Lifestyles Unlimited, 12/10

Lifestyles Unlimited
Sunday, December 10th

Lifestyles Unlimited with Steve Davis, for December 10.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Digital lifestyles are limited real estate investor radio show. A real estate investment pro. Listen and learn how to use real estate to build wealth and passive income streams for you when your family. We bring you experts every day to discuss and answer your questions on everything from single family home. Homes all the way up to 600 plus unit apartment complexes. And now the lifestyles unlimited real estate investor radio show. Radio show host the Davis. Where as always we're here talking about your personal. Financial freedom we're talking about retiring. Edit the page by going now in here and acquiring. Single family homes group of single family homes. Or groups of small apartments or maybe you've got enough money to just go. Straight out and buy 200 or they don't unit apartment but we do at all. And what we're doing is we're generating passive realized monthly income streams income streams that come in every single month. For the rest of our lives and this is really the definition of retirement. So many people have. The any effective. Or wrong definition of retirement they think that to retire what you do as you say about this big imaginary amount of money that you can't tell Lou. And you just start hacking away at them money and living off that money when you retire. Well there's a problem with the business model. The moment you retire you have to begin praying one. We're that you die before you run on a month not really peaceful. Joyful good way to live. No that is the ineffective. Or wrong way to think of retirement. The correct way or. Is to think of building a second stream of income you have your first stream of income that your job. That's your first true of the income. But you're supposed to have a second stream of income from your investments. That is also equal to. In really I shouldn't say that. It's got to be equal to your I was gonna say equals your bills but it really has to be more than that he needs to be equal to you want. It needs. In other words the example I'd love to use because I've seen it done by hundreds of people. Is go out and body. And 8000 dollar monthly income strip this would be twenty houses or out of the next five to ten years not the next 3040 years. Five to ten years. The end purchased when he rental houses or a couple of small apartment or one big one. That makes you a thousand dollars a month. If you're wise you're gonna keep your monthly bills down around 4000 a month that's the average for an American family. If your bills are 4000 a month in your making 8000 a month off your investments when you have to go back to work. You don't you're retired. 510 years not 3040 years plot in years. And yes we've had many people do six months we've had many people do it in under two years. But I just used the five to ten years realistic for just your average. Person. Page fifty maybe under green in your mind. So. That's what we're doing in this is the business model that works. Now you've got questions in other words most people of average intelligence or higher. Are going wow an excellent I'd love to have that second stream of income. But I don't know how to do it. Steve I've heard that real state has high maintenance costs and Steve I've heard that they concede is a factor I've heard that tenants are problem. Give me a call. Tell me what it is is keeping you from going out there. And investing. In realist I wanna chance real state your portfolio. You know 70% of the millionaires in America use real estate as their main vehicle. Why would you not imitate what successful people are doing. You I'll tell you why because you've got some belief some fear. It may be that real estate consumes a bunch of time running twenty rent houses take about six hours a month. Not a week. A month. So. Yeah. You've got questions do you call 8777115211. 8777115211. Or you're welcome to email me. It's ask Steve. I know you are UNC dot com asked Steve. At no you obviously dot com you know a lot of you have been emailing me about the new tax laws. He and I even played this on yesterday's show I'm gonna play it again. The tax laws are not changing that much at least nothing worth talking about that I've seen. Before. Real estate investors developers. Rental. And it's just not changing. In fact. According to a lot of people it's getting better for developers. In June rental owners it's getting better. But so far I haven't seen where it's getting better about the play you a clip from a gunning Jim Stewart. Who is an irate. Stock. Who's. Pissed off at the world because. Real estate investors pay such low taxes. That investing in stocks becomes almost ridiculous to even consider. When you consider when you compare the rate of return you get in real state. And the fact that it's almost tax free. In the rate of return you get in the stock market for the last fifty years of stock market is produced about 5%. Average. Whereas with our rules they were making 20/20 4%. Plus