other day in North Carolina with the bell on, I’m like, “Don’t BS me. Tell me the truth.” He took it back because what he was saying was surface BS.  

Get below the surface and be honest with yourself. If you tell me you want to leave a legacy, what does that mean? I’m on a soul search for what does legacy means. That’s huge. Some of the things I wanted to do is a mission trip to Haiti. I’m not going to do it because of what’s going on in travel. I don’t want to go through that now because I don’t want to put other people at risk. I believe what other people believe, but I am not going to go and do it right now.  

I’m still going to do financial, but I got to the point where I was getting sick of the financial part of it. I wanted to see out selfishly. I wanted to go there. I wanted to see people’s faces. I wanted to be part of it. I wanted to help build something. I wanted to play with the families out there. I wanted to make a lot of difference in their lives. We could all do that. Why don’t we do it? When you look into giving $50 to some organization changing your life, it could be. I’m not going to say what works for you works for me, but there are certain things for me in 2021 that I’m looking to make a difference in.  

It’s my legacy. I’m not going to go through all my goals because I don’t even do goal setting until December 26th to January 2nd. I’m hoping to drive out to Florida in 2021, sit on a beach with my family, relax, and get into warm weather. If everything is quarantined, I would rather be quarantined on the beach. That’s where I sit. I take time for myself then I come up with my goals for 2021. How do you do this? Do you have any goals in mind yet that you’re thinking about?

For me, goal setting became a priority years ago. It became a trend. At that time, it was transactional. It was like, “I’m going to do X amount of deals,” but again, “Why am I doing X amount of deals?” It’s shifted. My goals now are more around how and who do I want to spend my time with? At this point, I have full confidence that the money will follow. That’s my mindset when I talk about sharing. One of my goals is in the new Facebook group, I want to make a post every day about something relevant, something new that people can take. Maybe only one person in the entire group got something out of the post.

Why do you want to put out content every day?

I want to give back everything that I’ve learned over these years. I’ve paid a lot of money to learn this stuff. I know that a lot of people don’t have the means to do that. I want to give back what I’ve learned because it will help accelerate other people in their growth and whatever path that they’re trying to go down. I can give back free information or point them to the expert in the field to get them in whatever goal they’re trying to reach, whether helping somebody on their credit. I’m not saying I’m a credit repair expert, but there are some things that I’ve learned in credit optimization, 2 to 3 things that people aren’t taught.

If you get those, that takes you to the next step and that leads you down some other path. That’s one of the big ones with the group. I’ve got a big goal here in Q1 coming up. We’re transitioning into full-time for myself and helping another individual grow his business. As I said, I’m not his employee. I’m working with him, not working for him. We have the same type of vision, alignment, and stuff. We were sitting up in Broken Bow, Oklahoma having a beer and pizza. He asked me the same question, “Why are you doing all this?” He wanted to make sure that I was the guy that he wanted to partner with.

We’ve had multiple calls. We’ve done personality indexes. We’re trying to identify that we’re going to be the right partnership. We’ve known each other for years. We have a good candid relationship, but business is a little bit different. We want to make sure that we’re the right fit for each other. We strongly believe that we are, so that’ll be a new venture for me. We’re calling it a business development role, but it’s more about sharing his vision that he believes that they’re the number one property manager, investor-friendly here in the DFW market. If you believe that, I believe that. Let’s go out and make it happen. That’s another thing that we’ve got going on for 2021. For me, I moved away from this transactional goal setting and into these higher-level goals. It takes me a bit to figure out what steps we need to do to get there. I’m more of a vision way out in the clouds, and then I slowly walk it back to say, “What can I do today to get one step closer to that goal?”

You said you’re a visionary up here and then you figure out the engineering on how to do it. That’s the whole Imagineering movie with Disney. Everybody should be watching that. The biggest thing is you have to figure out what you are. Are you a visionary? Are you an engineer? Are you an implementer? I’m a visionary. My problem is I used to always say, “This is my vision. I can’t do it because of these reasons.” I would always throw that in there.  

It makes it easy when you don’t hit the goal to say, “I knew I wasn’t going to hit it.”

PTP 10 | Goal Setting

Goal Setting: We all want to leave a legacy in some way, but what does that mean? It starts with goals, vision, actions, and then getting after it.

 

You go in there and you say, “This is my vision. I want to help. I want to partner with a property management company and make it the best company. I’m going to blow it up. I’m not going to worry about he doesn’t have internet. He doesn’t have an office. They don’t have staff in place. That’s what we all do. We sabotage ourselves. They come up with, “This is what I want. This is my vision, but I’m not allowed to do it.” If you watch the story, Disney would say that if you have the visionary and the engineer talk to each other, they were fired. It’s because a visionary will have the vision that they can do this and engineer will tell them all the reasons why you can’t.  

There are engineers on this but you are the hardest to work with. You’ll come up with whatever reason why we can’t. It’s like negativity in this business. How many people want to have what you have? I’m not talking about a thing. I’m talking about the life you have, but they won’t do what it takes to get what you have. They won’t take six years of our life and stay focused. Even though you have a full-time job, you have three young kids, and you have a wife. They won’t do what I’ve done in my life to get there. If we talk about it in the inner circle. They want to know everything you do in your business but they won’t invest in themselves or they want to learn how to raise private money.  

They want to invest in mentorship. They’ll ask you a million questions, but if you think I can answer a question for you in 30 seconds, and you’re going to be able to raise millions of dollars like Logan has learned how to raise from working with us. It doesn’t work that way. If you don’t stay laser-focused and you give up right away, your business is going to give up right away. You said that about the visionary. You didn’t even mention like, “We haven’t even thought about what systems are in place.” Who gives a crap?

I don’t need to know why I can’t do them. We’ll figure it out.

At that point, hire those people that are geniuses who are your best implementer. You talked about taking your personality tests or your DISC tests. That’s out there. I believe that is good, but you get in there and you realize, I’m a visionary. I need an implementer in there. I need an engineer in there. You don’t worry about that.

It came out that I’m a strong delegator.

Those are most visionaries. Your visionaries are your CEOs of companies. Your COOs are your implementers. That’s generally how it should be. You’re a good CEO. I remember one company that I was consulting with. I was sitting with the CEO and he says, “Who should we hire?” I said, “I’m not looking for a job now, but essentially you should hire somebody just like me.” You are a COO. You’re not a CEO. You’re in-charge of programming. You’re writing code. You’re not the CEO of a company. You’re the COO or you’re the CTO, but you need somebody who’s a visionary. You need somebody who will implement. That’s great goal setting. Is there anything else or final words you have for people?

Talk with your significant others. Talk with friends that support you and see if you can pull something out of them from a goal-setting, visionary piece. If you’re not the visionary, have a truly honest conversation with some other. Get below that surface level of I want to leave a legacy. We all want to leave a legacy in some way, but what does that mean? What are you doing to make that happen? It starts with goals, vision, actions, and then getting after it. It’s a journey and that’s one of the biggest things that my mentor and business partner, and the property management owner. What’s fun about all this is the journey. If we look back and we talk about all the things that went wrong or were positive where we made money, where we lost money, it’s built us up to where we are now. Don’t ever lose sight of where you’ve been and what you’ve been doing, but don’t also sit back and think things are going to fall in your lap.

You said something about the legacy. Don’t just write, “I’m going to build the legacy.” That’s horse crap. Start peeling that on your back. What is the legacy? Why do you want to build a legacy? I want to know from you why you want to build a legacy?” Don’t just say, “I want to leave something.” That’s all crap. You have to take this seriously. Everyone talks about goal setting. That’s like an action that they don’t take seriously. It’s like, “I have to goal set at the end of the year. I have to set my resolutions.” If you want to lose weight, lose weight when you want to lose weight. Don’t do it because it’s a new year.  

Why do you want to lose weight? Is it because you want to be healthy? Is it because you want to be there for your kids, your grandkids? Is it because you want to be able to run? Unless you do that, you’ll never fulfill your goals, you’ll never have a journey, or you’ll never have a street map to get it to those goals. If you moved to a new area, and you want to go to a park, and you don’t know how to get there, you’re putting your navigation. It tells you how to get there. Do these things with your life.

With that, guys, this was an amazing show. We could talk for another two hours on this. From the show, we have many different topics we’re going to be talking about. Once again, please share this show. We’d love a five-star review. If you love what you got, share it with at least five friends. If we made a difference in your life, give us that review. If it’s not a five-star, we’d love to know why so we can do better. If you’re not in our group, jump in the group on Facebook, Become A Real Estate Investor With Dan Zitofsky. We’ll be doing a show in there and an educational show with Logan. I’m not going to put it in here. If you’re in that group, it’s a free group. You don’t have to pay. Logan is going to give more in there. He’s going to open up the books and share everything he’s doing with his journey, and we’ll go from there. Thank you so much for being on here. I wish you guys all the best. Hopefully, we’ll see you soon. Take care.  

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PTP 11 | Leaving Corporate America

Leaving Your Corporate America Job To Live Your Dreams

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PTP 11 | Leaving Corporate America

 

We can only take so much from the 9-to-5 grind of corporate life. Humans as we are, we long to live a life fulfilling our dreams and self-actualize. But how do you move out of that daily working cycle into a happier and healthier life? In this episode, learn from Dan Zitofsky and co-host Logan Hassinger on what it takes to reach your goals and live your dreams. Hear from Logan as he reached his goal of leaving his corporate America job and breaking free of the Golden Handcuffs for something so much better. This is an episode you won’t want to miss.

Listen to the podcast here:

Leaving Your Corporate America Job To Live Your Dreams

A lot of things have happened, and we’ve taken a few weeks off hiatus. We’ll talk about a reason why there’s some good stuff that has happened in Logan’s life here. I’m blessed that you have given us your time to read. We love that we could put some stuff out there to help you out on your journey to creating that passive prosperous lifestyle. If you like what you read, share this out with at least five friends. We’re not doing anything, not running ads, not making any money on this. It’s just so we can bring value to you. To do that, you’ve got to share it out there. If you like us, give us that five-star review, leave comments. If you don’t like us, let us know what it is that you don’t like about us. We’ll be glad to look at it and we’ll move on.

We’re going to talk about being intentional with dealing with asset managers, dealing with sellers and how to build a business because that’s what I see a lot in the industry. I see a lot of people that are floundering out there. They don’t know how to build that business where asset managers come to you. Let’s first talk about some good stuff that’s happened in your life, where you’re at and then we’ll get into it.

The day finally came to where I got to fire myself at work. That was a good day. I’d have done it in 2020 but mentally, I wasn’t ready. Talking with you and multiple people that I’ve looked up to from mentors and other friends that are working full-time in their businesses, it got to a point where it’s either now or never. Things happen. I put the notice on the 12th and that was it. Now I’ve got Cobra insurance, which is through the roof and for now, we are hitting the ground running with 3 or 4 different things to diversify the income stream and keep things going. We always talk about what the universe does or God’s plan. For me, that Monday was the Texas Snowpocalypse and I threw that week to the wind, got a few things down but kids wanted to go sledding. They haven’t seen snow since they were born. I got a 7 and 5-year-old and they’re ready to go do that. We did that every day. It felt like a vacation more than being not working.

Do you think, in general, your boss says, “Screw you, Logan, you don’t want to work?”

He challenged me. That was an interesting week to hit the ground running with everything going with what we have. Right after that, I had friends texted me like, “I think you need to talk to this person.” I shared on Facebook that it had been a big buildup for me to get to this point and business leads coming in from left and right. I’m overwhelmed with the fact that people cared, that they were looking to help me out anyway that they thought they could.

People are looking to help you out there. Did you have the opposite spectrum of some friends, family, maybe even coworkers think you were absolutely nuts for what you were doing?

I had a couple. I’d been with the company for almost four years at that point. I made my rounds that week with key people that I wanted to share that I was heading out. They already knew that I was leaving but I want to give them more background to what it was because it’s always hearsay until you hear it from the horse’s mouth. I was sharing with a couple of people and some of them were looked at me with, “Good luck.” They weren’t sure how to respond. In retrospect, I’m looking at these people like, “Why am I crazy? I think you’re crazy.” They only know one. They’re tied to that corporate world.

For me to say, “I’m going to go out and do my own thing,” is like, “You’re crazy.” Friends and family have all been very supportive. My close group all know that I’ve been working hard to get to this point. I haven’t had any negative feedback yet. I posted that infographic about happiness and money. One of my good friends out in California, Jason Graves, was like, “At a certain point, some people do start to resent you.” I was like, “Hopefully, I don’t get to that point but it’s natural.”

Other than your close friends that you grew up with but you’ll find when you do this some people will think you’re braggadocious, pompous and you’ll stop to find your network. If you haven’t already seen it, you’ll still have to find your network of acquaintances. I’m careful about calling people friends. Your acquaintances stopped changing because they don’t understand you. You feel like when you hang out with them, I have to be really careful with saying this but you’re lowering what you’re expecting yourself.

I know where you’re headed with it.

PTP 11 | Leaving Corporate America

Leaving Corporate America: Working in corporate America, you get into a wheel that just never stops spinning until you most likely crash.

 

You know more about these high-level things because you don’t want to feel like to me, when people like, “I have to go to work. I can’t go to this. What are you doing?” I’m like, “I’m going to the beach for the summer.” I feel like I’m not happy for certain people.

Me and my buddy planned a trip to Alabama for the week of June 6, 2020. We were in Broken Bow for most of the week. I’ve got my laptop. I’ve got Wi-Fi. The majority of my job I can do on the road, on the phone. From the outside looking in, people see that, “He’s always over here. He’s always doing this.” I’m trying to do my best not to portray this idea that, “I’m rich. I’m wealthy. I don’t even need jobs. I don’t need this.” I’m working my tail off behind the scenes. I get to hang out in a cabin while I’m doing it, but that doesn’t change what I have to work for here. I’ve told multiple people, “I’m working harder and more hours than I ever have trying to get things rolling to get to a steady-state,” because I want to be done with my day by 1:00, pick my daughter up at 2:30, do spelling words, reading with her when she gets home, do dinner and we got soccer practice. Those are the things that I want to be involved in. I got The Intention Journal from BiggerPockets to help keep me focused.

We talked about doing our shows and when we’re going to schedule them again. You said, “What time you want to do?” I said, “I don’t do anything before 11:00 because of the way I do it.” Now is one day against that because I do have some stuff. I have planned all throughout one of those days. Generally, my plan is I wake up whenever I want now. I don’t believe in the grind anymore. I did but you have to do that in the beginning.

You have to grow. For me, because I got to the point where I don’t have to do it, if I wake up whenever I want, it means 7:30 to 8:30 in the morning. I don’t set the alarm clock. I go downstairs, hang out with my wife, have a cup of coffee with her. I chill out while she’s watching TV. I’ll see my daughter off to school. I dick around a little bit in the house. At 9:30 or 10:00, I’ll go to the gym. I’ll spend 1 and 1.5-hour there. I want to be ready for the day. I don’t want to have anything set before the alarm clock. The one thing I failed in life is taking care of my health. Ever since I got out of the police department and came out here, I wasn’t working out. I wasn’t eating.

Mental and physical health is underrated when it comes to business and wanting to get something going. It can take a side burner.

