So once you're a syndication investor or the question what do you do at the end game? Where does this all mean to you? Yeah so my example is if you have single family homes, you have the, the home costs and all this, but then you get a rental and you find out what your cash flow is.

And theoretically that's what she can live off of is a cashflow, but syndications is a different animal. And the part where part of your part of the end goal is to get, or your final finances is due to part of the cash flow. And part of it is due to selling the property. What I mean by that is if you get a hundred, 10%.

Not all the 110% comes from just the selling of the property. Part of that comes from the cashflow, the monthly cashflow. So my end game is how do I figure out what to live off of, at the end of the day, right? And in different syndications, they there's a wide range, right? So you have no cash flow and just, boom, here's a bunch of money and some are maybe.

Half of it is going to come to the life of the deal five years or whatever, three to seven years in slow, the rest is going to come at the end. And so this is where we take the approach of I think you're looking at this a little bit to my optically, right? Just on the one deal.

You gotta, imagine, just imagine you're in two dozen deals. Invested half a million dollars of money in many of these deals. And they're all rolling, right? Just you don't only own one rental property. That's a Sony, what like $3,000 a month, you need 20, 30 times that.

So same concept here. These things are always constantly moving. The nice thing about a syndication deal is that they're superior deals and there's the value add the force appreciation within cities. And they're rolling. And not to state the obvious, but you have the diversification over many deals, but, use the, let's use the example, two dozen deals going into a handful every year.

They're always constantly rolling forward. And you've heard of the CD ladder, that grandpa played back in the day. Think of it. The same thing here is like a syndication matter. Three to five years past or three to seven years, plus that one, that deal that you did, maybe that one's cashing out right at this time.

And then you knew you were going to go and maybe put it into two or three deals that 50 grand doubled or tripled. And then you put it into more. So that's the idea. So maybe in the beginning, Normally for new ambassadors. I like when they go into more stabilized assets where most of it is cash flow or a good chunk of it is cashflow base as opposed to the equity appreciates at the end.

So then that brings up the next question then, would you go to to be the like for the last one for, to be this I can't. Yeah, just trying to figure out the terms, but would you be the primary or would you be like a secondary? What I mean by that? Is the interest only, or would you go for all the pref equity or the traditional equity?

Yeah, in the beginning, I, you could do both, if you're super conservative and this is very new to you, your spouse's what the heck are you doing? Maybe that might push you more towards going, the more conservative route of the pref equity. Yeah, but once you get proof of concept and your net worth is under a million, $2 million, I think you've got to go traditional.

That's how you're going to grow your money. And this is where everybody's different. Everybody gets on the bus set up at a different point on the line. Now you're, as we're trying to build to this like concept called like critical mass, right? You have a certain amount of money to try to a nest egg that you're trying to catch the lad at five to 15% a year.

So first I'd say a lot of people, maybe that critical mass is a million to $2 million of invested in deals, right? Because that will produce, six figures or so of stuff, they can live off just with a capsule. So maybe once you hit that threshold, maybe start raining it back and then you start to go into more of those traditional or that, not the traditional, but the pref equity.

So you get the interest only kind of deal. Yeah. Yeah. But if you're like, most people you're like, now there's a switch. It's like getting your critical mass to all right. This is good. We're just going to create some kind of huge legacy here. Let's just keep it going. Why that's one thing that they, yeah, it's competitive.

Exactly. What difference does it mean? I guess the end goal for me would be. So you have the ability to live off of the income or find, whatever that is, and also be able to get into more deals. So keep on churning it. Yeah. Yeah. There's always a point in the beginning where the ramp up, which can take a year, three years for a lot of people, especially if you're only going into a couple of deals every year, full.

Being full in is, probably a dozen couple dozen deals, when you're creating the cycle. And then we didn't talk about it too much, people always have that question on taxes. All right. When that deal cash is out in five, three to five or seven years, I'm going to have to pay back the depreciation recapture and pay capital gains.

Yeah. That is correct. But in most cases, what you should be doing is going into a lot of these deals and you should, by that time, you should have several hundred thousand dollars suspended, passive losses, which you pulled down and you used to offset your textbook gain. And if you can do it in the same year and you invest in that same year, it doesn't even matter because you're just going to almost get even more suspended losses, stick in your back pocket.

