Multifamily Acquisition MASTERCLASS w/ Gino Barbaro

another episode today. Now, here's your host, Brian Luebben. what's up what's up? Welcome back to another episode of the action Academy podcast. I'm your host as always Brian Luebben. And today I am sitting in the airport at Austin, Texas, just finishing up a mastermind. So I am going to be quick I'm going to be brief and I'm going to just get straight to the point straight to the punch of who the heck you've got coming on today.

Today's guest actually began as the chef and owner of a restaurant and is a good example of just because you own a business doesn't mean that you own your time and own your freedom because as he was working on the business for 12 years plus, he realized that he was actually having less time less freedom and more stress as he progressed through his business. So then he decided that he wanted to get out of it to the power of real estate and began investing in apartment

complexes. That is our man today from Jake and Gino Gino barbaro. So if you are in multifamily or apartment complex syndication or purchasing you know Jake and Gino they're the go to real estate education company for all things multifamily teaching you how to underwrite teaching you how to manage the properties how to buy right they walk you through the entire process. I talked about having coaches and mentors they can actually serve as both and this isn't a paid

advertisement. This is just because of my conversation with Gino today and me knowing him as a person so I'll read you his actual bio. Gino barbaro is an investor business owner, author, entrepreneur, and also former chef grown his real estate portfolio to over 1500 multifamily units co founder Jake and Gino which we went over of course, and also loving husband and father which leads to the title of today's show. So today you are going to learn a

lot from Gino. So in the beginning, we're going to start with more conceptual stuff about what he sees in business about what you're looking for when it comes to freedom and owning your own business and how to get into multifamily in general and the back half. We're gonna talk about his ideas about cash flow versus equity, what he's doing to get apartment complexes right now how he's adjusting his bio right criteria and how you could be able to get into the space yourself. So I will leave you

with that. And let's get to the show with Gino barbero. Gino Geno. barbaro, my man, how are you, buddy? Brian, you just said let it rip. Let's let it rip my friend. Let's let it rip. So if you feel like letting it rip, I let it rip every day. I got six kids, I gotta live every day. Man, that's fantastic. Man. I'm so very much looking forward to getting to know you. Because I know you from two different angles. So my good buddy, Mike

taraval. And Julian, who for some reason, whenever he posts a Facebook status that's just on the borderline of man, why did you post that? You come in with some awesome sage dad advice to kind of level it out. So I know you from your brand. I know you from what you do there. But also know you do some of my personal buddies, man. I'm very excited to get to know you further. Well, all youngsters need to know that if you're going to be a dad, you've got to be a strong male. You want to know why?

Because your daughters are looking at you. If you're a cool dude. And you're a great dad, and you're a protector and you're a provider, guess what they're going to be attracted to that you that. That's why I post that stuff. Because we all need strong fathers in the family. The dissolution of the family is one of the biggest problems we have in this country right now. Lots of problems, but you can rip it down to the family. I've got six kids, to me, that's the

most important entity. And ironically enough family life and business life were practically the same thing. You need core values and mission statements and both. You need strong leadership, whether it's the mom there or the dad there and you need those guiding principles and it's long termism. You got to grind it out every day with your kids you feel like drop kicking them sometimes you feel like doing things to them that you would never think of they drive you

nuts. But at the end of the day, it's one of the best jobs in the world one of the most fulfilling and that's why us as follows We do what we do, we do it selfishly for ourselves but ultimately, we want to create legacy skills want to create legacy, wealth, generational wealth, we want to call it but I want to teach my kids the values that I've grown up to be and I want them to be part of my life and I want them to be my legacy.

Julian keep posting that crap because I'm gonna keep putting sage advice out there. So let's park it there for a second. So I think that's interesting. Because I in my life is talking to people that are successful in business life in general. And normally, the people that get successful in life first, translate the business a lot better. So this is my day now, and this is what I do a lot of people, I say, Hey, man, what do you want? What do you want? What do you want?

What do you want? beginners, intermediate, advanced $10,000 a month in passive income from cash flow and real estate, I can quit my job. Okay, cool to do what? To spend time with my family to be more present with my family to go travel the world. Okay, why don't you do that right now? Exactly. So exactly your point, because I think people get lost in this end destination, that they need to do XYZ to do this, and that there's no gray area in between.

But some advice you can give to people that are on that journey, because I know we can get into your backstory here, because this is something that you and I were going off on off camera, people on the journey between leaving their old life and their old self and their new life in their new self, in the transit, in the transitory period, what's some advice you can give to them for being present in that time and enjoying the journey? Well, I think if you're not on the journey, you're dead.

Because that's the bottom line. And you're always trying to grow. If you're not growing, you're dying. People say that. I can reference a couple of books that gap in the game by Dr. Hardy. It's a fantastic book upcoming talks about who not how the gap in the game really talks about the journey. As to you talk about right now, what is your future. So you really need to look into your future into what you want your life to be like, because you need to reverse engineer that into what

you want to start doing. Now. You value freedom you value going away. You may not be able to do that today. But what steps do you need to take to have that life that you want to have in 30 years, you can start doing it right now in smaller increments. But if you are what you ultimately want, what you need to focus on, how are you going to achieve it, that's why you really need to look out into the future and see exactly what you want. Most of us don't have that don't do that. And myself

included earlier on. And I think the other thing we really need to flesh out is our values. Every decision you make is values based decision making, if it doesn't fit with your values, if it doesn't feel right for me, for instance, I started Jake and Gino I wanted freedom, I wanted the ability to impact others

wanted to become successful. I didn't want to go on the road every weekend to be one of these gurus talking on stage because I did value my family time I came from the restaurant industry that I worked every weekend I worked every holiday, I didn't want to do that with Jake and Gino. Now, if I became famous, and I started talking on stage, every weekend, I'm hitting my value, I'm hitting the goal of becoming famous and become an international speaker. But at the same time, it's not aligned

with my values. So you need to align your values with your decisions. And it's really important to get crystal clear on what your values are. And for me its impact. And I think another one I my values, it is family, but it's really creating a family business. That's what Jake and Gino really is we're not going to become $100 million a year education company. That's not my goal. I want to recruit impact with my employees. I've always worked with my family. So I want to treat my company as a

family company. And I also want my kids to come to all of our events, we do six or seven events a year internal. And then we have our flagship, the kids are always there. I started a podcast with my right wife, I've written children's books with my wife, so she's part of the business as well. So incorporating all of that in every time a decision comes up,

does it fit my values. So for everybody out there, first thing you need to do is if you don't know what your values are, or you haven't written them down, really thought about them. Really ponder them. Brian, you said you like to travel, you like freedom. If you're saying yourself, I'm getting 10,000 bucks a month in passive income. But I've got to start a property management company, I'm stuck in a cubicle, you may hit that 10 grand a month, but you're not going to feel right not going to

feel aligned. So don't go for the money. The money is just the end result. That's what you're doing. You're chasing opportunity. And we all should know that intuitively. But we don't for some reason. I don't know why once you become financially free and you have that number, then opportunities come into accounting to that opportunity. I'm not going for the cash, I'm going for this opportunity this deals coming in. It's okay. And it's just one

of those weird things. It's just it's really, lack of money creates a lack of scarcity. Once somebody has more money in their life, and that really looking at money as an object money really drives one thing for you, it gives you comfort and it gives you freedom. That's ultimately what it gives you and it gives you more choices. The quality of your life really depends upon