Especially where you’re at, you left, you are grinding. A lot of people start grinding and get up at 4:00 or 5:00 in the morning, trying to go to the gym or work. They’ll work throughout the day, cut a couple of times here and there, and have to spend time with the family and then work until 1:00 or 2:00 in the morning, and they’re grinding. The problem is when you do that, you screw up your body. You have to be in this harmonious state throughout where you are taking care of your business because we all forget about everything else. We take care of our business, forget about our family. Take care of business, forget about our physical health. We take care of our business, forget about our mental health. What’s the sense at that point? You left your job because you want to have the time to do what, when and with whom I want.

Now, the business controls you.

You left one job for another job, with a lot more responsibility with your own job.

You get into a wheel that never stops spinning until you most likely crash. Either externally or internally something’s going to tell you, “You can’t do this anymore.”

No matter how successful you are with money, if you're not there for your family, then it’s for nothing. Click To Tweet

That’s the problem that we all face. That’s why putting out the show is important if people read it because they’re getting golden nuggets from someone like me, who basically I left any job. The last job I had was in 2012, Corporate America. Even before that, I was making a decent amount of money. I had to pull that string of leaving Corporate America. I did it a couple of times and kept going back because I was chasing the money. It was all about the opportunity. When I left, the only you’ll find is when you first get into this business like you did many years ago, you hung around with very powerful people.

You walked into a room and felt like an idiot. Now you leave and now you’re that powerful person because you’re a success story. You increased your side hustle to make more than your main hustle. It’s giving you the lifestyle everyone else dreams of. Now you find that you went from the least knowledgeable person to the most knowledgeable person. Now you got to up your game. You’ve got to start hanging out with people way more powerful than you because you don’t want to be that most powerful person unless you have an ego, which I know you don’t have an ego. If you have an ego you want to be working where you work, you can sit back and relax.

Things change. That’s why it’s important to hang around people always more powerful than you. I don’t say powerful like money is powerful but I use that as a term. I don’t say success because it is about money but I call it, I could be the dumbest person in the room because I like to constantly challenge myself. Not that I have to grind more but I do it from my mind. My mindset is like, “That guy or that girl is doing this or that. That’s powerful.” I don’t have a jealous bone in my body, but I enamor people that got to a level or by smart decisions or by solving problems that I was never able to get to.

That’s important because I’m perfectly happy where I’m at. You’re never completely 100% satisfied but I’m happy where I got to and I don’t have to do what everybody else does. That’s that used to be me. That’s not me anymore. Because somebody got a private plane, I don’t need to have that private plane. I know what I want. My get-go is spending time at the beach or on my boat with my family and friends or traveling. I know 100% what I want in life. I have it. I want to keep continuing to do it. I enjoy the business, helping people, mentoring people, doing deals. Certain types of deals, deals that are going to drive me insane and stress me out to no end.

I don’t want to work with people. We got deep into this but I’m glad we did this because there should be a challenge shown by itself is if you were leaving your job and starting somewhere else because many people want to do that. It’s important how do you do it? What was your mindset? What was your plan? How do you accomplish it? How’d you stick to it? Did you do it in the timeframe that you planned on doing it? There are many people who have this dream and throw it out there. I remember vividly years ago when I met you and you told me, “I want to quit my 9:00 to 5:00,” when you were starting out. Most people say that but most people don’t have what it takes to do it. I shouldn’t say they don’t have it. They have it but they’re not willing to do it.

There are going to be some sacrifices along the way. I’ve made some bad choices when it came to sacrifices. Now I feel like I’m trying to go back and mend some of those strictly from the family perspective. When I talked about it, I was like, “Do you think I’m more present?” She was like, “Absolutely.” I was like, “I need to know.”

No matter how successful you all with money, if you’re not there for your family. I do this with students I have. It gets a little more bit in life but I always say, “The hardest thing I ever did in my life was to write my own eulogy.” Write your eulogy as your family and friends would say about you. What would they say? When I did it back in the day before I made the switch, I started crying when I wrote it. I tried to make my wife write it. She wouldn’t even write it. That’s how hard it is. She’s always been present.

I wrote it and I couldn’t come up with much of anything. It ultimately came down to a phenomenal provider. Tell us a little bit about your journey from when you started. We’re going to stay on this topic for the show because this is important and all the topic window, we’ll do a separate show on because I don’t want to skim over this. This is one of the more important things that entrepreneurs out that are already getting started. You can see it. I did this a long time ago. Now I’ve already many years out of Corporate America. I’ve been investing for 30 years. You’re out of it.

Ten days and investing for seven.

PTP 11 | Leaving Corporate America

Leaving Corporate America: You got to start hanging out with people way more powerful than you because you don’t want to be that most powerful person in the room.

 

When did you realize Corporate America wasn’t for you? This wasn’t going to be a side hustle anymore.

I never had a side hustle through my first three years of corporate. Most people know my story by now. I was going into Dallas and riding a train, taking an hour in and an hour back, picked up a book, Rich Dad Poor Dad, opened my eyes to there’s other stuff out there. I was like, “This wasn’t taught.” I jumped into real estate in 2013. In 2014, I did a side hustle that’ll hopefully replace my corporate income, but I don’t know when. At that time, I was in two years and trying to leverage to the hills and do everything I could to own rental property. I thought I was going to get to $50,000 to $100,000 and get to this point of income is more than enough to do what we want to do. I quickly learned that’s not the most scalable.

That’s when from an equity standpoint, I sold the properties and jumped into the notes space. I was looking for something more scalable. I knew that to get where I want to be, the corporate jobs are going to have to remain, but I’ve got to have something that I can grow that I don’t have to be hands-on every day, every week. I found notes and realized, “This is the next step to leaving the corporate role.” I sit now because of notes, rental properties, flipping houses, but a note is what got me from a mental hurdle. I went from nothing.

I cleaned out the garage. I had our first application for our first home. I was $60,000 or $70,000 in debt. I had no assets while we were using my wife’s saved money from everything to use it as a down payment. I went from negative to where I am now, which is a lot more positive. I’ve been on this journey of net worth-focused and passive income-focused to say, “It’s accelerating. It’s not a slow curve. It’s like taking steps up. I don’t want to leave corporate to either stall out or maybe even go down because I need some of that net worth to live.”

What I finally grasped was I’ve had multiple people telling me, “You may have to take a step back to jump onto some type of springboard figuratively and fly up.” That’s where I finally said, “Net worth is important to me but it’s not going to be the driving.” Aligning with the vision side of it is, “My number goes down and so?” That was my hurdle and all those small details of logging my expenses. I’ve got a budget on my phone and track it all with an app that I use but making sure that I had everything in line, insurance because my wife is diabetic, I’ve got three girls.

Insurance is in play for me. I’m not single. I can say, “I’m good. I’ll pay for things when they come.” I got that squared away. That was a big issue for my wife as she’s not accustomed to not having corporate insurance. We got Cobra Insurance for now, which I keep the same benefits that I enjoyed in my company. I’ve already shopped around with an insurance broker with a couple of ones you gave me and a couple of others. They’re giving me ideas and ways to structure the plan. There’s a lot of underneath things that have been happening in order to get me comfortable with finally saying, “I’m ready to go.”

I texted my boss the day I gave my notice because I was working from home that day. He had known that it was coming. We talked about it in lofty ideas. When I finally texted, he’s like, “I don’t believe you.” I said, “I’ll send an email.” I send an email. He responded back, “Sorry. I don’t believe it. You’ve been talking like this for a year.” I said, “I’ll email the president. I don’t care who the president of the company. We’ll make it happen.” He was like, “Let’s talk about this. What are you doing?”

For three years for you, since I’ve been telling you, it’s been six years for my family that I’ve been telling them. It’s been a year for my boss that I’ve been telling him. I was in my car, leaving the gym, the day before I put my notice in. It all hit me. The path that I’ve been on, the sacrifices that I’ve made, the successes that I’ve had, everything. I sat there for about 5 to 10 minutes and stared at the steering wheel. I looked outside, cried and like, “It’s finally here.”

When we take care of our business, we forget about our family, physical health, and mental health. Click To Tweet

When you left the gym, were you planning on putting your notice in?

Yes, that Friday. That Thursday night, I don’t get too overwhelmed with stuff but that one was an odd feeling. It was a good feeling. Everything hit me at once and I was in a tear. It’s time to work, though.

I remember when I left the police department, it was like that as well. After 9/11, I had my mortgage brokerage business. I know it was the best thing. This is back in 2002. I wasn’t planning on leaving that quick but after 9/11, I was done. I said, “I’m out of here. I can’t do this anymore.” I wanted to leave. They weren’t letting people leave. It opened up and I could have left. Something happened. It was a day I was at work and I don’t remember what happened. It was like, “What in the world am I doing here?” I think they switched my tour, mandated overtime for me. I had my mortgage company at the time. I was very successful in the mortgage business.

They switched my tour. I had to have my assistant reschedule my meetings and some people were upset. I’m like, “I make more money, one mortgage and I make it a week as a police officer.” We were at work. I remember I told the lieutenant that day, “I’m going to take a half-day vacation. I’m going to head home.” I got changed. When I was leaving, I walked out the precinct and I said, “I have a feeling I’m not coming back on our ties. I think I’m done.” I got in my car, called my wife, I didn’t wait until I got home.

I said, “I’m done. I’m leaving.” She was like, “What’s the matter?” I said, “No. I’m done.” I hit my car. It was so clear. From the time I was walking out of the precinct until the time I got to my car, I was unsure. I was clear by the time I hit my car, I walked in my car. I felt the weight off my shoulders because I was like, “I’ll never have to do this again.” I knew I didn’t have to put the gun belt on again. I knew I didn’t have to be out there again. I knew I didn’t have to be shot. I knew I didn’t have to deal with people that hit us. It went from a miserable life. I was making enough money. It was the golden handcuffs, the benefits, the pension.

That’s what can draw you in.

I was on that promotion path to moving up the ranks quick there. I said to my wife, “I’m done. I’m going to go to 1 Police Plaza and I’m retiring.” She’s like, “Come home. I don’t know what is going on.” I always talked about it. I was like, “I’m not going to stay twenty years. I’m going to do this. I’m going to do that. I’m making enough money so I can leave.” It’s like that. That’s why I was asking you what led up. You had more of a plan. I knew at one point I was going to leave but it was a theory until that one day. I did six years. I said to myself, “If I would have done it in ten years, I would have had to do twenty because now I’ve got to get the full path.”

You’ve put too much time into not walking away.

I didn’t want to commit myself because once you do that, now you committed yourself. I don’t want to commit myself more because then I would like, “Now I’m stupid to give up that full pension.” For only ten years, I got a full pension for the rest of my life. I have to say. I said, “The sooner I could leave, the less I’m leaving on the table.” That’s what happens. That’s why I was asking you if you knew you had more of a plan. I didn’t have it. It hit me like that.

I don’t want to say miserable but for two years, I wasn’t happy. I still had to work two weeks after I put my notice in. That Monday I came in, my boss says I strolled in, shoulders down, hanging out, talking, drinking coffee. I’m still working but he was like, “It’s not fair. I’m going to watch you do this for two weeks.” I had a plan. That plan had changed. When I first put the plan together, I thought it was two years and it turned out to be six from 2013 to 2014. About 6 or 7 years is how long it took me. Looking back at it, it felt like it flew by but he’s going through it.

PTP 11 | Leaving Corporate America

Leaving Corporate America: There’s right or wrong in corporate America. You have to live somebody else’s plan.

 

You always stayed focused, which was good. You have a plan and got laughs. That’s always going to happen, but you stayed laser-focused. You know what you wanted. You had a lot of setbacks.

I changed jobs a couple of times with setbacks. It’s natural. I felt lost through the seven years. At some points, I felt like I was ahead of the game. Now I sit where my schedule is and get it done.

That’s my hashtag, #LifestyleByDesign. It doesn’t have to be what your neighbor next door does. You have a lifestyle by design that works for you. Part of your lifestyle that you’re not going to waver from that is, “I want to eat dinner with my family. I want to take my daughter to soccer practice. I want to drive my kids to school or to the bus stop or be with them.” Whatever it might be, there’s no right or wrong but it’s your plan. In Corporate America, there’s right or wrong. You have to live somebody else’s plan in any job you have. There’s nothing wrong with it but if that’s not your plan, why aren’t you making a plan? I work in reverse. “What do I want to do? I want to leave my job.”

It doesn’t have to real estate-focused. Your plan doesn’t have to be centered around real estate. I hope that you and I do a good job of talking about business in general whether you want to go put together a flower shop or a bakery or whatever it is, have a plan.

The plan is important and I work it backward because a lot of people tell me like, “Why are you doing this book?” “Because I hate my job. I want to leave it.” “What do you need to leave your job? How much money you need?” This is the biggest thing, in your journey ask people this because then they’ll say, “I want to leave my job too.” “How much money do you need to leave the job?” I can guarantee you this. They’re never going to have an exact number because they don’t have money. “I need at least $10,000 a month.” I live a pretty nice lifestyle, and I can get away with my lifestyle $3,000 to $4,000 a month. I could live a good lifestyle at $34,000 a month. I live a pretty elaborate lifestyle now. I do what I want, anytime I want. I don’t say this to impress you. It’s the press upon you. I don’t look at prices when I go to dinner.

Do you want this? Do you want that? You don’t have to think twice about it.

I don’t have golf courses or planes, but that’s what I want to do. I never want to have to worry about it, I never want to have to tell my wife, “You can’t spend money. If you want to go shopping, you want to buy yourself clothes, buy.” I’m blessed that she’s not a big spender. If she wants to go buy an outfit for $100 to $200, “Go ahead and enjoy it. You deserve it.” That’s the life I want to live. If I had to break it down and hated my job. If you look at what you need, I showed this to people. $3,000 to $4,000 a month and you can look a pretty good life.

My number was $4,010, bare minimum.

If you show me that, I would know you had a plan. If you brought any $10,000 to $20,000 a month, you have no plan. You’ll never leave the job.

There are other things I could cut out. There’s the gym membership. There are other things that I can go work out in my front yard and a backyard garage. The number could come down even further but I knew what I needed.

I had this with a student I was mentoring. It was life coaching for him. I was with him for a couple of years. His biggest thing when he first started is he wants to take a vacation with his family and go camping through these different parks at the time. It was a big trip. It was going to cost them over $10,000 to do this trip. He’s going to rent an RV. You go around all these different parks and go camping with his kids. he had no money. He had next to nothing. He was struggling. I said, “When’s the last time you went on vacation?” He hasn’t gone on a vacation in years.

Mental and physical health is underrated when it comes to business and wanting to get something going. Click To Tweet

I told him, “Why don’t you do this? Why don’t you plan on a day? Go out, get a tent, go in your backyard.” He thought I was nuts. He did it three days, Friday and Saturday night. He didn’t come inside. He’d lived in a rural area. They spent from Friday to Sunday and they got up to cook outside and everything. We spoke that next week. I can’t tell you how he was like, “This is the best time we ever had.”

