RPF0286-Schaub_Seminar_Review
00:00:00.000 | Today on Radical Personal Finance, I'm going to share with you a review of John Schaub's
00:00:07.000 | Building Wealth One House at a Time of a seminar.
00:00:11.920 | Recently I had the opportunity to go to it, spent two days there at the seminar.
00:00:14.160 | I'll share with you the outline of the seminar, some of the things that I learned and my impressions
00:00:18.960 | and feedback as to whether or not this might be something that you should consider going
00:00:23.200 | to.
00:00:26.200 | Welcome to the Radical Personal Finance Podcast.
00:00:42.160 | My name is Joshua Sheets and I'm your host.
00:00:43.880 | Thank you for being with me.
00:00:45.160 | We talk real estate, love the seminar, love John's plan.
00:00:51.480 | It's a plan I'm pursuing as I talked about on a recent show.
00:00:53.600 | I'm going to share with you some of the reasons why, but I'm also going to tell you why would
00:00:59.560 | a guy sell his house and talk about why there are myths of home ownership and then turn
00:01:03.280 | around and want to get right back into real estate investing.
00:01:08.480 | When you think about it, that'll probably be some of the more interesting part of the
00:01:16.720 | show.
00:01:17.720 | I will answer that question, although I can do it here in one sentence.
00:01:20.560 | It's very simple.
00:01:21.920 | Houses are personal consumption items.
00:01:23.680 | They are not investments.
00:01:25.440 | Everything that I said about real estate was related to houses as a personal consumption
00:01:29.840 | item.
00:01:30.840 | Basically, all of the flaws that I talked about were flaws of – well, many of them
00:01:37.040 | were the flaws of viewing a house as an investment, as a wise financial move.
00:01:41.560 | The end of the day, when it comes to a place to live, if you view a house as a consumption
00:01:48.560 | item, as a luxury lifestyle decision, nothing wrong with that.
00:01:52.960 | We all need a place to live and I think for many people, a major goal that many people
00:01:56.800 | have is to live in a luxurious house.
00:01:59.520 | Now how you define luxury is up to you, but that really is the case.
00:02:05.000 | But when we talk about investing, they're night and day.
00:02:07.680 | So I'll cover that more in a little bit though.
00:02:10.000 | But last weekend, I went to John Schaub's Building Wealth One House at a Time seminar.
00:02:17.280 | This comes – it's a seminar that's related to a book that he has written called Building
00:02:20.920 | Wealth One House at a Time.
00:02:22.700 | Book has been out.
00:02:23.700 | It's been updated a few times.
00:02:24.700 | He's coming out with a new version of the book, I believe this summer.
00:02:27.640 | And so when he releases that, I'll have him back on the show to talk about that personally.
00:02:33.320 | But we've interviewed him in the past on Radical Personal Finance and that was a great
00:02:36.960 | interview.
00:02:37.960 | He shared a lot of the strategy that he follows and pursues and a lot of his personal story.
00:02:42.720 | If you'd like to go back and listen to it, it was episode 119 of the show.
00:02:46.520 | I will put a link in the show notes for today's show.
00:02:49.000 | You can go back and hear that episode.
00:02:51.240 | But Schaub is one of my favorite real estate guys.
00:02:54.920 | I shared in the past that I got involved in the real estate guru world about ten years
00:03:01.400 | ago.
00:03:02.400 | What's interesting is since that time, there have been real estate market crashes and recession
00:03:07.520 | and all kinds of issues.
00:03:10.960 | When you go through times of recession, you can find out who are the people who know what
00:03:14.400 | they're doing and know what they're talking about and who are the people who are just
00:03:17.320 | talking about what they think they want you to think that they know what they're talking
00:03:21.760 | about.
00:03:22.800 | As the axiom goes, when the tide goes out, you can see who was swimming naked.
00:03:26.920 | Unfortunately, that's what happens with real estate gurus.
00:03:30.120 | There's so many just total frauds out there and there are so many of them in the real
00:03:36.080 | estate space.
00:03:37.080 | A suggestion to you, if you're reading a book written by a real estate guru, the first place
00:03:41.960 | that you should go is to John T. Reed's website and look at his guru ratings and read what
00:03:47.640 | he has to say about that guru.
00:03:49.440 | That should be the very first thing that you should do.
00:03:51.920 | I will also link that up in the show notes for today if you are not familiar with those
00:03:55.680 | ratings with the work that John T. Reed does.
00:03:59.920 | There are many systems and many ways of investing in real estate.
00:04:04.080 | John Schaub's approach that he teaches in Building Wealth One House at a Time is not
00:04:07.680 | for everybody.
00:04:09.880 | There are dozens of approaches.
00:04:12.180 | You could be a house flipper, buying properties and reselling them.
00:04:16.420 | You could be a rehabber.
00:04:18.700 | You could work in commercial rentals.
00:04:21.320 | You can rent out trailer parks.
00:04:24.600 | You can invest in tax liens.
00:04:26.520 | There are dozens and dozens of niches and specialties in real estate.
00:04:30.320 | If somebody says, "Oh, I'm a real estate investor," your spider sense should go up a little bit
00:04:35.800 | and say, "Well, wait a second.
00:04:36.800 | What kind of real estate investor are you?"
00:04:38.800 | Because there are very, very specialized types of real estate.
00:04:43.560 | But what appeals to me about John Schaub's system is the fact that it's an appropriate
00:04:47.920 | scale and appropriate system for what I'm looking for personally.
00:04:52.040 | I do not want to operate a real estate business.
00:04:56.280 | My business is radical personal finance and that is what I want to serve as the primary
00:05:02.720 | economic engine and driver of my financial life.
00:05:06.280 | That's the business that I want to have and that I want to run.
00:05:09.680 | However, I also need to be busy with investing.
00:05:14.480 | Good for me to invest into my business.
00:05:16.840 | That's likely where the highest returns are going to come and I'm investing into my business
00:05:20.520 | and I will continue to do so.
00:05:22.360 | However, it would be a poor decision of mine if I were to put everything into my business.
00:05:30.040 | That would be a bad asset allocation decision.
00:05:33.240 | This is one of the things that entrepreneurs often do is they often invest everything into
00:05:37.200 | their business and they keep investing everything in their business and that leaves them vulnerable
00:05:42.320 | to things that could happen.
00:05:43.720 | Now, I don't know what those things are.
00:05:45.880 | I don't know if I could fall into a situation where all of a sudden some laws or rules change
00:05:52.820 | and now my content is meaningless.
00:05:54.740 | I could say something that angers 90% of my audience and nobody wants to listen to me
00:06:00.400 | anymore.
00:06:01.400 | I could wind up being sick or hurt and not be able to come and do the show every day.
00:06:06.800 | If that were to happen at the moment, my business would fall apart because everything is built
00:06:10.460 | upon me continuing to do it.