a 100%. Capital gain the first year. So in many cases we make a 124%. Rate of return the first year we own a little single family house. So you can't compare that to stop suspicious enough for you. Stocks are not comparable to real estate which again McCain wide accounts for 70% of the millionaires and not stopped. But anyway you can tell those guys in the stocks because he's just he's literally high rate he even says this and you'll you'll have to listen for. He says this. You know they even let them run off their repair years. Is there even. Thought that you wouldn't want somebody write off their repeated years. I mean it's got to be one of the dumbest things. That just looked out of his mouth but you can tell he's just he's angry. He's jealous. He's insecure about that. So let let me play I got a couple requests here to play it. But listen closely because underneath his anger. Here and insecurity. Is. The truth which is. It's getting better to be real estate investor tax wise let's listen that this is his opinion. Of Trump's news. Loss. Well it's preposterous and in this tax code as the proposals now Stan is the biggest giveaway to commercial real estate. Interest in the in the history taxes as far as I'm concerned. I thought the existing tax code couldn't create any more loophole than it already had the benefit real estate developers and this one does. In another live we have all we should all come back it's real estate developer lot we'll give it I'll give you an example let's in my office buildings you borrow 90% of the money under this to. You can. Deduct all the interest now others are not going to be able to deduct interest but real estate as a carve outs you can deduct the interest. You can beat appreciate it which is a non cash charge at an accelerated rate under the senate version of the bill. Then the you take a big loss on it and you deduct that against your regular income which only real estate developers can do. And he's solidly Coach Williams got the maintenance he keep that in tip top shape you deduct all this cost. So the valuables and goes up you Soledad big profit and then through life 'cause it's ten to buy something else we'll sick cattle ranch in Montana. You don't pay any tax on that and then when you die. Once the estate tax is gone. There's no tax at all you've never pay anything on the gains in the U tough goal is depreciation and interest deductions on the way. It's breathtaking game and by the way it will lead to overbuilding. It would seem to that was my question I sort of think about. China for example very different reasons but yet did just reading an incredible over capacity that we already. Given the changes like this product it's astonishing to me and of course it benefits dropped tremendously. And that's not those are the only things either you know that passed through grade. Thing which a lot of realty developers get a thing slash shuttle that will benefit him he would play getting rid of the alternative minimum taxable benefit him he would play so you don't. I still hold out a teeny tiny bit of hope that congress will come to its senses and do something about these it's certainly looking to raise more revenue. A close loopholes be if you're not gonna close the loopholes bring back the AMT the whole point of the. I'll look through. Go search and watch the whole thing he's just. It's amazing to me that this goes even on TV. Calling a tax deduction for your maintenance costs a loophole. Every company in the world right off maintenance costs. Why would a real sort of instrument do that he's just out of control but that's at least you get the point. That we pay the lowest taxes of any for profit group in the United States. And it's gonna continue that way because America is real estate. You can say no America's people okay I get down. But if there wasn't lenient here would there be any people here now. They came here because of real state. In real estate needs to be set up so that it's easy to make grown. So that we have. Homes being built for the supremely as we have apartment complexes being built performing at least. We have places of business being built. That's what America's all about and for him to call those loopholes vicious. There's heat to use his words preposterous. But you should watch the whole thing so you see where these weapons are going with a it's. Just look at Jim Stewart. Benefits trump. And it will come up on YouTube. Gyms do work. Benefits from. Being able come up our test it. That's on you tuned okay this is the lifestyles unlimited rules that mr. radio show host the Davis both clubs are open and 87771152. 