He spent no money other than bringing whatever he brought outside his house in his backyard and he lived in a rural area. He did that where he didn’t have to spend $10,000 to $15,000 a month and think about what you can do now so you don’t have to wait. You don’t need $10,000 to $15,000 to replace. Logan said, “I can go work out of my backyard.” My buddy in New York got hurt and he stopped his gym membership. His gym membership is $149 a month. He says, “For the last 2.5 years, all I do is pushups, sit-ups and air squats. If you look at me, nobody could tell I stopped going to the gym.” Can you stop it? Yes. Do I have to stop my gym membership? No, but if I had to. If you said you hate your job, you have a miserable life. You don’t get to see your wife and kids or friends because you have to go to work, make a sacrifice because you want that gym membership, or you want to buy that nice car for$1,000 a month. Instead of getting a car for $300 a month, what are you willing to sacrifice? What are you willing to do to get where you want to live that passive prosperous life?

It may not have been a sacrifice. You could look at it in reverse and some people have the attitude of, “I’m not going to sacrifice anything. I’m going to go out hustle.” Do that then but have a plan.

We’re not even smart guys. You said you need to make $4,010 a month. Without known crap about crap, I’m averaging anywhere from $400 to $700 a day, trading a couple of stocks and options. All I did was a little research, a little education on it. They’re always going to do it because sometimes I’m bored and I want to have some fun, and I do it. Some days I lose money. On average, I’m making between $400 to $800. Learn out of the box, learn something.

One of my good friends at work put his notice in too. He’s leaving and is doing his MBA, but he’s trading options and stocks. He’s like, “I can’t do the corporate stuff anymore. He’s like., “I may go back. I don’t know yet but I’m going to try and make this work. I don’t want our bills. I want my wife to be able to do whatever she does.” I got two dogs and he loves to play golf. He’s like, “How do I create the lifestyle that I want?” He wants to move back to Arkansas and live a nice quiet life. He doesn’t need anything extravagant.

It’s not expensive there either. He’s living in an area. That’s not that expensive. He can produce that life. It might only be $3,000 to $4,000, $5,000 a month. It was his lifestyle to golf when he wants in and the warm weather. It’s not that hard so back it up. If you need to make $4,000 a month, that’s $1,000 a week. That’s $200 a day if you only work five days a week. I can go out and detail cars and make $200 a day. Let’s think about it, on my own schedule. If I can sell 1 or 2 cars a day, I make more than $200 a day.

You can because the detail is about $200.

You could work three hours a day and make $200 a day and make $1,000 a week. There are things you can do. You can learn Amazon. You can do things online. If you can’t make money, if you don’t have some expertise, you can sell some training that you can mentor people. There’s so much you can do now to make that money but you have to get out of your own way. That’s the problem.

The way I see that is there are a lot of people that look at detailing a car. Unfortunately, there are a lot of people that say, “I’m not going to do that. That’s beneath me.” The lifestyle is your ego. You either want the lifestyle or you don’t. If the detail of the car, we’ll get it for you. Does it sound cool to tell your friends that you detail cars? No, but does it sound cool to tell your friends that you get to do whatever you want when you want? Tell me. It’s all about perspective. Which way do you want to look at it?

It’s the same thing when we were all trying to be the Joneses. That’s what the life I was living before. I was grinding and crushing my life, being miserable, thinking I was doing great because I was driving. I drove the alarm beginning. I drive the Mercedes. I had the Infinity, the Escalade. I was driving the most beautiful cars. My boats were over the top boats that I shouldn’t have. Instead of having a basic speed boat, it’s a 24-foot Chaparral speed boat, the brand new $70,000. I was piling debt on myself because I wanted to show off to everybody and that was ego. I could care less what people think about me anymore. They see the lifestyle I have. It might work for them. It might not work for them. People see that I don’t get up and go to a corporate job every day. I’m not miserable. I got to spend my summers at the beach. I don’t try not to make money in the summers. I purposely try not to do deals in the summer because I don’t want to take away from my life. I can make more money doing it.

That doesn’t align with what you’re trying to do.

When I ask you what your vision is, and I know what mine is. If I pull out my vision and I read it, it’s, “Who is Dan Zitofsky?” I’m a husband, a father, a grandfather, uncle, a son, a coach, entrepreneur. I’m a coach in investing, a life coach and a coach in high school football. I love doing that. Nothing in there says, “I’m a millionaire. I want to chase $1 million. I want to be a roofer.”

That’s a product of what has allowed me to where I want to be. I talked to John Western, the home to visit development when it’s local broker property manager here. They’ve got a Sunday night, 18 to 21 to 22 group of kids that come in from all different backgrounds, talking to them about how to get where they want to be whether that’s going to find a job and earning some money but putting the personal finance, that was my topic and understanding of budget and putting together. At the very end of it, it was like, “How do you afford to do all this? What are you worth?”

I was like, “It doesn’t matter but it’s a number that has allowed me to put together that I get to now do these things. Here’s my net worth, and whatever you want to do with that number doesn’t impact the way people look at me from wanting to do business with me or not wanting to do this. What do they care? Can you get the job done? Can you execute the deal? Can you raise the money? Whatever the job needs, can you do that?” versus, “Does your net worth qualify you to do something?”

It’s only useful for the bank.

It’s helped me a lot in the bank stuff. That’s one of the things I forgot to mention. We’re putting together some boats in RV storage. The net worth, the personal financial statement is the only thing that cares about me. That is the bank. Outside of that, I don’t care.

Who’s going to care? Your heirs will care one day. We’re so busy building a net worth that we don’t get to enjoy it as much as our ass.

I want to be able to pass a good amount down. If it gets squandered, I’m dead. That’s what I can do. Hopefully, I can put some things in place that allow them to have options. Doors will be slamming left and right, and you’re sleeping.

Your girls are young and as they start growing up, I’m sure you’ll start teaching them. They’re going to be better off than you were. My kids are going to be better off than I was because they’re learning from me about the world, how to invest, how to protect your money, about taxes, insurances, tax advantage strategies. I love demos. I love teaching that stuff to the youth and to my kids. I’m sure you’re going into your kids and setting them up with accounts so they can take care of themselves one day.

I don’t want to get too far into that. This was an amazing show. We didn’t expect it to go this way but that’s what’s fun about this show is it’s real life. It’s two guys who are on this journey who got there now before somebody who got there and somebody was trying to get that. I was with school. It’s two guys who were got there. One who is a veteran at this a while and I’m going to keep loving your journey along the way, Logan.

Everybody stayed tuned in. They’re like, “He already met his goal on the next show. I’m taking notes so we can’t forget the initial episode we are going to come and talking about this.”

That’s an important episode but we couldn’t skip all of this. I didn’t expect them to go so far. It was important because I can tell you, this is going to be the show that’s the most downloaded show because there are many people out there that have this journey. As an entrepreneur, we are starting out with many people that have this journey that want to leave their job, whatever it is they’re doing, they want their wives, husband, partner, whoever it is, stop working. You did it. They don’t believe it’s real. Even when I talk about raising private money, I always try to bring somebody new that’s doing it because I want them to see that it’s not just me. That’s been in the industry so long, many years now. The competition is 30 years. You can do it. I want to bring people on that are brand new in their first year or two years that they’re doing it.

I raised $2 million. Did it come from experience in what we’re doing? Yes. Did they come in because I know what I’m talking about? Yes. Does it come from a targeted audience that wants to work with me? Yes. There are a lot of things that made that happen. It wasn’t just because I made a post and said, “Offer in 20% of returns,” which is the worst way to raise money. It’s been a journey, and you’ve been a huge part of being able to change my perspective and mindset on how money is raised and what’s the best way to approach it. It works.

I want to get a post out there and share it. I want to validate who you are and show people that, “if Logan could do it, why can’t you?” For me, I don’t like to say, “I raised this much money,” because people look at me and they’re like, “I can’t do it because I’m newer.” If you raised $2 million, I would love you to put something out there. I’ll share it in my group with the newer people. I want them to see that you did it. You go through the stages, you did it, you do everything. You’re a roadmap guy. When someone gives you a roadmap, you follow it.

That’s how I took rentals on, jumped on BiggerPockets, found a strategy that worked for me. BiggerPockets can be a little overwhelming for most, but I found a guy I connected with. You see me doing the apartment syndication with them out in Phoenix, but that was my first mentor in real estate and gave me a roadmap and I followed it. I jumped into notes and had a roadmap from an individual that was a good roadmap, a poor character and then met you. You gave me a roadmap in capital raising and putting out a message that validates in an honest way and follows that roadmap. I’m a roadmap guy. I’m not that smart. I don’t have any crappy ideas that are the next iPhone. You give me what you’ve done and I’ll try to make it even better.

It works for you. That’s why you’ve done so well. Throwing us $2 million in a month is phenomenal. We’ll do another show on how you raise the money, then your roadmap, what you’re doing because that’s awesome. I get goosebumps knowing that I got to mentor you in how to raise private money. That’s cool. My two most successful mentees have been you and Ben Fredricks. He has his own company and trade show. He was such an introvert at the time. He still is an introvert.

He understands what you need to get a business to be where it wants to be and a lifestyle of where you want to be.

He went through the mentorship with me and raised well over $10 million. He could be close to $20 million in money raised already. He runs the Odell Barnes REO, NoteWorthy and he’s a guy who was scared to speak to anybody publicly is out there. We’ve had a lot of success stories but you two are the biggest success stories we’ve had. I keep wanting to put you and Ben on a pedestal because you guys, not for anything other than I want people to use you as role models to say, “If you can do it, why can’t I? If Logan, this not-so-smart guy from Texas, why can’t I?” This was a great show. Thanks for coming on. We’d love your reviews. If you like what you read, give us a five-star review so we can keep doing this. People can keep reading and share it out with at least five friends. This is going to help people. Logan, you’ve got anything to leave the audience with?

I’m thankful for everything I’ve got and where I’m headed through relationships and networks. That’s what I’ve got around me and the support. I look forward to many more shows in our own time.

Thanks so much for being on. I appreciate it.

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PTP 9 | Playing Offense

Winning The Game Of Life

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PTP 9 | Playing Offense

 

It’s okay to fail as long as you get back up stronger and better. As Rocky Balboa said, “That’s how winning is done.” This is what makes a champion. You need to start attacking life and playing on offense. If you can do so, you will reach great potential in life and business. Dan Zitofsky specifically discusses this in his Inner Circle group. Too many will never take the offensive stance as they get through life dealing with issues or events. Don’t be one of those people! Life doesn’t happen to you; it happens for you. Learn how you can be the one who calls the shots now!

Listen to the podcast here:

Winning The Game Of Life

Playing Life On Offense And Being Okay With Making Mistakes

We’re looking forward to going through a lot of cool stuff. We don’t have any ads on this show right now. As I always say, I don’t plan on doing it but I’m not going to say I won’t ever do it. Our only fee for this show is you share it out, you’re going on, and review it. If you love or don’t love what you hear, give us a five-star review. Share it out with at least five friends. Once again, I talked in a previous episode about living in scarcity, not sharing it out because you don’t want people to compete with you. That’s terrible to have. If this doesn’t help you or if those help you, you might be able to help somebody else. By sharing this out, there might be a golden nugget that gets them off their couch like, “Get him off of your ass and do something.” One of the things I always built my business around is I always played offensively in my business.

There are too many people who played defensively and they don’t ever do anything. You see those people at the local REIA meetings. You see them at the local events. They’re always there. They’re professional. They find every reason why a deal won’t work or why something in their life needs to change won’t work. They’re becoming the engineer in their own life instead of imagineering their own life. The reason Logan and I worked so well together and we’re looking forward to a prosperous business together is we are raising some money ourselves, buying some assets in our own portfolio. We do work together is because we both have that same mindset. We both work on offensively in our business. We’ve been through the trials and tribulations already.

Logan is going to come out and he doesn’t live in scarcity. He’s going to be honest about a deal. It was a phenomenal deal and it fell apart. He’s going to talk about it but he didn’t put them in his shell. It’s not a turtle shell sitting there, working defensively, and talking about all the reasons why things don’t work. Logan, I appreciate you. We got to drag you out of bed. You still work that full-time, 9:00 to 5:00 and you’re always willing to help out the audience. I know you had that deal we talked about. Why don’t you give the audience a little insight on that deal that you went through, start to finish, and what happened. Tell them everything you need to tell them so they understand because they have been in that spot. If they haven’t, most certainly will at one point.

Dan and I are real estate investors. We’re looking for any type of opportunity that comes across our desk. In this case, the deal that we’re talking about is a self-storage facility here in the DFW area, 10 to 15 minutes from the house. Years ago is when this deal got started up. We reached out to the guy. I was in limbo on where to put some cash. I was like, “Self storage has always seemed a good outlet.” I did some research and started looking around some different markets. I found a self-storage facility that looked like it needed some help from the physical appearance, given all the new climate-controlled stuff that goes up everywhere. I reached out to the seller via Info@SelfStorage.com, the email that he had on a site. Years ago, it didn’t turn into anything. To be honest, it low-balled the numbers because of the deal structure that we had going on. One day, I reached back out to him and started that conversation back up again and see where he was. It was a 333 unit, all drive-up self-storage facility doing about $350,000 in revenue.

Was that net or gross revenue?

That was gross. Potentially, it was $380,000 after you factor in. They’re running about 10% vacancy, which is normal in the industry.

What was your net operating income?

The net operating income in 2019 was running about $200,000. We offered the guy originally $1.8 million to start conversations. We knew we were low coming into it, but the numbers on that is strong when you consider the market that we’re in DFW. Self-storage is very competitive here in the area and again, I am just trying to get the conversation started. I remember from the original conversation, they were the original builders back in 1985. Him and the three of the partners. They got the thing started and had owned it ever since. He is an old gentleman so unfortunately, a couple of the other partners had passed away and those shares have been inherited.

It’s good you brought that up because when you’re younger and you have a partner, you’re going to buy out your partner shares or each of you is going to have a life insurance policy on each other. God forbid something like that happens.

Stop chasing your own tail. Click To Tweet

That’s a great point. Unfortunately, these guys didn’t have any of that.

That’s why I wanted to throw that nugget in there that have a lot of work. If you do have a partnership, make sure you have a plan. God forbid, but if something happens to me, there should be life insurance on me that pays my wife off for a share of the business as far as Logan. As long as you’re in okay health, it’s very cheap.

These guys didn’t have and I don’t believe it. He was the majority owner but still he had to consult with the thirteen other partners. It went from four to fourteen of them. He’s the only local guy. Everybody else is out-of-state. It’s his day gig. He gets to run over there. He’s about 45 minutes from the property. I think he enjoyed but he was the only one taking care of it. He was pushing in his upper 70s and entertaining an offer to move it. What that means for us is that we had about fourteen people to persuade and only had one person to communicate that message to. We knew we were dealing with a couple of people and all different mindsets. I like the cashflow from the property. They were getting about $15,000 a month in dividends, distributed out.

That’s $1,000 a person, nothing life-changing, but it’s something that people were used to for years. We came back and quickly shut off our down at $1.8 million. We came up to $2 million then dove into building out a performa. It was me and two other partners that were going to be silent and wrote it up and say, “I think we can pay up to $2.5 million for this property and go from there.” We got the seller to give me his number. I’m not sure if anybody out there has read the book, Never Split The Difference by Chris Voss. It was my third time through that book and using some of those tactics in negotiating.

I love that book myself. What is your favorite tactic on a deal like that? You went for the deal.

