Using 4-Plexes As Banks With The FHA 203k Loan

Get Your Personal Financial Budget Statement Here:

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Join the Personal Credit Repair And Funding and Expert Business Funding

Unlock your financial potential with our exclusive Personal Credit Repair and Funding and Expert Business Funding masterclass. Whether you're aiming to secure a 720+ credit score, gain $100,000 in personal credit, or unlock $500,000 in business funding, this course is designed to empower you with actionable strategies and insights. Led by renowned financial expert Antonio T. Smith Jr., you'll dive deep into mastering personal and business credit repair while exploring key funding avenues to elevate your financial success.

This intensive online course, now available at a limited-time offer of $2,200 (down from $5,300), gives you the rare opportunity to receive individual guidance as we limit enrollment to just 20 participants. You’ll learn not only how to repair your credit but also how to navigate business funding like a pro—perfect for entrepreneurs or anyone seeking to elevate their financial profile.

Enroll today and take charge of your financial future. Spots are filling up fast—secure yours now to benefit from life-changing knowledge that will set you on the path to financial independence!

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Links from Today’s Episode

For Public Housing Residents That Deaunna Mentioned at the beginning of the episode.

hud.gov

Special Application Center for HUD

312-353-6236

https://www.hud.gov/program_offices/public_indian_housing/centers/sac/homeownership

Please follow Grace:

Facebook: https://www.facebook.com/gsandles

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Deaunna Marie

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Online Community

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Show Notes

1. FHA Loan:

• Down Payment: Less than 3.5%
• Credit Score Minimum: 580
• Employment Requirement: At least two years at the current job
• Residency Requirement: Must live in the home for at least one year
• Additional Note: Must have the money for the down payment ready

FHA Loan

• Down Payment: Less than 3.5% of the home's purchase price. This lower down payment makes it more accessible compared to traditional mortgages which typically require 20% down.
• Credit Score Minimum: 580 for the maximum financing option (3.5% down payment). If your credit score is between 500 and 579, you can still qualify but would need to make a 10% down payment.
• Employment Requirement: Must have a steady, verifiable income and be employed by the same employer for at least two years. This helps demonstrate financial stability to lenders.
• Residency Requirement: You are required to occupy the property as your primary residence for at least one year. This loan cannot be used for investment or vacation properties.
• Additional Requirements:
• Mortgage Insurance: You must pay an upfront mortgage insurance premium (UFMIP) which is typically 1.75% of the loan amount, financed into the mortgage, plus an annual premium paid monthly.
• Debt-to-Income Ratio (DTI): Typically, the FHA requires a DTI of less than 43%. This ensures that you are not taking on more debt than you can handle relative to your income.
• Property Standards: The home must meet certain safety, security, and soundness (structural integrity) standards as determined by an FHA appraisal.

1. FHA 203k Loan (a variant of the FHA Loan):

• Down Payment: Less than 3.5%
• Credit Score Minimum: 580
• Employment Requirement: At least two years at the current job
• Residency Requirement: Must live in the home for at least one year
• Additional Note: Provides additional funds for home rehabilitation but requires use of an FHA-approved contractor

FHA 203k Loan

• Purpose: Specifically designed for homes that need rehabilitation or repair. It combines the purchase price with renovation costs in a single mortgage, enabling you to finance both without needing a separate loan.
• Down Payment: As with the standard FHA loan, the down payment can be as low as 3.5% depending on your credit score.
• Credit Score Minimum: 580 to qualify for 3.5% down; lower scores may require higher down payments.
• Contractor Requirements: All renovation work must be performed by a licensed contractor who is approved by the FHA. Do-it-yourself (DIY) repairs are typically not allowed unless you can prove you have the necessary expertise and qualifications.
• Types of Repairs Covered: Can include but are not limited to plumbing and electrical repairs, kitchen remodels, bathroom remodels, and even adding additional rooms.
• Consultant Requirement: For extensive projects and repairs, you may need to hire an FHA-approved consultant who will ensure the work is completed on time and within budget.
• Additional Costs: Besides the upfront and annual mortgage insurance premiums, there might be additional fees for inspections, title updates, and an independent consultant.