877711. And. Lifestyle some limited is the real estate investor education and mentoring group that is taking people by the hand and taught them how to invest in real estate for over 24 years our students have been so successful at creating wealth and -- things come that they won local state and national investor the year awards nine of the last nine years it's easy to see my personal real estate investor magazine named as the best in the US if you're ready to add real estate your portfolio go to lifestyles unlimited Austin dot com to access our free live training event schedule. Wondering who the free workshop is fourth we did amazingly successful with people who are pressed for time. Doctors lawyers small business owners and corporate professionals. Who are grinding their lives away for earned income until realized they can start creating passive income today. Within that confines of their schedules and commitment. Want to get started now go to my passive income workshop dot com. That's my passive income workshop. Dot com. The rules that radio show host the Davis phones are open for your question right now at 877. 7-Eleven. 5211. 8777115211. Or you're welcome to email me. At ask Steve and I told you on NC dot com ask Steve as though you NC dot com. Let's go to an email question from Rachel. She says my husband and I've been listening your show for a couple weeks and we're gonna take to tutor class. We were wondering if you recommend always starting the single family and gradually. Moving into multifamily. Is there ever talk on the two members go straight to passively investing in multifamily. Or actually answer is absolutely yes. I would say. That the majority. Probably sixty or 70%. Of the people who are in apartments. Are completely passive and went straight to passive investing so it's a big chunk. That is very very common. But it depends on how much money you have if you've got 70000 dollars or more. Then you should look at apartment. If you've got somebody that you got less than now that you should really be starting off with singled cleanly to get the highest and best return on your investment. So. When you're in that here that say zero to 70000 dollar area. Single frame was the way ago because as I described earlier. Your doubling your money when you do the deal. Being as a rule injured getting a twenty plus percent rate of return. No that's not as good as 8500%. Rate of return. That we're getting. With the apartment. At the end of the second year and we refinanced them but again that's why. If you king and start with apartments you should. So that helps. All right phone lines are open at 8777115211. Let's go to Austin now and talked to Steve. Steve thanks left calling in how are you today. I don't believe I'm on actually the radio so yeah you love me. I listen you guys are religiously. That the crack they'll let them for the very first. On the Sunday that I get a look at the life. I had to tell you that that I really appreciate just so I they'd get they do today. I'm actually in the investment business but I do not in the game and I'm tired of it. I I do a service company it was servicers or the investors. And I let it be called I'm is it a elect. Like they. What we've known each other. And that that's well below appreciate you lose them. I hate. I have actually. Oh multifamily and commercial property. Inspector. I go out of town right below it badly everywhere. And you know audio adapters and I'm just there a sense that I don't have a doubt it would be able to explain it like everybody out there. It. Will then I'm doing to change that or you start to save up or what do you do. Yeah I I remember our ability your belt you know put money away every you know the much among the major credit above I think the status of the yeah. Yeah yeah I have been a that they were quoted at it as compact a little bit but they've. Oh yeah I had people call in and call me bill. I don't corrected but they'll call any group in his talk to me like I'm bill. Right every great man Eric that your very tiring. Put it would have been going when you thought perhaps. But you know I get my little match you know the pilot Cynthia when I have been very effective way expect that the but it was in the early investors and I'm I'm I'm in the business but I'm not in the game. And again I can't wait to do it. I don't ever remember. That is so upset about not always in like been about. Hardly ever do investments here because people don't want do what it well. Remember there were guys active suspensions or buy it by Dollar General. And it got a lot of the public Dollar General out there might have been caught a big Dollar General. Yeah no doubt. If the. And I remember. Or. Lot of those your belt I think the I think it over that investment that would ask that it would have Mediterranean and out of the little lady here. The president actually did dumb investment who have built so that topic isn't in the in the Detroit area. Yeah yeah that you're an eight year just exactly and you are just pocket that somebody about what papers return on investment. And 82 friends of mine. A couple of properties they've not been tried. There's an upcoming neighborhood and they were getting back 60%. On their best. I don't doubt it because that they use about. Homes clear for 151000 dollars that are worth a 10050. It's amazing. But they say eight bad spot. Couple property is that 50000. And arrested him out for are well on. 400 dollar Mark Mays that is as a viable we got to go to break the thank you so much for the phone call. They're here. Are this is polite golf. Longtime lifestyles