Every chapter has a nugget in that and I’ve got pages of notes on that thing. I would say, starting with a calculated question. I’m framing it with how versus a why. A why seems like you’re attacking somebody and how are we going to do that together? It brings a partnership versus pointing away from you. He came back with me. The prime example of this is like, “I’m looking for $3 million.” How can I pay that given XYZ? How can I pay that and stop? One of the biggest things in that book is silence. As you can see between Dan and I, we both liked to talk. Sitting quietly is a little difficult for me so I was practicing that skill throughout the negotiation.

That’s the most awkward silence, isn’t it? I always tell people in sales when I used to teach because I go into companies. I still do it here and there a couple of times a year, I get call them for consulting job and I go on their sales organization. A lot of times, it’s outbound phone calls people on telemarketing that we’re calling, asking a couple of questions and stay silent, shut up, and listen to the answer. It’s the most awkward 10 to 15 seconds. Sitting there waiting, presenting somebody, dealing with shutting up and letting them decide if it works or not. You’re so right about that.

Chris in the book calls it vomiting at the mouth and you can run into that quickly. At the end of the day, we got into $2.5 million and we can make it happen. Weekend passes, I get a long email. I can tell through the quick preview on my phone that this thing is going to be not the news we were looking for given how it started out. COVID has done a number on the US economy. I’m like, “If you’re already starting off with that, this isn’t going where I would like it to.”

He’s playing defense already.

PTP 9 | Playing Offense

Playing Offense: Too many people play defensively and don’t ever do anything. They’re always looking for reasons why things wouldn’t work.

 

I give him credit. He never committed to anything. I’ve never seen somebody be able to take the emotion out of a financial decision. Sometimes, there’s always somebody who weighs in on something. He did a good job of not allowing me to peel that out of him so kudos to him. At the end of the day, he was looking for $3 million on the deal and $2.5 million is what we were looking for to keep our margins in it and keep a good profit. The property needed some work for about $100,000 in CapEx, which was fine. We can pay for that at a cashflow but not something we would want to keep increasing given the age of the property and everything.

We were at the middle of the discussions. We had reached out to Marcus & Millichap. I’m sure everybody is aware of who Marcus & Millichap is. They were a large commercial broker. I have a number of contacts here in the area and saying, “I know you used to work at Marcus & Millichap. Do you have anybody in self-storage?” He goes, “Let me shoot you over a contact.” I got one of the tops self-storage guys in the DFW Metroplex and send over roughly talking about the deal. He calls me back and says, “What’s the name of this property?” I give it to him. He goes, “How can I get in?” The broker wanted in.

That’s something that I was the LP on a special facility in Arizona and I love it. That’s the one. Other than notes, REOs, and seller-finance notes, that’s where I think we need to go. That’s where we should be heading.

It’s a stable asset class.

We had a free conversation already. I was like, “Where are we? Are we going to do this?” I just want to make sure. Don’t hold this against me, but I always talk about stop chasing your tail. Stop jumping from thing-to-thing. We’re very good at passive income. To us, a self-storage facility is like multifamily with a lot less headaches. Your tenants don’t play the same game as they play in multifamily. You don’t have to deal with tenants. You deal with the old tenants, but you don’t deal with the tenants. You don’t deal with the breakages. Your maintenance upkeep is very minimal. It is low for them. It’s everything you can automate.

You could systematize that business down to hardly any staff. There are many benefits of it and I’m not going to come here and teach about self-storage but I know people who come to me and say, “Stay laser-focused on what you do.” What it is? To me, it’s all about passive income. It’s something in our portfolio. With the fund, we’re talking about getting out there. We’re finally going to launch this thing right after the New Year. That’s the plan. We will launch in January 2021. That’s where you and I will sit and focus a lot more. They’ll still do the nonperforming note. We’ll still do the REOs because anything that creates passive income and protects as much as possible our investors. It will be huge for us.

To your point on the laser-focused piece, I counter that sometimes with knowing when to pivot, understanding the market dynamics, and taking what it’s given to you versus forcing a strategy on the market. The market is going to tell you what you’re going to be in. I’m still finding deals in the notes. They’re a little bit lesser volume and lesser quality asset. When you start seeing those things, that tells me that we can be very diligent and close on this stuff that we’re experts in. What’s the issue with bringing in an expert in a field that you may not understand completely? That’s why we brought in the broker. The broker had done upwards of $50 million in self-storage in 2019. We were looking to utilize him and knowing that he’s interested in the deal from a broker’s perspective and seeing the numbers. He knew we had a good one. We have no problems leveraging.

Why did you call the broker? Did you worry that he was going to steal your deal?

That’s the scarcity part. My partner who is a local was like, “Are you sure you want to do that?” Her name is Michelle. I said, “Michelle, if he takes the deal from me and runs off and it doesn’t happen then I’ll never work with the guy again. It’s okay if he takes the deal. He is going to lose a relationship and I’ll make sure everybody knows that this happened.”

Don’t live in scarcity. Don’t live in limited beliefs. Start living life offensively instead of defensively. Click To Tweet

I know that I’ll never work again but I look at it like, “If you took the deal, it probably wasn’t for me.” I’m not saying that I am going to sit here and talk about how I feel about it on the show, but I feel like God does this to us what we’re supposed to have in our place. If he took the deal from me, it is because I’m not supposed to have that deal. I truly believe that. I don’t want to do it on this show because it might scare some people off it. They don’t believe in it, whatever it might be. I am totally going to stay away from that.

That’s how I truly believed. I used to be that way. I don’t wish bad on anybody if somebody works like that. This is what I tell people that it’s all-important bringing it out here because there are many nuggets. If you sit back and re-read the blog, you’ll learn about the numbers, that’s okay. That’s the most minimal part. Logan gave me the numbers. I punched them into the calculator. I told him what the cap rate is in seconds. I asked him that the operating income. That’s all like basic. You’ve learned that you don’t need us for that. If you’ll look at what we’ve talked about, it is negotiating a deal and how to negotiate. He talked about following up with the seller, living offensively, not defensively, not living in scarcity, and moving on.

We learn something. There are many golden nuggets in this episode alone. I didn’t know if it was going to be like that. Let’s be honest with people. Let’s talk about this deal because you put it out there. You put it up and close your first deal. A couple of days later, you got smacked in the face and you didn’t close it. Sometimes, I’m the guy who always says, “Let’s not talk about it until it happens because I believe that it’s not going to happen if we talk about it.” I believe that. I didn’t even know you were doing that.

It is the announcer’s curse.

It’s not a deal until the check is clear. I have to believe that check is real. I have to go to the bank and cash that check and hope the bank gives me the actual money. You guys would notice that. I remember this was years ago and we got our first huge six-figure check in one month. I’m looking at it. I’m like, “There’s no way this could be real.” We couldn’t have done this with some online stuff. We took the check at that time. This was back in 2002. We put it in and I looked at my friend and I said, “This is not going to clear,” then it cleared. I’m like, “They’re not going to give us the cash. It can’t be real. Something went wrong.” I’m still like, “Did we make that money?” That’s what it’s like. That’s how I look at this. “Is it real? Is it going to work?” I want to bring that out. All these amazing things happened on this deal that I don’t want people to bypass it.

If you start living your life out of scarcity, you don’t live in scarcity, and in limited beliefs, if you start living off offensively instead of defensively, and you stop believing in some faith of something, whatever it might be. Logan and I talk about this. I’m very intentional about who I surround myself with. That’s why I don’t partner with a lot of people. I want to do everything together. Even if I have partners, I want to bring them between me and Logan because when you have somebody who ethically and morally is right, honest, and you can trust. I know Logan now for years. We both said, “Let’s get together and be partners.” I’ve watched him with his family. I’ve watched the type of person he is with his wife and kids. I sat back and I saw how he treated his friends. I don’t jump into relationships quickly because I want to make sure that I don’t have to worry about somebody stealing a deal.

I don’t want to live that life chasing money. I’m hoping that the people on this episode are getting all of that out of this and not just getting like, “Logan and the score to deal at 11% and changed cap. He was going to go to $2.5 million. There would have been an 8% or 9% cap on that. He let it go because the numbers didn’t work.” If that’s what you got out of this episode, you missed so much. You got to start getting deeper on who you follow, who you listen to, and what they’re talking about because, in a couple of thousand deals I’ve done, I could talk about every deal and give you the breakdown on every deal but that’s going to bore you. That’s not what this is about. It’s the reason it took so long for me to put out this show. It took me years. I’m set up for this show, what the name, what’s this show, and it hasn’t even come out.

It hasn’t even gone out because I’m sitting here and I’m like, “I want to make sure I’m providing so much value for people beyond.” I don’t want to just talk about how to do a deal. We will do those deals. We’ll talk about that stuff. I want it so much deeper. I wanted it to be with somebody that I trust and I value that I’m willing to say, “I’m with this person 100%.” There are so many people that have asked like, “Do you want to do a show together?” I might like them, have a great time hanging out or have done a deal with but they’re not somebody I want to bring into my life or audience that way. That’s where I’m hoping that people get out of this. What do you think Logan?

The numbers are an ancillary piece to all of this, especially with this show. We’re not here to be the experts in deal analysis and execution of a performa. You can Google performa for any type of business and you’re going to find it. You are going to be able to leverage that and build a financial statement for whatever investment you’re going after. It’s about how do I create this environment around me that provides me deals, relationships, knowledge, and the ability to bounce things off of somebody else and a partner. As you said, it’s a relationship built on trust and expertise, whatever it is in your core market. We’re here to work together in the scarcity mindset.

PTP 9 | Playing Offense

Playing Offense: Being passive prosperous is not about the short-term wins.

 

I was laughing about that with one of my partners. He was like, “Are you sure you want to give it to the broker?” I said, “I’m sure. He’s the expert in the field. If he takes it and runs with it, things happen for a reason.” Back to your piece, you didn’t want to go there with the show. Frankly, it’s a touchy subject, but I’m a huge believer in things that happen and don’t happen for a reason. At the end of the conversation, we’re in this for the long haul. This isn’t a short-term of how do we find the next deal and make $200,000. We’ve got to make that next cash so we can go buy something or we can go somewhere on a trip. There’s a reason why it’s Passive to Prosperous and not all about short-term wins and you don’t care how you get there.

Let’s talk about some of the things you’re doing in your life now that are more prosperous. You are the epitome or I should say the role model. I love having you on because a lot of people, unfortunately, don’t relate to me as much as they do. They’re like, “You already left your job. You’re in this so long. You have so many doors already. How do I get to 600 plus doors?” I try to tell people one at a time but it doesn’t sound like this great theory. Those are great quotes and theories, but sometimes, they can’t relate. You’re getting up there already. You’re getting up down what you have, but you’re also working a 9:00 to 5:00. You have a wife, three kids, and a new baby. You have a household and running a business, Sage Notes. You’re running the operations of the business while running everything else. With all of that, what are you doing to still live that prosperous life we’re talking about?

It is been a journey.

It is a monopoly where they say, “You get a card, spin the dice, and go three spots.” This thing was smack in the face. There’s no game or a rule book that comes with life.

I’ve been sharing this with a number of different Facebook groups I’m in and different stuff, but it comes a time where I value myself, my time, my family, and everything around me much more than I ever have. Before you get to that point, some of the stuff that we’re talking about is in one ear and out the other. I was there years ago and I had a mentor at the time telling me the same stuff that you and I are talking about. Whether I didn’t want to hear it, that doesn’t apply to me, or I can’t relate. Hopefully, that’s where Dan and I can help. We’ve got the industry experience, the knowledge, and the tenure.

Somebody doing a full-time and you’ve got me who’s working to build it to that point, but still having the 9:00 to 5:00. In the meantime, I still leverage my 9:00 to 5:00, use the benefits that I’ve got full, and fully fund my 401(k). That piece right there, people always ask me, “Why are you staying until March 2021?” My long-term plan is to have funds available in my 401(k) and HSA. I have not fully fund those and I’ll pay myself out of the business but I couldn’t do those if I didn’t have a side income and in a passive one at that. I’m able to live off the income from the business. I can execute my long-term strategy of having retirement funds for myself and the family down the road.

In the meantime, how do I do the day-to-day operations of marketing for new notes, talking with lenders, talking with banks, and my preferred partners? How do I make time for all of that? It’s challenging. I was telling Dan, I ended up missing an episode because I was worn out. That was a prime example of sending out thousands of my emails through my marketing campaigns that I do every month. I had a lot of responses, which is great, but unfortunately, there’s a lot of them that I couldn’t get to. You need to save your ties with your job and go focus on that full-time.

Let’s focus on that stuff. That’s important. People think growing big is the answer. You show them that you’re growing faster than you can handle. You can let something slip through the cracks. Everyone spent so much time trying to build this audience. They are trying to be this persona on social media. Everyone thinks about building this email list, doing a podcast, and a book. You try to do all this stuff and you finally hit it. You stopped like you’re a woodpecker. At that point, you started to dig a little bit of a hole in that tray, and then you would go jump off and you do something else. I’m sure you saw it. You sat back and you realized, “I’m letting things slip through the cracks. I’m starting to let go of the water. I have one whole and water is coming out. I cover that one hole patched, now water is coming in another hole.” You’re at a pivotal point. You’re in your business now where you can either grow correctly or you could not be taken seriously on anything. I see this all the time when entrepreneurs. I see it because if I’m going to be honest with you, it’s happened to me multiple times.

If you’re reading this blog, I’m running a political campaign. It puts my business almost on hold. I’m able to do that because I have a good passive income business. I haven’t grown but I’m not sitting there sending out emails because I’m supposed to. It’s going to hurt my business, but because I’m running for political campaigns, I’m okay with it. If I was leaving that to start some other business and stop what I was doing, then all was for nothing. All the things I did and built up were nothing. If you’re spending so much time trying to send out an email to your group and you’re getting a response from people, they’ll raise their hands saying, “Logan, I’m interested right now,” you want to be on with those people but then you’re jumping to doing something else. You don’t have time to answer them, you fail in your business and you’re going to go ten steps backward. You might as well not even send out an email if you can’t answer the people and respond. That’s putting an ad in a newspaper that you have a closed store. You have all these new clothes but you locked the door when they come. You go to a chicken place and they’re ran out of chicken.

Losing is not an option. Click To Tweet

It could be the best chicken in the world but if it’s not there, you’ll never know.

You’re on a spot now. You’re being vulnerable with the audience, which is cool because you spend time building an email marketing list and trying to do a show. I’m at least on the show. If you’re not there, I don’t mind doing an episode myself. I’m sure you don’t cover it for me because we’ve got the stuff. We want to talk about ourselves too. You spend so much time trying to build this up. I remember when you first thought this, everyone was like, “Build your email list,” but then you build it up, you respond, and then you’re not there for them. It’s valid why you’re not there.

It’s a struggle.

They don’t know that. I would make this guarantee, if you were to get on social media, even go on my page, go to Become A Real Estate Investor With Dan Zitofsky, and put it out a little quick video and say, “I screwed up. I got all these emails but this is what happened.” People love real. They hate the phoniness on social media. Whenever I put something out like, “I need help. I screwed up. Has anyone else gone through with depression when you hit your goals?” I have had 2,000 either comments, likes, or shares between the text messages.

