How to Seek Out Deals – Episode 398

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[00:00] Partners, on this episode, we’re going to be talking about the principle of multiply. But what that means for you is how to seek out deals, find opportunities, because the wealthy people right now are salivating. It’s coming. Is that a good way to put it? Yes, it is. That’s funny. So Dan Sullivan has a famous quote, Dan Sullivan of strategic coach, and that is your eyes only see and your ears only hear what your brain is looking for. And holy cow, is this not just true beyond true. I want to give another quote from Dolph DeRouz, who’s a well-known real estate investor. And he says the deal the decade comes along once a week. So it is so important that we train our eyes and our ears. Really, I guess it starts with our brain to look for the kind of deals that resonate

[01:00] with us. So some people love real estate. Awesome. Go look for deals. Go on the Internet, go out and about, go talk to people, interview people, open your mind, open your heart, open your eyes and open your ears. And if real estate is your thing, you will find some deals. If renewable energy is your thing, you will find some deals. By the way, my husband thinks that oil is a renewable energy because somewhere somebody’s actually proven that like the whole dinosaur bone theory is not what oil comes from. And they keep getting oil from places they think they can’t get oil from. That cracks me up. So whether you consider renewable energies, solar or wind or oil or your own foot on the bicycle pedal, if that’s your thing, then go seek that.

[01:55] And if stock market is your thing, then go seek that. Just because it’s not my favorite doesn’t mean anything. What is important is that you seek investments that work for you. Now, you mentioned the principle of multiply. I believe that you should seek investments that have a multiplier effect. So what do we mean by that? Well, real estate is an easy one to talk about because it’s very obvious when you buy an actual property, you get the physical property, you get some tax deductions. If it’s an investment property, you get some depreciation. You get the ability for cash flow. You get the opportunity for appreciation. You get the opportunity to have the property sold. There’s various things that you can do on the capital gains tax space.

[02:45] Learn about this environment if it interests you. And I think that’s one of the cool things is you can tell whether it interests you when you start the learning process, because if it does, you’ll dive in and you’ll see an hour disappear because you are reading, listening, watching about that particular investment. And if you’re not interested, it’s going to keep showing up on your list, but you won’t ever do the work. And so that’s a red flag to you that that’s that particular investment is not a good match. And that’s not an area of interest. And you should spend your time researching something that is an area of interest because the investment space is unlimited. There are so many different opportunities.

[03:26] I mean, people send me stuff constantly about this type of product or that type of deal or this particular structure. And actually, most of the time I say, I don’t know, I don’t know, I don’t know, because I just know what interests me and what works for me. And I use that multiplier effect principle to measure whether a particular deal works for me. I want a dollar to go in and get me three or four or five benefits like the example that I just gave with the real estate deal. Now, when you’re looking at multiple, what what weight does cash flow and then time frame help us understand if you’re kind of putting together Kim’s spreadsheet, if you’re looking at a deal and say, OK, well, how long does

[04:13] money have to get tied up? Am I going to get cash flow from it? What does the return look like? When help us unpack that a little bit. Yeah, you rattled off three super good questions right there because the time frame is very critical. And again, there’s no right or wrong answer, but you really want to be aware of how long that money is tied up. I absolutely encourage people to seek cash flow. That is the single hardest thing in personal finance. There are investments that created no problem. And yet it’s not an easy thing to find. And the typical investments that you hear about out in the public marketplace typically do not create cash flow, not that they can’t. They just don’t tend to. And so, again, I encourage people to think about their own

[05:05] due diligence checklist. What are the things that are important to them? They’re going to have their own time frame that’s important to them. They’re going to have a focus on cash flow or not. I believe everybody should always practice generating cash flow from their assets because it is the single hardest thing to do. You don’t want to wait until you’re 60 or 70 or 80 years old to try to figure out how to create cash flow. So that’s high on my list, but it might not be, you know, if you’re 24 years old, you probably don’t really care about it. So that’s completely fine. And then the taxes also should be looked at because the taxes absolutely matter. And if you want to do a little reading on taxes,

[05:45] Tom Wheelwright is my favorite author. He’s got a book called Tax Free Wealth, and it is updated. And he’s updating it again. And it is a valuable tool to learn about taxes. And we need to remember that, and this is a quote from Tom, taxes are the government’s incentivizing us into action, because if you pay attention to the tax law and you do the things that create good tax benefits, like create a business, like certain types of investments, then you will get tax benefits. And some of them are literally written into the original law. You know, you hear the term loophole a lot. I know it’s one that Tom really dislikes because there are not loopholes that are creating these tax benefits. It’s the actual tax law that’s creating the benefits.

[06:40] Loopholes implies kind of a like a secondary byproduct that occurred because nobody was paying attention to particular wording. And many, many tax benefits are not that way at all. They’re literally in the original law. So this is an area, again, that you want to go into learning mode. So the best thing to do, figure out how you learn. Do you like to read? Do you like to watch? Do you like to listen? Spend a little money. It’s not going to hurt you to buy a course or buy a book or, you know, spend if it takes money to hire somebody to do the dishes or the yard so that you can pay attention to your education and spend a little money and get the time that you want so that you can do the learning that you need to then be able to go out

[07:27] and find the types of deals that fit you, your time frame, your desires and what’s important to you based on your own set of principles. So Partners for Prosperity has its seven set of principles. But what are yours? You’re welcome to pick up with ours, but I encourage you to create a few of your own as well. Oh, so good. Now, you said a line in just a couple of minutes ago that was really valuable. You said in the typical marketplace, people aren’t able to find some of those really good deals. I think what you’re talking about is for accredited investors, correct? Yes. Many times the definition of an accredited investor is the dividing line between what I would consider a investment that meets the seven principles of prosperity

[08:14] and what I would consider one not as effective. And it doesn’t mean that a non accredited investor can’t find them because just the area of real estate alone, of course, non accredited investors can benefit from that space immensely. And we do have a couple other spaces that we can help them get some education around the space for non accredited. But when you’re accredited, which is a million dollar net worth, not including your home or two hundred thousand of income every year, if you’re single, three hundred thousand if you’re married. And I believe you have to have that income for a couple of years. Then the door is just open for a lot longer list of investments that are available to you that are not available to non accredited.

[09:01] So when I first meet people, when our community emails me with questions, that is one of the questions that I ask is, are you accredited or not? Because it helps me know how to share resources around education. The good news is anybody can use cash value whole life insurance as an alternative to cash and anybody can seek out real estate deals that provide cash flow. And so these basic principles, they’re not out of reach for the non accredited investor. They’re just maybe a little easier for the accredited investor. And we’re going to jump into one more piece. But for any of you listeners that are wanting to know about some of those deals or what they would be and you are an accredited investor, send an email to hello at partners for prosperity dot com.

[09:53] What would be a good subject line just so it kind of filters through? You know, we actually pay pretty close attention to our email. So help is a good one. OK. Education, please. That’s another good one. Excellent. That way, you can accelerate what you’re looking at and have a larger variety of choices. But as we start to wrap up this episode, we talked about multiply. And you clearly mentioned that what we’re paying attention to, what our eyes are open to is what we’re going to seek and attract. There are a lot of deals right now, and I’m seeing it in in the financial world with SPACs, SPACs are basically these blank checks that are buying companies or we’re seeing a lot more traction in the accreditation world for accredited investors doing deals.

[10:45] I’m seeing I’m seeing opportunity like I have not seen in years and years. Is that because I’m aware, Kim, or is it really a combination of opportunity because of timing and my observation? What is that? I think a big part of it is your observation. And I think that because I 100 percent believe there are always opportunities. The question is, are there more now than, say, a year or two ago? And I’m going to say yes. Will there be more in the next year or two than there are now? And I’m going to say yes. Oh, OK. I like that. Very, very good way to look at it. I think even just looking at the way that we think and operate. And here’s something amazing for you listeners. There tends to be a community.

[11:37] So we’ve seen it that even listeners from the podcast have enjoyed what they’ve learned and they’ve come to some of the summit. They’ve come to events with you, even though they’re not financial advisors. They’re not agents. Yes. That’s what’s amazing. It is a joy to have them included. And it makes me feel good because it is evidence of our transparency. Todd, my husband and I teach our advisors the exact same thing that we would teach client and vice versa. And there are not very many businesses that I think open their doors that fully. Yes, absolutely. Well, Kim, thank you for sharing this wealth of knowledge today. We talked about the multiply principle of prosperity. We hope that all of you take these and become better

[12:26] at the craft that you’re doing, that you seek out opportunities and that these principles of prosperity help you and your family become more prosperous. If you haven’t already shared this episode with a friend, we would love for you to do that. Hit that share button on your phone, send them a text message and let them know how this may have affected your life. Thank you for subscribing. And thank you for listening to this episode. Thank you for listening to the Prosperity podcast. To take control of your money and have it work for you. Visit us at partners for prosperity dot com. If you liked this episode, make sure you subscribe and leave a review.