member Curtis Payne surreal situation for me looking back. Is helping others and I wouldn't be able to have done it without the support of lifestyle ladies can't say thank you enough feel for that. If you were to ask people that they could vote on the top ten guys. That help for the people you'd be one of them there's no doubt about it you have. This roadmap of holy success stories on this one I'm just. One person out of the thousands fantastic success story that each and every person can learn from that's my advice. Take Curtis Haines advice come meet felt like minded successful investors who are helping others just like Dell helped him. Attend the workshop get your map safely and quickly build wealth and passive income so you never have to worry about working till you drop. Losing your job or retiring in poverty. Call 18669718970. Or go to lifestyles unlimited Austin dot com that's lifestyles unlimited Austin dot com to register for the workshop or change your life. Just reduction of two radio show you. Host the Davis phone lines are open at 8777115211. Let's go straight to the phone lines where Rick in Johnson City has been kind enough to hold on. Rick thanks off calling in Howard you to that. I'm wolf thank you. Question news and all we have a 1031 to doing exchange on a cut. And them trying to decide what my best the triple met or heard back into apartment. Management more lots. So you're coming out of my apartment complex. Well I really want to share okay. You know I don't know much about commercial property. But I do have open. Or in what mine he owns five or six big buildings we're talking twenty stories. Buildings in Houston and Dallas in the one thing that he complained about. To me was that his properties were the first to crash you crash in the last to recover. In a recovery. Whereas. With the apartment complexes. Win the cramps pain we actually ended up making more money. Then before the crash. So my preferences are obviously apartments. Either they're just easier to run this year. They're less dependent on anchor tenants that. Iranians again when the crash comes you make more. Because Briscoe. Contrary to what people think in a crash. Well look I think you're looking so good day to day management would own repairs and all of that in. We live in very small town there's nothing here locally so everything and anything we've all I would have to be down to Austin. Houston. People do whatever book no apology he learned how much is that in 31 exchange. Aren't only about. One that's pretty. Yeah I heard Devlin is doing about it commercial world and oh. Yeah but it's pretty big. For an apartment complex that's about two million dollar apartment complex. Yeah I would definitely look at you know San Antonio. They outskirts of Boston know there was a small bedroom communities around Austin still have good deals or Houston. Or Dallas you know so it's up to you but yeah I definitely. Yeah all right not to take on any more debt we just wanted to try to get into some biblical we have been loaded. Build from there we're trying not to take on more debt. Well you know that's the slowest possible way you can do it right. Yeah probably. But were never that perfect people out to them and 800. So you got a different goal. Yeah that's fine so. I'd still go with a apartments. It is very. A good broker that I should do. You know I don't remember voters generally four. I'd rather see you join lifestyles a limited. And meet our brokers. They can help you find the deal you looking for his only 500 bucks. So. I've got 32 days book. You've got to have more than that. Because you have to designee all I see what. So you've already slowly we'll be right to identify idea already in use our. It's the most in the money is with a third party right. Are okay. Yeah that's that's a sure until you meet. Capital gains aren't. But you did close with a 1031. Attorney right. It OK I just wanted to make sure there's a lot of people do it and they don't realize that they can't close the deal by themselves they have to have that third party. Oh yeah. Gluten within 31 exchange company. Why spend loosen escrow the money than us though. Well yeah that's a short fuse but if anybody can find it for you. Our our. Are people KM. But to find out how that works you've really got to take urge you to class hard for the sales pitch. The other thing is about running apartments they are totally different from single frame and remember that four units are below is considered single seamless. Apartments were completely different so you're gonna wanted to if not with us with somebody you've got to take a course on apartment dusting the laws are different. Article Rick we got a good break thank you so much for your phone call. You take care a lot. All right phone lines are open. 87771152. You love him. 8777115211. Or you're welcome to email me a few of you have. He has. Ask Steve. I told you audience C dot com. Asks the Fed will you you see. When we come back we'll gonna talk about any specific. Being realistic about. And this is a no. No 8%. Beautiful life cellphone. But for most famous for