I had some of the biggest players in the industry pick up the phone, call me up, and ask if I was okay. Those people were busy. You would never even know that they had a minute of time to pick up a phone to call me. I put it out there because I see it happening with a lot of entrepreneurs. I talk about it in my Inner Circle, my mastermind. It’s a real thing. We talked about it on our previous episode. When you’re real and when you’re vulnerable, that’s what they love. I’m going to give you a task, put it out there, and watch what happens. I want to see what happens. Watch the response you’ll get. It’ll blow your contact list up.

It’s tough to work through some of that stuff. If you don’t get back to these people, it’s not the end of the world but you do lose a little bit of credibility. I had phone calls, missed appointments, and all kinds of stuff happening. That was one of those that everything came together, which is good on the business side, but then I wasn’t able to return that out to everybody that reached out.

You still are the poster child for where people should want to be. What I love is that the audience needs to see us tweak ourselves as well because we’re not perfect. I screw up and I will continue to screw up. I don’t care because this is the life I live. If you’re going to send it over and over again, he is going to accept you for it and it’s okay. As long as you’re in scripts, you make those mistakes, fix them and you come back better from them. Even Rocky says, “It’s how hard you get hit. You get up and keep coming back. That’s how champions and that’s how winners are made.” That goes back to the whole part of the show when I said, “Play offense over defense.” You can’t sit back and play defense on everything. It’s part of my campaign. People ask me all the time, “Why in the world are you running? You’re in a situation where it’s very tough to win. The polls are lopsided against you.” I’m like, “I don’t accept that I can’t do it. I don’t accept that losing is not an option. I don’t accept sitting back because everybody else, 99.9 % people believe that.”

Life was miserable. The same people who don’t volunteer, don’t donate to the campaign, and who think their vote doesn’t matter, those are the same people that are miserable with their marriage, around their kids, and their job. They’re always miserable. Every time you ask them how they find a negative way to not do anything. They’re muddling through life until the day they die. I refuse to allow that to happen to me. That’s the difference between you, myself, and other people on the show because I’m sure that people on the show are living life like we’re living.

They might not be financially yet where they want to be, but they have the prosperous mindset of, “How could I live more prosperous with my family? How could I be more prosperous my friends? How could it be prosperous with my spouse? How could I be more prosperous to the community and the people around me? What can I do to make a difference?” That’s important. We get through this. I don’t want to talk about it on this one. I’m going to put notes. We’re going to do another episode because you got kids, I have kids and a grandson. My goal is to make my grandson a millionaire before he’s five years old. I might do it before. He’s three and he closed his first house. I showed a picture that I wish he could have signed the freaking docs. I was going to put the hand on his hands on it.

PTP 9 | Playing Offense

Playing Offense: It’s okay to make mistakes as long as you fix them and come back better from them.

 

I want to talk about it because you brought it up. COVID brought up all this stuff and there’s a lot of people that can be on the show, but kids, let’s mark one episode to talk about how we like kids in Coverdell. They only can put in $2,000 a year into a Coverdell. How did they get involved in the deal? I get that question a lot and even for me, it’s hard to figure out how to get kids involved in deals sometimes. Depending on the deal you get, I’m talking about passive investing. How do they get involved? We’ll put some thought behind that. We’re going to talk about it. I should put it out there publicly. I get a little weird sometimes to put stuff out publicly. I don’t want people to think I’m gloating.

That’s my own problem. I’m going to live like a champion. I don’t put it out there because I’m not worried about everything everyone says that’s negative. I’m worried about, “I can help you with your family. You have a new baby, you could put a house in your baby’s name, and that’ll help that kid pay for college or not college. Start their first house and pay for whatever it might be.” I put $210,000 in my grandson’s name and he’s three months old. Legally, it’s not a trust for him. I don’t have to do five of those deals and he’s a millionaire. Within 5 to 6 years, everyone’s properties will have no debt on them. He will have a net worth of over $1 million by the time he’s five years old. That’s my goal. It’s not just putting properties in his name or notes in the same. It’s to have a net worth of over $1 million by the time he’s five years old. Depending on what happens, we could do it local when you had a baby. We can do this together. We can get a little baby millionaire group, would that be cool?

How do we get there? There are tools at our disposal that we can utilize. A week after she was born, I did the same thing. I went with Mark Kohler and set up a trust. He got a series LLC going for some other stuff.

You did come and hang out at my event that day.

That was a good event.

I was going to do my two-day event alongside that. We’re planning to do it online. We talked about the Inner Circle. We’re starting with up to ten people. You said you wanted to be part of that. We’re going to be intentional about that, but we’re starting on a line because even though I traveled to my mastermind, it was fine. I don’t want to miss out on the people who want it. Intentionally, it is going to be good but can’t make it. We will do something online and stay tuned for that. Things are thrown at us and change. Do you have anything else for this episode?

I’ll wrap up that deal with a couple of takeaways. Trust the expert especially when the expert signs off on your deal and wants in. That’s a pretty easy one. The second was the contacts and relationships that we made out of that deal. We were put in contact with a self-storage consultant for a fee who comes in and figures out what’s best to optimize your facility. We came away with that contact and we’ll be able to leverage him on a future deal. The third was an ancillary piece that I never would have thought would come, but sharing about what we had failed.

We didn’t get the deal going, but I’m sure a lot of readers are going to see that we’ve got some luxury vacation cabins up in the Broken Bow. The builder reaches out to my partner and I and says, “I’ve been making a lot of money here. How do I get in with you?” Simply because of sharing information and getting away from that scarcity mindset. It does pay off. The more you share, the more it’s going to come back to you. It may take a little bit, but eventually, people are going to see that this guy or this lady is out there providing information and wanting to see others succeed. That’s how I approach all of this stuff.

I love a lot of those things you just said and the people you brought into the team that help out and grow this the right way. You can’t do that if you live in scarcity. Once again, whoever’s on the show, thank you for being on. We love you guys on here every single time. It means the world to us to be able to provide value and content to people and change their lives a little bit. We ask you once again if you’ve got something out of this positive, please share with at least five friends. That’ll allow us to be at the top of the list so you can hear our info because if you went out there, you’re going to miss out. Make sure you give us that five-star review if you love what we have. Reach out to both of us anytime you need anything. We’re happy to help. With that, we’ll see you next time.

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PTP 6 | New Co-Host

Introducing Logan Hassinger, The New Co-host For The Passive To Prosperity Podcast

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PTP 6 | New Co-Host

 

It takes a special type of person to become a co-host in a podcast like this. For many years, Dan Zitofsky certainly took his time to make sure that it’s somebody that he aligns with. In this episode, he introduces one of his top students, note investor Logan Hassinger as that new co-host we have all been waiting for. Logan was mentored by Dan in raising private money and passive wealth living. He truly embodies a lifestyle by design in a way that few people ever get to do. The ease of communication between Dan and Logan is so apparent in this conversation that we can only expect greater things to come from them both on and off the mic!

Listen to the podcast here:

Introducing Logan Hassinger, The New Co-host For The Passive To Prosperity Podcast

Meet My Special Co-Host And Past Student Logan Hassinger

When you get a show like this, you’ve got to align with somebody. I fought long and hard about it. It’s not often, I do anything with people in the industry that I’ve mentored and coached but there are a few that you can see what they’re doing and they do everything right. When I say they do everything right, it’s not just in business. You watch them, see how they are, and they have to align with you. I look at this as a partnership on a deal. They have to align with you with their mindset and vision. Not that they don’t align with my mindset and vision, they could have different goals in life than I have.

Why would you with your mindset and your vision? That’s why the show is called Passive to Prosperous. I’m looking to live that prosperous life by passive wealth. That’s my vision and my mindset. You look at them, I sit back and I watch them for a while. I always watch how they are on social media, with their family, wives, kids, husband, boyfriend, girlfriend, and whatever it might be. You watch how they interact with their investors and the community if they’re of the mindset of giving.

I’m blessed and honored that I have one of the top students that I’ve ever had, and someone I consider a friend now, other than him not liking the same football team as me. He’s not a guest but a show cohost. Not only that, but coming out of this pandemic to do some business together. I’m in a position in my career and my life where I don’t want to take on too many partners. It’s not worth the stress, headache, worrying about what they do, and how they act. There’s no doubt in my mind that the person I’m bringing on is going to be my partner on the show and deals in the future. I want to bring him on from Texas. You’ve seen him on webinars before and training. You’ve seen all the positive content he’s given out. He’s becoming an industry leader in the note business and the passive income, starting in the short-term rental game. With no further ado, I’m bringing on Logan Hassinger. Thanks for being on.  

I appreciate the introduction. Hopefully, everybody is seeing that and I can live up to such an awesome high praise from you. I’m glad to be on. I’m glad to be a part of the show. I look forward to letting people see what it is behind the scenes because it’s easy to get wrapped up in what everybody sees. This is what we’re putting out there, which is great, free content, try to help people along whatever phase they ran or journey that they’re headed on, and get them to that ultimate goal of passive to prosperous.

Some of the things I look for and I always talk to people about it is I say, “You’ve got to trust and verify.” It’s not just to trust and verify the deal, it’s also trust and verify the person. That’s why I’ve known you for several years. We met at a mastermind that you were new in the industry. We went to a mastermind and I didn’t say anything that day but you took me back. There were you and one other person. I go to some of those events because I feel like it’s my time to give back. I love it and enjoy this. Even if you’re new in the industry and show on mastermind, you value yourself. When you value yourself with time and money, I love to help out.

We sat a couple of times. It was a 2 or 3-day event. You kept coming up to me and asking questions. You were humble about what you were asking and it meant a lot to me. I didn’t know a lot about you then. Afterwards, I went home and I started watching you. I started watching other people and I felt completely off. They haven’t done anything that they said they were going to do. I watched you on social media.

I watched how you were with your family and how you talk to other people. You didn’t come off as a cocky person who’s new. You asked questions and you shared unwillingly. Still to this day, we haven’t done a deal. We will do deals for sure because of where we are in the industry and where I’m at. It’s important that people know this because everybody talks a great game on social media. Everybody wants to be a millionaire. You got to take a step back, watch people, see how they are, and see the true person. It’s like dating.

It’s like the honeymoon period that you’ve got to get past to better understand somebody. I think we have passed the honeymoon phase.

PTP 6 | New Co-Host

New Co-Host: There is another way. You don’t have to climb the corporate ladder.

 

We’re blessed with that. Tell us a little bit about yourself. I’m shocked that people don’t know who you are. A lot of people might not know who you are. This is going to get out on iTunes and Stitcher. I always start off the show with this and I’m going to get into who’s Logan. We don’t charge you for this show. This is a complete organic movement. If you’ve heard of Andy Frisella’s saying, I say the same thing. I’ve been offered on my channel already people to sponsor for our show. I’m not going to say we’ll never have sponsors, but right now my view is that I don’t want any sponsors.  

I wanted to show that comes at you complete with knowledge and content. Not just myself but someone like Logan. I have many years of experience and he’ll tell you a little bit about his life. You’ll relate a lot more to Logan than you might even relate to me. A lot of people look at me and they say, “I don’t have 30 years’ experience. I don’t have as many deals as you have. How do I get there?” That’s why I love Logan’s journey, where he started, and where he’s going. I wanted him to share that with you. My only fee for this show is that you tell five of your friends and share it out if you get anything out of this.

We’re paying the money and putting the time in to produce the show. There’s no benefit to us at all with us waking up early and doing this to help you guys out. The reason we do it is we see what’s going on in the industry. There are people that are brand new and have done a couple of deals. They’re teaching the wrong way. There are people taking advantage of people to raise money. There are people that are not who they say they are behind the scenes. With that being said, if you do that, this becomes an organic movement. This will become the top show out there. By becoming a top show out there, we’ll be able to bring more content and benefits to you.  

We’re going to do that without asking for money. We have some cool events planned where we’ll invite people from the show to the events. We’ll have cool deals that we’ll be able to bring exclusively to people on the show. There’s a lot that we’re looking to do. To do that, we need to have a movement here. We’re asking for your help in sharing this out with at least five friends every episode. We’ll keep bringing great content here. We’re going to bring the real deal. We’re not worried about how perfect the show is and how it looks. We’re going to bring you content from our lives. Somebody who’s got many years of experience, and someone that’s killing it and starting out as Logan has.

That’s my fee for being here. I hope you accept that, you don’t have a scarcity mindset, and you want to share it. A lot of people don’t like to share things because they’re worried about competition. Somebody might hear something that we say and they want to use it, not to show other people. That’s a scarcity mindset. We’ll talk about that later. Logan, I’m going to let you run with this a little bit. Don’t hold back and tell everybody where you came from, who you are, what you do now, and where you’re looking to go to.

I am here in the Dallas-Fort Worth Area, South of the airport in the mid-cities area. I got started traditionally, going to college, grabbing a degree in finance, and seeing where that was going to take me. I didn’t know exactly where I wanted to end up, what industry within finance. I feel like school pushes two different areas for you when you’re in business school, especially when it’s in finance. Are you going to go investment management or corporate finance? I ended up getting placed within a wealth management role for about two years. It’s funny because it’s come full circle now. I wouldn’t say that I’m in wealth management now, but I enjoy the aspect of providing financial advice or be that sounding board for others, friends and family for the most part. I transitioned out of that role and went into some other corporate roles in the Dallas area, and I got burnt out.

I was studying for a CFA exam, Chartered Financial Analyst. That was the route I was going to be, become a fund manager and worked my way up through there. I’d been on that train for six months, studying and I took the test. I had about a month-long of downtime. I had to face down a book for six months. It’s all I knew so I dove back into another book. Many have started out on this path being the Rich Dad Poor Dad book and understanding what else is out there. You only know what you know, and that book opened my eyes to be like, “There is another way. You don’t have to climb this corporate ladder.” I told myself, “If I fail that test, I’m jumping into real estate.” It was the greatest failure of my life. I failed the test. It was the best failure.

If anyone says, “If I do this, then I’ll do that,” they already know. That’s such a great point you brought that out. I appreciate it because you already knew at that point that you didn’t want to do that. You just couldn’t admit it to yourself. I would love later on to dig deeper into why you chose that path. The reason I’m saying that is because it probably didn’t align with your vision and vision. We’ll get deeper into that. This whole show is about your vision and your mindset.  

If you don't have your vision right, nothing else goes right. Click To Tweet

One of my mentors, Shaun McCloskey talks about vision and mindset. He’s like, “If you don’t have your vision right, nothing else goes right.” It’s almost like the neurons in your body. That’s what makes your whole body work. You were going for this test. There’s a reason you were doing it. It might have been money, job security or a title. There was something there but it didn’t align with your vision. Your vision is here but you were diverging inside.

I want you guys to understand that because if you’ve read my book, Passive to Prosperous, you’ll see in the first chapter, it talked about my vision and how I went sideways on my vision. I almost lost everything from my wife, my kids, my friends, and nobody there for me because my actions and my vision were different. I want to jump in and highlight that, not just get over that because that’s a huge component of the whole show and the business model that we have. You and I are aligned with now because of that one piece. You went for this test knowing that you didn’t want to pass this test because it’s not going to bring you to the life you wanted.  

It’s all I knew. It was the next step for me, even though it wasn’t something that I had my heart into. I studied and did everything that I thought I was ready to go and take it. I had never read this Rich Dad Poor Dad book before that but still, if it were something I was passionate about and where my vision is aligned, I would have passed. I’m taking a step back and have 6 or 7 years removed from that. I’m sitting here saying, “That’s all I needed. A kick in the pants to take that path and get you back on track.”

From there, it was self-taught in the beginning. I stumbled across a real estate forum. I’m familiar with a lot of people in the industry being new or looking for self-help stuff. BiggerPockets.com is a popular site out there. I was out there searching on, how do you find a deal? What do you do with a tenant? I found a couple of books to read. I jumped into those books and having a finance background, the numbers piece was the easy side. It was the intangibles that I wanted to better understand. I ended up finding a mentor on that site who I’m great friends with now. He lives out in Arizona. We invest in deals together on the side, mostly passive apartment syndication type of stuff. He helped me set a foundation for what rental property investing was.

I ran with that for a couple of years. I picked up some duplexes and fourplexes, fix and flip a couple of properties in the area, and thought I was going to manage 100 doors. I realized that doing that didn’t align with my vision so I pivoted. In 2018, I came across note investing. I dove into note investing to figure out what there was all entailed. That’s something I can scale and allow me to be more passive. It aligns perfectly with if I’m trying to put more time into family, travel or other things, that I’m giving back, and all those items, then that’s what helped me connect. I went down to some training. It was in mid-2018 is when you and I met. I knew from the minute you started talking that you are an expert. I feel like I have a good bullcrap radar.

I still deal with some guys that have a ton of crap that they throw at me and I’m like, “Do we need that?” When we did a deal and we got a modification, I get offers that state that was easy, but I’m not aware of that. I got to get it against my desk here. I used to have that when I had my office, and now I’m working from the house and it was great. I want that. That is the bullcrap bot because there was so much crap out there. You want to talk about somebody not taking action. It happens to me too.

I’ve paid for, set up, and had this show ready to go for over three years before I even met Logan. I have not recorded an episode until about months ago. I sat here and we’ll talk about why I didn’t do it but you want to talk about the bullcrap meter out there. Many people come up to me and said, “Let’s do a podcast together. Let’s do an event together. Let’s do a mastermind together. Let’s do a school together. Let’s do training together.” You have to be careful because in the past, I used to look at all the money I could make on this, and I chased the money. Now I look at how do I want Dan Zitofsky to be seen in the future. How do I want my legacy to be? How do I want people and my family to look at me? How do I want to feel? Is there anything in my vision where I want to become a millionaire?

If it does, you’ll stumble a lot. You’ll chase it. It’s easy to be a millionaire. I say that humbly and I don’t say that to impress you. I say it to impress upon you. That’s the easiest thing in the world. It’s hard for some people to stay true to themselves, true to the vision, and true to their family. Everybody looks great out there. The one thing about social media that’s cool is you can be whoever the hell you want to be on social media. You want to say, “You’re great.” You want to act horribly, you’re horrible. Whatever you want to be, you are on social media.

PTP 6 | New Co-Host

New Co-Host: It’s unfortunate that in this business, the barrier to entry has been so easy to get into. The teachings in this business have been so off that people are learning the wrong way.

 

Logan is somebody I want to align with. Not that I want you to align with anybody. I could sit home and enjoy my life. In the summertime, this is what I do. I don’t work but I’ve worked to get to the point I’m at now because you have to align. It has to fit your vision. We’ll talk more about your vision because people need to understand that. That’s something that I work with students first before I even mentor them as I talk about their vision and why they doing it. If they’re doing it for reasons, not that it’s for the wrong reasons but it doesn’t align with my vision. I don’t work with them not because it’s bad. I can’t help them because I don’t understand it. I want to understand it. If they tell me, “I’m coming here to make millions,” why do you need to make millions? What is it about? I’m not saying it’s wrong. I’m saying it’s got to align.

I wouldn’t say that you and I came together simultaneously and said, “We need to do a podcast together.” It was mutual. We’ve got some good ideas. I like how we’re aligning without having to say we’re aligning. Eventually, it came together that it would benefit others and us to put something together, share it, take it from there, and see where it goes.”

I haven’t been excited about a business in a long time. I’ve got the show right now. I’m excited about doing business with you because you bring a lot to the table. What’s cool about this partnership is you’re the yin to my yang. You can do stuff I can’t stand doing. That’s a good partnership and you’re good at it. There’s a sign of relief when we talked about it and I said, “Let’s do a fund together in the future. Let’s help investors out.” There’s one other person that I do business with that I feel the same way about. I can let everything roll off my shoulders and not worry. I can do what I have to do and not even second guess what you’re doing. It’s whatever. I know you’ll never do anything wrong. That’s the hardest feeling. When you have a partner and you have to worry even 1% that they might do something unethical, especially if you do a fund together because that’s an SEC issue.

We both said we’re in this time of a pandemic. We got together and we could raise a lot of money. We both came to the conclusion like, “Why take people’s money now? If we buy nonperforming notes, we don’t even know if we can foreclose on them.” We can’t pay people back right away. Maybe we could, maybe we can’t, and there are no guarantees on anything. There’s this big maybe. Maybe we can’t pay them right away, or the courts will be closed, or the closure will be extended because of the Coronavirus. Most people would say, “We’ll be okay. We’ll take that money and worry about ourselves.” You and I both have concluded that we want to worry about our investors before we worried about ourselves, and I don’t see that.

I see a lot of people doing syndications. If you look at their syndications, they pay themselves first. That’s the first thing I look at. I get 3 or 4 syndications a week from multifamilies, note funds, residential assisted livings, mobile home parks, and new builds in the community. Almost every single one of them I get. The first thing I look at is how to break down this. I get these huge management fees upfront from people before they make $1. I don’t understand how people can make their own money first before their investors get their principal back. That it’s beyond belief from me. The industry average used to be you get 2% of the money raised and 20% management fee.

I’ve been part of free syndications. I’ve been in joint venture deals on note funds. I’ve funded other people’s deals. I was in deals where they got paid and money came in. Let’s say it was $100,000 that we gave them and $200,000 started coming in. They started splitting the first $100,000 like it was theirs. How do you not pay your investor back first and then split the nut? With the partnership, I knew that you and I were on the same page right away. That’s huge because I know a lot of people on here have funded other people’s deals before.  

Unfortunately, I’m sure a lot of you guys have been disheartened over the partnership because if somebody funds a deal from me, they’re a partner in my deal. That’s how I treat them. I don’t ever treat them like you’re the money. You’re a partner. You’re like family to me. You come first before any money goes in my pocket. That’s how it is. It’s unfortunate that in this business, the barrier to entry has been easy to get into. The teachings in this business have been so off that people are learning the wrong way, and then they’re teaching the wrong way.

That’s why I’ve been careful with all these new investors and Logan being one of them, but he does things the right way. I’m careful because if they don’t align and if I have to think, “Money is coming in, are they going to look out for an investor the way I do?” It’s not somebody I need and want to do business with. I built a business up and Logan is building his business up the same way. He doesn’t need anyone’s money or partnership. He doesn’t need anyone to do anything. He could keep coming along with his life the way he is and be fun. Give me your take on it.

Big opportunities are coming ahead. Just wait and see. Click To Tweet

That’s a great point. I had a phone call with somebody who has been seeing me online. I don’t know them and they don’t know me. I always start a conversation with individuals like this is a mutual beneficial relationship. This is not I win or you win. We both have to have to come out feeling like we won. I’ll then dive into what we do and how we’d like to partner with our partners. Whether they’re lending partners or JV funders, it doesn’t matter. They’re still a partner. It was about an hour phone call. At the end of it, he was like, “I’m ready. What are my next steps?” I was like, “Sit tight because I’m not taking money right now.”

He goes, “Isn’t that the whole point of this call?” I said, “It was and it is but I’m not taking money right now, and here’s why.” I go into fifteen minutes of what I’m seeing in the market and why I don’t think it’s beneficial for myself. Others can take money. Now, I don’t need it. That’s a luxury that I have but even if I did need it, it’s not a good steward of someone else’s capital. That’s where I fall back into the wealth management side, and the principles that the boss or individual that I learned from was a huge proponent of that. At the end of the day, you are a steward of somebody’s capital and treat it like it’s your own.

That helps you have a better perspective on whether you’re going to take those funds or go into a deal where you’re sitting on the funds. It comes full circle. It doesn’t make sense yet. We’re going to sit in tight and he said, “Give me some action steps.” I said, “Check out a couple of books. Here’s something that helped me get started years ago. Subscribe to our newsletter and stay up-to-date with this. I’ll provide some market insights on what I think, what I see going on, and then stay posted.” He’s like, “I was ready to write you a check.” I was like, “I’m not ready to take the check so it doesn’t matter.”

I teach people how to raise private money. You were part of the course on how to raise private money and you’re crushing it. You’ve raised $3 million-plus. That’s on the one-on-one training we do with raising private money and I’m careful who I take on. I only take on two people every three months. It’s the same thing with my private lenders. We have raised over $30 million in new money and use it in over $200 million in velocity. People think I have a ton of private lenders. I have 42 on my list that I’m in constant contact with. I’ll hit them up now and then. I’ll talk to them.

They’re friends and only two are family. They hit me up constantly and they’re like, “We’ve got this money sitting in our IRA funds.” It’s almost pressure and stress from private lenders. They want me to put their money to work. It is hard for me to say, “I don’t need the money now.” It’s not that I don’t want it. I’m not ready because there’s so much going on right now in this world that I’m not willing to take the risk, even though every dollar is a risk. There’s no guarantee when you take anybody’s money. I like to move with the risk as best as I possibly can.  

If I can’t tell right now, I don’t care who is out there telling you that it’s a good market to buy. You don’t know what’s going on. If the court is shut down and they turn around and they say, “No rent.” You might not get rent. If you can’t foreclose, why would I buy nonperforming mortgages if the courts are closed and I cannot foreclose? I’m going to sit there and hold paper for a year before I could do anything with it. During the pandemic, bank money might be 0.01%. It’s still more than 0% that I’m able to give them. I fund deals to investors. I sell them turnkey rental properties on a note. If they don’t get rent, can they pay me the mortgage? If they don’t pay me the mortgage, can I foreclose? If I’m buying properties to fix and flip, are we not at risk?

We’re not in an economic downturn. We’re in a pandemic. We still have not seen an economic downturn. I love when I get on a podcast, an interview, or on stage. One of the questions they always ask me, “Where do you see the economy?” I love that question because I could give such an educated answer and I can sound like a guru, an expert, or a financial wizard. Nobody really knows. Do we think this pandemic was going to hit us in December or January? We were flying along. I’m still seeing people overbid on assets, notes, on properties because they haven’t hit yet. It’s because of the PPP loans, the stimulus checks, and there are 600 extra unemployment coming every month. People are making more money sitting at home than they are going to work. We haven’t seen that hit yet.

We also haven’t had the election yet. The election is coming in November 2020. We don’t know which way that’s going to go either way, whether President Trump wins again or he loses. We don’t know what that’s going to do to the economy. For some crazy reason, stocks are at an all-time high. I don’t understand that. Do you think if the jobs report are coming out, would they be low? I have someone who’s like a father to me. He raised me as my father’s best friend. He was a VP in Wall Street and he told me, “Sell everything. Second-quarter job earnings are coming out. It’s going to tank.”

PTP 6 | New Co-Host

New Co-Host: You don’t need the service of people to tell what’s going to happen in the market. There is going to be a lot of inventory for 2021 and 2022.

 

He calls me up and I’m like, “What’s going on?” He goes, “I have no idea. I’m shaking my head. I don’t know what in the world is going on. I don’t even understand anymore.” A VP from Wall Street is shaking his head and he doesn’t understand. You don’t need the service of people to tell what’s going to happen in the market. Logan, you’ve done the same thing. I still stay in touch with my asset managers. The asset managers I have are all telling me that they see 30% of note deferment. 2021 to 2022, there is going to be a lot of inventory. There’s a timeline of how long it will go deferred.  

That’s the piece that people need to better understand and hopefully, we can provide.

Logan and I are going to take our bow and arrow, and we are going to crush it in 2021 and 2022. I know that. That’s why I’m proud about doing this with you.  

I talked to a lender. They put me on a conference call with a VP of a bank down in San Antonio. I always try to network. I tell them a little about who I am. I want to learn more about who the bank is, where they’re lending, what they’re doing, and how we can be able to work together. I throw the question like, “What happens when loans go bad? Do you sell them?” They’re like, “We sell them sometimes. It’s been a while.” I was like, “I agree. We’re in a different market. Give us some time.” They’re like, “No, we see it.” I said, “Okay.” That’s as far as the conversation went. It takes time for loans to go through the phases of becoming a sellable loan or a defaulted loan that needs to be foreclosed on.

I don’t want to even get into how the bank works now because we both have some good stories and I love to share with people. Guys, come on back because we’re going to talk about how to find asset managers, how to talk to them, and what to look for. I’ve had some good luck talking to some asset managers. I’ve been bounced around and referred. They’ve been calling me. That’s cool. They call me like, “We’re seeing this. Are you going to be able to help us out?” That’s a different call than me calling them and saying, “How do you have notes to sell?” I had a credit union called me up. I met with four people and we’re socially distant.

We get into the conference room and I met with four people. They make the decisions on the loans that they give them in-house. They don’t deal with anything. They’re not selling these off in the secondary market. They need to get them off their books. They’ve already talked to me. They’ve already EMR some properties that they have to go through to the systems. As soon as they’re done, they don’t put them out for open sell. I’ve met with four people, their loan decision committee. I had a meeting with them, and they’re excited. How did I get in with them? They’ve done some funding on some deals for me. They see what we do.  

They’re excited about working with me because they know they can get their stuff off the books. It’s notes or properties. They are both. That’s a credit union. We’ll do a show on notes in the future, how to deal with asset managers. We’ll give you insights into how Logan and I both deal with asset managers. We both deal with them a little differently. That’s why it’s cool having a partnership and join forces together. I’m excited about 2021 and 2022. I don’t know what’s going from there with us. There’s a nice pipeline for our investors. They’ll be loving it.

There are some big opportunities for sure coming ahead. It’s a whole pattern, so wait and see. That doesn’t mean there’s not stuff that’s going to pop up now that’ll make sense, but it doesn’t resonate with me to take on investor funds yet on a deal that made sense in 2019. The last thing I finished with that lender was, “I’m not trying to force a deal here.” He stopped and was like, “We don’t need to force anything.” It clicked in his head too like, “I don’t need to give you the funds.” He’s like, “I’m looking to you for advice but I’m also looking to you from a steward of somebody’s capital to somebody who’s looking to place capital with a manager.” That’s effectively what we are. He was glad to hear the conversation that we were having. He was like, “Nobody’s talking to me like this before.”

Being a guru is all about being able to educate without having to ask for anything. Click To Tweet

Everyone is looking for themselves, “How do we get the money? It’s no risk to me if I take somebody’s money and put it on a deal. If the deal falls apart, I’ll give them all my disclosures, and I don’t do anything. If we lost our money, we have to wait.” I can’t tell you what their names are. There are gurus out there or people that speak at events that have not been paying people back. You need to do due diligence on people who you give your money to. Ask around because that’s a scary issue. I’m excited there. What’s cool about you is you’re taking your steps and you’re on your path. You’re still on your journey and what your goals are. What are your ultimate goal in life and this business?