the quality of your choices. I don't really we're going to Hawaii this summer, for instance, I've never flown first caste class with the family is going to cost me 25 G's never done that before. I never would have thought about that five years ago now. It's really money. I have the opportunity. It's an experience. It's something that I want to do. I don't have to do to make myself happy, or but it's an option. Whereas five years ago, I didn't

have the option. Five years ago, I was worried about paying for braces. Now I'm thinking about first class, that's the only difference that money allows you gives you the optionality. It gives you the freedom to make choices and it gives you the opportunity to say I don't want to work with this person. I don't want to do this deal. I can defer that and look for something different. Does that make sense? Absolutely. You're preaching to the choir. So you are talking from the

perspective and the angle. So the goal of all of this for everyone listening, we are going to give you episode after episode of vehicles to take you down the road, this wealth building journey to get to the end. In the meantime, like I just told Gino previously, while we were off camera, half of these conversations are going to be advice that you get normally at the end of the wealth building journey that you can go ahead and apply now during the

wealth building journey. So what Gino is speaking as his man that is emotionally unattached to money anymore. Money is a tool, it's a piece of paper, it's something that we can use interchangeably to it's a lever that we can pull to be able to accessorize and complement our life and maybe serve as a form of lubrication. So it makes things a little smoother, a little easier. And it lets people take a breath and go. Who am I? Like, what do I actually want to do? How do I want to be

significant? What kind of impact do I have on this world? You know, I want to take you back right now to you before in your restaurant. And as you as when you were a chef before, correct? Yep. Okay, I want to take you back to that story that you and I were talking about, about the $10 an hour story and how that was your mental shift to say, hey, what am I doing? How am I valuing my time here. So I want everyone to picture

this. It's around 2014, late 14, it's cold, it's the winter time, I have a restaurant, I'm in my shed at my restaurant, and I'm stacking all the groceries away, I've got bags of flour, I've got cans of tomatoes, I'm putting everything away those to go container tins, I'm stocking everything up there. And literally, it's at the time was I could pay somebody 10 bucks an hour to do that. But I'm the I'm the guy, I'm gonna do this, I'm gonna do that. And I didn't realize it. It made me feel

comfortable. I was in my comfort zone. And I thought I was doing things I thought I was being productive. You get paid on results don't get paid on being busy or being productive. Another ding ding that I realized, I'm sitting there and I'm in the shed, and I get a phone call from Jake, I get the cell phone. And for you guys on YouTube, I've got the cell phone here and I'm putting tins away.

And I'm in the process. We already have 350 units, I'm in the process of negotiating an $11 million 281 unit deal owner finance zero. And that's what I said to myself, I said, What am I doing out here doing this work, I'm hiding from everybody, when I should be in there down there, crunching the numbers work in negotiation. And that's when I said to myself that I made it that point right there. It was February of 2015. We closed that deal. In August,

when I had that phone call. I said within the next year, I will have left this restaurant. Now I should have probably left it sooner. But I did have six kids, I did have a responsibility to my brother, my brother's a partner in restaurant, all excuses. Some of them viable, some not viable. But for me, that was the turning point. And that's when I said to myself, I really need to dive into personal development, I need to dive into psychology. And that was the point when I

said put the phone down. I said, Jake, we're gonna close this deal. We ended up closing the deal. But that's when I really dove into life coaching. I wanted to go to life coaching school to figure out what my why was to figure out empowering questions, how to figure out and to set proper goals because we can all set goals. But are you setting goals based on what your identity is or what you want it

to be? Are you saying goals based on your values, or you get you're setting goals based on what your perception of who you are, all these things are important based on any kind of energy blocks that you have. These are all things that you need to take into consideration. And I wasn't, I was just saying I want to do another deal. I want to do another deal, keep climbing the mountain, do this deal. Go to the next one not really enjoying that process.

And I want people to enjoy that wealth building process because there's gonna be some challenges. But like I said, the gap in the game, we're too often living in that gap. We're sitting there in that gap and worrying about and comparing ourselves to other people, when we should really be in the game and saying hey, I'm here I'm on the journey I am where I need to be in order to where I need to

get to. And I think if most of us realize that we'll be energized by that will be more focused will be more clear and we will be more happy it will be more enjoyable. Absolutely. And Ben Hardy's coming on this show. But I want you to hear a little bit more about the gap in the game and the principles when I read the book yet when I read

the book. I said to myself, I've been looking for this book for years and Dan Sullivan created this concept years and years ago I just never did Strategic Coach I never did never did business coaching with him. And for me when we measured goals, the most important thing that I got from the book is we're looking at goals. Goals are the result. Right? That's what James clear says and atomic habits. We don't fall over the system and the process. Fall in love with that system or the process. Fall in

love with underwriting deals. If you're in real estate, fall in love with the negotiation, fall over the property tours, fall in love with speaking to investors, because if you fall in love with those systems, ultimately you're going to find the deal. And when you're measuring goals, don't always just look forward. Look back looks like when you're

going through a tunnel. And all of a sudden you're driving through that tunnel and you can see light it's really far but as you keep driving, you're getting a little bit closer, turn around and see where you've come from, and appreciate that and it's wow, I didn't I've accomplished so much. And you'll appreciate that. And there's that gratitude component to it when you're living gratitude, you can't live in fear when you're grateful for

what you have. And you're always thinking about what you don't have. That's the problem. Be grateful for what you have, and just constantly stay on that journey. And don't be afraid to change the journey. Because as you grow, things become less important to you, you may get a skill set that you like, but really, ultimately, it comes down to try not to live in that gap of negativity all the time.

And listen, we always do. It's like a child, you give them five spoons, you take one away, they have four, they start screaming, because they had one away, but they had zero before. Now they've got four, but they're looking at the one they don't have. We do that every day as adults, catch yourself doing that and try to say to yourself, hey, at least I've got four I had zero to begin with. So that's that, to me, is the crux of the book. I thought that was an amazing book, awesome book.

I think that I agree with you. First off, and thank you for sharing that. I think that whenever you get into really big rooms, and you start doing that part that you start ticking that box in your life, and you realize that you're the sum of the five people that you spend the most time with. And then you start getting into really big rooms of people doing really big things. byproduct of that bother people don't talk about is you start living in the gap. Oh, yeah, living this gap, sir,

living in the gap. So when I now I'm in a group text with people, they're like, I just closed 300. So we talked about my he's like, I just closed the 300 unit, he works with you. So you just close 300 units, somebody else's I just wholesaled like 20 houses. I just made 80 grand this week. And then Oh crap. What am I doing? What am I

doing? What's going on? And so whenever you're looking at somebody, for people listening, whenever you're looking at somebody, be careful when you're in these rooms, to not have that feeling of I'm not enough, or I'm not far enough on my journey. Every single person has value. Every single person needs to come to steal from Tony Robbins like I'm sure you're familiar with him being a peak state operate from that perspective. Yeah, because that's where the rubber meets

the road. So Gino question for you, because you cover both sides of this. So your perspective really interests me here. I tell people, you need a coach, and you need a mentor. A lot of the times people are looking for that in one person. A lot of the times I say that isn't just one person multiple. So coach to help you with your mindset, your clarity, your personal development, getting out of your own way, and realizing what's actually

possible. Beyond your prior conditioning, and what society has told you, it's possible that your coach, your mentor, is going to be somebody that helps you with this specific vehicle. So you fall into both of these camps because you do coaching and you do mentorship through Jenkins, you know, what's one of these ideas? Are which one of these verticals, or which one of these people do you think is more important to get into your life first, on this wealth