radio show we'll talk more after the break back. Did you know that every dollar you put into a piece of real estate makes you money five ways. Cash flow of money in your pocket each month. Equity capture the thousands of dollars you create when you have the right team and by the right property using the right map. Appreciation. Real estate doubles in value about every ten years equity buildup. Printers pay down your mortgage each month and finally the tax advantage we pay almost no taxes on our cash flow and capital gains. These are the five ways we make money in real estate which is why real estate accounts for more millionaires in the world today than any other investment vehicle. You should have some real estate in your portfolio. To learn how attend one of our free workshops call 18669718970. Or go to lifestyles unlimited Austin dot com and register for the next available workshop. That's 8669718974. Go to lifestyles unlimited Austin dot com. Blystone. Real estate investor radio show host Steve Davis phones are open at 8777115211. 8777115211. Or email me. Steve though you MC dot com and ask Steve and LU I NC dot com. Now I'm not gonna read this whole. Email because it's quite long but. The gist of it is he wants to buy a house we should do is dollar. No. No. And though. That is if you want to destroy your relationship. With your daughter. Go for. This is the same as leasing to a friend if you wanna destroy your relationship. Just leased to a friend. It is the worst idea possible. Think about it. When they get behind on their rent if they get behind on their room. Are you gonna victim. Or you eat it. Chances are with your daughter what are you gonna do news can you you know gonna pick your daughter to be realistic. So you're setting yourself up for failure. It is a terrible idea. And not just because of the relationship part of it I guess really that's the main reason you're risking your relationship. It would be much much better Jim justice loners the down payment. Letter by our own house. Let her make the payments on and then be prepared to never get. The loan the down payment back. In other words you've. Are you gonna sacrifice the relationship if she doesn't tell you that loan about now. Here's a little lover she still on your daughter. In other words you've it's got it it's one of these heads. You win. Tails you win situations. For you to ever do anything. With a relative or in front. Unless your willing to sacrifice the relationship. It is. I would loan her the down payment. And be prepared that you might not ever get it back. And just be prepared to be happy with that. This is making sense. So that you don't destroy. That relationship for harm the relationship. But do not buy a house. And leases to relative to not buy a house and we should to a friend. Now I mean you know that I made an exception to that rule in an idea that at least to a friend. But you have to understand what I did. I sat down with film. And I told them before. Greed. Two leases property to you you have to understand. That when it comes to my rent properties on the prick. And I will the picture. Doesn't mean you know looking at me and I don't hear about she doesn't mean not my friend anymore. But this is a business on the mortgage on this house you've got to pay your rent or I will eviction do you understand now. Great. Then when my son beliefs with them. I say that again. And then when we got the part about addiction are made an initial. Even though it's not required. Amid an initial. Was literally. A pain here. With this individual. So he knew rent was due on the first and laid on the side and he knew that I would have victim if he didn't Israeli. I was just harsh. And did it work yes he's moved out but he paid his rent every month. Kept the property in perfect shape it ended up being okay. But see that's that 110 of 1% of the time but that's gonna work I could tell you right now. So Jim. My recommendation. Do not buy house releases to your daughter. Just giver B and you you save your email that the only thing keeping her or suggestion hearing on the the only thing keeping her from my house or she doesn't have the down payment should. Think it was a down payment. Or loan it to work. And let her pay you back. But be prepared not to get it back. Because you might not. And are you willing to sacrifice that relationship over I don't know much about 200000 dollar house to me about six Korean down. I think it's 3% down now for owner rock occupants are you willing to lose it 6000. Or you or are you willing to lose the relationship. I suggest lose the 6000 and forget about. Okay all right phone lines are open and 87771152. 877711. 52. Is luck. OK let's go to the next email questions several of these are too long. For the radio show. So. Remember that even if I don't answer your email lob on the here will he answer after the show through. OK we got it right. Poland's or opened at 877711. Did. 8777. 