In life, it’s to get time back. It’s either money or time that they want. I want both but I’ve seen the value of time raise significantly over the money side. I used to think I needed $1 million to live on a year, and it’s probably closer to $100,000. I can do fine with a modest income and do the things that I want to do. About a month or two, I’ve had more close friends here within 10 or 15 miles of me, and then also a baseball coach that I went to high school with that’s up and I wouldn’t know. They all call me like, “Here’s my financial plan. What do you think?”

That has hit home for me and said, “If money didn’t matter, this is what I’d like to do, give some free advice and allow people to have somebody to talk to about their finances.” It’s a topic that many don’t want to either come to grips with, how much they’re spending, how much they’re not saving, what does their retirement look like? I always start with, “I don’t know everything but I’ll at least give you how I’ve gone about it, how I’ve seen others do that, and then let’s try to put a plan together.” That’s what I enjoy if money didn’t matter. It is being able to help others. The gift is within finances. That’s where I try to focus a lot of my efforts and letting people know like, “Give me a call. I love to talk to you about what you’ve got going on and where you want to be.

I sent you a text about somebody random in a Facebook group in the DFW area who was like, “You don’t come off as a guru. You share a lot.” That’s what a guru should be doing. It is providing content, information, and enough to either prompt more questions from the reader or allow a phone call to come up, and then you share a little bit more about what’s going on. You then hang the phone up. You don’t ask for anything. You’re simply educating. I’d like to be able to educate for free at the end of the day.

I’d love to talk more about that too, whether free or paid education makes sense. I had put out an event and what I’m noticing a lot in the industry is people live in a scarcity mindset. I talk about limited and scarcity beliefs. Scarcity is I’m scared to share because if I share, there’s competition. I’m going to tell somebody how to do something, and I’m not going to able to do any more business. That’s living in scarcity. I read a lot and unfortunately, I do spend time on Facebook. I read business posts. I’m on some pages I enjoy. A lot of newer people are asking questions who don’t even know the industry. They’re just looking for a different way to invest.

Whatever they’re doing, they want to do something different. People are scared to share information. I paid for information but I have a lot of free information. That’s my give back. I have a YouTube page, I have my free Facebook group. I have my paid group too, but I have my free groups that everyone could join in, and I have my personal page. I said, “I’m going to do this.” On my personal page, I keep 5,000 people, which is the limit. I notice it and sometimes I have too much time at the beach and thinking. I love the beach. I sit there and think. I’m like, “How can we help these people that nobody helps?” I have a ton of stuff on YouTube already. It’s not a tremendous amount that I want. I don’t make money on my YouTube page. I’m not selling ads on it either. I like YouTube because the information stays there. It doesn’t get buried like in Facebook or any of these other social media sites. If there’s any page, people would look at it.  

People are willing to share it out with their friends, screenshot it, send it back to me, and I’ll put it into a contest. We did that. You figure at that point, I have 5,000 friends on Facebook. I know they don’t see it. We have people at Become a Real Estate Investor with Dan Zitofsky. We even put it on Webtalk and LinkedIn. We got 70 or 80 people who did it. We picked somebody out and it was a free coaching call. My coaching calls are $400 an hour. It was free up to one-hour coaching call. I didn’t even pick it. My marketing team put all the names in a random program. I don’t want to pick it because I don’t want anyone saying I didn’t pick you.

I picked one gentleman, we made the call, get on the line to do the call, right before the call he says, “I’ve got to cancel. I have something else to do. I’ll pay you for your call next time.” That was free. “I had somebody hit me up for a couple of months already. We had a meeting planned about a month ago. In advance, I had to cancel it because of a doctor’s appointment.” I said, “Let’s reschedule.” They show up at a launch event which I don’t do those. I was like, “He’s good, he needs help, and I’m going to help him.” I send him the address. He tells me he’s at the wrong address. I said, “I sent you the address. Come to the right address.” He goes through it and says, “I’ll be there in 20 to 30 minutes.” I wait for him. He goes to another wrong address. Now he’s an hour away. It’s two times. I’m like, “Mistakes happen, but maybe if he pays for it, he would take it seriously.” Maybe it’s me. I used to mentor people for years for free.

PTP 6 | New Co-Host

New Co-Host: When you’re not charging people, you’re doing them a disservice by not having them invest in themselves.

 

I can tell you one success story, a minute I had people invest in themselves like Logan Hassinger. You invest in yourself. You started raising some serious money. You understand the game and how it works. People don’t play and don’t show up. I’ll tell you what it does with mentorship. You have to give a ton of content out there. I hope that anybody who’s a mentor that charges for it didn’t get into mentorship because they want to make money. That’s not what it’s about.

That’s what I meant to say. I’m not in it to profit and live a better life money-wise so that I can share information. Money talks and it forces you to be like, “I spent money on that. I’ve got to implement whatever it is that we’ve talked about or creating some content. I paid for this so let me get my money’s worth.” Those should go hand-in-hand as well.

Another story about that is I do one-on-one coaching, not for private money. I do one-on-one real estate investing coaching, but I don’t do it anymore. I take eight students for six months and it’s $26,000, which is not the most. People charge a lot more than that. This is like a marriage for six months. I do up to eight people. That’s sixteen people a year for $26,000. That’s about $416,000 income from one-on-one coaching. I finished my last contract up in June 2020. I have not taken anyone. I have people on the waiting list. I did not take anyone on. This goes more into my vision too of why I’m not taking anyone else on in that.  

I will do a one-on-one type of deal, but I’m going to a group coaching program in the fall. I love group coaching. The last time we did it, we got together as a group. We all took down a large Fannie pool. It was a $5.1 million Fannie pool, but we all had the same mindset. I’m going to make a lot less money doing that. It’s not about the money, it’s about what you stand for and who you want to be around. I was going to give up coaching completely. The mentor that I work with says, “It’s not that you hate coaching. It’s you hate coaching certain people.” It’s true. There were times when I would hop on our weekly calls where we learn how to raise private money, I loved it. I was looking forward to it. I was like, “What do I have going on now?” I had you on a call. At that time, it was you and two other people. I enjoyed every minute of that.

When I would get on the coaching calls with other people who would pay me $26,000 for six months, it should be more for my time and me helping them. I would sometimes get knots in my stomach. It was like I would hate going to work. I didn’t like it and I was dreading it. I was like, “That’s why I’m going to stop doing it,” because it’s not about $400,000. I’m living my life on my business. That’s how it should be for a mentor. Who do you want to mentor? Eventually, mentors will be on here. For many years, people would ask me to speak at events, coach them, mentor them one-on-one, and I wouldn’t do it. I told them I have a mentor. I have two mentors. I pay six figures a year to mentorships and events. My mentor said to me, “Why won’t you do it?” I didn’t feel that I was worthy enough to be a guru. I didn’t feel I had anything to share with people. Unfortunately, you only have a few years in the industry. You have a lot to show people. You’d probably be one of the best mentors out there, Logan.  

It might not be in your vision to do it, but you only have to go a little bit more than somebody else. Sometimes you have to hold them accountable. I learned this myself because it was the hardest thing in the world for me to charge people. You’re doing a disservice by not having them invest in themselves. You are hurting them more if they don’t invest in themselves. There are times you probably might not have got on the call because you had something else to do. In your head you’re like, “I paid this. I’m getting on hold and everything happens.” I have a 0% success history with anyone I mentored for free. I’ve not had this success story. It could be me through my groups, my conversations that I’ve helped people. I’ve had people who I mentored one-on-one and they give up. The minute there’s a roadblock, they give up. Let me ask you this one question, has this been easy for you? Most people quit, right?  

I’ve got a partner out in Atlanta, Georgia, and that email went out around 2:00 in the morning and send us some documents. We’re working on a loan together and we’ve been working together for several months. He was like, “Do you ever sleep?” He didn’t say it in a bad way but still, I wouldn’t say it’s easy. I work late and early often, all because there’s a vision down the road that I’m constantly working towards. The overall goal is what I’m trying to get to. To answer your question, it has not been easy. Outside looking in, I’ve had a lot of friends that I’ll talk to occasionally. They’re like, “It’s so great. You came out of nowhere with this overnight success.” I stop and I’m like, “Overnight success? Sure.” I still don’t see myself as a success yet and it hasn’t been overnight. I worked overnight but it doesn’t mean that it may happen. I know that’ll come but for now, in family, we all have different circumstances. It’s easier to work at night when the girls are going down to sleep. I can come into the office, tuck away, and knock some stuff out. No way do I mean that I’m killing myself but I make my time work for what I’ve got.

This has been awesome. This is better than I even thought the first episode was going to be. When Logan and I get together, we could sit here and we didn’t even talk about sports at all. We could sit together for a full day and not stop talking. I’m hoping you guys all get to the event that we do. We’ll have a good time and we’ll talk to you about tons of content. Just so you understand what we’re talking about if you read this thing several months from now. We’re talking about the Summer of 2020. We’re in this pandemic of Coronavirus. Some of the things we say now might not be the same in the future when the industry changes a little bit. We will always give you the real deal. We’ll come at you with a ton of episodes. We’ll take feedback, questions, and info but we have a ton of ideas that we want to speak with you about. Do you have any parting words, Logan?

I look forward to what we have to learn from each other, to share, and learn from others. In my mind, I never stopped learning. I look forward to it.

Share this out with your friends and family, and give us a five-star review if you like what we have to say. Give us a review and please comment. This will keep us to the top of the podcast so you can get our shows. Our only goal with this is to get out pure and free content for you. We look forward to talking to you more in the future.

Thank you, guys.

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PTP 4 | Prosperity Inner Circle

Unlock Prosperity With Your Inner Circle

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PTP 4 | Prosperity Inner Circle

 

The word “mastermind” has been thrown around a lot to the point that it has lost its meaning in many ways. At the Prosperity Inner Circle, what you get is the true essence of a mastermind. It’s not about fee for entrance. It’s about playing at a much higher level and being the dumbest in the room. Your life will change when you find a group of those who align with your mindset, vision and goals. Every mentor and powerful leader is part of an inner circle. It’s time you get acquainted with yours, too. Listen in as Dan Zitofsky explains how you can be part of something that has profoundly changed his life and of those whom he mentors personally in so many levels.

Listen to the podcast here:

Unlock Prosperity With Your Inner Circle

Masterminds and Your Inner Circle

I get excited about what I’m going to talk about. It was day one of our two-day boardroom mastermind group with fifteen high-level investors, business owners, and people at all levels, not just real estate, it’s the type of boardrooms we do. We’re starting up our next Prosperity Inner Circle group. We’re going to be having up to fifteen people. These are the best groups ever. The reason I love them is because we get so much out of them. One of my mentors, Mark, had said in the past, “People talk about they’re self-made millionaires or their self-made success stories.”

It struck home because I thought I was living on an island by myself. How many of you ever thought you were living on an island by yourself and you’re like, “How in the world could I be a self-made successful millionaire, a self-made successful business owner?” Whatever it might be. There’s no way in the world that you’re self-made and do anything in this world by yourself. That’s why the inner circle masterminds with the right people are important because if you don’t have the right people, it’s nothing other than a club that you can be in.

For me to be where I’m at, go through all my journey, and it’s in my book, Passive to Prosperous, we go through chapter one. It talks about my why. That has everything to do with my family, team, and the markets I’m in. If it wasn’t for my wife and my kids, I wouldn’t be where I’m at. I would be doing something different. How am I self-made? That’s inaccurate. Mark hit me on the head. It’s hysterical that he talked about that. I’ve been thinking this for years and I’ve been scared to come out and say something because I feel I’m always the anti-guru out there, even though I’m a mentor.

Whatever people say, I’m calling BS on them. There’s so much crap out there and what people are saying. That’s why you need to align yourself with masterminds or mentors who will take you to that next level. I know you have a lot of naysayers saying, “Don’t spend a dollar on anything.” There is something powerful. I wrote some notes on it and I wanted to bring it up. One of the best comments I’ve heard in a long time, and I didn’t use this lot, “It’s emotionally immature to think you can help everyone.” Let’s think about what that means. Why would it be emotionally immature to think you can help everyone?

Be profitable with your business. Be charitable with your profits. Click To Tweet

Is it emotionally immature to think you can help everyone? I’ve been saying this too for a long time. I said I’m not for everybody. I need to find the right people and the right avatar. Going back a bit and why it’s important to be around the mastermind. When I say mastermind, I mean true mastermind. Everyone calls everything in a mastermind. That’s why I try not to use the word “mastermind.” I try to call “inner circle” or “boardroom” or something to that effect. My ten people that will be part of the next one is handpicked. I will do interviews. I’ll research them, do my due diligence on them, and see if I want to work with them. My rule is, if you’re not paying me and I still don’t want to have a beer with you, I’m not interested in being around you.

I don’t want to be around you if you’re only paying me. For so long, I’ve been mentoring people and 10% to 15%, I love working with, I enjoy it, I look forward to it, and I get more out of them than they get out of me. The rest of them, I get a knot in my stomach every time I have to get on the phone with them. Every time I have to try to help them, I get deflated and I don’t enjoy it. Because of that, it was starting to get me to the point where I didn’t want to work with anybody anymore. I didn’t want to mentor people. That’s emotionally immature for me to think that I can help everyone because I can’t help everyone. I’m doing a disservice to the people to try to help them if they can’t help themselves. I’m doing a disservice to somebody to try to mentor them when they don’t invest in themselves the time and the money. Do I value myself? Am I worth more than free? Are you valuing what I tell you? Are you valuing my mentorship? Do I believe I’m worth $5,000? No, I’m worth way more than $5,000. Do I believe I’m worth $30,000? I’m worth way more than $30,000.

It doesn’t matter what number I give you. If I have to sell you on why you need to work with me and you see it as a cost, not an investment, I’m the wrong person. I’d rather not work with you. The difference between myself and most other people that do this is I’m not doing this for the money. I don’t need the money. I’m not saying that to impress you. I’m saying to impress upon you. I’m not the right fit for everyone or I’m not the right fit to 80% of the people out there because I’m not going to sugarcoat things. I’m not going to work with you if you don’t do the work. I’m not going to help you if you can’t get your mindset right. I’m not going to work with people that make me miserable to work with them. My business and my vision are lifestyle by design. I’m saying this not to impress you but to impress upon you that it’s important in your business to do the same thing. It doesn’t have to be mentorship. It could be a partner or client.

If you’re an accountant, you could have a client that drives you insane, want you to do things unethical, and change your vision. If your vision is I’m going to work the best I can to get you all the tax documents that could possibly get you within the scope of the tax code that’s legal and ethical, I’ll do that. When you ask me to start lying, committing fraud, and tax evasion, if you’re willing to do that, you broke your vision, unless your vision is to do illegal things and to chase a couple of thousand dollars from a client. You might think about that. How does that client make you feel? Does that client put a knot in your stomach every time you’ve got to sit and talk to them?