That's true. So that's the, that kind of helped the big picture. Just keeps the good times rolling. Yeah, it does. In the part where again you know where I guess the one thing is so I still haven't seen the picture of the part where I get that you keep on churning it, but how much do you take out, I guess is what I'm getting at?

Not right now, but later on, when you think you're done know, let's just throw a number out there. Maybe you guys live a pretty, minimalistic life. You don't have kids with you guys anymore, and you've been downsides your house. And guys, all you guys want is a hundred thousand dollars of cash flow.

It'd be when you get to a point where. You can completely cashflow at these deals at 5%. You're like, that's pretty safe. I feel safe with that. So maybe at that point you stop investing or go more towards traditional or the equity model, or maybe you specifically only look for stabilized yield place.

Likely you're going to just keep the likely Yoko the opposite. I think that's the way I met. I initially started out with. Or cash line deals. But if you notice my portfolio, it's still a very small minority part, but I'm just trying to roll the dice with some more higher risk higher with deals because why not?

And I think that if you notice more wealthier families, think a lot of people in our group are first-generation wealth, right? We have to build this nest egg creatively with Satchmo because that's how, if not we'll die because we don't have food to put on the table, but the second generation wealth kids that they invest differently.

They go up to bat and they just try and hit a bunch of home runs, which to me always seemed a little irresponsible. But when you have, you're sitting on a nest egg of several million dollars and you already have those cashflow basis, that safety net, and maybe they just throw it into infinite banking and annuities is their safety net.

Yeah. Why not go after it. So it's true. It's true. But I always like, like investors at winter, especially when they're starting out just to get comfortable with it is very different than what is out there, mainstream investing wise. And to always, want them to have a good experience in the beginning.

It's like a Las Vegas casino and when they give you the new point card, I think that they try and make you win in the beginning. It gets you hooked. Or I had another friend. He's Oh, I tried this new app, this dating app. It's like way better. And because everyone seems to be awesome on this thing.

I was like that's what the app does. They know. So they're going to stack everybody. Who's good in the beginning. In a way. That's what I try and do. Try and get investors like. Just get them hooked on the more consistent castle go for the easy wins right away. Yeah. Yeah. Not like the development deals where there's no existing cash flow, not the super hairy, huge value add class C deals.

The real boring ones in the middle. I'm still better than what you're used to. I think so. Yeah, definitely. Was passive. So yeah. And you don't have to deal with all the nonsense too, but that's what I think you're going to transition to when you get closer or halfway to end game. But for now, we'll just go on with this.

This is where this path is going. Yeah. Yeah. That's the part where a lot of this stuff mix in mixes in also because the F you know, when you were using the example of a hundred thousand cars, then now you've got the depreciation that you can use, because now you have a AGI of a hundred thousand and theoretically, you can use a passive loss for that.

Since you're a hundred thousand dollars, you can use a hundred percent, whatever you want to use, but now that's another strategy, yeah. Like the deals is like one third of this big picture, but the dealer's been locked up passive losses, which you're not, you're going to get passive losses from single family homes, but it's going to take you 27 years to get it.

Yeah, but with the cost segs and current, how the taxes are with bonus depreciation mean you get a larger chunk with it, and this allows you options. And for a lot of people. In our group that have the right situation, they're able to do the real estate professional status to not offset their high W2 income.

Now this frees up a whole bunch of more money to either invest or put it into infinite banking. And, that's, I think infinite banking is more of an end game or once you've set up this order. Which is why I, I definitely not good for the guy who is starting out under half a million dollar net worth doing that first.

That's for sure. He needs to get to deals, grow his network and grow his liquidity for our support. He plays around with those advanced strategies. It all comes together after a certain point.

That's a good point. It did help me visualize what the end game is. You know what I mean? Cause that's always been my question. Yeah. So maybe obviously I think, like I said before, I think end game will probably change for you later on. Maybe in a few years down the road, you start to, you'll have a lot of time to think about this because you're a passive investor.

You've got a lot of time, a lot of windshield time to think. But I think, all right, if you're trying to shoot for a hundred grand passive just to live off of, right in retirement, now that means you're going to have to place a little over a million dollars into deals. So maybe 20 deals at 50 grand or 1,000, once you hit that number, maybe you start to take money. Maybe you still go into deals. They hit your number, but you take some of that, a small fraction, maybe 10% of that net stake and put it into infinite banking and just let it sit and make 5% there.

Okay. But likely what you're going to do is you're going to infinite bank that thing and put it back into market. Yeah. Like you said, it is ever changing thing, as you go on, right? Yeah. But you got to have a attainable goal now. And I think that, to go into deals, invest a million dollars.

You don't want to just deploy all your money. People have done it in our group where they just deploy a million dollars and matter of six to nine months. I've seen it the end. They just see what happens.

I call this the simple passive cash of gravy train. So you've been doing this for a few years. You're in a dozen or two deals. You've got half a million million dollars deployed. And in theory, you're cash flowing. Let's just call it 5% of what you put in. So 50 something grand a year, It's paid quarterly.

So it's it seems irregular, which it is, it shouldn't be for a higher net worth person with other streams of income. Shouldn't be too bad. Yeah, but yeah, like you're getting these passive losses and then deals are starting to exit. You're going to have to pay the Piper on that.

If you don't have suspended passive losses, but you should have a lot of suspended, passive loss to offset it. Now it becomes like the golden hamster wheel or gravy train where you have to stay on it. Some people, I think we were talking last time in our group. They're like I want her to retire.

And when I retire, I can do real estate professional status and, offset my passive and my ordinary income. But I'm like it doesn't, you don't need it at that point because you're not making that high salary to begin with. See, and that's the, that reminds me of that thing is our rep end goal or is that just what some people's end goals are?

That's just a, that's a means to the end. I feel like I'm an end game. I do real estate all day long. I definitely really professional, but I don't. Yeah. I don't make that much ordinary income. I make passive income and that's where you want to get to you. You want to slowly move the needle from ordinary income to passive as the years go by.

So and when you are able to do that, then you're able to use your passive income from investments to offset that passive. Passive losses from the investments to offset the passive gains. It makes sense. Cause yeah, cause what I'm trying to do now is like with the CE and stuff like that is, to offset W2, which is I'm way on the other spectrum of that.

And the conservation easements, all these kind of tax strategies. They're they're not the holistic strategy. They're just to help you get out of danger now. Or I touched bracket I use the analogy of like conservation easements, oil and gas investments, solar investments. They're like in the realm of health and fitness, it's that's like taking Lippert tour, or some kind of high blood pressure drug, right? Exactly. A lot of people can come into our group and they make a high salary. They pay 30, 40, 50% in taxes. And they're like we're like, Oh boy, Hey buddy, just take this drug. We'll work on this. So we'll work on the being, working on overall health, which is.

Diet and exercise the holistic way that is getting on the simple passive cashflow gravy. Getting into deals, getting passive losses, moving your ordinary to going more towards the passive side diet, exercise, and sleep. But that doesn't happen overnight, but for now, we've got to just give us your arm and take this conservation Eastman shot.

Now it's a little bit of a risk, but if not, your heart might explode, right? Exactly analogy. We're moving you over towards the holistic diet and exercise side and slowly and. That you will get you that side. And the end game is you hitting your certain number that you want. Maybe that's 50, a hundred, $200,000 of passive income.

And that's where you start to change your asset allocation mix to being more development or high equity deals or more yield type of deals. Okay. But yeah. That's where I've been looking at ideas for those high income earners to switch more that from ordinary to passive, because yeah.

You might be making a million dollars of ordinary income, but you may want to trade $2 for every $1 of passive. So just to throw the idea out there, like maybe get like a crappy subway franchise that if you're a passive investor in. You're not gonna make that much money. It may only be five or 10% returns, but it's a different color of money.

It's passive. It's not ordinary. A lot of medical professionals they'll create like a emergency medical practice and BB other working in their business. They're the guy doing the work, but they try to extract as much revenue or income from it on the passive side from a passive K one. So not every situation is different, but that's the kind of the way you need to start thinking.

Yeah. Yeah. Okay. But but any other questions on the kind of this. No. That was the main ones at this time.