building journey? Or do you think it's walking hand in hand down the path, I think the first thing to get into your journey is free, go to free resources, go to podcasts, start listening to people that you resonate with, because that's what it really comes down to. If you don't believe your coach behaviors, or belief driven, if you don't believe in your coach or your mentor, you're not going to believe that you're gonna be able to succeed in that venture, consume as much

free stuff as possible. That's the first thing just don't expect, become successful or expected a lot longer have a journey to do it. Because there's nobody holding you accountable. You could be your you could be in your office, you're not doing anything. You don't have anybody any calls, hey, listen, I was on the beach at 330. I was telling me 30 minutes ago, I needed to be back home at four o'clock for this call. If I didn't have this call, the rest of this afternoon

would be completely gone. So that accountability is one of the most important things that we need to become successful in life. Because if we're on an island all by ourselves, and nobody's watching us, and there's no pressure on us. That's why my partnership with Jake is pretty fantastic. Because you know what, Jake's not on this call right now. But you know what, he's doing a property tour today. So we're doing different things. We're holding each other accountable.

So for coaching, there's so many different types of coaches, you can have a business coach, you can have a personal development coach, you can have a life coach, they are going to talk strategically, as well as coaching for development, as well as coaching for performance, right? That those are two different things. When you're coaching for developing and developing yourself developing your mindset. We all need that that's really important. But coaching for

performance. I can teach anybody about a cap rate about a cash on cash return about a debt coverage ratio. And for me, that's easy. It's the psychological that's more challenging, and that's why we did create Jake and Gino communities. I wouldn't call it a mentorship program. But it's more of a community of like minded individuals because a lot of people get into multifamily.

Their high income earners, their people getting in from single families and they hear every day from their family and friends who don't own crap. And they probably have a negative net worth that real estate is risky. You can't hear that every day. That's drivel you have to be around people who are succeeding or successful if you've got students who have closed over 35,000 units, over $2 billion in assets under management. You have peers within the group. You have coaches within the group.

We have these, you know on site intensive that we're all there. You need to have that around you. I didn't have that I had mentorship programs, but I never went to any of these live

events. And I really truly one of my biggest mistakes so that I mean, that's why I said to myself, I know when I started this community, I'm not gonna be doing these two day seminars where I'm going there myself and trying to, I don't have time to do that I rather have people who are already part of the community come to these events, and sit down and listen to our coaches speak for two days and be able to network because networking is really massive, because when you're in here,

these mastermind groups, they're charging 100 grand a year, are they worth 100 grand a year, not for the education, but you make one connection. That's all you need. And that's the power of community and mentorship and education is it's not really just the education aspect of it. It's really the accountability, and the connections that you make within these communities. And it's so hard to explain to someone, it really does. But everyone tries to quantify

relationships. Yes, right. Yep. And so it's hard to get across. So here's what I would recommend that I make similar points every single episode. So the point that I will make, as per usual, is that there is no better investment than investing in yourself and your community ever. Because now, it gives you a certain sense of confidence that makes things unstopped it

makes you unstoppable. Because now, like I'm not buying apartment complexes yet, but I know I'm a couple of text messages away from anybody that is and I know that I've got the mindset to where I would be comfortable taking that down. Conceptually, I haven't learned how to underwrite I haven't learned how to do any of that. But like you said, then you just plug and play another Ben Hardy Dan Sullivan, bring in the who? And then all of a sudden you're

off to the freakin races. Yes. Can you walk us can you walk us through that transitory period? Because right now you are actually just take a pause here. Let's let's actually introduce ourselves here. So Jake and Gino 50% of it. Maybe Introduce yourself about where you're at now, where your portfolio is at right now. Let me know who you are. Besides the fact that you can casually fly your entire family first class to Hawaii for 25 G's and tell us who you are.

And then let's take a step back from there and then walk through that journey from the restaurant to where you're at right now. Real quick father of six homeschool kids. My oldest daughter's 22 years old. She's a missionary graduated college. My youngest daughter is seven. I have an amazing wife, Julian Gino show, go check it on iTunes. We have about 1500 units one deal of syndicator the rest of the portfolio is owned by Jake, myself and a partner and our employees are starting to

invest in our deals. So we shy away for syndication. We've got enough capital, we're buying our own deals, we've been able to refinance out over $20 million out of our portfolio, not buy the Lambo invest in the next deal, invest in the next deal. That's how we've been able to do it. And for us, we started Jake and Gino six, seven years ago. It's just it's just for fun, really to learn, do and teach and it was an amazing for me

journey. How many times in your life can you speak to Robert Kiyosaki T Harv Eker, Steven Pressfield Nerea. The list goes on and on. It's just amazing. That's why I started education really to learn myself and then to be able to help and impact others and to show it as a vehicle. And it's more of that abundance mindset. And you're saying the education program. It's not really about

monetizing. It's really, we try to create something called multifaceted multifamily, we're really fit into one of the spokes of what investing was, you have the investment vehicle, then you have the property management, which is one another stream of revenue that we started education, which is another stream of revenue. Then we started the syndication Company, which was another stream of revenue. Now we've got ran development, we're gonna

start developing deals. We've got a flooring company coming online. So there's so many different revenue streams that you can start from real estate, didn't know that. I started the restaurant business years and years ago, with the family. I had one restaurant for 27 years, got burned out, didn't know anything about business tried to scale it up. I didn't understand

how to scale that business. And it was hard because weekends, holidays, it was almost like a W two kind of job where it's, you're on the hamster wheel every week, you're not really building wealth, you're not building equity in a business. And for me, I struggled. I didn't like that I wanted to leave a legacy. And ultimately, I ended up finding real estate and then finding Jake, we bought our first deal. And our second deal. And the rest is history.

But let me share with you the power of mentorship on our third deal. We had about 60 units. And I was working with another mentor. This third deal was 136 units. It was sizable was $4 million at the time. Now it's not a lot but it was just me, Jake and my partner. And as we're going through due diligence as we're going through underwriting I'm working hand in hand with a mentor. And Jake thinks on this freakin genius. He's like, Where'd you get this doc? How do you know to take

over this? How do you have the unit turn? How do you have a credibility book and I didn't tell him anything until the deal was closed. I'm like dude, and every time every time a question popped up, I was able to go to my mentor and say what do we do about this? Even the fact that the broker were tapped out price we had no more money, we had no more money at all. The broker took a commission he took a seller finance note on his commission for 50 grand what's

that worth? Is that worth 20 or 30 or 40,000 investment with with a mentor? I think so I wouldn't be here with you. You right now, I didn't close that deal. A third deal with Seminole, like you said those moments in life. And I learned so much education from that one mentor and it's taken me now I'm sharing the same education that I learned from him, I'm sharing with our community as well.

Give some advice about how you attracted that mentor into your life, and how people that are listening this couple of different ways that they could go about adding massive value to be able to attract a mentor, because the advice that I give to people is be very clear and concise in your ask, and also be very to your mentor. And then also maybe be very clear in your in concise and who you're looking for, in a mentor to where when you do talk to them.

It's like a sniper rifle approach instead of a shotgun. That's the advice I normally give. I'm very curious to hear how you got that mentorship, and then how you materialize all this and any advice that you can give on that. Our community director Joshua's in it, Jake, and Gino says it best and I'll rip it off from him. pay to play or seek to serve. Those are the only two ways. And it depends on how old you are. If you're young and you got no bucks, go out there, do the property tours, ask the

questions. Don't pack the books, do whatever it takes. But when you're older, and you've got the restaurant, and you've got all the businesses going on, and you can't do it, I had to pay the mentor, I paid for the education. And I'm not really, really confusing it, I didn't really pay for it. I invested in education. That's the other thing that happens when you start becoming an entrepreneur or thinking about you're investing in yourself, you are

your best asset. So don't think of education as an expense. Think of it as an investment. Once you start thinking of it that way, Wow, you did an upgrade every year, you should be doing things differently, your brain needs to be upgraded every year, because it's like your computer or your cell phone if you don't upgrade to your work with the same kind of software and you start burning

out. So if you're looking for a mentor, if you're going to do an unpaid one, you better be able to not waste that person's time you better be able to add tremendous value. If there's somebody out there who's looking for an acquisitions person and you're a good underwriter, maybe do underwriting for free for a little while to get in the door. Maybe if they've got a property management company you want to sit in their office and help

property manage. If you're great at systems and you love Google Docs and Google Sheets and you find Jake and Gino, we suck at that, Hey, can I help you out with that, however, you can provide value just to get a peek behind the curtain, but you need to provide tremendous value. Because all these people are so high level they don't have time to waste with you. You're asking for them. So remember that you're seeking to serve. And if not, you're gonna pay to play

that's that's the bottom line. I paid hundreds and hundreds of 1000s of dollars for the education and it's come back 100 fold for me. Because like I said, how do you quantify it? We're stuck at 500 units. We don't know how to scale a business. So we hire scaling up coaches, and they've teach us about core values and mission statement and values and implementing different systems in our business. If not, we'd have 1000 units. We won't even know what how much money we're

making. We wouldn't know what kind of key performance indicators it'd be it was Jake was to be a shit show. That's what it would be. We didn't get educated. So what is a paltry? Yeah, exactly. So that's what you really need to focus on where and that's an any even when you're looking for a partner, what kind of value you bring into your partnership. It could be really hard work, perseverance, persistence. There's not a lot of people on the planet right now that want to work really super, super

hard. If that's you, and you find a partner, you're going to give all out. You're not making any excuses ever. It's amazing because Jake, I've never heard Jake say I'm tired. I'm sick. He's been sick multiple times. He had COVID, a couple months ago, he was doing Property Tours he was out there. Being busy not making excuses. So if that's your superhuman strength, use it. And that's how we've been able to create a great

partnership. And that's how I've looked at certain different, you know, opportunities, whether it's the mentor going to coaching programs, trying to add value to people. I, I love having a podcast, man. I just love it. I know you do too, because it's like, you have all of these ideas, and you have all these concepts. And I always say that the ideas in the information isn't where the rubber meets the road is the

articulation. The simplistic articulation of information is the person that can take really complex things and break them down into a statement. That's the person that's going to get all the riches in the world. pay to play or seek to serve. Sorry, buddy, I got to steal that one. I'll credit you today and tomorrow for it. For every single podcast episode. There's a there's a quote like that. Another good one is my good friend David Osborne. I think

you're familiar with him. Yep. Plants, plant trees, manage orchards like that plant trees, manage orchards. Every investment, every business is a tree. You plant each and every tree and then you hire someone to come in and manage the orchard. So I want to give you another one we had podcasts or let him rip Bo Burlingham yesterday who

wrote the book Small Giants. We interviewed him yesterday and he had a quote on profit Suncoast the effect of profit is just your customers applause that's all it comes down to oh, people that are applauding you the more money you're going to make. That's really what it comes down to. That's what profit is. And that's think about that. When you think of it from that

perspective. It doesn't seem as icky as they try to make profit Profit is just your customers applause somebody that really loves your product and just really value your product. Oh, man, that one's good. Yeah. Oh, we can just we go we go into quote, battle back to back about man. Oh my God is so fantastic anyways bringing it back. I love Okay, so I love how you went

about this. I love how you went about the process of pay to play seek to serve people listen to that, write it down again, underline it, that's what you got to do. Question for quality control here, you and I have enough of an extended network to be able to spot a sham from someone that's worth their salt birth or waiting gold very easily. We both know, for someone listening that maybe doesn't have that bullshit

detector. What are some ways that they can make sure to vet somebody as a coach or as a mentor? Before they're if they're choosing the pay to play option? What are some levers that they can pull to be able to make sure that the person they're hitching their wagon to is worth their weight and not just somebody that has a Ferrari run it on Instagram, you scour the depths of the internet, I'll challenge anybody

right now. They will not find one negative view on Jake and Gino, I'm sure a couple people will post negative views after this podcast but go to gotta go to the Better Business Bureau go to Google go everywhere, you won't find one, that's the first place to just dive deep into it. The second thing you really need to do is if you're going to be working with us have you know asked to be able to speak to

some of the clients. So when the customers go out there and say I want to speak this student will speak to that student want to speak to that soon. The next thing is go to their events, see if there's any events out there that they're hosting, which you can actually go and speak. The next thing is just Google them, call them up and talk to them and just listen to what their message is. And when you hear our podcast, and we had a show with Andrew Cordal talking about

brand. When everyone here's the Jake and Gino brand, he says what's the one word that really highlights your brand. And for me, it's family. So if you resonate with, that's what that you need to resonate with the message that that that mentor has, and take a peek or behind the curtain and see, do they

really own 1500 units? Do they really have those assets, you can see the assets that we have online, go drive by go take a look ran property management, we have those assets do they have the results that you're looking

for. And if you keep diving deeper, and diving deeper in the sales process that we employ, we call it same side selling, we're not going to work with just any individual, you're going to go through goal setting exercise, same side selling, you're finding impact together that fit model where I'm just not going to take somebody on because I think I'm going to get on calls with the students as well. They're going to be coming to the events, they are part of the

brand. So I have to be careful with who I bring into my community as well. That's not posturing anything, that's just reality, because once you start getting poisonous apples into the well, you need one or two and it ruin the entire community. So it works both ways. If you're going to join a community, what can you bring to

that community as well. There's gonna be other members in there that you're going to want to work with, and talk to the other members go on their Facebook page, see what their likes, what their interests are, as well. You're gonna see a lot of our members are faith based, they have families, they're just hardworking people looking to find another way to be able to reclaim some of their freedom. That's what that's what multifamily is all about. And ultimately, we like to say we create multifamily

entrepreneurs. So if you're looking to doing on that road, we're all open but if you're looking to go down the road, flip some apartments, buy a couple Lambos are probably not the right fit. Gina, you just gave me the title for this podcast, buddy. It's gonna be it's gonna be putting the family in multifamily. Yes, that's right like that. You gotta watch the, you know, a pitch that you just as soon as I said that, Mark Hanselman Mark Hanselman you had on your show? Yes. What did you title the

show? The multifamily guy. And I had mark on my show, and I was so excited. Named the show, the multifamily guy and I said Jake and Gino. You saw? Interesting, interesting with Mark. He's part of the Jenkins community. He's gonna be a persona. Yes, he's gonna be he's gonna be at an event in March, we have a boot camp in March about 170 students, he's going to be there because he actually found this partner and Jake and

Gino, super wealthy guy. He was really successful before, but he took his real estate to the next level. And for those of you out there, a person who has an eight figure net worth is joining a mentorship community. Do you want to know why he had a problem he needed to solve that problem, we solve the problem for him. We should charge them a lot more money, but it's okay.

He got his value. But the important thing was he found the part of the community he was able to invest outside of California and expand it and he's really busy doing what he's doing. He loves what he's doing. But he knows ultimately he wants to create this freedom. So when he's done with this job, he's got all this residual income looking for the long term. And that's what we're the problem we're able to solve is really he's a cool dude. Featured Yeah,

so let's use him. Let's Yep, I'm gonna use him as my mind just works in ways that I can create segues into anything. It's just like a party game for me now, but now I'm gonna use mark as a segue here. So Mark, people listening one of the cofounders of fame guy, he's one of the riders if you go down, he's like the third fourth episode of this podcast. He came on and told about his entire story, how to go abundance event where we're

diving into his portfolio. And there are groans and aches and moans from the crowd because they said, Mark, where's your cash flow, man? Where's your cash flow? You've got all this equity. Like, it's all sitting there trapped like little soldiers, like, where's your cash flow? And he goes, I don't care about cash flows, I care about equity. That's what I care about. I do equity plays I buy for appreciation. So I want to use this as a segue into your take on cash flow versus

appreciation. And you putting the shoulders back, you're ready to rip, man? Well, yeah, appreciate he talked about the Segway. Years ago, I would I was a cash flow guy all the way that don't cash flow, you let the grass grow. Because he's that one, my friend, oh, man, I'll give you another one. Cash flow, gets you out of your job. Equity keeps you out of your job. That's the bottom line. Now, Mark hintermann has a different thing going on than the average person, oh, 2 million a year. He

doesn't need cash flow. But he understands we've coined the term or coach, Bill him. Think of a conveyor belt, you're putting deals onto this conveyor belt, you want to put these deals on, they need the cash flow, because you need pill bills, you need to have a little bit of money leftover. But where do you make your money? In real estate? Honestly, what do you make the chunk of your money you're buying $100,000? Home,

for example? What do you make a cash flow per month, three to $400 a month, 400 bucks, at the end of two years, you made eight grand, what's that house worth at the end of two years, 150 grand. So you just made $45,000 in equity in two years versus 8000 in cash flow. Now, I'm not saying that's not important, what I would do is I'd refi that money out. You're creating equity and that equity, you complete it, you turn it back

into more deals. So that equity is powerful by creating because you're just refund that money and putting into more deals. And by creating that equity, you're able to create cash flow through that that equity. So it's really important, you need both, you need the cash flow. Right now we have a significant amount of cash flow to the owner when deals and the cash flow snowball

keeps growing and growing. What I would love everybody on this podcast to do would be to own maybe 5060 100 units just by yourself with partner be able to cash flow 10 or 15 or $20,000 a month, and be able to say that's paying me every month, I don't have to worry about my bills, then let's focus on some other things where you can have those equity plays where you're going to get those big paychecks in

two to three years. But you need to put them on that metaphorical conveyor belt so they can start matriculating. So do your two year three years to keep stacking these deals. And by year five, they're coming off the conveyor belt, whether it's a sale of equity, whether it's a refinance, and the next deal comes back on so if you can think of it that way. You're like okay, it makes sense because he's right at equity

play. That's his market. That's where he can invest if that's the market you're investing in.

You have to think of yourself I think Brian Burke said in one of our podcasts what kind of investor you are if you're older and you're looking to retire that cash flow play maybe few you may be looking for yield but if you're younger and you're looking to grow your net worth because people you need net worth you need that equity to be able to invest that ownership you'll invest so if you're younger, that equity may be great look for a bounce or both depending on what market you're investing in.

Yeah, and it's worth it's the difference between the different seasons of life right Wealth Creation versus wealth preservation. So at most 90% of the people listening to this show or any podcast like this are going to be in the wealth creation stage. Quick question hard stop at five or you good for a little bit more from the more Yes, music to my ears, man.

Okay, cool, because I got a couple other rabbit holes, I gotta take you down because otherwise I'd be doing a committing a business podcast sin because we've talked a lot about the internet and transit stuff and the internal stuff. Now I want to get down into the actual multifamily sure getting a sin if I don't ask Jake and Gino about what their view of the market is. But first, I'm gonna park you of what you just said. You said about owning 50 to 100 units yourself and with

the partner. So you would recommend that approach as opposed to having somebody so maybe have 50 grand you and a partner throw 100 grand into a deal, take down 50 100 units do something like that, instead of going as an LP and a syndication. You know, there's so many different ways to do it. But ultimately, my ultimate goal for everybody would be ownership for themselves. If you need to start out with syndication and you don't have money, then you start

the syndication route. But ultimately, I want everyone to have their own autonomy. I don't want them to have bosses, when you're in syndication, your bosses, they're your investors. That's the bottom line. There's nothing wrong with that, because we've syndicated deals, but my from what I'm seeing man being happy and having a portfolio that's yours. It's you don't have to worry about selling. You know, if we're doing anything,

it's your own decision. You have your own autonomy, that's going to bring you a lot of happiness and a lot of control. But during the stage there's going to be growing pains. That's why the conveyor belt is important getting these deals on the conveyor belt, partnering up with other people doing creative financing, syndication jayvees These are all tools in the toolbox. Out of multifamily, and knowing when to use them in whatever part of the market cycle you're in is going to be

important. Right now syndication may become a little more challenging in the coming months because deals aren't making sense. There's very little referred returns right now in these deals. And it may be a little more challenging to syndicate deals. When I first started, syndication was hard. There's no money out there. Back in 2010 2011, there was no, there was a lot of creative financing. banks weren't really lending, there's a lot of deals and there wasn't a lot of

capital. So syndication really wasn't the play back then it was more of ownership, cap rates were a lot higher. So you just have to figure out what part of the market cycle is and then choose the vehicle or the strategy that really works well in that part of the cycle. Okay, I love that. You say that, because I talked to a lot of syndicators. I just had Jay Scott. Ironically, I just had Jay and Ashley Wilson Barnett investments. So got both of

them. Ashley, if you are listening to this, like this Ashley's episode released today, it's Thursday, I forget which day it is, I think the 23rd of February. But they when they're running their syndication, they're underwriting a 10 year deal. But they're also everyone's nervous about being caught with their pants down with a two to three to a five year hold here. Every like once you go out, zoom out to 10 years and your horizon is out that

far. It's okay. So I guess owning these assets yourself to where you're not going to be beholden to your investors? Mm hmm. That is almost another form of a safety net almost. Right? Yes. And the thing is, it's very difficult to find investors that want to have a 10 year time horizon, go raise capital and tell people, I'm going to hold your money for the next 10 years, it's really hard thing to do. How do I know, we tried to reset a second syndication, we had to drop it down to five to

seven years. And we exited that deal after two and a half. So it was great. Everything worked out when you underwrite for a long time frame tenure is very people don't. And it's an unfortunate, because wealth creation is really started by owning these assets. Our first deal in 2013 was a little crappy 25 unit crack, then literally crappy deal. Single famous little cottages, the rents were 350 bucks, the rents now are 995 Plus rubs, that deal every month is printing as $9,000 a month on

one deal. If we had sold it and doubled our money, we've gotten the equity out. But that's what I'm talking about. I didn't have to sell because we didn't have investors. It's an easy asset, the appreciation is probably tripled in price. We have cost segregation on it. And it's paying us every month. So we have more options. When we own the deal ourselves, we can sell it. And we're not beholding to investors or an IRR. I'm not worried about that with these kinds of deals. So that's why we

like to buy deals ourselves. We don't want to syndicate anymore.

Now if a big opportunity comes along, obviously we're going to syndicate but for us, it's it is really an amazing tool to get into multifamily syndication, because if you don't have the money and you need to start, it's great because you can generate tons of fees, there's acquisition fees, disposition, fees, refi, fees, construction management fees, asset management fees, it's a great way you're getting cash flow on day one from a lot of these

fees. And then on the back end is where you really you crystallize it, but what you can do is if you're someone like Jay Scott was flush, Lavie J, you could put money on the LP side, so you're not only getting GP ownership, but you're putting money on the limited partner side, and you're getting that passive income from there. So you can work it both ways. So the right hand corner is exactly

to skin a cat, exactly. You're investing in your own deals, but also getting it exactly so there's so many ways to look at a deal. And I would just say we'll try to learn all the strategies because the more like I said, options you have on looking at a deal, the more options you're gonna be able to take that deal down. Awesome, Mike, I know you're listening to this, I'll call you buddy. We're gonna take down a couple 100 units together,

buddy. So as so talking about market cycles, so without your Weegee board your crystal ball so you can be able to see into the future here, just like everyone else about that talks about multifamily here. So obviously, we can't predict 100% But now we are in a very odd time as we are recording this a Russia and Ukraine are dropping bombs now things are happening there. And interest rates are starting to rise again things are starting to get a little

wonky. I mean, go buttons. I know you're familiar every everyone is talking Okay. Okay, what do we still want to be foot on the gas here? Or do we want to start thinking preservation? What diversification do we want to do here? By fun? What we Yeah, but by show of hands, I wish I had a crowd out there. How many people thought that real estate was at a high in 2018? Oh, how many people thought we were 19? How many of you were to 20. How many people

thought 21? We'll think 22. The only time you can tell when there's a high is our infamous Bill cook bill and likes to say our coach is you look back and you go oh, there was the high. You're never going to know where the highest that's just the reality. And this COVID accelerated a lot of things. They dumped a ton of money that nobody could have predicted. You don't know what's going to

happen in the next six months. I think this whole Russia thing is they're probably going to use it as an excuse to be able to not raise interest rates. So I think They're gonna hold interest rates. I think that's going to help. I just think this I think there's just so much money in the market right now people looking for yield. And Brian, you've got an asset right now you're going to sell to Gino. Brian, where do you put the money where you put the money?

You have nowhere to put it so you're not going to sell it. That's the problem irony. The entire housing market. That's the housing market. People can't sell the houses because where the hell are they gonna buy? Exactly. And the other problem is that there's not enough supply of houses. So our renters are trying to rent buy a home, they're priced out, instead they get stuck renting a home and they're getting they're still renting from us. rents have gone

up 20% year over year. So there's gonna be a really big pinch. I think what happened back in January, is demand for products really crashed, but prices didn't come down. That's the irony. I mean, that's what's going on right now. I think that the market really takes a dive as far as consumer confidence as far as spending it all. Does the government come back in and inject more money? That's that

that question is on answer. But the way I see things going, asset prices are not going to drop unfortunately, people. That's the reality. Dr. Peter lumen talked about it when you give banks trillions of dollars, what do banks do, they lend money to asset buyers. And that's what's gonna be black, that's black, some black, don't exactly and don't think this is going to be a 2008. Because the banks are flush with cash, they've got tons of reserves. So that's not

happening. They're dropping LTV. So all these private equity firms, all these family offices are coming in with tons of money, and they're taking the long term view, they're not going to cash flow into today or tomorrow or buying two caps. But in five years, when rents are up 50% their assets have been up, they're gonna be looking back and going, thank God, I did that because my money right now is in banking, and it's making point 2% take taxes out of it, I'm going real negative with

inflation. So for us, it's the three pillars of real estate, it's market cycle, its debt, and its exit strategy. Everyone that is looking at a deal right now, whether you're in single family, multifamily self storage, what is your exit strategy? That's the first thing you need to get clear on? Because you need to know what kind of debt you're putting on that deal. Is it short term debt? Is a Fannie? Are you going to have prepayment penalties that she got to figure out? I can't answer that

question for you. In this part of the market cycle. asset prices are elevated, you're buying B and C properties at around the same cap rate, fours for B's, four and a half for C's, whatever. Why would I pay that much for a C property when I can pay more for a B property. The problem with the secret I'm wishing we're buying seeds, but we're buying them at the right price. The problem with C properties you're paying so much, you're gonna hold these things for the next 567 years.

There's extensive capital expense items, especially things built in the 60s and 70s. You know, investors out there, cast iron, plumbing, asbestos, all the roofs all you have to have that in the budget in place, you're buying these assets in the elevator price. If you can't get that rent up, or all of a sudden, bam, something happens.

You're in big trouble. So for us, we're looking for newer assets 80s 90s Build, get granular on this, everybody, this is what your buyer criteria is all about number of units, you're looking for the market, the sub market, specifically, the median income, we're looking for around $50,000 Plus median income in a specific area. We

like townhomes. We love two beds, if we can find three beds in Knoxville, we're partying, we just signed that a 12 unit deal, Knoxville, three beds, Nick can't believe the price I paid, but rents are gonna be 1800 bucks. So it justifies it. So get crystal clear on what you're trying to buy. That's really important. In this part of the market cycle. Like I said, assets are a little bit newer, because we don't want to deal with the capex. And we're we

have that long term mindset. As Dr. Lindemann said, You're investing for decades, two years, a great two years a bad six years or Okay, I'm gonna hold this asset for the next 10 years, it's gonna get older, but it's still going to be okay. So there's so many things you need to think about. But think about the exit strategy. And what your criteria is for buying these assets is important. And I think long term, where are you going to put money, where's the money going to go? That's the thing

going to put in Kryptos? Great, Kryptos fun, but it's not wealth creator, you hit the button, you're up 50%. That's it, you're out. There's such a low barrier to entry. And right now, it's hard to value those assets. People are flocking, you're there. They're actually going to real estate and they know that it is a hard asset. It's a basic human need. And there is a big demand for renters. There's you're looking at people who are younger, who can't afford housing, people who are older

who are downsizing. And that's where these rentals are, so they're so on fire. And for me, I think for the foreseeable future, I don't see him pulling back. Three, three questions that are coming to my mind. So one of them is what type of debt are you? I'm only I know, it's still dependent, obviously. But what is your what's your average kind of debt that you're looking for? Are you looking for long term because you're talking about these apartments that you had back in 2008?

Question? Yeah, great question. First of all, the thing that does scare me about the market is 80% of all loans that are happening right now are bridge dead. Oh, yeah. Like three to five year bridge loans. Yeah, but you're buying a stable asset bridge dead, because you think you can get the rents up and get all the syndicators we're doing that

too. But we're using loan to cost our community bank, but we're buying these assets at such great prices that we know that we've already proved The concept so many times because you know our markets so well we know where rents are already

operating these things. But when you're buying in syndication, if something happens, like an invasion on Russia, or something really throws the world out of whack, and you're expecting rents to go up 20%, and then all of a sudden you're underwriting and your debt right now is 4%. But then rates go to five and a half, that blows the deal up there, there's a risk and so we're doing loan to cost with

our community banks. And on a couple of deals that are stabilized, we'll go to Fannie or Freddie and we will go We bless the deal we bought last year but 85 unit deal, can we have a yield maintenance on it? So it's Fannie deal 10 years, probably that is we bought an 85 985 or 90 adore is probably worth one $30. So that equity is trapped in a deal we can't pull it off in seven or eight years,

but that's okay. Because that thing is cash flowing like a beast so looking at it and just be very particular way your eggs and have some type of flexibility with that exit strategy. i We love LTC loan to cost and community banks because we're using that as quote unquote, like the bridge, we get two years of interest only after those two years, we're probably refund back to community. And then a year after that we'll refund agency. Okay, that makes a lot of sense.

Okay, so you're staying away from bridge as much as you can, yes, you're doing it, you're doing it where it makes sense. And that's why we're not closing a lot of deals, because a lot of deals don't make sense that debt coverage ratio, day one is just horrible. But that's the risk. Fortune favors the bold. That's the thing, people who are taking risks two years ago, when me and you thought that the market was at a peak and people were buying

that deal at what price? Now look back to two years ago and go, Oh, wow, I wish I'd bought that. No, you wish you'd bought that. But that person took the risk. And that's what capitalism is all about. He was fortunate it took you brave. And he made money out of it. Yeah, that's my second question is what kind of levers are you tweaking? What kind of different changes are you making to your buy box to your buying criteria, because now we're looking for a six cap. They're not like now

they're okay with a two cap. But it's also on the flip side of the coin. People are being I feel overly aggressive with some of these deals, and they're trying to put lipstick on a pig and make it look like something that is not, I know that you and your team and your students and everyone with you are doing things the right way. So I'm curious to see how you're doing it. It really you have to revise this every few months because

the market does change. Six months ago, we weren't doing this now we're basically buying these assets that are basic boxes. Because this three bedroom townhomes that we're buying, I think rents going in are like 1000 bucks, they've got to go to $1,800. So we're gonna get a non renewal to every every resident because you can't go from 1000 1800. But that's where the market is, you're basically buying shells, but shells boxes that are really good shape, we don't have to spend a ton of

money on capex on them. And then we can actually perform three or four or $5,000 per unit turn and just get the new resident in there. And there's going to be a weightless, that is not many three bedroom townhomes. In Knoxville. For our buyer criteria, we're really trying to

look at newer assets. And Brian one of the things with this part of the cycle we always hear in football, you got to give what the defense gives you you got to take what the defense gives you right now we're looking at smaller assets 25 unit close to December 21 unit, we're closing this week, we've got a 40, an 18

and a 12. On the contract. We're looking at that because those smaller assets, the private equity people, the institutions, they don't want the small deals, the 100 units, plus they're bidding them up so much that it doesn't make sense for us. There's a lot of risk in those assets. We'd rather stay with the smaller stuff. We already have efficiencies and scalability because we've already got assets around we can just bundle these smaller assets into our bigger portfolio and

manage them that way. That's what we're seeing right now in this part of the cycle. That makes sense for us. Yeah, so you just go on underneath underneath the bar criteria for the P groups. Yep, exactly. Got it. Got that. There we go. There's my voice. Nice. You have me Yeah, me speechless, buddy. I do that often, my friend. Yeah. Here's a question about just

just generalities here. Okay, so multifamily, the term like the asset class, we're becoming more and more of a nation of renter's non negotiable this is happening. Because not only not only is this the trend, but now the hedge funds, the PE groups are making it a necessity. At what point do we reach a level to where we're like, holy shit, man, we cannot raise these rents any more than they are recursion, because these incomes are not rising with them. And I'm a landlord myself. And I see

like I get it. And my runs. I'm gonna raise mine as well for my six units, but it's just at what point like their incomes are not increasing at the rate that they need to be at least so yes, you have your California people coming in. You've got your tech people coming in. You've got your high earners are like yeah, they're putting the money like 40,000 over ask. It's just

bananas. So where does the cookie crumble we're here with At what point do we say hey, We can't really bank on the rent increasing to get the ROI here that that is the I don't want to say the million dollar question. But think of a question in Tennessee Chick fil A $19 An hour $19 An hour. At Chick fil A, when two years ago it was nine or 10 bucks an hour. So there's definitely wage

increases. Now you're going to have to look in each individual market at what rents are versus what mortgages are, you gonna have to look at the affordability of every market as that affordability starts getting out of whack, and you're looking at deliveries versus absorptions. So how many assets are being delivered in a market and how many being absorbed the supply and demand? We're fortunate because in the southeast, we have a lot of demand, we have a lot of people

moving Atlanta. So that's why I'm saying so in Atlanta is usually a boom or bust market when you have one or 2% population, well, that's another 50 or 60,000 people coming in a year that need housing, are they building, they're not all looking for a assets. They're not building any older assets are getting older, but there's not a lot of big supply in that. So it's really important to take a look at the affordability of the market. And there's going to hit they're going to hit a

point. And that's what we're talking those we're really talking about recession because nobody knows what this economy is anymore. Because when I was growing up, you're going through a recession, you can lower interest rates to spur the economy. You can't do that. Now, it doesn't make any sense right now, usually you have demand, there's usually supply in the market. Yeah, a ton of demand for cars, there's no supply, when the hell did that ever happen. So now there's no man,

and there's no supply. So it's really strange. Now you have materials that are costing so much money, and you're trying to build, and now people are trying to build and there's no supply of labor as well. So it's really everything is so disjointed. So it's so hard to make these, these predictions. But inflation is real. And it's fine. I've been talking about inflation for the last 10 years. And I know there's been a ton no one wants to report food and energy, because that's been they don't

report in CPI. But if you really think about it 20% rent increases in the last year, his rents from 350, in 2013, to 995 plus rubs, that's triple in 10 years, that is a huge, and I know like you said incomes, it just comes to the point where the market will take care of itself, there's gonna come a point where people can't afford to pay it anymore, you can't impoverish the resin base, you

just can't do that. That's what people want to do, you'll get pushback, you'll get rent control, like you have in New York and California, which will create an even worse problem. Because you because now all the deferred maintenance, and all of that that comes along with that and the customer service, because you just can't keep up the properties. So just we need to be careful not to not to

impoverish our residents. And it's just the thing that really irks me about this whole last three or four years, people have made money in real estate, and they're not operators, they're just flippers, and especially in

the multifamily space. And when they need to win, you'll see when things start cracking, when these people were flipping these deals, all of a sudden need to operate them, that's when the opportunity is gonna come, they're gonna have a hot potato, they're not going to operate this deal, they're going to crap

it out. And there's going to be people like Jake and Gino and other operators out there that are going to be able to take this asset over and be able to run it, I don't know, when that's gonna happen, it's gonna happen. It's a market cycle. If people have short term memories, there are cycles in the market and it will happen. You just need to be prepared. And that's why the bridge dead is very challenging for me, because that's really that's taking on a

lot of risk. You're trying to time something, when you're trying to time the market. The only two times when you worried about the valuation of your property is when you buy i When you sell and when you sell, you don't care any of the time. And that's the thing. If you're trying to time something, there's more risk, there's reward, but there's risk so that's what we're trying to really shy away from that.

What are you doing with your cash besides first class ticket stuff why I'm putting in whole life lever not I've got a couple Whole Life policies, I've got policies for my children. I've got a policy myself, I've got a policy for my wife borrow against it, you can borrow week

all to do last strategy. So we have a company called 100 year real estate investor we're do we're selling whole life to the real estate investor, because what's going on in Canada, and I touched on life insurance policies that freeze and banks. But everyone needs to remember that not touch the life insurance policy, everyone needs to remember one thing, the laws are written by the rich for the rich, also. So for most states, creditor protection, bankruptcy, it's all protected against whole

life. I'm not a huge fan of the President, but I take a look at how much real life he's gotten his balance sheet probably got seven or $8 million. I think of whole life in its balance sheet, cash value. Look at the Bank of America $20 billion plus whole life versus seven rate for stocks. I'm just seeing all of these wealthy institutions want that tier one capital, it's really cash management tool. That's what they're utilizing before it's there. It's safe capital. Not every dollar needs

to be at risk. So I have that money in the policy. If I needed it out. I'll pull it out. Obviously going to pay interest on it, but I'm still collecting that interest that's already getting paid. So it's a wash, pull the money out, put the money into a deal, when that money deal starts making money, pay back the life insurance.

I've got that asset of life insurance and I've got the real estate, the doula strategy, Talk Talk On this you can give us like a five minute overview because I want to, but let's go back to the beach here. know, when I talk about this for me, it's really the wealthy mindset, people are gonna say, hey, buy term invest the difference, I get that if you're really young, you need some type of protection. But buying term is renting life insurance.

Buying whole life is buying life insurance, it's um twice, and I have no idea about any of this that you're talking about right now. So its whole life for life, just go to the dual asset, strategy, calm, there's more information there. But really, even at your young age, people gonna say, oh, stay away from that I got my first policy 30 years old, I'm 50, I still got to now the death benefit is still increasing. That's my protection, that's going to help me pay for my state taxes, right, money's

gonna go off. But in the meanwhile, there's a nice cash value that's growing there that I can pull out and I can borrow and I can utilize it whenever I want. So for me, it's really utilizing my living benefits and my death benefits. And the younger you are obviously the way life insurance works. Premiums are going to be a lot cheaper because you're healthy, and your mortality rates, you're probably going to your generations probably live to be

90 years old average rate. So you can imagine mortality. I'm gonna live to 150. Man, I'm on my wagon to David Sinclair already. That's the power and the power is the opportunity costs. Stay away from 401 K's everybody, that's, that's gonna come on about that. Yeah, that's a contract with the government. Yeah, it's a contract with the government, they can change the rules whenever they want, when it's

tax deferred. So when you retire, you've got $3 million in there, 30% of that's gone to taxes when you start pulling money out. And it's something where there's a vehicle where you're probably earning three to 4% a year, if you're going to be honest with yourself, once you take away once you take away all the fees and all the other crap. And it's something where you're sitting there and there's no opportunity costs, if you've got a deal that comes around, you can't touch that money in there,

you've got to pull it out. I blew my 401k if I paid the 10% penalty, yeah, caustic wiped out my taxes, I needed to do that. I wouldn't recommend everybody to do that talk with a financial advisor. I didn't ask one because I knew that's what I needed to do that deals paid me 50 times over. And from what I pulled out, but I hate 401k. So it's not really investing, you're giving your money over to a mutual fund company, they diversify your money into different mutual funds that own

the same stock. So what kind of diversification is that? I want control my money. I want to be able to control and have the opportunity cost. Yeah, once you don't realize how dumb 401k czar until you try to pull money out of one you realize how freaking impossible it is. Yeah, so I'm gonna have a human moment here. And I'm gonna say, Yeah, I pulled 3035 37,000 Out of my like, it was like 60 So you obviously have the taxes and everything that get withheld

from in the 10% penalty. I was like, Okay, I'm gonna eat it because I was gonna buy a laundromat. And then I'm like, Wow, I'm by waiting to buy a laundromat. I'm gonna throw this into a couple stocks and crypto lost it all. Whatever. I'm human. We're all human. I'm still kicking my neck this year. But hey, you know what, I've got $3,000 to write off on my taxes and losses for the next 10 years. And so whatever, half full, that's it. But that's but that goes back to how we began

this conversation. I'm not emotionally attached to money. I don't lose sleep over that, because I've got money coming in. And then it's just about developing income sources, planting trees, managing orchards and then having your what was it? Oh, man, now it's escaping me. It's for the mentorship, pay to play. Seek this sequencer. Yes, sir. It plays seek to serve. Yeah. That's all fantastic. Yeah. So at this point, yeah, to let you go back to your family got rid of the beach or with your

family. This has been absolutely fantastic. And now drop the website again, for the life insurance information. Oh, just go to dual asset strategy.com Or it's the 100 year rei.com really is a long term mindset. This is not for somebody who wants to get rich overnight and get make a few bucks. This really is long termism. It's all about planning for the long term. That's what multifamily is all about. It's about becoming an entrepreneur and about creating those other

systems. You're that whole life insurance, you are planting trees and you're managing or I love that do you which each policy you have, you're planting that one tree and over time they continue to grow and continue to grow. So it's an awesome strategy for the long term. I just hate having I hate having cash. Yes. So I've got a lot. I'm sitting on some cash right now. So I wouldn't refer while I'm sitting on that to have that somewhere to where it's gaining interest is growing, but I can

also it's it's liquid. I want this to be liquid 401k is not liquid at all. No. Yep. So as we finished up, where can people find you? Oh, just go to Google. Yeah, just know just go to Jake and Gino calm. We've got the shows. If you're out there, you're married. You're looking for showing communication, spousal support, how to work with your spouse. We've interviewed Dr. Gary Chapman, The Five Love Languages. I love podcasting like you. It's a medium just to

describe express yourself. Have some fun, enjoy entertaining, meet great people. Be vulnerable, be transparent and learn a lot from the process. Just go to Jake and Gino comm. You can check out all our podcasts there as well. Perfect last question. What is one thing that you're really proud of in your life or business that a lot of people don't know about you not really a proud person to be

honest with you. I'm proud that I was actually able to start Jake and Gino and not be afraid of other people taking deals from us that scarcity mindset, it took a long time to overcome. Well, if I start this education, everyone's gonna go out there and we're going to deals and I'm not going to find any deals myself. I'm teaching everyone the secrets. And that's what a scarcity mindset allows you to

do. Whereas the abundance mindset is on the pockets right now, Brian because of Jake and Gino, I just spoke to all these amazing people because of this and partnered up with students on one or two deals because of Jake and Gino. I'm learning everyday because of Jake and Gino. So just catch yourself when you're going into that gap or that scarcity mindset and ask yourself where's the abundance or the gain mindset?

Yep, yep. And then every single time that I think about the analogy of filling up your cup to pour into others, one of my buddies DJ savoy's said you cut the bottom off the cup, so anything that gets poured into you flows through you and out to others. Yeah, so then never stops. So the picture of life God, the universe pours into you. Yeah, and it's gonna pour into you 10 times out of 10 more than it's gonna pour into the person next to you. That's gonna

hold it all to the chest. Yeah, that's all I love it with that, my friend. I will let you get out to tan on the beach with your kids and your family. And I am going to go head over to the gym so I can live to be 150. So thank you my friend. This is Brian and Jake and Gino have Jake and Gino. Sorry, Jake. You'll come on the podcast you buddy. It's not your time. not your time yet. Gino? Signing off. Take care.

You've been listening to the action Academy podcast helping you to choose what you want with who you want. When you want. You've been given the gift of freedom. Don't turn your back on that. We hope you've enjoyed the show. And we hope you've gotten some practical and useful information make sure to like rate and review the show. We'll be back soon. But in the meantime, hook up with us on social media. Remember financial independence is freedom. Red flag the freedom fly