PTP 4 | Prosperity Inner Circle

Passive To Prosperous: Stop Chasing Money and Start Seeing Prosperity Through Passive Wealth

I’m not saying you say no to them. Clients can’t handle it, that’s why their coming to you. If you’re a marketing agency, clients don’t know how to market. They’re going to seem uneducated in marketing, that’s why you’re there but, are they willing to listen to you, are they willing to trust you? Those are the people you want to work with. If you’re an accountant, are they willing to trust and listen to you? Take your advice on the tax you should give them? If you’re a financial planner, a wealth advisor, are they listening to you? Are they taking advice on what you’re telling them? If you’re in a situation like myself where I help people build their passive income, either with rental properties, seller financing, investing in notes, if they want to become the bank, are they trusting of me?

If they don’t trust me as a person, it doesn’t matter what I do to them, they’re always never going to trust me. I understand you should do your due diligence, trust and verify everything, but there’s a point where you have to trust the person you’re working with. This goes deep. I was in a position for many years where I felt guilty saying “no” and charging people. Until I had a mentor who talked to me and showed me how I was failing people. I was sending people off a failure because I wasn’t valuing myself. If I don’t value myself, they’re not going to value me either. They’re not going to value themselves if they don’t invest in themselves both time and money.

I used to come back and said, “I want to help. I want to give back. I want to make sure I could learn the right way.” Something positive I heard. Think about these words, “Be profitable with your business. Be charitable with your profits.” In my vision, I’m happiest when I love what I do and I can give back to organizations that I care about. I can’t do that if I don’t have the money to do that. My mentorship is business. My business of earning passive income for myself and my investors is a business. I need to be profitable in that. I could be charitable a million other ways. I can give back to people if I have enough money coming in from my business, then I can give back to somebody. I could find somebody who will be a rock star if I give them time back. I wish I had a one-on-one communication with somebody because I would start seeing the next back and forth, the yeses, the a-ha moments, the mouths dropping, the eyes coming out, and people start moving forward. It’s a phenomenal mindset to think like this.

I got off day one of my boardroom mastermind of a two-day workshop. You usually have it in-person or aren’t able to have this one in-person because of what’s going on. During the Coronavirus pandemic where we’re quarantined at home, we’re still making an example, we’re not making excuses. We’re still doing our mastermind group with high level, powerful business owners, investors, and people that invest a lot of money into this. There is nothing better that I get than doing one of these.

If the only people you're hanging out with are the ones you're hanging out with for free, you're not getting the most out of your life. Click To Tweet

I sit back and I’m like, “The wheel starts spinning. I get clarity in my mind. I don’t hang out with all the negative mindset people, the limited belief people, and a scarcity mindset.” It’s a rocket for your business, personal life, personal vision, business vision, for everything. Think about what you do in your life, who you hang out with, how you think, and start putting that emotion. Stop thinking differently. Stop changing your mindset. If the only people you’re hanging out with are the people you’re hanging out with for free, you’re not getting all you can get out of your life.

The people that are going to give you the most out of your life, other than your family, friends and business, are those that you’re going to find in these high-powered mastermind groups, not just on money. You have to invest a decent amount. I invest over six-figures a year in my own mentorships, trainings and events, but if you’re only hanging out at events where people go for free, pay little money, and look for discount codes then those are what you’re going to get. It’s a discount network. If you want to be part of a discount network, that’s what you’re going to get. I’m tired of seeing it on social media. I’m tired of people saying, “Give me the investor-friendly.” I’m tired when I’m speaking and anyone says, “Do you have a discount code?” If you’re a coupon shopper, you’re always going to be a coupon buyer and a coupon mindset.

That’s the way you’re going to be. A $200 event, people are asking for a $50 discount code. They’ll spend three hours asking for a discount code. What is your time worth? Is it worth a $50 discount code? When you go to a restaurant, do you count change on tipping somebody? Is $10 going to change your life? If it is, your mindset is jacked up. There’s so much help you need. You better get into groups and get a mentor that can lead you on the right path because otherwise, the way you think isn’t the way you think about everything and the way you’re going to teach your kids to think because they’re going to watch you. Think about that.

I had to put that out there because I blew my mind, I get off, and I had a couple of conversations around it. Once I got off the conversations, I went back to the whole people looking for ways to chip out with their time and their investment. I do love you, guys. As long as we have people that love what we do, I’ll keep doing this because I’m doing this with no dollar to raise. What I’m asking you to do is give us a review. Share this with five people who you think will get something out of this. It can be your students, mentor, group, employees and family. Somebody can get something out of this.

If you truly care about them and you don’t live in a mindset of scarcity where you’re scared to share with other people because you think that they’re going to take your business, you’ll share with at least five people, if not more. We’ll make this the best from everything to mindset, vision, and goals. I will be having special guests come on here. The top of the top in my Rolodex, the millionaires and billionaires that I deal with, and give you their secret sauce on how they do their business. Unmatched, untold unhindered, no sales on there. That’s what I want to do but to do that, I need your help to get this out there.

I’m doing this because I love getting this information out there. This is exactly where I can do it. Where I say I’m being profitable by business but I’m being charitable with my profits. This is how I could become charitable. I always wanted to become charitable. I have many grand plans for this. I have plans to do things for many people, do things for many organizations like raise the capital to do many great things, not to make money but to give back. To do that, we need an army. To get an army, this is how I’m doing it. I look forward to seeing you on the other side. Take care.

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PTP 5 | Invest In Yourself

Invest In YOU!

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PTP 5 | Invest In Yourself

 

It is unfortunate that many people in the world live in a mindset of limiting beliefs. You will see them miserable, but they will still refuse to invest in themselves. Why are they doing this to themselves? It’s simple – they don’t value themselves enough. Do you know of anyone who is that miserable in their job, business, etc.? If they believed they deserved better, then they would invest in themselves and learn how to make the change. Listen in as Dan Zitofsky explains why you need to see that value for yourself and start investing in yourself first and how his new group, Prosperity Inner Circle can be a way for you to do that.

Listen to the podcast here:

Invest In YOU!

Value Yourself Enough To Invest In Yourself

I hope everyone is doing great, happy, healthy, and you’re living a prosperous life. I want to talk about something important to me, my life, my business, how I’ve changed at many levels, where I see a lot of people making their biggest mistakes, and what’s causing them issues in their life both personally and the business. I wanted to bring this up about mindset and your limited beliefs thinking everything as a cost, not as an investment, and trying to save a dollar. These are the things that you never heard growing up. How many times have people told you, “Go to school, get a good job, save money, and then you’ll live a good life?”

You’re always looking for the coupons. You’re always looking to be a coupon shop, skimp, save, nickel and dime, everything. You jump over dollars to save pennies. I see it all the time. I mentor a lot of people, not just in real estate investing but I’m mentoring people on life. Sometimes, it’s the hardest thing in the world for me to work with people. That’s why I wanted to do this show and talk about this with you, guys. If you haven’t noticed, the most successful people in business have a different mindset, they think differently and think at a higher level. They don’t sit there and figure out, “If I go out and I mowed my lawn, I could save $50.”

I cannot pay somebody $50 because I know how to mow the lawn. If I could spend 3, 4 or 5 hours designing a logo myself of all the tools online, I don’t have to pay somebody else $100 to design that logo. If I could do all this paperwork myself, I don’t have to pay an assistant, bookkeeper, or accountant to do the work themselves. I’m not saying that there are not things you love to do. I have a pool and I love cleaning my pool. I don’t care how much money you pay me to not clean my pool. I want to clean it. I’m being fictitious when I say, “If you hand me $1 million, maybe I’ll take that.”

When I clean my pool, I get out there, I put my headphones on, and listen to a podcast or some music. I relax, nobody is out there bothering me. I don’t have anyone telling me I need to do things and ask me questions. It’s my zone. I get to zone out and I enjoy doing it. It’s a beautiful day. I get in a pool, I walk around with a vacuum, and I love cleaning that pool. I don’t know how many people out there do it but if you asked me to cut my lawn, I hate doing landscaping and cutting my lawn. There’s nothing enjoyable about it for me. Some people love it and I give them credit. That’s fine.

I look at it like this, if I hated vacuuming my pool, it may cost me $100 to pay somebody to vacuum my pool. To vacuum my pool, it could take me 1 or 2 hours so that’s $100 to $200. I could save by doing it myself. Think about this, I could save $100 or $200 vacuuming the pool myself. Why would I pay anybody? Have you ever figured out what is your hourly salary or how much you’re worth? Have you ever done this exercise to figure out how much you’re worth? If you sit with me right now, I could go through this exercise.

I tell people, “There are 52 weeks in a year. How many weeks do you want to vacation?” Everything I do is passive to prosperous and lifestyle by design. I’m talking about vacation. I’m not saying I’m not working and I’m going to watch Netflix. I want a vacation of at least 2 to 3 months a year vacation. Generally, about 6 to 8 weeks in the summer and another 2 to 4 weeks throughout the fall to the summer. It would be a lot more but with my daughter in school, it’s a little bit less. I’m alone and not doing much. I’m at the beach, at the beach house, at the boat, or whatever it might be. My kids play sports so I want to be involved with that. I want to coach. That’s my lifestyle by design.

Invest in yourself first. You can't help anybody else if you don't take care of yourself. Click To Tweet

Let’s go right in the middle and say ten weeks. That gives me 42 weeks a year of working. I only want to work about four hours a day and I don’t want to work on Fridays. Forty-two weeks a year on four days is 168 days a year work on average. There are Christmas weeks, Easter weeks, Valentine’s Day, and Thanksgiving but I’m going to say an average of 168 days a year. I want to work no more than four hours a day. That means 672 hours a year. Sometimes, I work more and sometimes less but that’s my average. I know how much money I want to make a year. I want to make seven-figures every year and I’m doing that.

Let’s say it’s only $1 million. It’s $1 million divided by 672 hours. It means my hourly salary has to be $1,488. If I cannot replace what I’m doing for $1,488, I’m not doing it unless the pool. I love the pool. I also enjoy detailing some of my cars. I get a sports car and I love detailing that as well. Do you see how I look at things? Why would I go out and cut my lawn for $50 for one hour where I can make $1,488 in the same hour. That’s my hourly salary. Sometimes I make more and sometimes less but I have to average at least $1,400 and I do. I need to know what I need to make. You have to figure it out and work backward.

I don’t know if they teach this assignment in school and they should because what happens is people don’t take care of themselves first. It’s important to take care of yourself first. When you get on a plane, what did they say when they start talking? If you run out of oxygen, the masks are going to drop. You put one on your face first before you take care of your own kids. You can’t help somebody else if you don’t help yourself. Stop not valuing yourself. I did a webinar and every once in a while, depending on the group, I offer a huge discount.

My goal was usually 10% to 20% of the people sign up. They join a webinar for free. They want to take action. They want to learn how to raise private money in the right way and they want to build a passive income portfolio. They spend one hour at a time on the webinar because they want to sign up. I don’t whack them over the head with an expensive price. I give them everything. I believe in a ton of value. I create a ton of content and not everybody signs up. I said, “It’s a test for me. I haven’t made a better one. The next ten people that will take it, I will spend 30 minutes with you on the phone going through your resume and your brochure.”

At $1,488 an hour, if you take 30 minutes of my time, that’s $744. I offered the whole training with everything they get for only $497. There are a couple of things that happen. It’s either they don’t value what I’m doing or don’t believe what I do which I can’t imagine because we proved that I am and they all agreed that this makes sense. I need to raise private money, it’s needed for my business but it didn’t make sense or they don’t value themselves. That’s where I’m going to go with. I’ve gone through this for a long time doing this for many years. Most people do not value themselves. They don’t believe they are worth investing in themselves. They look at everything as a cost. They don’t look at anything as an investment.

When they asked me, “How much does it cost for you to mentor me?” I’m like, “Nothing because I don’t have room for you.” Call me and ask, I don’t care because the mindset is everything. If you don’t have the right mindset, I can’t work with you. Mindset is not something I can teach you. You either have it, you learn it on your own, you get it from somewhere, you get it from within, or you want to live a life of a greater purpose. Where is your mindset? Guys, I want to make more money. Why do I want to make money? It’s because I want to do more with it and not buy things.

PTP 5 | Invest In Yourself

Invest In Yourself: It’s important that you think differently about yourself because if you don’t, you’re always going to be a coupon shopper, looking for discounts and freebies.

 

I want to give more to charity, do for organizations, and build a financial literacy course for youth around the world. I want to donate, build, help companies get to the next level, infuse companies, and investors. There’s so much I want to do. I’m not done and nothing with me is money-motivated. As crazy as it sounds, it’s not money-motivated. There’s a higher purpose. We’re at a point in life where there’s so much more to life. We’re not done. We’re not even scratching the surface but we think differently about ourselves. It’s important that you think differently about yourself because if you don’t, you’re always going to be a coupon shopper, looking for discounts and freebies.

You’re always going to look for a way to get over it. If you start looking for a way to get over, you’re always going to get over, you’re never going to achieve great success. I see it now. We’re going through a pandemic and everybody is out there. They’re looking for unemployment, stimulus checks, and how they can spend. They spent hours to get a $1,200 stimulus check. If you took 1/3 of the time they spent getting that $1,200 stimulus check and you focused on building a business of some sort, anything. I’m seeing people sell trinkets, lead gen, build logos, and do much to build some business to make money rather than going out and spending all their time looking how they could save a $1. They’re mewling themselves out. They’re not living to the greatest potential. It’s sad and I hate to see it happening. I feel like this is important.

Eventually, we might have some sponsors on here. My plan is not to have sponsors on here, not to sell ads, and create amazing content. This is my passion, to do this. I finally have the show launch. If you’re enjoying this, do me a favor. Share this out with at least five people and give us a review. We love those five-star reviews. If you find it within your heart, if you think it’s valuable and you’ve got something out of this, we’d love your review. That’s our cost to you. We’re not charging you anything to be here. This is completely free. You’re going to get a tremendous amount of value here. We’re going to have business guests on this show from time-to-time.

We’re going to bring everything our business that helped us build our business to where we’re at now to multiple seven-figure businesses, not just one. We’re going to help you and bring that to you. We’re not looking to sell you anything here. We’re looking to provide complete value and do differently than what everybody else does on this show. Everyone is in it for a reason. We’re in it because we see a need for it and a missing value out there. We want to give that to you. I’m going to come straight to you. I’m not going to sugarcoat anything.

You might not like everything I have to say, I don’t care. I did not care what people think about me. People didn’t like me when I was down, out, and poor. They talked about me when I was there. They’re talking about me now when I’m wealthy and successful. I’m not where I’m at. I haven’t even scratched the surface yet of where I’m going to be at God willing for the next years. I’m healthy and I could keep going. I still have a passion for it. I’m not even close to where I’m going to be. People are going to talk about you and I don’t care. That’s their garbage, negativity, and mindset. People say, “You don’t need a mentor.” That’s horrible.

I love what we’re doing. I honor you for being on here and I value your time. I know you can spend your time on 100 million podcasts. I love that you’re here. Please share this out and give us a review, come back, read our blogs, and feel free to reach out. Let us know the questions you have. If you have ideas and thoughts, let us know. We will be bringing guests on. You’re going to hear from time-to-time some special guests that we have. We’ve got tons of surprises for you. I look forward to speaking with you and seeing your reviews. I’ll talk to you soon. We’ll see you next time. Be well. I love you. Be passive, be prosperous, and have a great life.

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