52 we love. What would happen if you didn't show up for work tomorrow. For the next couple of days for a week a couple of months a heat how long until you lose everything you've worked for in a fraction of the time it took different. If this fear keeps you up at night it's time to learn the strategies we teach at lifestyles unlimited starts with a free workshop. Go to my parents who didn't come workshop dot com and find your true financial piece like so many of our members already had. That's my passive income workshop dot com. Thirteen seventy. Welcome back to the lifestyles of the what to do save us from radio show we are in the final segment of today's shows if you got a question for me you need to call now it's 877. 7-Eleven. 5010118777115211. Or you welcome the email me. Is asked studies at W I NC dot com and that email is opened you 24 hours day seven days a week. 24 hours a day seven days a week and Steve tells you on C dot com. Let's go straight to the phone months ago we pay in San Antonio. Looping thing so thanks a lot for calling in how are you today. I'm doing great. I'm a big fan of a mere show or thinking. But do you have a question what you'd. I don't have my money put up as an investment but I do have a lot of equity in my how can I do that. It's possible. What is the house worth looper. It written fiction. And what do you own. I don't old. From. Seven so let's look at this real quick. It's worth a. I am simply MD. And Eddie. Then 2000 right now. Notre Dame who would you say it's worth of parts of its worth 160. Oh. Okay so my. What I'm doing is I'm just multiply it times point eight. That's how much still funny and so 128. And you those seventy. You could pull out about 58000. Dollars. But the only time that I tell people to do that it is a good idea I've done it. Hundreds thousands of members of launch sells a limited have done it but you have to know what you're doing. Because you're creating debt. You're adding to your debt. To create cash flow. So you really loop they need to know exactly what you're doing before. You go refinance that in fact it's probably probable. That if you do it the way we teach you. You'll action with that six years you're pulling out we'll just say 50000 dollars a year and about three or two or three houses. You and you may get more than that if you get lucky. You need to have at least Warner to those lined up before you even bother refinancing your house does that make sense. So that the mini U refining it's it you've got that money working and paying that additional mortgage interest created. Okay. Now. What it by use. The rental property. That I bought. And my account and use that all that equity. Has that. As a down payment for an apartment complex. Well remember when you buy these towns that you're not gonna head out you're gonna have equity in it but it's not going to be enough for you to refinance and pull it out. You might have you might have 30%. Equity. So you could pull out 10%. Possibly. But I wouldn't do that so. Yeah that's that's not gonna work lupus that's on how you do it you would that is what you do is to take an example. I've put up I bought eleven rent houses for my son. For him with my son. Ian we picked up about 250000. Dollars equity so we now have 500000 dollars sitting there. We are gonna sell those then go on apartment complex. But you see that's not refinancing them that zone. Yeah. Okay what it by I used my equity in my Al. And get ten people to put up money to buy an apartment comes. Yeah that's a good idea to. That actually would work gluten. I actually. Do you have a program. To where. I cannot. That teach they learned from the yes absolutely. Yet go to our free two hour workshops first. If you like what you see then take our 500 college student class and that tutor class talks about apartment complexes and how to do what you described Luka. I see we. Now if I'm John you're a argued group and there's a program. How much can your feet to compete and that. Program. Well all you need to do what you're doing is the 500 dollar program. If you say well. I'm going to buy a big apartment complex. Then you may want to upgrade. Now that's you know the apartment complex is 20000. Dollars. So that's not something you need loot. You just need that 500 dollar program to do what you're trying to do and which is take your equity out of your house about a few single friendly homes. Okay hello thank you for information. My pleasure you take care of them are all right well. Yes the we have multiple levels of people are. People always confused by this because they're here they think you've got to upgrade to those upper levels and you do not. It's somewhere between 707580%. Of the members stay at the 500 dollar level. Only about 20%. Maybe 25%. Of the members upgrade to. Okay thanks a lot publicity everybody have a great rest of. Thanks for listening to the lifestyles are limited real estate investor radio shows remember that this show is for entertainment purposes only. And should not be construed as legal investing more text bites we don't think they're all. Always consult a professional. Before making any financial decisions if you'd like to find out more about the mentoring available at lifestyles unlimited please visit them online at lifestyles unlimited dot com.