00:06:13.340 | If I were to focus everything on my business, I don't have any backup plans.
00:06:18.560 | I need an investment plan.
00:06:20.520 | Now, in the past, I've shared with you about some of the different challenges I've had
00:06:25.440 | with figuring out an investment plan.
00:06:27.360 | I've looked hard and fast at different options for me and I've had to figure out what is
00:06:31.520 | an appropriate investment plan that fits where I'm at, fits my skills, fits my inclinations
00:06:38.000 | and fits the scale, the amount of capital that I have to invest.
00:06:42.520 | That's a big decision.
00:06:43.520 | So, when you get into the world of real estate, Shab's system is, for me, perfect at this
00:06:50.560 | point of my life.
00:06:52.560 | His system – let me just lay it out.
00:06:55.080 | I don't want to beat around the bush.
00:06:56.080 | Let me just lay it out for you.
00:06:58.200 | He teaches his students to go out and simply focus on buying one rental house each year
00:07:05.120 | until they have enough rental houses owned to be able to supply all of their economic
00:07:11.080 | goals and all of their income goals.
00:07:13.480 | Right in the very beginning of his seminar, he talks about the meaning of building wealth
00:07:17.360 | one house at a time and he says, "Why houses?"
00:07:19.840 | His reasons, number one, there's plenty of opportunity.
00:07:22.080 | There's lots of houses.
00:07:23.840 | Number two, houses are little deals that can be bought with little down and little
00:07:27.720 | risk.
00:07:28.880 | So you can survive any mistakes that you make in a deal.
00:07:33.200 | Bankers like houses for collateral, so financing is generally available at lower costs and
00:07:38.400 | better terms than commercial loans.
00:07:40.840 | The tenants of houses stay longer than apartment tenants.
00:07:43.600 | You're dealing with a different type of tenant.
00:07:46.100 | Houses are easier to sell at close to a retail price for cash than other types of property
00:07:50.880 | and many buyers are interested in buying on terms that can be profitable to you as a seller.
00:07:56.720 | So he teaches to buy houses, not land, not apartments, not trailer parks, but houses
00:08:02.920 | and a certain type of house.
00:08:04.040 | One of the big things that he focuses on is finding and investing in rental houses that
00:08:09.800 | are squarely in the middle class market.
00:08:15.160 | So you want a house that's big enough to fit a family and their things.
00:08:19.660 | Buy a three-bedroom house that has either a garage or a basement, at least a three-bedroom
00:08:24.680 | house that has a garage or basement, a place for stuff.
00:08:27.680 | You want normal houses, good construction quality in quiet, well-maintained neighborhoods
00:08:33.160 | on streets that have more owners than renters with lots that are appropriate and adequate
00:08:38.100 | for the needs of a family that are near popular schools, that are close to employment centers
00:08:42.540 | and shopping, and you put together deals that can produce an acceptable cash flow for you
00:08:47.120 | that you can buy at a bargain price.
00:08:49.360 | And this helps you to solve one of the major problems of real estate, which is finding
00:08:53.960 | and attracting the perfect tenants.
00:08:56.600 | John teaches in his seminar that you want a house that will attract a perfect tenant,
00:09:00.760 | and a perfect tenant is a tenant who stays forever, who pays early, who never calls,
00:09:05.980 | and who fixes everything.
00:09:09.480 | That's not necessarily a normal rental tenant, but with John's experience and his story,
00:09:16.120 | that's his normal rental tenant.
00:09:18.400 | And if they're not, then he fixes the situation so that they are.
00:09:22.920 | That's the fundamental premise, and the idea is to build a house investment plan that is
00:09:28.720 | passive.
00:09:29.720 | The goal is to have a passive investment plan, not an active real estate business.
00:09:38.000 | To me, that's important because I don't want to get into the business of actively flipping
00:09:42.560 | real estate.
00:09:43.560 | I don't want to get into the business where I'm looking for passive investments in the
00:09:48.380 | real – that happen to be through the context of real estate.
00:09:50.880 | In a moment, I'll talk about the advantages of real estate, of why it can be such an attractive
00:09:56.000 | financial opportunity, and I'll also go through some of the financial results of John's
00:10:01.880 | plan, if you just buy one house a year.
00:10:05.520 | And then I'll also talk about his rules for investing, and then we'll go in-depth
00:10:10.040 | on the seminar.
00:10:11.040 | Before I go into that, I want to talk about the sponsor for this half hour of the show
00:10:14.800 | is Trade King.
00:10:16.000 | Trade King is the official brokerage company sponsor of Radical Personal Finance.
00:10:20.400 | Awesome company, very inexpensive trades, $4.95 stock trades, very high quality level
00:10:29.620 | of education and information.
00:10:31.300 | The best thing that I love about Trade King is I've been in their offices.
00:10:34.380 | I've met their CEO on multiple occasions.
00:10:37.180 | I've looked them straight in the face, and I've been able to get a sense of who they
00:10:40.740 | are as a company and how much they work to serve you, the client.
00:10:44.980 | I've been in their call room standing next to their customer service reps as they're
00:10:50.380 | working there to solve customer service issues.
00:10:53.740 | Today we're talking about real estate, and real estate can be a tremendous way of investing.
00:10:57.860 | However, it is not the only way.
00:10:59.460 | It's not the perfect way, and there are major advantages and disadvantages that real
00:11:03.100 | estate faces.
00:11:04.100 | For example, listen to what I just said.
00:11:06.220 | Trade King will do trades for you, $4.95 a trade.
00:11:10.380 | Every single real estate transaction is going to be way, way more expensive than that.
00:11:14.820 | Think of all the costs involved in closing your real estate.
00:11:16.860 | You're talking big dollar amounts.
00:11:19.100 | It's hard to figure out.
00:11:20.100 | There are a couple ways in real estate you can do it with tax liens and bundled instruments,
00:11:25.200 | but it's hard to figure out how to invest in real estate for a couple thousand bucks.
00:11:28.980 | But you can put some trades in place on a stock trade, whether that's direct purchases
00:11:33.780 | or whether that's setting up options trades.
00:11:36.100 | You can do that with a couple thousand bucks, and if your trades are well chosen, you can
00:11:41.220 | do very well with your rate of return.
00:11:44.740 | When you get a cost of $4.95, it's hard to beat those costs.
00:11:49.660 | The other great thing about stock investing and a disadvantage of real estate, real estate
00:11:53.100 | is much less liquid than stocks.
00:11:55.020 | With stocks, you can hit sell and your stocks can be sold.
00:11:58.220 | With real estate, one of the major things that John Seminar was trying to talk about
00:12:01.980 | ways to sell more quickly at close to retail value, but it is certainly not as easy to
00:12:07.620 | do – sell a real estate property as quickly and easily as it is a stock.
00:12:12.820 | So if you'd like to open a brokerage account, if you have an IRA or a Roth IRA, or if you
00:12:16.920 | have a stock account at another firm and you'd like to get low-cost trades and also really
00:12:22.340 | great customer service, consider transitioning to Trade King.
00:12:25.580 | If you use the special Radical Personal Finance referral link, that helps them to track you
00:12:30.600 | as a customer, but you get a $100 bonus for doing that.
00:12:33.340 | If you open an account with Trade King, fund it with at least a thousand bucks, you can
00:12:36.940 | get a $100 bonus from them.
00:12:38.640 | So if this is the year that you'd like to start experimenting with trading, consider
00:12:43.440 | going to TradeKing.com/radical, go to TradeKing.com/radical, open an account and get an extra $100 courtesy
00:12:51.540 | of – well, it's courtesy of Trade King, but courtesy of Radical Personal Finance to
00:12:56.820 | fund your account and let me know how you do this year.
00:12:59.020 | There might be some opportunities.
00:13:00.380 | Volatility might be a good time for some of you to really be trading well.
00:13:04.860 | So on John's one house a year plan, I'm just going to read one page to you from the
00:13:11.400 | workbook from the course and it's as simple as this.
00:13:15.940 | Quoting from the book, "For more than 30 years, I have suggested to beginning and seasoned
00:13:20.240 | investors alike that they simply but consistently buy one house a year as an investment.
00:13:27.380 | The result of steadily buying through all types of markets spreads your risk and allows
00:13:32.340 | you to learn the business and make better deals over the years.
00:13:35.900 | As the houses increase in value, you can increase your cash flow by selling some and paying
00:13:40.820 | off the rest.
00:13:42.140 | Or as the following example shows, just sell your weaker houses and replace them with better
00:13:46.140 | houses, keeping some cash for yourself.
00:13:49.220 | Here are the rules.
00:13:50.340 | Buy one house a year using John's advanced 10-10-10 rule.
00:13:55.260 | 10-10-10 rule is buy at least 10% below the market, pay no more than 10% down on the property,
00:14:03.780 | and produce a 10% cash flow return on your down payment."
00:14:08.380 | Just a side note here, that rule used to be pay no more than 10% interest.
00:14:12.660 | That was in the past when interest rates were much higher.
00:14:14.460 | He modified that rule to be this one, "Produce a 10% cash flow return on your down payment.
00:14:20.940 | Hold on to the houses until the first one doubles in value, and then sell the first
00:14:25.220 | house you bought and buy a replacement house," again, using the 10-10-10 rule.
00:14:30.420 | And what's so amazing is in the beginning of the seminar, John doesn't start his seminar
00:14:34.780 | with a lot of motivation, a lot of talk.
00:14:37.540 | Many real estate seminars, especially the bad ones, are all motivation, all hype, all
00:14:42.500 | pictures of riches.
00:14:43.620 | Look at the lifestyle you can live.
00:14:44.920 | Look at that.
00:14:45.920 | He doesn't do that.
00:14:46.920 | His seminar is very practical.
00:14:48.380 | It's very tangible.
00:14:49.580 | But he does have one page right at the front where he says, "Here are the potential results
00:14:52.680 | of buying one house a year," and I'll share them with you because this example could really
00:14:57.740 | be life-changing for some of you.
00:15:01.220 | It really could be.
00:15:03.380 | And so as an example, let's say that you start with an initial house with a fair market value
00:15:11.700 | of about $180,000.
00:15:14.440 | So this would vary depending on market, but remember, we're going with middle-class housing,
00:15:19.460 | houses that you and I would want to live in.
00:15:22.020 | That's the goal.
00:15:23.060 | That's the type of house that we want to own because we want to attract the type of tenants
00:15:33.860 | that will stay and be there for a long time and pay us consistently and never call.
00:15:39.180 | So you want to buy a house that's worth $180,000.
00:15:41.620 | Well, if the house is worth $180,000, remember, you're not going to pay $180,000.
00:15:46.580 | Your maximum purchase price is 90% of that, which would be $162,000.
00:15:50.460 | You've got to buy 10% under market.
00:15:54.260 | Next, you're going to make a down payment of no more than 10%.
00:15:58.240 | So you're going to put a down payment of no more than $16,000 into that property.
00:16:04.220 | That means your original loan balance would be $146,000.
00:16:08.920 | Under this example, let's say that you finance it at 5% for 30 years.
00:16:12.820 | That would mean that your principal and interest payment is $783.
00:16:17.420 | Then you hold the house until it doubles in value, so let's say about $400,000.
00:16:24.300 | Who knows how long it will take for the house to double in value?
00:16:26.980 | This is one of the most interesting things about John because he's been an investor for
00:16:30.540 | over 40 years.
00:16:32.220 | He's seen many of his houses double in value multiple times.
00:16:36.020 | He's got the benefit of hindsight.
00:16:39.100 | But sell the house when it doubles in value, $400,000.
00:16:42.260 | Assume for a moment that it takes 10 years for that house to double in value.
00:16:45.980 | Well, if that were the case, then your loan balance at that time would be about $120,000.
00:16:52.040 | You would sell the house, pay off the loan for $120,000, and you would net $280,000 cash.
00:16:58.700 | Well, you have to replace that house, so you go out and you replace a house that's in that
00:17:03.860 | $350,000 to $400,000 price range.
00:17:07.180 | Let's say that you buy it for $300,000, about 10% below the market.
00:17:11.140 | You need $30,000 on the down payment, and you wind up netting off of that house $250,000
00:17:17.660 | before taxes of cash in your pocket, and you've gone ahead and replaced your rental house.
00:17:22.900 | Now obviously those are round numbers and it's just an illustration, but it's a pretty
00:17:26.720 | good illustration.
00:17:27.720 | What's remarkable though, at the bottom of the page John has you do a little bit of math.
00:17:31.500 | If you did that, one house under those rules each year for the next 10 years, after 10
00:17:37.060 | years, you would own approximately $4 million in real estate.
00:17:41.380 | You would have approximately $2 million of debt in mortgages on that real estate, and
00:17:46.340 | your equity would be about $2 million.
00:17:50.820 | I repeat, if you bought one house a year using that formula each year for 10 years, under
00:17:59.620 | those assumptions, you would own about $4 million in real estate.
00:18:04.460 | You would have about $2 million in mortgages, and you would have about $2 million of equity
00:18:08.940 | in the properties.
00:18:11.700 | Now that's remarkable.
00:18:13.580 | You can figure out whether you buy the assumptions or not.
00:18:19.420 | Is it 10 years?
00:18:20.420 | Is it 12 years?
00:18:21.420 | Who knows?
00:18:22.420 | Does it take 10 years for a house to double in value, 15 years for a house to double in
00:18:24.460 | value?
00:18:25.460 | You can argue that stuff endlessly.
00:18:27.020 | Go find a real estate forum and talk about that.
00:18:29.820 | Conceptually though, think about how powerful that is as a wealth building tool.
00:18:35.060 | The reason that it's so powerful is because the fundamental premise of this type of real
00:18:40.340 | estate investing is that your tenants pay off your debt.
00:18:48.300 | As the saying in real estate goes, the quickest way to become rich is go out, borrow a million
00:18:52.900 | dollars, and then let your tenants pay it off for you.
00:18:57.140 | It's obviously not as clear as a simple investment because you're involved in the work.
00:19:01.420 | This is where the business comes in.
00:19:03.220 | You have to be involved in finding the potential deals.
00:19:06.980 | That takes work.
00:19:08.060 | It takes effort.
00:19:09.060 | Then you have to be involved in managing the property, which is basically it's a part-time
00:19:13.420 | business.
00:19:14.420 | You have to be involved.
00:19:16.340 | Those two things can sink many potential real estate investors.
00:19:19.500 | Number one, some people aren't willing or aren't able to go out and do the work of finding
00:19:24.020 | the deals.
00:19:25.180 | You may have to look at hundreds of potential properties until you find a deal that works.
00:19:29.260 | You may have to discard plenty until you find a deal that works.
00:19:33.580 | Many people aren't going to be involved in the deal – in the management of properties.
00:19:38.100 | They don't want to deal with the toilets and the tenants and the turnover.
00:19:41.940 | But if you can solve those problems, if you are willing to be involved in the management
00:19:47.380 | of the properties and if you are able to put in the time and the work to find the properties,
00:19:52.880 | you can produce tremendous wealth from your part-time business.
00:19:57.780 | For many people who are working at a job and looking for a side business, for many people
00:20:04.580 | this type of real estate business is a much better type of part-time endeavor to be involved
00:20:11.600 | in than a brick and mortar business or than a part-time extra job.
00:20:17.860 | Now, if you need cash quickly, then this is not the strategy for you.
00:20:22.480 | If you need cash to pay off credit card debt, then you should go and deliver the proverbial
00:20:26.900 | pizzas.
00:20:28.160 | But if you're looking for investments, spending some time, spending 10 or 15 to 20 hours a
00:20:33.440 | week on your part-time real estate business can reap huge rewards.
00:20:38.480 | You need some time and you need some money, but it can reap huge rewards.
00:20:42.540 | There are many, many, many people who have done it, many ordinary men and women just
00:20:48.260 | like you and me who have done it.
00:20:51.580 | There are a bunch of ways that you can massively improve the system.
00:20:55.980 | But that's the fundamental basis of John's system and it's so elegantly simple.
00:21:02.140 | But with his positioning of it, at this point, you check back in a couple of years and I'll
00:21:07.060 | let you know my personal experience, but I'm convinced it is definitely a doable system.
00:21:13.540 | For me, it is the best type of real estate investment plan that fits my ability, the
00:21:19.580 | amount of time I'm willing to devote to it, the amount of money that I have to invest
00:21:23.020 | and my goals for financial independence and financial freedom.
00:21:27.260 | It fits those things.
00:21:28.260 | It also fits my local market because – well, it fits my local market.
00:21:35.260 | If you have different investment goals, if your goal is to transition to a full-time
00:21:39.500 | real estate business as quickly as possible, this approach is probably not going to be
00:21:43.120 | for you.
00:21:44.420 | You might need to work as properties that are smaller dollar values and do more management,
00:21:49.940 | more intensive – excuse me, intensive management for those properties to generate higher cash
00:21:54.480 | flow returns.
00:21:55.620 | You may need to have a different type of system.
00:21:58.220 | If you don't have any money, you've got to use other people's money or you've
00:22:01.780 | got to develop some sort of synthetic equity or you've got to flip deals and assign them.
00:22:06.020 | You've got to do something else.
00:22:07.620 | But if you fit that type of person like me who you have some investment capital and you're
00:22:12.820 | looking for something that it takes a little bit of time where you can compete but it's
00:22:16.820 | not too much, then John's system is really the best that I've ever been aware of.
00:22:22.780 | Again, the most important thing to me is the type of tenant.
00:22:26.500 | I do not want to manage a 30-unit apartment complex.
00:22:31.500 | That's not something that I want to do with my time.
00:22:34.540 | That can be a very profitable endeavor.
00:22:36.500 | I don't want to do that.
00:22:38.440 | But I could manage 10 or 20 or 30 rental houses.
00:22:43.500 | If you go back and listen to John's interview on episode 119 of the show, you'll hear
00:22:49.060 | me question him about that and he'll point out his management systems that are very,
00:22:53.460 | very simple.
00:22:54.460 | He does – a couple of my requirements with real estate, I do not want to do any hands-on
00:23:00.700 | construction work.
00:23:02.220 | He does no hands-on construction work and I want good tenants and he has excellent tenants.
00:23:07.700 | He talks in the seminar about the amount of time that he spends in management and it's
00:23:13.420 | minimal.
00:23:14.420 | Probably averages out if memory is correct to be an hour or two a day.
00:23:18.340 | Some days more, some days less but an hour or two a day on average.
00:23:22.140 | He lives a great lifestyle, has done a great job.
00:23:24.260 | So it's definitely a proven plan.
00:23:27.060 | That was why I wanted to go.
00:23:28.300 | Now before I chose to go to the seminar, I had read John's books and so I know that
00:23:33.180 | I knew that this was exactly what I wanted and I had done enough other research to know
00:23:40.740 | what I was looking for as far as an approach to a seminar.
00:23:45.580 | Quick comment on seminars versus books.
00:23:48.380 | Seminars can be wonderful things to attend.
00:23:50.780 | They really can be and John's seminar is a great – is a very, very good one.
00:23:55.180 | I really enjoyed it.
00:23:56.260 | It was exactly what I was hoping that it was.
00:23:58.760 | But you shouldn't go to seminars if you don't know what you're trying to get out
00:24:01.260 | of it because that is crazy expensive.
00:24:04.140 | Now one of the best things about John's seminar is that his price for it was only
00:24:10.340 | $550 I think.
00:24:11.340 | That was what he was selling it for on his website.
00:24:13.540 | I was able to work out a deal with him where in exchange for my reviewing the seminar publicly
00:24:18.580 | and also I want to help him with some publicity for his books.
00:24:21.740 | I'm hoping we can do more.
00:24:23.020 | I actually have some ideas.
00:24:24.460 | I want to work with John on my own projects and try to build out some educational stuff
00:24:30.660 | for the media for radical personal finance in the future.
00:24:33.580 | I've got some ideas of ways I want to work with him.
00:24:36.300 | So none of that stuff is set in stone.
00:24:38.580 | But he gave me a complimentary review ticket to the seminar which helped me and saved me
00:24:42.820 | $550.
00:24:43.820 | I still had to pay to get there and pay for the hotels and all that.
00:24:46.260 | But that saved me a bunch of money.
00:24:47.940 | But John's entry price of $550, that is among the cheaper – I mean it's one of
00:24:54.740 | the most reasonable seminar prices that I'm aware of, especially in this real estate world
00:25:00.380 | where usually the prices are so, so high.
00:25:03.820 | But think about the number of books that you can buy and read in exchange for the seminar
00:25:07.660 | price.
00:25:08.660 | So I do not think it's a good plan for people to go to seminars as a way of getting exposure
00:25:14.380 | to different ideas.
00:25:15.980 | The first thing you should do if you're interested in ideas is read books, listen
00:25:19.560 | to the BiggerPockets podcast, spend time on their forums, find any landlording or real
00:25:24.020 | estate forums that you can be involved in, spend time on the internet looking for stuff
00:25:27.980 | there.
00:25:28.980 | And then only after you've built a base of foundation, you've invested in the books
00:25:32.460 | and the things that you need, at that point in time then go to a seminar.
00:25:36.620 | And then what I was looking for at the seminar was I was looking for the comprehensive plan
00:25:41.340 | and the personal access to the seminar leader.
00:25:45.220 | And that's exactly what John's seminar delivered.
00:25:47.700 | I was very, very impressed.
00:25:49.500 | I'll give you some specific points on the seminar and then some of the things that I
00:25:53.980 | really loved and some of the things that I didn't in just a moment.
00:25:57.500 | Before I do, sponsor second half of the show is Paladin Registry.
00:26:00.540 | Paladin Registry is a registry service for financial advisors.
00:26:03.820 | If you are looking for a financial advisor, start your search at Paladin.
00:26:08.100 | Go to RadicalPersonalFinance.com/Paladin, P-A-L-A-D-I-N.
00:26:13.060 | Start your search with advisors who have been pre-screened carefully, independent, comprehensive,
00:26:19.820 | well-qualified financial advisors whose backgrounds and records and qualifications have been checked
00:26:25.420 | out.
00:26:26.420 | Go to RadicalPersonalFinance.com/Paladin and that's where you should start your search.
00:26:29.420 | It's the best solution.
00:26:30.860 | If I were looking for a new financial advisor, that's exactly where I would go.
00:26:35.020 | So let's talk about the seminar.
00:26:38.300 | I've been to a lot of seminars.
00:26:40.500 | And I've been to a lot of good ones and I've been to a lot of bad ones.
00:26:42.860 | And I do think seminars are worth, as long as you're not just becoming a seminar junkie
00:26:48.780 | without doing anything, they are well worth the money.
00:26:51.540 | I've spent a lot of money on seminars.
00:26:54.700 | I'll tell you some of the things that just most impressed me with John's seminar.
00:26:57.860 | Number one, it was no nonsense.
00:26:59.820 | It was straightforward.
00:27:01.300 | It was packed with information and it wasn't overhyped and oversold.
00:27:06.540 | One of the things, and I've written the outline for a potential seminar that I want to do
00:27:10.820 | in the future, and it's always a challenge when you're thinking about how to design a
00:27:13.820 | seminar because you can go over the top and you can make the thing so fancy.
00:27:17.460 | You've got to rent a fancy hotel room, do all kinds of beautiful fancy signage.
00:27:21.240 | You can do all kinds of great marketing stuff.
00:27:25.020 | But that stuff all costs money.
00:27:26.140 | And the question is, does it really add value for the seminar attendees?
00:27:30.900 | Sometimes yes, maybe.
00:27:32.040 | Sometimes no.
00:27:33.260 | But I was glad that John's seminar was not hyped up.
00:27:37.100 | As I remember, I don't think he had any signs.
00:27:39.940 | It was just him and his wife who were there welcoming people.
00:27:44.460 | There were, by my count, I think there were about 75 attendees there.
00:27:50.620 | We got in on Saturday morning.
00:27:52.380 | We got started all day Saturday.
00:27:54.340 | We went out in the evening and knocked on doors.
00:27:56.940 | We'll get to that in a minute.
00:27:58.140 | And then all day Sunday.
00:27:59.540 | And the best thing about it was the atmosphere.
00:28:01.820 | It was enough people to feel like you were there learning with a bunch of other people.
00:28:07.180 | But there was plenty of time to have tons of personal interaction with the seminar leader.
00:28:12.700 | I think that's so important at a seminar, if possible, to have time for that interaction
00:28:18.260 | with the seminar leader.
00:28:20.120 | So I thought it was a great deal, a great price, and just an awesome thing.
00:28:27.900 | Seminars can be so expensive to go to if you're paying for expensive tickets, plus you've
00:28:32.260 | got the cost of getting there, plus you've got the hotel costs, plus you've got the opportunity
00:28:37.500 | costs, the things you're giving up to get there.
00:28:40.400 | And so I thought $550 for a two-day seminar.
00:28:43.780 | Basically you add hotels and food and transportation.
00:28:46.860 | Most people are looking at $1,000.
00:28:49.180 | And that to me is a very reasonable price.
00:28:54.400 | And it was packed with value.
00:28:55.900 | I really was glad that John's seminar was practical.
00:28:59.840 | He gave specific tips.
00:29:02.540 | He gave at the beginning very practical goal setting, building a plan of how to do it.
00:29:07.620 | He gave very practical examples of financing.
00:29:10.660 | And the best part of the seminar was Shab's experience.
00:29:15.060 | He's done hundreds of – I don't know if hundreds.
00:29:19.600 | He's done dozens and dozens.
00:29:22.660 | He didn't say exactly, but dozens and dozens of deals.
00:29:25.500 | And so he was able to use all of these examples from personal deals that he's done, properties
00:29:30.260 | he's bought, properties he's owned, properties he's sold.
00:29:33.400 | He gave examples where he was the borrower and gave examples where he was the lender.
00:29:37.020 | He's able to give – because of his 40 years of experience, he's able to give examples
00:29:41.860 | from all different economic cycles.
00:29:44.000 | John studied real estate in college and then he got out of – when he got out of college,
00:29:49.080 | he quickly went full time into the real estate business.
00:29:51.740 | He for a while had an agent's license, started to build that, found out that wasn't working
00:29:56.720 | and then it wasn't worth the time and the hassle, and then focused on investments.
00:30:01.260 | And he built his entire real estate empire as a full-time investor, starting with nothing,
00:30:07.140 | starting broke.
00:30:08.140 | But he built it and did a great job.
00:30:10.880 | He did a good job of using clear, specific examples that were real world examples, not
00:30:18.260 | pie in the sky, this is the best deal I ever did, real world examples, lots of them.
00:30:24.620 | He did a good job of giving the basics and going a little bit deeper.
00:30:30.180 | One of the things I ask myself is who is this seminar appropriate for?
00:30:32.900 | I would say at least 50 percent probably my guess would be at least half of the attendees
00:30:40.340 | in there were already active real estate investors, some of them very experienced.
00:30:44.660 | There were some very experienced investors with many, many properties, managing 10, 20,
00:30:50.340 | 30 or even more units.
00:30:52.600 | There were investors there with decades of experience.
00:30:55.760 | So I would say at least half of them were experienced investors.
00:30:59.640 | The other half were probably newbies and some of the newbies had never had any investment
00:31:05.760 | experience and that was cool to talk with some of the people who were totally new.
00:31:10.320 | If you are totally new to the world of real estate, I don't know that I would necessarily
00:31:15.100 | start here or at least if I did start here, I would expect to need to do some homework
00:31:18.400 | because John does a good job of going into some of the practical nuts and bolts of investing.
00:31:24.820 | But some of the language might be a little bit foreign to you.
00:31:27.260 | For example, John is an expert with lease options and he has done a lot of deals buying
00:31:32.360 | with lease options and selling with lease options.
00:31:35.200 | If you don't know what a lease option is or just the basics of how the contracts are
00:31:39.800 | structured or what the benefits are, it's going to be hard to benefit from the in-depth
00:31:44.480 | discussion of how this particular deal was structured.
00:31:47.960 | But if you have at least a cursory understanding of, "OK, here's what a lease options are.
00:31:53.640 | Here's how you could structure a note," then you could really benefit from the content
00:31:58.720 | of the seminar.
00:32:00.800 | So I wouldn't say it was for rank beginners but you could be a pretty good beginner and
00:32:05.480 | still do it.
00:32:06.480 | The best thing about the conference was the access that John gave to his content especially
00:32:12.080 | for beginners.
00:32:13.480 | On the first day on Saturday at lunch, he had all of the new investors, people who had
00:32:17.640 | never bought properties or who were just new investors.
00:32:21.480 | He sat at lunch at a table with us.
00:32:23.440 | So I got to sit next to him at lunch and ask him all of my questions and that was really,
00:32:27.640 | really beneficial.
00:32:28.640 | Then he had one of his friends who was also an experienced investor take another table
00:32:31.880 | of newbies.
00:32:32.880 | So everybody who wanted to sit at those tables was excluded.
00:32:35.080 | So that was awesome.
00:32:36.920 | On the first – on the night, Saturday night, he invited all of the attendees over to his
00:32:41.360 | house and that was really, really gracious of him.
00:32:44.520 | He and his wife hosted everyone and his son hosted everyone at their house and got a chance
00:32:48.240 | plenty of time to talk to them and ask all kinds of questions.
00:32:51.540 | So there was plenty of access which to me speaks wonders.
00:32:56.960 | I hate going to a seminar when you don't have access to the seminar attendee.
00:33:00.400 | If I go to a seminar and you don't have access to the seminar – to the presenter,
00:33:04.720 | excuse me, to the presenter and if there's no structure there to build relationships
00:33:08.840 | with the other attendees, I just say, "What's the point?
00:33:11.320 | Why didn't I just buy the CDs?
00:33:13.040 | I don't want to waste my time going and sitting in a classroom if I'm not going
00:33:16.880 | to access the presenter or if I'm not there and going to have specific time that I'm
00:33:21.000 | going to really be able to engage with the other attendees."
00:33:23.520 | It's a waste of time.
00:33:24.520 | Let me just buy the audio from it and listen to it.
00:33:26.800 | I learned better as a self-directed student in that situation.
00:33:30.640 | But because of all of the access John gave to him for personal relationship and then
00:33:36.240 | also the time with other attendees, it was really, really good.
00:33:39.640 | I really appreciated how the focus was on action.
00:33:44.000 | Obviously when you're at a seminar, you're there to learn.
00:33:45.600 | But on the first day, one of the primary ways that John encourages people to find deals
00:33:50.640 | is to go out and knock on doors.
00:33:53.360 | The process goes, because we're looking for a specific criteria, you start with what
00:33:57.760 | location do you want to invest in, specifically what neighborhoods.
00:34:01.380 | Not just going out and saying, "Can I find a deal?" and building this thing in a non-planned
00:34:05.160 | fashion, whatever deal happens to pop out of the woods at you, but rather you're building
00:34:08.980 | very strategically.
00:34:10.040 | What neighborhoods, specific neighborhoods do you want to invest in?
00:34:14.420 | He gave us a map of all of the different neighborhoods that he owns houses in, neighborhoods that
00:34:19.120 | he's chosen that fit his criteria.
00:34:21.080 | Then we split out into teams of two or three people and we went out and knocked on doors.
00:34:26.880 | Basically just trying to find out about any possible leads on properties.
00:34:30.400 | You have a lot of competition in the real estate investment world.
00:34:34.040 | One of the ways to beat your competition is to find the property before it's available.
00:34:45.360 | You got to find the properties before they go on the market.
00:34:49.640 | One of the best ways that John has found to do it is just to knock on doors and start
00:34:52.880 | getting connected in those neighborhoods and find out any leads on properties in specific
00:34:56.800 | neighborhoods.
00:34:57.800 | That's kind of scary for many people who haven't gone.
00:35:00.760 | I've never done that, but it was pretty cool because we got to prove to ourselves, "Yes,
00:35:04.480 | we can go knock on doors."
00:35:06.400 | All of us found leads or options on things that we could follow up on.
00:35:11.800 | The guy that I went out knocking on doors with, we found a couple of properties that
00:35:17.240 | were definitely worth following up on.
00:35:19.200 | Passed along the address to John in case he wanted to invest in.
00:35:21.280 | I don't own real estate in Sarasota, but in case he wanted to pursue it, some opportunities.
00:35:25.760 | So it was definitely a really great solution.
00:35:30.800 | My favorite thing about the seminar was how John talked about the buying process.
00:35:37.720 | One of the big things about his system is to finance the properties with less than 10%
00:35:45.400 | down, but not to use banks for financing.
00:35:49.120 | John said in 40 years of investing, he's never borrowed money from a bank.
00:35:53.760 | So you say, "Well, how do you do that?"
00:35:55.320 | Well, it takes a little bit of a different approach.
00:35:57.200 | He went through example after example of his own buying, and then he also went through
00:36:00.920 | example after example of his own selling in places where he sold.
00:36:04.920 | He's lent money.
00:36:05.920 | He's done co-investing on different deals.
00:36:08.880 | One of the things that most attracts me to John's system is because that method of borrowing,
00:36:13.520 | the way that he teaches people, that method of borrowing substantially reduces the risk.
00:36:18.400 | Borrowing on real estate is much less risky than many other forms of borrowing.
00:36:23.200 | Even if you're just buying with traditional mortgages, because the mortgage debt is non-collectible,
00:36:30.480 | usually at fixed rates, it's very, very safe debt.
00:36:34.400 | It's also very, very liquid debt.
00:36:35.720 | You can sell the notes easily.
00:36:37.160 | Banks like real estate is collateral.
00:36:38.400 | That's why the debt market for mortgages is so filled.
00:36:41.540 | So borrowing on real estate first and foremost has much less risk than many other things.
00:36:46.960 | I would never personally – I would never – I shouldn't say never.
00:36:51.560 | At this point, I have never been willing to think of any scenario that I would ever consider
00:36:55.720 | borrowing on margin for stocks.
00:36:59.280 | Some people do it.
00:37:00.280 | I would not be willing to do it.
00:37:01.720 | But borrowing on real estate is a totally different animal.
00:37:04.160 | It's much less risky.
00:37:06.520 | Then also if you can structure a debt in a certain – in different ways where you don't
00:37:10.480 | actually own the banks but you own individual – owe individual investors, you owe the
00:37:14.000 | seller of the house, you structure it in a bunch of different ways, then that in and
00:37:18.360 | of itself substantially lowers your risk.
00:37:20.960 | Then if you manage the way that you have – manage the way that you owe the debt on the properties,
00:37:28.360 | that lowers the risk.
00:37:29.360 | One of the things that was very encouraging to me was that John confirmed even something
00:37:33.360 | I had figured out that I covered in the Myths show that your lowest – you should always
00:37:38.440 | keep your debt on as few properties as possible.
00:37:40.840 | So let's say you have a portfolio of ten properties.
00:37:42.960 | You're better off having five of those properties financed almost to 100 percent and five of
00:37:48.280 | them free and clear than you are having all of the properties at 50 percent debt to equity
00:37:53.440 | ratio.
00:37:54.760 | So he confirmed a lot of the things that I figured out the hard way over the last few
00:37:58.600 | years and it was nice to have my opinions confirmed by someone with much more experience
00:38:04.400 | and much more wealth than me.
00:38:06.480 | So that was really nice.
00:38:07.720 | So that was my favorite aspect of the seminars, him going through the deals.
00:38:10.520 | How to structure them, how to build notes.
00:38:12.120 | Now, it wasn't a course on paper.
00:38:14.440 | It wasn't a course on how to structure paper and notes to buy and sell.
00:38:17.760 | But it was just awesome to see it because that's where I could see my skill and my
00:38:22.080 | ability really developing, being able to creatively structure deals in ways that are win, win,
00:38:26.840 | win, win, win across the board.
00:38:28.560 | A little bit of creativity, a good property, a good situation, that's where you can really
00:38:33.740 | do well.
00:38:34.740 | The other thing I appreciate about John was just his ethics.
00:38:37.080 | He's a very upright and ethical man of integrity.
00:38:41.600 | And that to me is very important because I don't want to be in a situation where I'm
00:38:47.360 | a leech on people.
00:38:48.600 | I don't want to be – I don't want to take advantage of people.
00:38:51.520 | And the cool thing is if you can find the right situation, then you can solve people's
00:38:55.560 | problems at a profit and everybody is happy.
00:38:59.960 | You can solve people's problems at a profit and everybody is happy.
00:39:03.200 | And John gave so many examples of that.
00:39:04.880 | And even he gave examples of how when – in the past where he was a lender and how he
00:39:09.360 | talked about the lender's interest and the borrower's interest and when he was a lender
00:39:12.940 | and he had deals go bad and how he would sit down and renegotiate and how if you understand
00:39:17.120 | the incentives, basically your whole – one of the major things to make a good real estate
00:39:21.360 | investor is to craft the proper offers, to craft the offers that fix all of the problems
00:39:27.880 | and figure out how can you keep everybody happy.
00:39:30.280 | And that's the good basis of negotiation.
00:39:32.900 | In a successful business deal, I believe everybody should go away happy.
00:39:37.440 | Everyone should go away feeling like they won.
00:39:39.680 | And so not everybody who's living in a house is saying, "Well, my way to win is just
00:39:44.400 | to sell this house for the maximum profit."
00:39:46.480 | So you got to find those people that you can help and they're going to go away happy
00:39:49.960 | with the deal.
00:39:51.040 | The investor needs to be happy with the deal.
00:39:52.560 | The tenants need to be happy with the deal and you can do that.
00:39:55.240 | John did a great job of talking about tenant management, of his property management systems
00:39:59.760 | and I could just see how his systems were developed through trial and error to weed
00:40:04.800 | out the bad tenants and it's not an accident that he has very low maintenance tenants.
00:40:09.480 | And then also it was very valuable, his checklists, his agreements, his contracts and his mortgages
00:40:13.880 | were all part of the workbook for the seminar.
00:40:16.480 | So I came away without question feeling just totally impressed and ready – totally impressed
00:40:22.340 | with the seminar.
00:40:23.340 | I may go back in the future.
00:40:24.520 | I was impressed at how many experienced real estate investors were there.
00:40:27.760 | I was also impressed.
00:40:28.880 | I had breakfast one morning with one seminar attendee who had traveled from Singapore to
00:40:33.360 | Florida to go to the conference and he had been going to Shobb seminars for years.
00:40:38.440 | I was very, very impressed with that.
00:40:40.320 | I talked to him.
00:40:41.320 | I was thankful to live in the United States of America as far as from an investment perspective
00:40:45.160 | after hearing the investment situation that he faces living in Singapore.
00:40:49.240 | Just amazing how the different challenges that investors face around the world.
00:40:53.360 | But it was just packed, packed with value.
00:40:55.640 | Very, very impressed.
00:40:56.640 | I even appreciated how John sold at the seminar.
00:41:00.540 | One of the keys to running a good marketing business is you should always give your students
00:41:05.000 | next steps, ways to go on with you.
00:41:07.800 | So if you're having a seminar, you always want to make sure that you have an offer to
00:41:11.760 | present to your attendees that's the way that they can continue.
00:41:15.600 | And so John did a great job with that.
00:41:16.680 | He has a bunch of self-study courses and he did a good job offering a very, very strong
00:41:21.920 | deal with good discounts on his products but for quality products.
00:41:26.460 | And because the seminar was packed full of quality and content, I don't know – I didn't
00:41:30.800 | count the percentage but plenty of people were thrilled to buy his additional products
00:41:35.320 | and I'm looking forward to them too.
00:41:39.200 | He's got great products.
00:41:42.160 | And then also just the additional seminars.
00:41:43.280 | But he didn't go over the top because there's that fine line I believe that needs to be
00:41:46.440 | done of good professional presentation and selling without going over the top and starting
00:41:51.920 | to put psychological tactics on people and hammering it too long.
00:41:55.760 | And I just thought – I thought they did a great job.
00:41:58.780 | When you combine all those things, the content, the plan, the access, the value, I mean I
00:42:05.560 | was very impressed and been to a lot of seminars, very impressed.
00:42:12.520 | Points of improvement, suggestions that I would make, there weren't many.
00:42:16.880 | But I would say probably the two things.
00:42:21.160 | Number one, in the very beginning of day one, we started with talking about kind of what's
00:42:26.040 | the plan.
00:42:27.040 | There were some points in John's workbook of some pages to fill in and some lines to
00:42:33.660 | fill in of, OK, what's your goal?
00:42:35.200 | What's your cash flow goal?
00:42:36.200 | What is your shopping list?
00:42:37.480 | I really appreciate that because it's so important I think for people to have a specific
00:42:42.280 | plan of here's what you're trying to do.
00:42:43.760 | You don't need $30 million of real estate to be wealthy.
00:42:47.120 | That's absurd.
00:42:48.120 | I mean if you want it, fine, but you don't need it.
00:42:51.300 | How on earth are you going to spend the money from that?
00:42:53.280 | There's no way to spend that money.
00:42:55.360 | So most people could manage what they need with just a few rental houses.
00:43:00.200 | I mean if you have in my neighborhood or my city here, if I had five rental houses and
00:43:07.320 | let's say net rent on houses this size that I'm pursuing because I know specifically
00:43:14.640 | what I want, I know some of the neighborhoods already that I'm targeting, if you have five
00:43:19.000 | houses and they're renting for $1,800 a month gross, let's say you're netting $1,400
00:43:23.600 | a month after expenses not including financing, that's $7,000 a month.
00:43:31.400 | Most people, $7,000 a month, that's $84,000 a year.
00:43:34.760 | That's double the median income in the United States of America.
00:43:37.780 | So five to ten houses is really about all most people need to be very, very financially
00:43:45.060 | comfortable.
00:43:48.000 | But I think coming in with a shopping list, one of the suggestions I make to John is that
00:43:56.180 | if you would in advance like have people create the shopping list, have people create what
00:44:00.540 | do you want to buy, how much money, specific numbers so you can come in and the plan can
00:44:05.380 | be okay, I need to create $10,000 of monthly income, $10,000 of monthly income that in
00:44:11.420 | my neighborhood here are the types of houses, here's what the rents can be, so this is the
00:44:15.820 | number of houses that I need and here's when I need them paid off so I can own them free
00:44:19.540 | and clear so I can have that income very, very safely.
00:44:24.100 | That could be done in a simple PDF sent out in advance and I think if seminar attendees
00:44:30.220 | did that, it would help to come away with a more applicable personal plan.
00:44:34.900 | I think that would be one really beneficial idea.
00:44:38.900 | Secondly, I would love – John doesn't permit recording at his seminars and I think
00:44:44.380 | that's fine, but I think it would be a really nice touch to go ahead and include an audio
00:44:48.500 | of the seminar, of that specific seminar as a go-away present.
00:44:52.720 | That can be done so inexpensively and for people who have just bought the course and
00:44:56.900 | who would like to go back and listen to it again because there's a lot in two days
00:45:00.620 | that's not passed into the book and so to send seminar attendees away with an audio
00:45:05.140 | or offer it as a $50 or $100 or purchase price to be able to have a nicely recorded audio
00:45:12.580 | of the same seminar delivered previously, I think that would be a really big value.
00:45:17.860 | So those are my two suggestions to John of ways to improve it and create even more satisfied
00:45:23.620 | customers.
00:45:24.940 | But those are my thoughts and that's my review.
00:45:27.820 | So that's my review of John's Building Wealth One House at a Time seminar.
00:45:31.820 | Again I went January 16 and 17, 2016 in Sarasota, Florida and it was great.
00:45:37.420 | If you get an opportunity to go in the future, read the books first, but it was without question
00:45:42.440 | a great seminar.
00:45:43.440 | I may go back in the future, I don't know.
00:45:45.940 | But I was thoroughly impressed.
00:45:46.940 | I want to thank John for letting me come.
00:45:49.020 | Again, he was very generous to allow me to come and I wanted to – I was ready to buy
00:45:55.960 | the ticket if he didn't allow me to come, but he graciously allowed me to come in exchange
00:46:02.340 | for – I just said I want to help you publicize your stuff and I hope you guys can hear the
00:46:07.940 | value that there has been in the seminar.
00:46:11.100 | Hope this review even was valuable to you.
00:46:13.440 | So if you're considering thinking about it, hopefully with the information that I
00:46:15.860 | presented you'll be able to make a good decision and I'm looking forward to having
00:46:19.740 | John on the show with his new book.
00:46:21.860 | When the new book comes out, that will be extremely valuable for you as well.
00:46:25.360 | In the meantime, if you haven't read Building Wealth One House at a Time, Amazon used books,
00:46:29.540 | that's the way to go.
00:46:32.440 | It's just amazing how cheap information is now.
00:46:35.900 | You got to – it's cheap in dollar prices.
00:46:37.740 | It's not cheap in time.
00:46:38.900 | You got to put the work in to educate yourself.
00:46:41.300 | But just think again as we go today.
00:46:43.340 | Just think about the numbers that in that example scenario.
00:46:48.100 | One house a year, 10% down, hold them until they double in value.
00:46:53.340 | If they double in value, under those conservative assumptions after 10 years, you would wind
00:46:58.620 | up owning $4 million of real estate and have $2 million of equity in that real estate.
00:47:03.580 | Rents, your tenants paying off the mortgages for you.
00:47:07.580 | You do the work of finding the properties and of managing them.
00:47:11.180 | For many of you, that should probably be the most productive part-time job that you could
00:47:15.940 | do.
00:47:17.140 | That could be the most productive way for you to invest 15 or 20 hours a week.
00:47:20.980 | A couple hours, two nights a week and Saturdays, it could be very, very productive for you.
00:47:28.020 | That's the ticket.
00:47:32.100 | That's the plan.
00:47:35.180 | So consider it.
00:47:36.820 | Start with John's book.
00:47:37.980 | Go back and listen to episode 119 of the show.
00:47:40.580 | I think you'll really enjoy that.
00:47:43.100 | I think that's it.
00:47:44.740 | Thank you all for listening.
00:47:45.740 | If you'd like to support me and like to support the show directly, financial, please consider
00:47:49.060 | becoming a patron of the show.
00:47:50.060 | Go to RadicalPersonalFinance.com/patron for all the details of that.
00:47:54.180 | Oh, I need to promote this conference I'm doing, online investing conference.
00:48:01.300 | I'll do a special standalone deal of that.
00:48:04.140 | So RadicalPersonalFinance.com/patron and I'll talk with you soon.
00:48:09.100 | [Music]
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