Action Plans:

1. Assess Your Financial Health: Review your credit report, correct any inaccuracies, and improve your credit score if needed. Calculate your DTI and see if you need to pay down debts.
2. Save for Down Payment and Closing Costs: Even though FHA loans require a lower down payment, having extra savings can cover closing costs and the upfront mortgage insurance premium.
3. Get Pre-Approved: Contact lenders who offer FHA loans and get pre-approved. This will give you a better idea of how much you can afford and demonstrate to sellers that you are a serious buyer.
4. Find a Real Estate Agent: Look for an agent experienced with FHA purchases, especially if you are considering an FHA 203k loan.
5. Property Search: When searching for properties, consider those that may need repairs as a potential opportunity with an FHA 203k loan. Be sure the properties meet FHA's eligibility criteria.
6. Plan Renovations: If opting for an FHA 203k loan, start thinking about your renovation needs and potential contractors. Get estimates and meet with FHA-approved consultants if the renovations are extensive.

Podcast Introduction

• Title: Drink, Smoke, Stocks, Crypto podcast (should have included real estate due to frequent discussions).
• Host: Antonio introduces Ken Davis, Senior Director of Sales at Density 6, along with Grace and Deanna.
• Special Guest: Otis will join later with his questions.

Personal Coffee Preferences

• Antonio: Drinking Starbucks Butterscotch and Green Forest Bold (no sugar or natural flavors), enjoys high caffeine.
• Ken: Drinking Folgers Classic Blend with Caramel Macchiato Creamer on ice.
• Grace: Drinks two to three Coca-Colas a day (including breakfast Coke) and stays fit.
• Ken (Earlier): Had black coffee from McDonald’s.
• Otis: Joins later, none of the crew is drinking alcohol, but potential for evening podcasts with a relaxed atmosphere.

Podcast Frequency and Structure

• Recording Schedule: Possibility of doing episodes Thursday mornings and Friday nights, based on crew availability and question volume.
• Massive Action: Antonio mentions that taking massive action creates problems but enjoys answering questions as it activates his competitive side.

Discussion on HUD and Real Estate Investment

• Antonio’s Recent Phone Call with HUD:
• Non-public housing residents can purchase public housing properties.
• Antonio was looking into resources mentioned in a previous episode regarding property purchases via HUD.
• Grace’s Research on HUD Programs:
• Started researching HUD's Good Neighbor Program for law enforcement, teachers, firefighters, and EMTs, which offers 50% off the sale of a house with a second (silent) mortgage.
• She spoke to the Special Application Center at HUD (contact number: 312-353-6236) for more details on non-public housing residents purchasing properties.
• Antonio’s Links for Listeners:
• Listeners can find resource links in Antonio’s previous episodes under Antonio’s Two Personal Investment Strategies.

Understanding HUD’s Special Application Center

• HUD Programs:
• Public housing residents can purchase the home they live in.
• Non-public housing residents can purchase HUD homes, and Antonio is diving deeper into this program.
• Federal Housing Association (FHA):
• Works with HUD to insure loans for purchasing 2-4 family units, making them eligible for FHA loans.

FHA Loan Requirements and Benefits

• Basic FHA Loan Requirements:
• Down payment: 3.5% (bank may require more).
• Minimum credit score: 580 (likely 600-620 required by the bank).
• Job stability: At least two years on the same job.
• Residency: Must live in the house for at least one year.
• FHA 203K Loan (for distressed properties):
• Same as FHA but for homes needing rehabilitation.
• Down payment: 3.5%, credit score: 580.
• Antonio recommends this option to buy equity by repairing a distressed property.

Antonio’s Real Estate Strategy

• Advice for Investors:
• Buy a fourplex (multi-family unit) with FHA loans, as it offers four doors to generate rental income.
• HUD-approved counselor: Recommended to help find properties for sale.
• Living in the Property:
• For FHA loans, you must live in the property for one year, even if it’s being repaired.
• Antonio suggests locking your money in for 90-day periods, ideally purchasing real estate every 90 days (or four properties per year).

Antonio’s Key Points for Investors

• Title of Today’s Discussion: Could be titled "Acquiring My First Investment Property" or "FHA Loan Strategies."
• Real Estate Investment Tip: Buy real estate on a 90-day cycle to keep investments moving, ideally acquiring four properties per year.

Introduction to Strategy: Splitting 30 Things in Real Estate

• Context: You're not trying to sell homes quickly (fix and flip), so no need to focus on hypermarkets or super hypermarkets.
• Definition of Hypermarkets:
• Homes moving within 60 days or less.
• Realtors use comparables (comps) to check how fast houses move in an area (500 sq ft variance acceptable for same dimensions).
• Definition of Super Hypermarkets:
• Homes moving in 30 days or less.
• Important for fix and flip investors to focus on these markets.

90-Day Real Estate Cycles

• Breakdown of the 90-Day Cycle:

1. First 30 days: Buying the property, earnest money, and closing.
2. Second 30 days: Repairing the property.
3. Third 30 days: Selling the property.

• Goal: Stick to the 90-day window by focusing on hypermarkets and super hypermarkets, ensuring quick sales and avoiding prolonged property holding.

Real Estate Knowledge and Seminar Experience

• Personal Learning: Antonio paid $44,000 for this knowledge at a seminar, shared for free with the audience.
• Avoiding First Mortgage Payment: Investors avoid the first mortgage payment by having their team ready to start repairs immediately after closing.

FHA 203K Loan

• What It Covers: The FHA 203K loan covers both the home purchase and repairs. Requires an FHA-approved contractor for repairs.
• Approved Contractor Requirement: Contractors must be approved by FHA for the 203K loan process.

Creating a Podcast Resource Hub

• Podcast Show Notes: Full show notes available on RedCircle.com, with future plans to create a dedicated website for the podcast.

Fix and Flip Strategy

• Avoid Utility and Mortgage Payments: The fix and flip strategy aims to complete repairs and sell quickly to avoid utility and mortgage payments.
• Appraisal Value Jump: After repairs, the appraisal value of the home can increase significantly (e.g., from $223,000 to $585,000), creating equity with minimal down payment (3.5%).

Loan Considerations for FHA 203K

• Living Requirement: Must live in the home for one year, even with FHA 203K.
• Recommendation: Antonio recommends buying a fourplex with the FHA 203K loan, living in one unit, and renting out the others to cover the mortgage.

Rent Strategy for the Fourplex

• Use of Three Rents: The rent from the three other units should cover the mortgage, taxes, insurance, and other living expenses.
• Delay Gratification: Antonio suggests delaying moving into a dream home by first living in a fourplex for one year and using the rent to build wealth.

Rent and Expense Calculation

• Netting Rent: Calculate rent from the three units after expenses, ensuring it covers the mortgage and repairs.
• Raising Rent: If necessary, raise rent to cover additional costs like repairs or utilities.

Repair Budget for Fourplex

• Budgeting 10% for Repairs: Allocate 10% of the rent from all units (including your own) towards repairs. This includes things like extermination, separating utilities, or fixing structural issues.

Strategic Investing

• Goal: Live rent-free by having tenants cover all expenses through their rent payments. This allows for long-term wealth-building and financial independence.

Real Estate Strategy: Setting Up a Repair Fund

• 10% Allocation for Repairs:
• Take 10% from each rent (per door) and set it aside for repairs.
• This repair fund is to cover minor issues like broken knobs, painting after a child’s scribbling, or pressure washing the driveway.
• The fund prevents unexpected repair costs from coming directly out of your pocket.

Rent Scenario Example

• Rent Calculation Example:
• If each of the three tenants pays $1,000 in rent, you allocate $100 per door (10%) to the repair fund.
• This totals $400 (including your own door).
• If the mortgage is $3,000, you’ll need to cover the difference of $400 from your own funds.

Managing Rent-to-Mortgage Difference

• Real-World Scenario:
• In many cases, the bank will not approve financing with the exact numbers provided due to insufficient coverage.
• In practice, rents will increase after repairs, so eventually, the rent will cover more of the mortgage.
• Even if out-of-pocket initially, paying $400 instead of the full rent means you are still saving.

Benefits of This Scenario

• Post-Move-Out:
• Once you move out of your unit, that extra unit will generate rental income, providing $600 in profit.
• You might not win immediately, but in the long term, you will win.

Importance of Maintaining a Repair Fund

• Preparedness for Unforeseen Events:
• Ensure a dedicated repair fund for unforeseen events like hurricanes, accidents, or electrical issues.
• Avoid using rent from the repair fund, as this protects against unexpected costs (e.g., roof repair, electrical repairs, etc.).

Practical Repairs for Real Estate

• Typical Repairs:
• Replace toilets, doors, and carpeting with each new tenant to maintain property value.
• Larger projects may include separating utilities, such as installing individual meters for each unit.

The Importance of Quality Repairs

• Long-Term Value in Doing It Right the First Time:
• Avoid cutting corners on repairs to save money in the long run.
• Example: Install firewalls early to meet legal requirements and avoid future issues.

Planning Your Exit and Aggressive Strategies

• Exit Planning:
• By month 10, start planning your next move to ensure seamless transition when the 1-year occupancy requirement ends.
• Closing on your next home should be timed shortly after the 365th day of living in the fourplex.

FHA 203K Loan Strategy

• Maximize the Original Loan:
• Get all the repair money upfront within the original FHA 203K loan.
• Avoid needing to ask for more funds later, as this may not be possible.
• Increasing Rent Gradually:
• After repairs, it is easier to justify gradual rent increases, as improved property conditions warrant higher rates.
• If tenants resist rent increases, new tenants can be found, as demand for housing is typically high.

Capitalist Approach to Real Estate

• Delaying Gratification:
• Consider delaying your dream home purchase by staying in the fourplex for an additional year.
• Use rental income to eventually have multiple properties paying for your dream home.

NACA Program as an Alternative

• NACA Program:
• Provides 100% approval and down payment assistance.
• However, it requires living in the home for the entire duration of the mortgage.
• It’s an alternative to FHA but restricts future real estate moves.

Refinancing and Exit Options

• Refinancing to Exit NACA or FHA 203K:
• You can refinance to exit the NACA or FHA loan and transition into a conventional mortgage, ending the requirement to live in the home.

Duplication of the Process

• Can You Duplicate the Process?:
• Yes, but only after living in the first property for one year.
• You can repeat the process with new fourplexes by using conventional mortgages or finding down payment assistance programs.

Long-Term Strategy

• Maximizing with Multiple Properties:
• You are allowed to place up to 16 properties under your Social Security number.
• After one year, transfer ownership to a business entity to protect against legal risks.

Investment Strategy for Savings

• Avoiding Interest-Bearing Accounts:
• Interest-bearing checking or savings accounts are only for holding money when the market isn’t favorable.
• Always aim to invest in high-yield assets (e.g., real estate) rather than keeping money in low-interest accounts.

Investment Rule: Buy Low, Sell High

• The Core of Investment:
• Always aim to buy low and sell high.
• Money should be constantly moving and generating returns, never sitting idle in a low-interest account unless waiting for a market dip.

Use Banks for Strategic Purposes

• When to Use Interest-Bearing Accounts:
• Only use them during unfavorable market conditions, waiting for the right moment to invest.
• Otherwise, invest money in high-yield opportunities like real estate, which can generate substantial returns.

Understanding Why Common Practices Don’t Work

• Common Knowledge: Most people follow practices that don’t work financially, which is why they are common.
• Savings & Checking Accounts: Keeping money in a standard savings or checking account is unwise due to inflation and the devaluation of the dollar.
• Interest-Bearing Accounts: Slightly better but still not the best option.

Investment Vehicles for Growth

• Preferred Investment Vehicles:
• Real estate
• Stock markets
• Bitcoin
• Gold
• Other income-producing assets
• Why Not Checking Accounts:
• Standard checking accounts earn no interest.
• Inflation devalues the money sitting in these accounts.

Using Savings Accounts Strategically

• Savings Account Use:
• Only used when waiting for a market dip to invest.
• Money should be transferred quickly to investments when the market dips.
• Hedging Against Inflation:
• Savings accounts hedge slightly better than checking accounts but are still suboptimal for long-term growth.

Interest-Bearing Accounts

• Certificate of Deposits (CDs):
• A more favorable option than regular checking/savings, but not as strong as active investments.

Investment Strategy Recap

• "Buy Low, Sell High":
• Only use checking/savings accounts when the market is too high to buy.
• The goal is to keep money on the sidelines and jump in when the market dips.

Auto Investing and Market Timing

• Auto-Investing:
• Not ideal because you can’t predict the market’s perfect buy time.
• However, buying at a bad time is still better than not buying at all.
• Holding for the Long Term:
• Even if you buy at a "bad" price, holding your investment for 7 years will likely make that initial price irrelevant as markets rise.

Strategy for Quick Transfers

• Sideline Money:
• Keeping money in interest-bearing checking/savings accounts allows for quick transfers when the market conditions are right.

Savvy Investor’s Approach

• Main Investment Vehicle:
• The primary focus should be on high-yield assets like real estate or stocks, not checking accounts.
• Diversification:
• Invest in diversified assets like Boeing or airlines to keep funds actively growing.

Real Estate as a High-Yield Asset

• Fixing Credit to Acquire Fourplexes:
• Use fourplexes as income-producing assets to fund lifestyle and other investments.
• Maximizing Income from Fourplexes:
• Rent collected from fourplexes can be used to reinvest in other areas like art or minerals.

Property Ownership Limits

• 16 Properties Under Social Security:
• Legally allowed to have 16 properties under your Social Security number.
• Unlimited Properties Under a Business:
• Each property should be placed in its own entity for protection.

Long-Term Strategy: Moving Properties to Businesses

• Entity Structure for Protection:
• Place each property under a separate LLC or entity to protect assets and minimize risk.
• Shift properties from personal to business ownership to protect personal finances.

Capitalist Plan: Scaling with Plexes

• Buy Multiple Plexes:
• Plan to use multiple plexes (4-plex, 6-plex) to generate cash flow and fund other investments.
• No Personal Ownership:
• Keep everything owned by a business, not in your personal name, for legal and financial protection.

Property Management Considerations

• Hiring Property Managers:
• Don’t manage properties yourself; hire property managers to handle operations.
• Focus on Scaling:
• The goal is to focus on finding new properties, not managing day-to-day operations of existing ones.

Key Challenges of Managing Fourplexes

• Main Challenge:
• The biggest challenge is the loss of time and focus if you manage properties yourself.
• It is better to give 10% to a property manager than to lose 100% of your time and energy.

Efficient Use of Time

• Delegation:
• Delegate property management tasks to avoid stress and free up time to focus on new investments.

Property Manager Oversight

• Limits on Authority:
• Give property managers authority but set limits (e.g., costs over a certain amount require your approval).
• Scalable Property Management:
• Choose a property manager who can grow with you, managing future properties as you scale up.

Property Management Firm as a Business

• Starting Your Own Firm:
• Option to start a property management company and hire a property manager to run it.
• Manage not only your properties but others’, creating multiple revenue streams.

Capitalist Efficiency

• Lazy Capitalism:
• Work hard upfront, but set up systems like property management firms to handle operations long-term.

Creating Your Own Bank

• Using Fourplexes as Banks:
• Use the cash flow from fourplexes to fund other investments and create your own economic system.
• Art as an Investment:
• Use art for lavish spending and as collateral for loans.
• The value of art increases over time, and borrowing against it is tax-free.

Leveraging Art for Tax-Free Loans

• Art as a Leveraging Tool:
• Use the value of art to secure loans and create tax-free income.
• Borrowing against the art provides funds without selling it, allowing you to keep the asset while utilizing its value.

Strategy for Social Security and Property Ownership

• Maximizing Credit:
• Only put one or two properties under your Social Security number to keep a strong credit mix.
• Perception of Credit:
• Having a mortgage on your personal credit shows lenders that you are a good credit risk, improving your chances of receiving large loans.

Final Thoughts on Fourplexes and Art

• Fourplexes as Banks:
• Use rental income from fourplexes to build wealth and invest in other high-yield assets.
• Art for Lifestyle:
• Leverage art to fund a lavish lifestyle while using the insurance and loan value of the art to create tax-free income.

Get Your Personal Financial Budget Statement Here:

https://s3.us-central-1.wasabisys.com/40webinars/personal-financial-statement.xlsx

Join the Personal Credit Repair And Funding and Expert Business Funding

Unlock your financial potential with our exclusive Personal Credit Repair and Funding and Expert Business Funding masterclass. Whether you're aiming to secure a 720+ credit score, gain $100,000 in personal credit, or unlock $500,000 in business funding, this course is designed to empower you with actionable strategies and insights. Led by renowned financial expert Antonio T. Smith Jr., you'll dive deep into mastering personal and business credit repair while exploring key funding avenues to elevate your financial success.

This intensive online course, now available at a limited-time offer of $2,200 (down from $5,300), gives you the rare opportunity to receive individual guidance as we limit enrollment to just 20 participants. You’ll learn not only how to repair your credit but also how to navigate business funding like a pro—perfect for entrepreneurs or anyone seeking to elevate their financial profile.

Enroll today and take charge of your financial future. Spots are filling up fast—secure yours now to benefit from life-changing knowledge that will set you on the path to financial independence!

https://learn.antoniotsmithjr.com/courses/personal-credit-repair-and-funding-and-expert-business-funding/

Links from Today’s Episode

Here are 7 guaranteed resources to get funding for your home:

1. hud.gov
2. https://www.neighborworks.org/Our-Network/Network-Directory
3. ncsha.org/membership/hfa-members
4. fhlbanks.com
5. habitat.org/housing-help/apply
6. rd.usda.gov/programs-services/single-family-housing-programs
7. findhelp.org

Gary V Flip Challenge Play List:

https://youtube.com/playlist?list=PLlLFzyZmL87aAzGlL9-EWox7KZX1alpPw&si=LTYpWGga-EpXUdh-

Lights by ROA Music: 

https://www.youtube.com/watch?v=RogITE1plk0

Please follow Grace:

Facebook: https://www.facebook.com/gsandles

LinkedIn: https://www.linkedin.com/in/grace-sandles-301508142

Please Follow Deaunna:

Deaunna Marie

Facebook: https://www.facebook.com/DeaunnaMarie

Instagram: https://www.instagram.com/deaunnamarie

LinkedIn: https://www.linkedin.com/in/deaunnamarie

X: https://twitter.com/DeaunnaMarie

Medium: https://deaunnamarie.medium.com

TikTok: www.tiktok.com/@deaunnamarie

Email: [email protected]

YouTube: https://www.youtube.com/@DeaunnaMarie

Online Community

https://www.facebook.com/groups/becomers

• Opening Remarks
• Thank you for listening to the podcast and for subscribing.
• Today’s session will include Grace and Deanna, with more guests to come.
• I typically don’t know the details of what we’re going to talk about beforehand.
• Theme of the Day
• Let’s call today’s session “Fix My Financial Plan.”
• We’ll discuss the next steps and how to incorporate your son into the plan.

• Question from Otis Chandler: What’s a good drink to pair with a fine stogie?
• A “fine stogie” is likely a medium-to-strong cigar, with a nicotine grade of 3-4 out of 5.
• Recommended drinks:
• Chocolate beer (thick, heavy, full of hops).
• Dry red wine (Cabernet, Merlot).
• Strawberry beer could also pair well with this kind of cigar.

• What makes a good cigar?
• Cigars are graded based on nicotine content. The stronger the cigar, the more nicotine.
• If you prefer strong cigars, look for bold, full-flavored ones.

• Price of a good lager at a cigar lounge?
• VIP memberships at lounges typically range around $100/year.
• Benefits of VIP membership:
• Ability to bring up to 3 guests.
• Discounts on cigars.
• Access to private VIP areas.
• For a good experience, VIP is recommended for privacy and better environment.

• Why VIP matters:
• As an introvert, I prefer the quiet and privacy of VIP areas.
• I value creativity during downtime at a cigar lounge, where I can relax, smoke, and reflect.
• If the lounge doesn’t offer a BYOB (Bring Your Own Bottle) option, I wouldn’t consider joining.
• The lounge should also have proper ventilation to avoid discomfort from smoke.

• Financial Homework:
• After the last class, you should have worked on getting your credit straight and focusing on a real estate plan.
• Example: Setting up a Poshmark account to sell items, placing proceeds in an interest-bearing account.

• Credit Actions:
• Opt-out letters have been sent.
• Actively reviewing credit improvement videos.
• Real Estate Plan:
• The goal is to secure an investment property by the end of December.
• Researching down payment assistance programs for a fourplex property (considered residential).

• End Goal:
• Secure an investment property in 90 days.
• Overcome challenges of bad credit and little to no money.
• Plan:
• Repair personal credit.
• Research down payment assistance.
• Aim to save $95,000 instead of $120,000.
• Focus on multiple actions simultaneously (credit repair, saving, research).

• Poshmark/Ebay Strategy:
• Start listing items on platforms like Poshmark or eBay.
• Goal: Raise immediate income through second-hand sales.
• Include items like toys or other household goods for quick cash flow.
• There’s nothing stopping you from making money by selling toys or other items you own.
• Take a collection of toys, bundle them, take good pictures and videos, and post them on Poshmark.
• This is easy, but you’re not doing it yet.
• Everyone listening likely has around $25,000 worth of things they can sell—books, shoes, clothes, etc.
• Even if you’re not ready to use Poshmark, you can flip items at garage sales.

Gary Vee Flip Challenge

• Gary Vee extensively talks about flipping items at garage sales for profit.
• Search "Gary Vee Flip Challenge" on YouTube to find helpful resources.
• Deanna, please find the "Gary Vee Flip Challenge" playlist and put it in the chat for reference.

Monetizing a Podcast

• If you have a podcast or plan to start one, you don’t have to wait to reach the required download limit to earn ad revenue.
• You can monetize immediately through exclusive content or donations.
• Create exclusive episodes and charge for access rather than waiting for enough downloads to qualify for traditional ads.

Creating a Successful Podcast Strategy

• Produce 200 episodes in advance:
• 100 public episodes for the first 8 weeks.
• 100 exclusive episodes that you can monetize.
• Post consistently for the first 8 weeks to maximize visibility and grow your audience.
• Use the "New and Noteworthy" window on platforms like Apple Podcasts to boost exposure in the first 8 weeks.
• Encourage listeners to check out exclusive content and give your podcast a five-star rating.

Why Planning Ahead Matters

• Avoid the burnout of daily podcasting by recording and editing in advance.
• Aim to be 56 episodes ahead, allowing you to miss recording days without disrupting the schedule.
• Keep content evergreen (timeless) so it remains relevant and allows for flexibility in posting.

Monetizing Through Exclusive Content

• Offer exclusive content in seasons (e.g., summer, winter).
• Charge for season passes or subscriptions, ensuring you have steady revenue without relying solely on ads.
• Build themes for your exclusive content (e.g., for a crime series, focus on one story or investigation).

Example of a Podcast Introduction

• Use upbeat music and craft an engaging introduction to hook listeners from the start.
• Example:
• "Hey everybody, this is [host’s name] and welcome to [podcast name]. For the next 8 weeks, we’re doubling our content output just for you! Every day, we’ll be dropping two to three episodes to make sure you get the best content. Don’t forget to give us a five-star rating and share it with your friends!"
• Maintain this level of energy and engagement throughout your first 8 weeks to grow your listener base.

Podcasting Tips for Consistency

• If your podcast focuses on daily topics or trends (e.g., news or gossip), you may need to adjust your strategy.
• For evergreen content, plan and record ahead to avoid missing any scheduled releases.

Maximizing Podcast Income Potential

• Create both free and paid content, with the free content designed to funnel listeners into subscribing for exclusive episodes.
• Use creative strategies like offering crime or educational content in a unique way to build excitement around each season.

Conclusion and Audience Engagement

• Always encourage listeners to engage with the content, subscribe, and follow for more.
• Use creative audio production and consistent posting schedules to keep your audience invested in your podcast's journey.

Where to Start and Invest

• Find a Mentor:
• If you’re wondering where to start or what to invest in, the first step is to find a mentor.
• You don’t ask a bricklayer how to invest in gold. Ask someone who is currently doing what you want to do.
• Avoid those who used to do it, as they are no longer professionals in the field.
• Having a mentor will guide you through real-world experience.

Next Steps After Finding a Mentor

• Communicate Financial Goals:
• Clearly define and tell your mentor your financial goals.
• Many people aren’t millionaires simply because they’ve never seriously thought about becoming one.
• You need to focus on what you want to achieve.
• Big Picture Planning:
• Think long-term. What do your finances look like 10 years from now?
• How much money are you making 10 years from now?
• What kind of lifestyle will you have with that money?
• Lifestyle Determines Investment Strategy:
• If you envision yourself grinding 20 hours a day, you’re likely pursuing a career in stock trading, day trading, or similar fields.
• If you want a life of travel and leisure, you need income-producing assets that work for you without requiring your daily input.

Defining Investment Strategies

• Antonio’s Casino Effect:
• This is a strategy where you make many small bets with minimal risk to generate returns over time.
• You aren’t placing a single large investment; instead, you’re spreading smaller bets (money) across various opportunities, like sales funnels or stock trades.
• The goal is to win 70% of the time, similar to how casinos minimize risk by spreading bets over many smaller games.
• Example: In stocks, you invest in many positions, flip them, and reinvest the profits to make larger bets.
• Antonio’s Hard Income Producing Asset Effect:
• This strategy focuses on creating long-term passive income by building assets that generate revenue with little daily effort.
• It requires significant work upfront, but once the assets are in place, they generate income without continuous input.
• Examples: Rental properties, automated businesses, or investments that don't require constant monitoring.
• Your time is no longer tied to income, as systems or employees manage the assets.

Choosing the Right Strategy

• Casino Effect:
• Ideal for individuals willing to work daily, flip money, and take smaller risks.
• Best for people actively involved in their investments or business, like stock traders or influencers.
• You continuously reinvest profits from smaller gains.
• Hard Income Producing Asset Effect:
• Best for those seeking passive income with long-term growth.
• Requires more upfront capital and effort but offers freedom as the assets generate income without your direct involvement.
• This strategy suits individuals looking to step back and enjoy life while income flows in from investments.

Understanding Your Vehicle

• Vehicle Defined:
• A vehicle is what you invest in to generate income.
• Example: A lawnmower is a vehicle for a gardener, but a fleet of lawnmowers for a landscaping company is a much larger vehicle, offering greater income potential.
• A large vehicle, like Delta Airlines, controls and generates income by selling positive space, not seats.
• Income Generating Vehicles:
• In the casino effect, your vehicle is something like sales funnels, stocks, or social media audiences that you leverage to create income with smaller bets.
• In the hard income producing asset effect, the vehicle could be real estate, intellectual property, or automated systems that continually generate income.

Applying the Casino Effect

• Example:
• In real estate, if you don’t have a large down payment, you can create several smaller income streams through sales funnels, small investments, or flipping properties.
• Continuously reinvest your profits into larger bets to build your capital for future investments.
• The strategy is about making money from minimal risk and reinvesting those returns for bigger opportunities.

Conclusion on Investment Strategy

• