🔎INSIDER INSIGHTS: The Banker’s Paradox

🤿A DEEPER DIVE: The Great Deal That Almost Got Away | How Business Leverage Saved A Deal From Crashing

📝THAT’S A WRAP: Help Us Help You!

The Bankers Paradox

I remember it like it was yesterday. In my early 20s I recall coming up with the great idea of going to the bank to get a loan to start a new business. I had tons of excitement, good credit but no collateral and no experience. Nevertheless, I was a quick learner and a hard worker. I thought to myself, “why wouldn’t they give me a loan, if others can do it so can I.”

Needless to say, I learned in less than 15 minutes that there was no way on earth they were going to give me a loan to do anything - especially to start a new business.

It took me decades to learn what I refer to as the banker’s paradox…

It seems counterintuitive but when put in the proper perspective, it does make sense.

Plainly put…

Banks don’t want to help you get started they want to help you grow (after you’ve already stabilized).

I know what you’re thinking - if I can’t get started, how can I grow?

Bingo! That’s why I’m here - to make sure it doesn’t take you as long as it took me to figure it out.

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The Great Deal That Almost Got Away

In the context of operating a system that does consistent business managing deal flow and dollar flow (funding), I run into good problems and bad problems.

The three types of problems relevant to this story are:

1. More dollar flow than deal flow (good problem)

2. More deal flow than dollar flow (good problem)

3. NO deal flow and NO dollar flow (bad problem)

It just so happens that I experience both types of good problems on a regular basis but that’s the game and just how it is…

We’re currently in the middle of refinancing five residential properties. Once we finish these refinances we’ll be ready to reload the pipeline with the next batch of deals.

In this business, a common problem at any given time is being spread out too thin. I found myself with limited capital reserves when a great deal fell into my lap.

When this particular deal showed up I didn’t have the funds for the down payment, closing costs, and the first phase of rehab. It was a great deal because the asking price was less than the maximum price I could offer - according to my buy box (investment criteria).

Business Leverage Made This Deal Happen

The seller needed to close fast so I didn’t have enough time to attract another collaborative partner.

But for the previous 6 months I had been building business credit so I would be prepared for just this type of situation. We had just gotten approved for $95,000 in business credit with zero percent interest for 12 months (not that we cared about the interest because the deal could afford it).

Consequently, we were able to fund the deal and make a nice profit in about 6 months.

Business Leverage Saved This Deal From Crashing

Around the same time another deal, a triplex in Chicago, needed major plumbing repairs (on all 3 units) a lot sooner than we anticipated. The good news is we had already built the cost into the deal but the bad news was we didn’t have the liquid funds, at that particular time, because we were spread out too thin.

You guessed it!

Business credit helped us make those major repairs, once again, right when we needed it - with no stress involved.

Key Takeaways:

• You don’t need good personal credit to build business credit

• Business credit does not report on your personal credit

• Use business credit to be prepared for the inevitable times you’re going to be spread out too thin

• Continue to build your business credit over time to gain access to more and more capital to build your real estate portfolio and/or optimize your personal credit

• Smart utilization of business leverage is essential to winning the wealth game

That’s A Wrap: Help Us Help You!

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How Do I Know For Sure What I Can Afford?

Webster Says…

Afford: to have sufficient financial resources or capacity to buy something without serious consequences.

With a vague definition like this, it’s no wonder more than 95% of the population aren’t achieving financial freedom.

The ONE Number That Changes Everything

That one number is cash flow.

For our purposes, there are two types of cash flow

1. Active Cash Flow (derived from earned wages) &

2. Passive Cash Flow (derived from income producing assets)

Our journey usually starts with active cash flow whereby we invest/sell our time and skill (as we develop it) in exchange for money. This may be within someone else’s system as an employee or within your own system (self employed).

Our mission is to ultimately replace our active cash flow with passive cash flow.

We can do this by creating income producing assets (a business that operates without you) OR acquiring income producing assets (i.e. rental property, dividend stocks, etc.)

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Three Mathematical Boundaries We Need To Understand & Agree Upon

1. Financial Freedom:

2. Financial Literacy

3. Affordability

Once again, the definitions we’ve been taught for these concepts are so vague that it’s no wonder so few of us stand any chance at all of winning the wealth game.

Well today we fix that by assigning mathematical definitions to each of these concepts!

Financial Freedom: When your passive cash flow is equal to or greater than your basic living expenses.

I like to explain this concept within the context of the Four Seasons of Wealth.

1. Survival: your passive income is less than your basic living expenses (aka: the rat race)

2. Stability: your passive income is equal to your basic living expenses (Tier 1 Financial Freedom)

3. Success: your passive income is equal to your basic living expenses AND your lifestyle expenses (Tier 2 Financial Freedom)

4. Significance: your passive income is equal to your basic living expenses AND your lifestyle expenses AND your legacy expenses (Tier 3 Financial Freedom)

Which season of wealth are you currently in and which season is your next target?

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Financial Literacy: The skill developed to create or acquire income producing assets.

Now that we understand what “real” financial freedom is. It becomes blatantly clear that we need to develop our skill of creating or acquiring income producing assets. In other words, we need to improve our financial literacy.

Stay tuned for upcoming free livestreams and workshops

Affordability: We can afford anything that does not violate our self designated minimum cash flow floor or minimum cash reserves floor.

When we understand what “real” financial freedom looks like and we’re committed to improving our financial literacy - we can get a clear understanding of affordability.

CASE STUDY:

Brian and Cheryl are educators at a local middle school and are both in their late fifties. Their combined gross monthly income is $9,000. Brian is meticulous about tracking their monthly expenses so he knows that they average $8,100 per month (all in). They have $25,000 in savings and currently have no passive income at all.

What is Brian & Cheryl’s active cash flow?

Income - Expenses = Active Cash Flow

$9,000 - $8,100 = $900

As Rental Property Mastery (RPM) subscribers, Brian & Cheryl quickly realized that they were in the wealth season of survival and they would never achieve financial freedom (Tier 1) on their current path.

The Wealth Plan:

They decided right then and there to commit and get help with developing a plan to acquire income producing assets so they could achieve “real” financial freedom in a reasonable period of time. Their target season of wealth is “Stability or Tier 1 Financial Freedom.”

The plan is to divert their savings and net active cash flow toward the acquisition of rental property which meant they now were able to create the mathematical boundaries necessary to define what is affordable and what is not affordable for them.

Affordability For Brian & Cheryl

With their wealth plan in hand, Brian & Cheryl now know with certainty…

1. Anything that would cause their active cash flow to fall below $900 is not affordable for them &

2. Anything that caused their emergency cash reserves to fall below $5,000 is not affordable for them

The mathematical boundaries discussed here will help save Brian and Cheryl’s financial future and empower them to create generational wealth.

Are You Ready?

It’s Never Too Late To WIN Your Freedom🏆

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🔎INSIDER INSIGHTS: Why Some Experts Say Your Home Is A Liability & Not An Asset

🤿A DEEPER DIVE: Should I Pay Off My Mortgage Faster?

📝THAT’S A WRAP: Help Us Help You!

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Why Some Experts Say Your Home Is A Liability And Not An Asset

One of the best selling books of all time is “Rich Dad Poor Dad” by Robert Kyosaki.

Rich Dad Poor Dad led to a financial revolution which is a good thing.

It caused people all over the world to pay more attention to creating passive income which is definitely sound advice and why it’s such a great book.

Love The Book But I Don’t Necessarily Agree With Some Of The Implications

One of the most memorable concepts in the book is Robert Kiyosaki’s belief that your primary residence is not an asset.

In fact, he states with much conviction that your primary residence is a liability because it does not generate any cash flow. Instead it creates a perpetual outflow of cash in the form of mortgage payments, maintenance, and property taxes - just to name a few.

Consequently, many people now believe that the best course of action is to pay off their home mortgage as soon as possible. This may be a good move but is it the best move?

For our purposes, as Real Estate Collaborators serving other real estate investors, we have to be more practical and expand the context…

Three Types Of Assets

1. Cash Flow Assets

   1. Examples: rental property, businesses, & dividend stocks

2. Equity Assets

   1. Examples: land, cryptocurrencies, & non-dividend stocks

3. Hybrid Assets

   1. Assets that have positive net equity AND positive net cash flow

      1. could be rental property, businesses, or dividend stocks assuming that there is net positive cash flow and your equity position is greater than your financial investment

For us, our primary residence is an asset - as long as our net equity is positive and has strong to potential to keep growing.

However, we need to use leverage intelligently - the same as we do with cash flow assets (more on this topic in upcoming issues).

Inflation Defense Offense

I’d be remiss if I didn’t point out the destructive impact inflation has on the consumer’s personal economy…

Three things you need to know:

1. Inflation is good thing for the federal government - which is why their mandate is to keep at 2%

2. For consumers, inflation is destructive - which is why it’s called “the hidden tax”

3. Lastly, FOR YOU, the investor (Rental Property Mastery subscriber), inflation is a good thing as well

Needless to say…

You need to lay the consumer in you to rest permanently and awaken the investor inside!

And remember…

You’re an investor and using inflation to your advantage is the best way to win the wealth game!

Now to the business at hand…

Should I Pay Off My Home Mortgage? The Answer May Shock You!

I can remember more than one occasion where my wife suggested that we come up with a plan to pay off our mortgage faster, because she would feel more financially secure - especially if something were to happen to me.

Has anyone ever suggested this tactic to you? Have you suggested it to someone else? Is this part of your plan right now?

As I stated before, this tactic can definitely be a good move for anyone - but is it the BEST move for you? Only you can answer this question.

BUT WHAT IF…

Instead of paying extra money to deleverage and pay off your home mortgage faster, what if you bought a cash flow asset(s) to service the debt (make the payments) on your home.

Let’s compare the two tactics and explore which may be best for you:

David and Karen are both educators in their late fifties and, like many of us, falling short of their financial goals. Between the two of them, they have $210,000 in their retirement accounts and they just bought a new home five years ago with a current mortgage balance of $260,000 (interest rate at 5.25%) with a monthly principal and interest payment of $1,476.

They have $26,000 in savings and a positive net monthly cash flow of $1,100.

To help secure their financial future, Karen suggested that they come up with a plan to pay off their mortgage as soon as possible. However, David is friends with a Real Estate Collaborator and wants to explore the concept of acquiring income producing assets to accelerate wealth creation…

SCENARIO #1: Pay Off The Home Mortgage With Wages

Karen used an online mortgage calculator to find out that if they used their $1,100 net monthly cash flow to make extra payments on the mortgage and withdrew $100,000 from their retirement accounts in one year (to avoid tax penalties) and added $25,000 from saving to apply toward the mortgage as well, they could have the mortage completely paid off in nine years & seven months - and save $177,557 in interest.

This strategy would allow David and Karen to eliminate their mortgage principal and interest payment ($1,476) to increase their net monthly cash flow from $1,100 to $2,576.

Assuming an average of 3% appreciation on their home, the equity in the home they bought for $275,000 in 2021 would now be $358,000 in 2031.

SCENARIO #2: Acquire Cash Flow Assets To Pay The Mortgage

David and Karen can become Real Estate Collaborators or joint venture with one to execute a basic real estate plan like the Leap Frog Method (acquire 4 single family rentals & transition to a small apartment (recommended if you have $0 - $150K in seed capital):

This strategy would create $4,000 of passive net monthly cash flow in 6 years for David & Karen to pay the principal, interest, taxes, & insurance of $2,500 associated with their home mortgage, leaving and extra $1,500 of passive income to add to their $1,100 for a total of $2,600 of net monthly cash flow. Also, the equity created is $540,000 (not including the equity in their home).

Here is the comparison:

Either tactic is good but the question still remains…

Which tactic is best for you?

Feel free to reach out with comments or questions!

Key Takeaways:

1. As investors (Real Estate Collaborators), we can play offense with inflation as opposed to solely playing defense as consumers

2. We can transform our home from a liability to an asset by looking at it from the perspective of an investor instead of a consumer

3. Mathematically speaking, it’s far better to have multiple appreciating assets growing our financial legacy than settling for only one appreciating asset

4. Passive cash flow (rent, dividends, royalties) is the ultimate goal. We create it to replace our active cash flow (wages) and win our freedom🏆

5. It’s never too late to create sufficient wealth for our families as long as we lay the consumer inside of us to rest permanently - and awaken the investor

Are you ready?

That’s A Wrap: Help Us Help You!

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In Today’s Issue:

🔎INSIDER INSIGHTS: Start With Your Real Estate “BUY BOX”

🤿A DEEPER DIVE: Five Simple Steps To Analyze Potential Deals & Acquire Rental Properties Like A Pro

📝THAT’S A WRAP: Tell Us What You Want To Learn Next

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Start With Your Real Estate “Buy Box”

As a Real Estate Collaborator, you’ll need a real estate buy box to win the wealth game.

A real estate buy box is a defined set of specific criteria—including location, property type, price range, and ROI metrics—that investors use to filter potential acquisitions. It acts as a strategic, non-negotiable checklist to narrow down options, avoid emotional, impulsive, or unprofitable acquisitions, and streamline the search process.

Simply put, your buy box is your filtering system to keep you from hurting yourself and your collaborative partners.

My Current Buy Box (residential)

Feel free to use it “as is” or modify it to create your own personalied buy box:

Fix & Flip:

Location(s): Texas & Memphis, TN
Minimum Population: 30,000
Max Price Point: below the median housing price in the area
Bedrooms: 3+, Bathrooms: 1+, Minimum Square Footage: 1000 s.f.

Offer Price Formula:

After Repair Value (ARV) x 70% to 75% - Repairs = Maximum Allowable Offer (MAO)
ARV < $200,000 = 70% minus repairs
ARV $200,000 - $275,000 = 72% minus repairs
ARV > $275,000 = 75% minus repairs

Minimum Acceptable Profit Potential: 10% of ARV or $20,000, whichever is higher

Fix & Rent:

75% - Repairs = Max Allowable Offer (MAO)
Cash on Cash (COC) ROI is 5% or higher
Equity Multiple equal to or greater than 1.0

SPECIAL NOTE:
Rental/Sales Comparables: at least 2 within the previous 3 to 6 months - within a 1-mile radius (preferably same neighborhood)

Approval required for the following:

backed to commercial, has a swimming pool, on a main or busy street, above 2500 s.f. of living area, or less than 2 sales comparables available

Pro Tip: Fix & Flip to generate operating capital. Fix & Rent to accelerate wealth creation.

Five Simple Steps To Analyze Potential Deals & Acquire Rental Properties Like A Pro

Six Numbers To Optimize When Accelerating Wealth Creation:

• Cash Needed: The total amount of cash you will need to purchase and rehab a property. Intelligent use of leverage comes into play here.

• Rehab Costs: Expenses that you expect to pay after purchasing a property to improve its condition or perform repairs. Examples include: new paint, new appliances, new carpet, electrical repairs, landscaping and cleaning. You can choose to finance all or part of the rehab costs when analyzing properties.

• Cash Flow: The total net amount you will receive from a rental property as income. Cash flow accounts for all sources of income and all expenses, including loan payments if you are using financing (income - expenses).

• Cash On Cash Return (COC): A rate of return of a rental property based on comparing the yearly cash flow to the total invested cash. The cash on cash return represents the yearly return or yield you will receive on your invested capital (yearly net cash flow / total invested cash).

• After Repair Value (ARV): The estimated market value of a property after its rehab is complete. If no repairs are necessary, the after repair value is the same as the current market value.

• Equity Multiple: A ratio that shows the total rate of return of a rental property based on comparing the total profit from your investment to the total invested cash.
  For example, if your total invested cash is $30,000 and your total profit is $30,000 - your equity multiple is 1.0 [$30,000 (total profit) / $30,000 (invested cash) = 1.0]

Don’t Worry. You Don’t Have To Be Good At Math!

Fortunately for us, there are tools available in the marketplace that will do all the heavy lifting for us when it comes to running the numbers in real estate investing. We have access to prebuilt spreadsheets and software specifically designed to calculate the numbers—exactly the way we need to see them.

Any tool can work just fine but there is one real estate investing software in particular that I like called DealCheck.

Use the link below to sign up for the free version of DealCheck and 20% off the paid version.

https://dealcheck.io?fp_ref=rpmpartnership

Five Simple Steps:

Step 1: Determine the after repair value (ARV)
Step 2: Do a quick preliminary estimate of repairs
Step 3: Utilize your buy box to determine max allowable offer (MAO)
Step 4: Make an offer to acquire the property
Step 5: Collaborate & make unlimited acquisitions

STEP 1: Determine the After Repair Value (ARV)…

Think of the After Repair Value (ARV) as a “prediction.” It is your best guess of what a house will sell for after it has been fully fixed up and looks brand new.

As an investor, you need this number to make sure you don’t spend more on the house and repairs than the house is actually worth.

Here is a simple 4-step guide to finding the ARV:

1. Find the “Comps”

“Comps” is short for comparable sales. You want to find 3 to 5 houses that have sold recently (in the last 6 months) that are very similar to your property. Look for houses that:

• Are in the same neighborhood (within 1 mile).

• Have a similar square footage (within 10% to 20% of yours).

• Have the same number of bedrooms and bathrooms.

• Have the same number of stories (i.e. 1 or 2-story)

• Most importantly: Are already renovated and in tip-top shape.

2. Compare the Details

Line up your property next to the comps you found. If your house has a 2-car garage but the comp only has a 1-car garage, your house might be worth a little more. If the comp is on a quiet street and yours is on a loud highway, your house might be worth a little less.

3. Calculate the Average Price per Square Foot

This is a quick way to get a baseline.

1. Take the sale price of a comp and divide it by its square footage.

2. Do this for all your comps and find the average.

3. Example: If the average price in the area is $150 per square foot and your house is 1,000 square feet, your ARV might be around $150,000.

4. Set Your Final Number

Look at the sales prices of those renovated comps again. If three beautiful, fixed-up houses in the neighborhood all sold for exactly $200,000, then your ARV is likely $200,000. Don’t be too optimistic—be realistic based on what buyers have actually paid!

Pro Tip: Always look at “Sold” listings, not “Active” listings. People can ask for any price they want, but the “Sold” price tells you what the market is actually willing to pay.

STEP 2: Do a Quick Preliminary Estimate of Repairs…

Any investor would agree that having an accurate rehab budget can make or break a deal. In fact, the rehab budget has been responsible for breaking far more deals than it has made.

So take this step very seriously.

At this point, you don’t have the property under contract so it’s important that you avoid wasting needless time on the repair estimate. Consequently you will need to be quick and efficient by using a formula like the following…

Quick Repair Estimate Formula:

Light Rehab - $20/sf
Medium Rehab - $30/sf
Heavy Rehab - $40/sf
Subtract an additional $7,500 for each major repair item (Foundation, Roof, HVAC, Electrical, Plumbing, or Windows)

Example: What is the repair estimate?

ARV: $195,000
Square Footage: 1200
Asking Price: $120,000

You visit the site or review the pictures and determine a light rehab is required along with HVAC installation…

1200 x $20/sf (light rehab) = $24,000 + $7,500 (HVAC) = $31,500

Repair estimate is $31,500

This formula can be used by viewing photos of a property enabling you to be both quick and efficient.

After you have the property under contract with a reasonable inpection period, you can send your contractor out to get a concrete repair estimate to validate or invalidate your preliminary estimate. If the concrete estimate comes in higher, you can renegotiate to make the numbers work. Otherwise, walk away and live to fight another day.

STEP 3: Utilize your buy box to determine max allowable offer (MAO)

Now that you have the ARV and your preliminary repair estimate, all you need do is plug those two numbers into your MAO formula that is based on your buy box.

We’ll continue using the previous example while utilizing my buy box criteria…

ARV: $195,000
Square Footage: 1200
Asking Price: $120,000
Preliminary Repair Estimate: $31,500

ARV x 70% (<$200,000) minus Repair Estimate = MAO

$195,000 x 70% = $136,000 minus $31,500 = $105,000

Maximum Allowable Offer (MAO) = $105,000

STEP 4: Make an offer to acquire the property

You have your MAO at this point and it’s time to make the offer.

Be sure to make the offer because, oftentimes, the only way to truly uncover the seller’s motivation is with an offer - especially off market properties (not listed on a multiple listing service).

Remember…

NO Offers = NO Deals = NO Revenue!

Need I say more about the importance of making the offer?

STEP 5: Collaborate & make unlimited acquisitions

The key word here is “Collaborate.”

There is only so much you can do on your own. However, as a Real Estate Collaborator helping other investors accelerate wealth creation, there is no limit to the number of acquisitions you can orchestrate. Whether you choose to make one or twenty yearly acquistions - the process remain the same.

The ONE Number That Matters Most To Accelerate Wealth Creation

When it comes to accelerating wealth creation there is ONE number you will need to pay close attention to up front…

• Equity Multiple

This strategy in our playbook is about forced appreciation. It involves buying property at a deep discount usually because it’s in poor condition and fixing it up to increase the value. Thereby forcing the appreciation instead of depending on the market.

If you recall, my buy box requires that we purchase property at 70 to 75% of ARV. That’s because at least 10% of that 25 to 30% discount is typically due to the appreciation forced into existence from fixing it up.

Pro Tip: the focus of this particular wealth strategy is on forcing appreciation and then selling or refinancing to liquidate that equity and acquire more doors (i.e. small apartment) at which time the focus shifts to maximizing cash flow.

Are You Ready?

Let’s GO!

That’s A Wrap: Tell Us What You Want To Learn Next!

Was this useful (be brutally honest)? Have ideas on what I should publish next? Tap the poll or reply to this email. I read every response.

In Today’s Issue:

🔎INSIDER INSIGHTS: It’s Never Too Late To Win Your Freedom

🤿A DEEPER DIVE: The Real Estate Passive Income Expansion (P.I.E.) Recipe

📝THAT’S A WRAP: Tell Us What You Want To Learn Next!

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It’s Never Too Late To Win Your Freedom🏆

Did You Know?

• 45% of older adult households lack the income to cover basic living costs
  (NCOA - 2025)

• 59% of current workers plan to continue working during “retirement.” (annuity.org - 2025)

• Only 37% of U.S. adults believe retiring between ages 65 - 70 is realistic.
  (TIAA - 2025)

• 25% of retirees age 65+ rely on wages/salaries for income (Federal Reserve - 2025)

If you’re reading this and you’re under the age of 35, stay tuned and pay close attention because I wish I were in your shoes when I was your age.

For those of us over 50, falling behind on your financial goals, and you’ve begun to worry that it may be too late for you financially - you’re definitely in the right place.

Chances are you’re already investigating real estate as a possible vehicle to help you catch up but deep down something is telling you that you don’t have the time, skill or resources to pull it off.

You’re Right And You’re Wrong!

You’re right to consider real estate as a vehicle to achieve your financial goals but you’re wrong if you believe you lack the resources to get started and succeed.

I’ve said this more than once and I’ll keep screaming it from the mountain top until enough people hear it…

One of the biggest mistakes newer investors make is believing that they lack resources of some kind (i.e., money, credit, time, knowledge, etc.) to acquire income-producing assets.

The truth is, the only thing we lack, if anything, is the awareness of other people’s problems;

Someone out there has a problem that we can solve. Therein lies the opportunity for us to create the value that they want and make an offer to exchange it for what we want.

Together, we can do just that!

The Real Estate Passive Income Expansion (P.I.E.) Recipe: Roadmap To “Real” Financial Freedom

3 Phases / 6 Steps:

1. Prepare

   1. My Season of Wealth

   2. My Wealth Strategy

2. Acquire

   1. Source the Deal & Funding

   2. Negotiate for Winners

3. Expand

   1. Activate the Asset(s)

   2. Optimize & Expand

PREPARE

To win the real estate financial game, you must be prepared with the knowledge & tools necessary to play both defense (offseting risk) AND offense (achieving growth)…

For many of us, it requires a transformation in our thinking (from consumer to that of an investor).

The first step of the recipe is to understand which season of wealth we're currently in and then set our sights on the next season of wealth we’ll target (Tier 1, 2, or 3 of “Real” Financial Freedom):

STEP ONE: My Season of Wealth

What is passive Income?

Passive income is the net cash flow derived from income producing assets.

The Four Seasons of Wealth. Which season are you in?

1. Survival:
   Passive Cash Flow (PCF) < Basic Living Expenses (BLE)

   1. Example: Your basic living expenses are $4,000/mo and your passive cash flow is $500/mo (for most it is $0)

2. Stability:
   Passive Cash Flow (PCF) = Basic Living Expenses

   1. Example: Your basic living expenses are $4,000/mo and your passive cash flow is $4,000/mo

3. Success:
   Passive Cash Flow (PCF) = Basic Living Expenses + Lifestyle Expenses

   1. Example: Your basic living expenses AND your lifestyle expenses are $8,000/mo and your passive cash flow is $8,000/mo

4. Significance:
   Passive Cash Flow (PCF) = Basic Living Expenses + Lifestyle Expenses + Legacy Expenses

   1. Example: Your basic living expenses AND your lifestyle expenses AND your legacy expenses are $12,000/mo and your passive cash flow is $12,000/mo

How We Define “Real” Financial Freedom:

🏃‍♀️Survival is “The Rat Race” (winter)
⚖️Stability is TIER 1 “Real” Financial Freedom (fall)
🏆Success is TIER 2 “Real” Financial Freedom (spring)
👑Significance is TIER 3 “Real” Financial Freedom (summer)

STEP TWO: My Wealth Strategy

For our purposes, there are two types of wealth strategies:

1. Yield Play

   1. an investment that meets your desired minimum return on investment on your money (recommended if you have money that needs to be parked and put to work)

2. Value Play

   1. an investment that can be contributed to in such a way as to add value or force equity (recommended if you’re falling short of your financial goals within your preferred time frame)

ACQUIRE

The acquire phase is where most of the action takes place and where many new investors get stuck…

STEP THREE: Source The Deal(s) & Funding

Although there are many different and more advanced acquisition tactics, we like to start with either one of two basic approaches:

1. The Leap Frog Method

   1. acquire 4 single family rentals & transition to a small apartment or real estate-business combo (recommended if you have $0 - $150K in seed capital)

2. The Grand Slam Method

   1. acquire a small apartment or real estate-business combo (recommended if you have $150k+ in seed capital)

Assembling your team and attracting your funding partners:

Collaborative real estate investing involves both strategic (vendor) partners and collaborative (joint venture) partners.

Strategic partners may include your mortgage professional, escrow agent, contractor, real estate agent, etc. It now becomes necessary for you to listen, understand and become obsessed with the problems that your peers face so as to prepare yourself for step four: attracting the funding you need by offering them the value they need.

Knowing which of the key inputs you possess gives you everything you need to acquire your next rental property - at any given time. For example, if all you have is time, invest that time to attract deals or funding (collaborative partners) for other people’s projects.

The same is true in the fact that possessing only one of the key inputs (skill) is sufficient to attract all of the additional key inputs necessary to consistently acquire rental properties until your portfolio is complete.

Your mission, as a collaborative real estate investor is…

1. Bring one or more of the 5 key inputs (skill, team, funding, deal, or time) to the table and offer it to a Real Estate Collaborator to collaborate on your first or next rental property (or flip), preferably within the next 90 days - OR

2. Cultivate the skills to become a Real Estate Collaborator yourself and orchestrate the attraction of all 4 of the additional key inputs to acquire your first or next rental property.

STEP FOUR: Negotiate For Winners

Most new investors are confused by this step because they don’t understand how everyone involved can win. They often believe that someone has to lose for them to win consistently.

Negotiating for winners requires two things:

1. Obsessing over solving your strategic and collaborative partners problems

2. Creating & structuring win/win solutions for ALL parties involved every time and making sure they understand the concept of collaboration and how they fit in

Two ingredients for a successful collaborative project:

1. Two or more participants contributing separate but necessary inputs with a focus on producing one singular outcome AND

2. ALL of the necessary inputs are available to produce that one singular outcome

Knowing that everyone is winning is not only incredibly satifying but also extremely fulfilling!

EXPAND

The expand phase requires market awareness, timing, and a touch of financial engineering.

STEP FIVE: Activate The Asset

Each income producing asset must be activated by attracting collaborative partners in the form of tenants or tenant-buyer partners.

Keep in mind that tenants provide key inputs to our collaborative projects just like the rest of us and can easily be allowed to win as well. We all have the same objective: achieve “real” financial freedom in six years or less. We simply use different tactics and have different starting points.

STEP SIX: Optimize & Expand

This step involves staying abreast of market conditions and knowing when to refinance or strategically sell your income producing asset(s) to optimize and/or expand your passive income.

A few things to consider when the time comes:

1. Tax advantages (i.e. 1031 tax deffered exchange)

2. Where we are in the market cycle and other business metrics (i.e. interest rates, inflation, etc.) &

3. Collaboration opportunities & strategies

Stay tuned for more details in upcoming free live streams and workshops.

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🔎INSIDER INSIGHTS: A New Breed of Real Estate Investor

🤿A DEEPER DIVE: The Four Essential Leadership Skills Of A Real Estate Collaborator

📝THAT’S A WRAP: Help Us Help You!

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The Real Estate Collaborator: A New Breed Of Real Estate Investor!

There’s A New Real Estate Sheriff In Town (With A New Strategy)

The traditional real estate investment model is broken and, for most of us, obselete. It’s not just a matter of the failure rate being too high - that’s always been the case.

The real problem is not in the tactics, it’s in the strategy. The existing strategy is about competition. Eat what you kill and only the strong survives.

The new strategy is about collaborating to help everyone win (literally). It’s called collaborative real estate investing. We named it the Rental Property Mastery (RPM) Partnership System: a methodology designed to be lead and operated by a Real Estate Collaborator.

What Is A Real Estate Collaborator?

A Real Estate Collaborator is a real estate business consultant that specializes in helping real estate investors collaborate to monetize their real estate experience effectively.

He/She is skilled at organizing key inputs to create opportunities for real estate investors to collaborate and accelerate wealth creation—with less risk.

The 5 Key Inputs Of A Successfull Collaborative Real Esate Project:

1. Skill

2. Team

3. Funding

4. Deal

5. Time

Picture yourself as a symphony conductor. You role is to make sure two things happen consistently

1. Everyone plays a particular instrument very well (input) &

2. ALL of the musicians (with their instruments) are available for every performance

It Took Me 35 Years To Make The Decision To Become A Coach

After 30 years and more than 500 real estate projects, I was still determined to stay out of the coaching business.

I didn’t really understand why. All I knew was that it just didn’t feel like the right thing to do. But when the time came and it did feel right, I needed to understand why.

Deep Down I Knew

Underneath all the camouflage I created to conceal the truth, I knew that I hadn’t developed the system enough yet to help others benefit from it, as a real estate collaborator, at a high level.

It was obvious that I was good at collaborative real estate investing myself, but I had proteges who had worked with me for years that could not yet duplicate my results.

That was my fault, not theirs!

Even if I never officially coached students, I still wanted to help other people succeed in real estate. So I spent 5 years developing the system and skills to help others execute collaborative projects.

The result is the Rental Property Mastery (RPM) Partnership System:

The RPM Partnership System is a collaborative real estate investing methodology that facilitates collaboration between multiple participants working together to accelerate wealth creation via the acquisition of income producing assets.

In simpler terms, we help real estate investors collaborate to buy, sell, and rent real estate together with less risk.

Case Study:

In this example, the Real Estate Collaborator creates and expands a real estate portfolio to achieve “real” financial freedom for themselves AND the RPM Landlord Partner - in six years.

Stay tuned for more details in upcoming live streams and free workshops.

The Four Essential Leadership Skills Of A Real Estate Collaborator

1. Strategic Listener (the observer)

2. Investor (the hunter / grower)

3. Visionary (the creator)

4. Seller-Buyer (the communicator)

Strategic Listener (the observer)

This is arguably the most difficult skill to develop because it requires you to remove all ulterior motives and become obessessed with solving your audience’s problem(s).

Setting aside the various challenges in life to focus on others can seem impossible at times to say the least.

Everything we do, we do it for one reason and one reason only…

To make us feel better.

Training to adopt the universal principle of service (serving to be served) is the key to mastering this skill.

The sooner you embrace this truth, the sooner you can align yourself with it and use it to your advantage.

We utilize a concept called conversation marketing in the application of this skill. Everyone has a story. Our goal is to listen to those stories with the intent of connecting and ultimately discovering opportunities to add value.

Investor (the hunter & grower)

Many of us consider ourselves consumers in the capitalisitic economy of the United States. Therein lies the problem…

Nothing is free!

Everything requires an investment of at least one of the 9 types of investment capital:

• Farmers invest time, energy, & money to produce the harvest

• The work force invests time, energy, & money to generate revenue

• Spouses invest time & energy to gain a loving relationship

The only way to grow (consistently) is to always be on the hunt for an opportunity to make the next profitable investment.

Just make sure that your expected return on investment is of greater value to you than your investment.

Visionary (the creator)

When we connect with our audiences and they feel compfortable enough to share their stories with us, we are blessed with opportunities to observe and uncover problems that we can solve.

When a problem is revealed that fits our solution, we must be ready to deliver.

Developing your skill to organize key inputs and create real estate investment opportunites (value) to solve the problems of your audience is crucial to your success as a real estate collaborator.

Seller-Buyer (the communicator)

Unfortunately, many people don’t like selling.

Is it because selling is a bad thing?

What is selling?

Here is the best definition that I have come accross so far...

When you put it like that, it becomes clear that selling is a good thing.

As a matter of fact, it’s something we all do on a regular basis and should aspire to get better at. Buying and selling is the only way to grow: by receiving value from & adding value to other people.

How Can I Be Both Seller AND Buyer At The Same Time?

I think we can all agree that nothing is free and everything requires an investment of some form.

As investors, it’s imperative that we keep this concept top of mind and stay on the hunt so that we keep growing.

But if everything requires an investment and we’re to expect a return of greater value in exchange for that investment, then both sides have something of value to offer which means both sides have to communicate the value of that offer either verbally or nonverbally.

The seller must communicate the value that they have to sell AND the buyer must communicate the value that they have to sell.

Example:

• I saw a gas station with a sign offering to sell gas.

• The sign communicated the price (the seller’s offer).

• I decided that the gas was more important to me than the cash (my offer) they were asking for.

• I stopped, paid the cash, and pumped the gas.

Although the communication of value in this example was nonverbal on my part, an investment was made by both sides and a sale was made by both sides.

I was selling cash and the owner of the gas station was selling gas. I was buying gas and the gas station owner was buying cash (I was only willing to sell my cash to someone who was willing to sell me some gas and wanted to buy my cash).

We were both seller and buyer at the same time because we both had something of value to offer. What we wanted to buy was more important to each of us, at that time, than what we wanted to sell.

This perspective empowers us to remove the sleeziness from selling altogether because the only way we can grow is to help each other make profitable investments by communicating value (selling) to help us make decisions we already have a desire to make (buying) - simultaneously. In other words, you can’t sell (invest) anything of value without making a decision on the thing of greater value you have a desire to buy (return on investment) in exchange and vice versa.

KEY TAKEAWAYS:

• All value needs to be communicated verbally or nonverbally (selling).

• As a seller, your job is to make sure that what you are selling is something your buyer already desires and is more valuable to them than what you are asking for (what they are selling).

• As a buyer, your job is to make sure that what you are buying is more valuable to you than what they are asking for (what you are selling).

We are all experienced investors AND seller-buyers. We simply need to train ourselves to get better at it!

This gives us a head start with developing the four essential leadership skills of a real estate collaborator.

We can use these skills to attract all the funding and deal flow necessary to achieve “real” financial freedom in a significantly collapsed timeframe.

The cool part is that the best way to get there is to help others get there alongside us.

Are you ready?

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🔎INSIDER INSIGHTS: Why Most Real Estate Investors Fail & How To Make Sure You Don’t!

🤿A DEEPER DIVE: DOUBLE The ROI On Your Rental Property With “The Right Tenant!”

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Why Most Real Estate Investors Fail & How To Make Sure You Don’t!

Statistically speaking, 80% of small businesses fail within the first two to ten years. Real estate is no different.

One Major Reason Real Estate Investors Fail

• One or more of the parties involved is setup to lose!

Considering our history with real estate in the United States (we started out by forcibly taking land from each other), it’s no wonder that most people think that real estate investing is a zero sum game. We’ve been conditioned to believe that in order for anyone to win, someone else has to lose.

There are three things we need to understand about real estate investing:

1. Real estate investing is a business

2. Real estate investing is a team sport &

3. Real estate investing is a wealth game

However, up to this point, no one has ever considered that it may be beneficial to invite the tenant into the wealth game.

There Is A Flaw In The Traditional Single-Family Buy & Hold Investment Model

Sometimes the numbers say that the best economic strategy for the landlord is to do only what is necessary to repair a rental property just enough to make it functional.

For the landlord, it’s tends to be more about the numbers.

On the other hand, some tenants feel unincentivized to take care of the landlord’s property as if it were their own.

For the tenant, it tends to be more about the quality of living.

It’s not difficult to see how needs can go unmet or how resentment can manifest itself within this set of dynamics.

Mindset: Abundance vs. Scarcity

What if we could level the playing field and significantly exceed everyone’s conditioned expectations?

The real question is…

Do you believe there is enough wealth for everyone?

If the answer is yes, let’s explore the concept of collaborative real estate investing, the Rental Property Mastery (RPM) Partnership System.

DOUBLE The ROI On Your Rental Property With “The Right Tenant!”

Finding “the right tenant” to double your ROI requires a transformation into a new type of real estate investor:

• An investor with the ability to innovate with new investment models that create win / win real estate deals — NOT the win / lose real estate deals associated with the traditional investment model

• An investor with the ability to create opportunities for other investors to accelerate wealth creation with less risk

• An investor with a strong desire to help others access the abundance available to us all

A New Breed of Real Investor: The Real Estate Collaborator

A Real Estate Collaborator is a real estate investment consultant that specializes in helping real estate investors collaborate to monetize their real estate experience effectively.

Five Key Inputs For a Successful Collaborative Project

1. Skill

2. Team

3. Funding (cash, lines of credit, & mortgages)

4. Deal

5. Time

Four Leadership Skills Of A Real Estate Collaborator

1. Strategic Listener (the observer)

2. Investor (the hunter)

3. Visionary (the creator)

4. Seller-Buyer (the communicator)

As a real estate collaborator, you will develop & use these skills to operate a system, lead a team, and structure real estate deals with optimal risk and maximum profit potential for all parties involved.

Who Is “The Right Tenant?”

Once invited into the wealth game, the tenant is no longer a traditional tenant. They are guided and transformed into what we refer to in the RPM Partnership System as a Tenant-Buyer Partner (occupant investor).

The Tenant -Buyer Partner has the same objective as we do: achieve “real” financial freedom in 6 years or less. They simply have a different starting point and will be utilizing different tactics.

The Most Important Qualifier:

Traditional landlords and property managers tend to qualify tenants with credit scores, credit reports, minimum gross monthly income (3 to 3.5 times rent), and rental history.

All of these things are important but, as RPM Partners, we believe the most important qualifier is…

• Minimum Net Monthly Cash Flow

If a tenant has positive net monthly cash flow, they are more likely to be able to afford the rent AND collaborate with you to create wealth.

As a collaborative partner in the project, the Tenant-Buyer Partner has three responsibilities:

1. Service the debt

2. Preserve and/or improve the condition of the asset

3. Provide passive income for the RPM Landlord Partner

In exchange, the Tenant-Buyer Partner is allowed to share in the cash and/or equity of the project to help execute their own plan to create wealth as well.

How can you validate the net monthly cash flow?

You validate the Tenant-Buyer Partner’s net monthly cash flow by analyzing at least 3 months of their most recent bank statements (more guidance in upcoming issues & workshops).

Two Key Metrics To Focus On To Accelerate Wealth Creation

1. Cash on Cash ROI: A rate of return of a rental property based on comparing the yearly cash flow to the total invested cash. (i.e. if my net annual cash flow is $1,500 and my initial investment is $30,000, my cash on cash return is 5%: 1500/30,000 = 5%).

2. Equity Multiple: A ratio that shows the total rate of return of a rental property based on comparing the total net equity from your investment to the total invested cash. (i.e. If I invest $20,000 and the my total net equity over and above my invested cash is $20,000, my equity multiple is 1.0)

As discussed in provious issues, when executing the leap frog method, our initial focus is creating forced equity in the acquisition of four single family homes and then selling those assets to access the capital (taxe deferred) to redeploy into a small apartment - at which time we shift our focus to cash flow.

The collaborative nature of the RPM Partnership System provides adequate flexibility to navigate and accomodate the precise timelines and nuances associated with this particular strategy.

Single Family Case Study:

• The RPM Landlord receives $20,000 on top of their $30,000 (66%) in equity on day one to be applied to the acquisition of a small apartment when the time comes.

• The Real Estate Collaborator receives $20,000 in equity to be applied to the acquisition of a small apartment when the time comes.

• The RPM Tenant-Buyer Partner will receive $10,000 to put toward their first acquistion when the time comes.

This project is structured in such a way that each participant can make progress toward the same collective goal; achieve “real” financial freedom in six years or less (including the tenant).

Are you Ready?

Let’s GO!

Stay tuned for more details in upcoming live streams and free workshops!

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🔎INSIDER INSIGHTS: Change Your Approach To Home Ownership To Accelerate Wealth Creation While You Rent!

🤿DEEPER DIVE: Why Collaborative Real Estate Investing Is The Safest & Fastest Way To Accomplish Your Financial Goals (Tenants Included)!

📝THAT’S A WRAP: Help Us Help You!

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Change Your Approach To Home Ownership To Accelerate Wealth Creation While You Rent!

More than ever before, affordability is becoming a major issue in the housing markets across America.

Buying a home for less than $250,000 is fast becoming a thing of the past. Nevertheless, there are usually only two things that really matter to most first time home buyers:

1. My Total Move-In Cost &

2. My Monthly Payment

This mindset and approach to home ownership has led a significant portion of first-time homeowners to financial ruin in terms of wealth accumulation. Consequently, many never have the opportunity to purchase a home, and when they do, their wealth-building prospects are severely restricted.

So what can we do about it? I’m afraid education just isn’t going to cut it.

What we (you) need is a new approach, a new strategy, and a new breed of support!

A Strategy To Create Wealth While You Rent

Three things need to change to win in the real estate financial game (start by getting off the sidelines):

1. A change in identity & mindset

2. A change in approach & strategy

3. A change of plan & support

A New Identity & Mindset

From this point forward - you are no longer a consumer. You are an investor and therefore you must think like one if you want to succeed in the real estate financial game!

Your new identity is a Tenant-Buyer Partner!

As a collaborative partner in the home that you rent, you too will be an investor with the goal of creating wealth. Start with with the home you rent (more in the next section).

A New Approach & Strategy

When you approach home ownership from the prospective of an investor, you’ll begin to understand that your investment and your offer of value will command a return on that investment in the form of wealth.

What you have to offer:

1. Cash flow (debt service and passive income to the landlord partner)

2. Property preservation or improvement

With the right support & the right structure of your offer, you can easily attract & partner with other investors to create wealth for all parties involved (including you as the tenant)!

A New Plan & Support

We recommend, for now, that you follow the same basic method that our new Rental Property Mastery (RPM) Partners follow to accelerate wealth creation:

• The RPM Leap Frog Method

  • Collaborate to acquire 4 single family rentals & transition to a small apartment or real estate-business combo

  • Our collective and individual objective is to achieve “real’ financial freedom in 6 years or less - regardless of your starting point (yes, that includes the tenant).

The Rental Property Mastery (RPM) Partnership can provide the “right” support to help you get there…

Collaborative Real Estate Investing Is The Safest & Fastest Way To Accomplish Your Financial Goals (Tenants Included)!

The Rental Property Mastery (RPM) Partnership System is a collaborative real estate investing methodology that facilitates collaboration between multiple participants working together to accelerate wealth creation via the acquisition of income producing assets

Simply put - we buy, fix, sell, & rent properties together to reduce the risk and make bigger returns!

Picture the following scenario in your mind…

IMPORTANT NOTE: Your primary goal should be to learn, hands-on/in real-time, and develop your skill as a real estate collaborator to accelerate wealth creation by creating opportunities for other real estate investors. (see RPM Glossary for definitions)

Your blueprint includes collaborating with other real estate investors to start creating wealth with the home you rent or the home you purchase.

The Awakened Investor

As an awakened investor (former consumer), you no longer sell yourself short by only selling your cash flow to utility companies, streaming services, car dealers, etc. - to the point you’re unable to create any wealth…

You’ve already taken the first step by subscribing to the Rental Property Mastery newsletter…

Now what?

1. You dig in & get help to create a strategy & plan

2. You and/or your team find a house for you to lease with the option to buy that is equal to or a step up from where you are currently renting.

3. The deal is structured so you can get paid at the end of your lease term (i.e. $10,000) to pay your down payment or closing costs and prepaid items (insurance, taxes, etc). By the way, it may have taken you years to save the total amount on your own (or perhaps never).

4. This is the first of the four properties you intend to acquire as you execute the RPM Leap Frog Method.

5. Sixty days later you’re already in position to collaborate and acquire your second property.

The bottom line is that your wealth creation started while you were renting. As a matter of fact, without the RPM Partnership System, many of us have no significant way to create wealth at all!

Can you relate?

Let’s GO!

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In Today’s Issue:

🔎INSIDER INSIGHTS: I Thought I Wasn’t Ready To Acquire Rental Property (I Was Dead Wrong!)

🤿DEEP DIVE: Five Key Inputs For A Successful Collaborative Real Estate Project & Why You Only Need ONE!

📝THAT’S A WRAP: Help Us Help You!

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I Thought I Wasn’t Ready - But I Was WRONG!

As a real estate instructor and coach, I had always advised eveyone to acquire income producing assets - at the right time!

There is a problem with that advice:

For most people, the right time never seems to come (self included). I spent decades waiting for the right time. Until the point I started feeling that it may be too late. It took half a century and a financial meltdown for me to finally see the flaw in my thinking.

I’m here now to make sure it doesn’t take you as long as it took me!

What’s Preventing You From Acquiring Your First or Next Rental Property in the Next 90 Days?

When I ask people this question, I usually get at least one of five answers?

• I don’t have enough money

• I don’t know how

• It’s too risky for me

• I don’t have the time to deal with it

• I can’t find any deals

Let’s cut to the chase. NONE OF THEM ARE TRUE!❌

Many of us think we lack some type of resource (money, time, knowledge, support, etc.). The truth is the only thing we lack, if anything, is resourcefulness!

Let’s take a closer look...

The Five Key Inputs Of A Successful Collaborative Real Estate Project & Why You Only Need ONE!

1. Skill (4 leadership skills to systematically execute a project plan)

2. Team (real estate agent, mortgage professional, contractor, escrow officer, etc.)

3. Funding (cash, line of credit, mortgage companies, private lenders, etc.)

4. Deal (real estate projects that meet a specific investment criteria)

5. Time (all collaborators contribute this to some degree)

Here is an overview of how I orchestrated a recent collaborative real esate project utilizing a method I developed called the Rental Property Mastery (RPM) Partnership System:

I personally brought the necessary skill to the project. I had also assembled a very competent team which consisted of contractors, title companies, mortgage professionals, real estate agents, insurance agents, and CPAs. They’re all not only great at what they do, but they understand the collaborative nature of our system. In fact, some of them are collaborative partners (RPM Partners) themselves.

The thing to keep in mind is that we ALL have the same objective even though we may have different starting points.

We also had a Landlord Partner and a Tenant-Buyer Partner participating with us in the project to provide the funding.

The Landlord Partner brought the cash for the down payment & closing costs and the Tenant-Buyer Partner provided the cash flow to service the debt during the holding period.

We all knew exactly what we were bringing to the table and exactly what to expect in return for our investment of at least one of the five key inputs.

Here is a case study of how it worked out:

IMPORTANT NOTE: In case you hadn’t noticed, even the tenant in this case study is creating wealth. We may have different starting points but we ALL have the same individual objective by design: to achieve “real” financial freedom in 6 years or less.

Two Key Takeaways:

1. Your ultimate goal is to develop your skill and become a Real Estate Collaborator because it’s the most valuable & scalable role of the entire system!

2. You only need ONE of the five key inputs (i.e. time) to acquire your next rental property! All four of the remaining key inputs can be leveraged with the right offer to the right collaborative partners.

—Be sure to attend upcoming free live streams & workshops to learn exactly how to leverage every resource you need.

Are you ready?

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The best selling book of all time tells us that we should create enough wealth for our children and our children’s children…

A good man leaveth an inheritance to his children’s children: And the wealth of the sinner is laid up for the just. Proverbs 13:22 KJV

Consequently, as head of households, we owe it to our families to commit to making generational wealth a part of our legacy.

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The Perfect Family Blueprint

Contrary to popular belief, the best way to create generational wealth with real estate is to collaborate with family and/or friends.

There are 3 irrefutable benefits to this acquisition methodology:

1. Less risk: together we’re afforded the opportunity to spread the risk amongst each other so each individual has more staying power

2. More capacity: together we can tackle much bigger projects than we could individually

3. More volume: together we can acquire a larger volume of properties than we could ever imagine to on our own

The Rental Property Mastery (RPM) Partnership System is the ultimate collaborative real estate investing method to create the generational wealth your family deserves.

First, let us agree upon what generational wealth will look like when we succeed…

The Four Seasons of Wealth:

1. Survival:
   Basic Living Expenses (BLE) > Passive Cash Flow (PCF)

   1. Example: Your basic living expenses are $4,000/mo and your passive cash flow is $500/mo (for most it is $0)

2. Stability:
   Basic Living Expenses = Passive Cash Flow

   1. Example: Your basic living expenses are $4,000/mo and your passive cash flow is $4,000/mo

3. Success:
   Basic Living Expenses + Lifestyle Expenses = Passive Cash Flow

   1. Example: Your basic living expenses AND your lifestyle expenses are $8,000/mo and your passive cash flow is $8,000/mo

4. Significance:
   Basic Living Expenses + Lifestyle Expenses + Legacy Expenses = Passive Cash Flow

   1. Example: Your basic living expenses AND your lifestyle expenses AND your legacy expenses are $12,000/mo and your passive cash flow is $12,000/mo

🏃‍♀️Survival is “The Rat Race” (winter)
⚖️Stability is TIER 1 “Real” Financial Freedom (fall)
🏆Success is TIER 2 “Real” Financial Freedom (spring)
👑Significance is TIER 3 “Real” Financial Freedom (summer)

For Our Purposes, Generational Wealth Starts with Tier 1 “Real” Financial Freedom!

Imagine leaving your children, out the gate, with income producing assets that produce enough passive income to pay ALL of their basic living expenses AND you taught them how to expand on it.

That’s the power of collaborative real estate investing!

Family Case Study:

Tommy is married with four children ages fifteen, twenty one, thirty three, and thirty five. Health issues ruined Tommy and his families finances forcing them to rebuild. Tommy had his health returned to him but was left with very little savings, a small retirement account, and a mountain of debt.

As time passed Tommy began to think, at this later stage in his life, it was too late get back on track financially. Guilt and shame were the norm for Tommy until he stumbled upon the RPM Partnership System.

He partnered with a real estate collaborator to execute his plan to achieve tier 1 “real” financial freedom in 5 years. Along the way he planned to become a full time real estate collaborator himself and expand to tier 2 and beyond.

Step One: Positioning

1. Tommy liquidated his retirement account (at age 59) to utilize the $85,000 for seed capital to acquire income producing real estate assets. Fortunately, there were no early distribution penalties but Tommy was prepared to pay the penalties even if there were.

2. Tommy built his business credit in order to gain access to $100,000 of seed capital with the intent to increase it annually.

Step Two: Implementation

1. Tommy is using the Leap Frog Method to acquire 4 single family homes over the next 12 months and, at the proper time, refinance or sell and transition to small apartment buildings.

2. Tommy’s middle son plans to live in one of the single family homes as a tenant-buyer partner to initiate his plan to achieve tier 1 “real financial freedom as well. Tommy is teaching all of his children how to develop and execute their own plan.

Step Three: Live Well & Pass On The Inheritance

1. When the time comes Tommy intends to pass a tier 1 inheritance to each of his children but most importantly he plans to teach them to expand on it and teach their children as well

2. Confidence and pride are the new norm for Tommy

NO Excuses…

No matter what your starting point is, what you have or don’t have, together we all can answer the call of Proverbs 13:22 and create generational wealth.

All it takes is one decision that you must be prepared to make over and over again!

Are you ready?

Let’s GO!

It’s Never Too Late To WIN!

P.S. Was this useful (be brutally honest)? Have ideas on what I should publish next? Tap the poll or reply to this email. I read every response.

Don’t Fall Into The Scarcity Trap

One of the biggest mistakes we make as investors is believing that we lack resources (i.e., money, credit, time, etc.) to acquire income-producing assets.

The truth is, the only thing we lack, if anything, is the awareness of other people’s problems;

If someone has a problem that we can solve, therein lies the opportunity for us to create the value that they want and exchange it for what we want.

Now is as good a time as any to introduce you to the concept of Collaborative Real Estate Investing!

We’ll start by answering the question, “What is Collaboration & what it’s not!

“All collaborations are partnerships, but not all partnerships are collaborations.”

A successful collaboration needs two things:

1. Two or more participants contributing separate but necessary inputs with a focus on producing one singular outcome AND

2. All of the necessary inputs to produce that one singular outcome

Be Sure To Close The Support Gap

Gaining clarity about which type of support is necessary to help you reach your next success level is essential:

Four Types of Support:

1. Education (seek to increase your knowledge)

2. Training (seek to improve your skills)

3. Coaching (seek to improve your mindset)

4. Mentoring (seek to improve your results)

Education is about gaining knowledge to achieve the outcome you desire. Training is about developing your skill in pursuit of your desired outcome, coaching is about improving how you think while pursuing your desired outcome, and mentoring is about improving your results from pursuing your desired outcome.

Pro Tip:

Knowing the difference helps you to ensure that you not only get the right support but you’re able to recognize quality support when you experience it.

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PDAC: Four Steps To Your First Rental Property Acquistion

PDAC is the formula all collaborative real estate investors should engage to progressively increase our capacity and our ability to solve problems for other collaborative real estate investors to accelerate & consistently create wealth.

1. Position

2. Develop

3. Assemble & Attract

4. Close

Step 1: Position🥇

Position yourself for massive growth by creating a cash flow & credit profile optimization plan

Stabilize, protect & grow your cash flow in 3 steps:

1. Complete a simple cash flow statement to determine your net monthly cash flow and freedom number. Click here to get a free cash flow statement spreadsheet

   1. Be sure to save a copy to your computer when you open the google spreadsheet

2. Determine the amount of passive cash flow required to cover your living expenses
   (i.e. your tier-1 freedom number).

3. Build business credit of $50K - $200K (in 180 days or less) to…

   1. optimize your personal credit profile, if necessary and/or

   2. add to or gain access to seed money for real estate acquisitions

      1. Click here to watch a 3 minute video to see how it works.

Step 2: Develop🧑🏻‍💻

Develop your collaborative real estate acquisition plan in 2 steps

1. Choose a strategy

   1. Yield Play: an investment that meets your desired minimum return on investment on your money (recommended if you have money that needs to be parked and put to work), or

   2. Value Add Play: an investment that can be contributed to in such a way as to add value or force equity (recommended if you’re falling short of your financial goals within your preferred time frame)

2. Choose a plan

   1. Leap Frog Method

      1. acquire 4 single family rentals & transition to small apartment or real estate-business combo (recommended if you have $0 - $150K in seed capital)

   2. Grand Slam Method

      1. acquire a small apartment or real estate-business combo (recommended if you have $150k+ in seed capital)

Step 3: Assemble & Attract🧲

Assemble your team of strategic partners

Collaborative real estate investing involves both strategic (vendor) partners and collaborative (joint venture) partners.

Strategic partners may include your mortgage professional, escrow agent, contractor, real estate agent, etc. It now becomes necessary for you to listen, understand and become obsessed with the problems that your peers face so as to prepare yourself for step four: attracting the resources you need by offering them the value they need.

Attract the funding (collaborative partners)

Knowing which of the key inputs you possess gives you everything you need to acquire your next rental property - at any given time. For example, if all you have is time, invest that time to attract deals or funding (collaborative partners) for other people’s projects.

The same is true in the fact that possessing only one of the key inputs (skill) is sufficient to attract all of the additional key inputs necessary to consistently acquire rental properties until your portfolio is complete.

Your mission, as a collaborative real estate investor is…

1. Bring one or more of the 5 key inputs (skill, team, funding, deal, or time) to the table and offer it to a Real Estate Collaborator to collaborate on your first or next rental property (or flip), preferably within the next 90 days - OR

2. Cultivate the skills to become a Real Estate Collaborator yourself and orchestrate the attraction of all 4 of the additional key inputs to acquire your first or next rental property.

Step 4: Close🚀

Close & fund your deal to execute your exit strategy

At this point you’re staying in your lane and allowing your team to do what they do until it’s time for you to do what you do.

Repeat, repeat, & repeat until you reach your goal.

Pro Tip:

This can only be done (effectively) by collaborating to help other investors reach their goals!

Key Takeaway:

Together, there is no deal we can’t do. With the right system, the right partner(s), and the right offer - our businesses can’t fail!

Let’s GO!

The journey started for me about a month before my 56th birthday…

I was standing in front of a house I was rehabbing to flip one evening in freezing weather (about 30°). There were two really big and ugly concrete statues in the front and on the side of the house that I had the hardest time finding someone to remove.

I live in Texas (where snow is rare) and this particular real estate project had begun to go south so I had to high-tail it to Michigan to save the day because our project manager had left us hanging in the cold (literally). Needless to say, this was the nightmare nobody wants to experience.

I was able to accomplish the mission but something deeper was wrong and I couldn’t pinpoint it at that time.

I Was At A Crossroad🛣️And Didn’t Know It!

While standing there, I was suddenly overwhelmed with a feeling of guilt & shame.

At first, I thought it was because I should have done better with this project since I have over 30 years of experience as a real estate investor and more than 500 real estate projects under my belt.

But after further reflection, I realized that that wasn’t the reason I was feeling this way.

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Wow! All This Time I’ve Been Playing The Wrong Game!🎯

Turns out, I was feeling guilty about being over 50 and I hadn’t achieved financial freedom for my family as planned. In fact, I was a bit hazy about what financial freedom even looked like to me.

In my own defense, I’m a cancer survivor who lost everything and this is basically a do over for me. But I had a 5 year plan that wasn’t working and it was clearly my fault.

I can’t ignore the good news which is that, after 2 surgeries, I was blessed with a second chance to live and spared the anguish of telling my 4 children that I was leaving them - for good.

Let’s Not Forget The Shame:

I felt shame because for years I had been teaching my followers to play both chess (the long-wealth game):

• Buy & hold properties

• fix & hold properties

AND checkers (the short-cash game)

• fix & flip properties

• wholesaling properties

My intention was to play both games but for some blasted reason I never got around to the long game - I was stuck in the short game (rat race) and no matter how much money I made, I continued to find myself in the hole and the hole was only getting deeper!

I couldn’t shake the thought that, at my age, it may be too late! I kept asking myself, “How could I allow this to happen to me?”

Long story short, I needed to recalibrate my plan - like now!

One Small Adjustment🔧 To My Plan Changed Everything Forever!

The 23 hour drive back home to Texas gave me plenty of time to think things through. It was obvious that I didn’t need a new plan, I only needed to refocus on my original plan: Play on the long-game primarily and the short-game as a secondary tactic.

As an instructor & coach, I knew better. But somehow I allowed my circumstances to block my capacity to do better.

I honestly believe that my previous health and ultimate financial issues left me in a stupor that I never recovered from - UNTIL THAT ONE COLD DAY!

The Emergence of the 3-Phase Real Estate P.I.E. Recipe

On the way home, I began to develop and expand on a collaborative real estate investing methodolgy that I had been using for years. However (duhh), I was using it the wrong way. Now that I was seeing straight, everything started to fall into place.

I call it the “Real Estate Passive Income Expansion (P.I.E.) Recipe.” It’s comprised of 3 Phases & 6 Steps:

1. PREPARE:

   1. My Season of Wealth

   2. My Wealth Strategy

2. ACQUIRE:

   1. Source the Deal & Funding

   2. Negotiate for Winners

3. EXPAND:

   1. Activate the Assets

   2. Optimize & Expand

The Ultimate System:

The Real Estate P.I.E. Recipe is the core framework of the Rental Property Mastery (RPM) Partnerhip System.

What is the RPM Partnership System?

The RPM Partnership System is a collaborative real estate investing methodology that facilitates collaboration between multiple participants working together to reduce risk and accelerate wealth creation via the acquisition of income producing assets.

Simply put, we buy properties together.

Consequently, we can buy more volume, bigger projects, with less risk than we could ever imagine to on our own!

A successful RPM Partnerhip System project requires five key inputs:

1. Skill

2. Team

3. Funding

4. Deal(s)

5. Time

The are Six Real Estate Investor Types

1. Real Estate Collaborators (sell opportunities to create wealth faster with less risk)

2. RPM Acquisitions Partners (sell cash)

3. RPM Disposition Partners (sell purchase agreements)

4. RPM Flipper Partners (sell properties)

5. RPM Asset Managers (Passive RPM Collaborators)

   1. RPM Landlord Partners (sell opportunities to rent properties & create wealth)

   2. RPM Tenant-Buyer Partners (sell cash flow)

      1. Yes, tenants can create wealth too!

I am a Real Estate Collaborator!

As a Real Estate Collaborator, I bring the skill and the team to the project while other collaborators (RPM Partners) bring the deal(s) and funding to the table. We all contribute our time.

Important Note: You only need to bring ONE input to the project (that can be time) and leverage the other inputs. You can also bring multiple or all inputs to the project.

Individually, we ALL use the same recipe and we ALL have the same objective which is to achieve “real” financial freedom!

Your task is to develop your skill to become a Real Estate Collaborator AND/OR partcipate as a passive collaborator (RPM Partner) with a Real Estate Collaborator.

Our collective mission is to help each other achieve “real” financial freedom in 6 years or less - regardless of our individual starting point.

Let’s Get Some Clarity:

If you recall, until after that one cold day, I was unclear about what financial freedom even looked like for me. If you ask ten people what financial freedom is to them, you may get ten different answers and the answers will probably be very vague and sometimes down right allusive.

So let’s define “Real” Financial Freedom, for our purposes, right now:

The Four Seasons of Wealth:

1. Survival:
   Basic Living Expenses (BLE) > Passive Cash Flow (PCF)

   1. Example: Your basic living expenses are $4,000/mo and your passive cash flow is $500/mo (for most it is $0)

2. Stability:
   Basic Living Expenses = Passive Cash Flow

   1. Example: Your basic living expenses are $4,000/mo and your passive cash flow is $4,000/mo

3. Success:
   Basic Living Expenses + Lifestyle Expenses = Passive Cash Flow

   1. Example: Your basic living expenses AND your lifestyle expenses are $8,000/mo and your passive cash flow is $8,000/mo

4. Significance:
   Basic Living Expenses + Lifestyle Expenses + Legacy Expenses = Passive Cash Flow

   1. Example: Your basic living expenses AND your lifestyle expenses AND your legacy expenses are $12,000/mo and your passive cash flow is $12,000/mo

🏃‍♀️Survival is “The Rat Race” (winter)
⚖️Stability is TIER 1 “Real” Financial Freedom (fall)
🏆Success is TIER 2 “Real” Financial Freedom (spring)
👑Significance is TIER 3 “Real” Financial Freedom (summer)

Are we clear on what “real” financial freedom is now?

Great!

Back To The Point:

To stay on point, I’ll focus on step 1(a) & 1(b) of The Real Estate P.I.E. Recipe:
My Wealth Season & Strategy (we’ll cover everything else in detail in other articles).

Obvioulsy my season of wealth was “survival” (funny how most people have no idea about this situation and how detrimental it is the their future). Therefore, my target wealth season was “stability” which is Tier 1 “Real” Financial Freedom.

For our purposes, there are two types of wealth strategies:

1. Yield Play

   1. an investment that meets your desired minimum return on investment on your money (recommended if you have money that needs to be parked and put to work)

2. Value Play

   1. an investment that can be contributed to in such a way as to add value or force equity (recommended if you’re falling short of your financial goals within your preferred time frame)

Since I started at zero (subzero to be more accurate), my wealth strategy had to be a value play (I really needed to accelerate my wealth creation).

Now for the plan:

There are numerous ways to structure a deal. However, we need to keep things simple.

For our purposes, we focus on one or both of two plans:

1. The Leap Frog Method

   1. acquire 4 single family rentals & transition to a small apartment or real estate-business combo (recommended if you have $0 - $150K in seed capital)

2. The Grand Slam Method

   1. acquire a small apartment or real estate-business combo (recommended if you have $150k+ in seed capital)

I actually had RPM Partners to implement both plans but for now we’ll focus on the leap frog method.

I’ll break this down more in future articles (feel free to post your questions in the comments) but I do want to point out one thing:

The plan is to acquire the 4 single family homes to create equity to ultimately be used in the acquistion of a small apartment to create cash flow.

The Secret Sauce (Shhh - don’t tell anyone🤫):

As a Real Estate Collaborator, I put these deals together to help the RPM Partners achieve “real” Financial Freedom…

BUT…

The Real Estate Collaborator (Me or You) retains up to 50% of the equity and cash flow in the project as well. Which means that the Real Estate Collaborator (Me or You) is achieving “real” financial freedom at the same time as the RPM Partner(s) in these projects).

Wait for it…

The Real Estate Collaborator brings the most valuable inputs to the table (skill and team). The fact that they don’t have to bring the funding to the table makes this a highly scalable system (more on this later)!

The Bottom Line:

Stay tuned and develop your skill to do this yourself…

None of us has a legitimate excuse now…

Let’s GO!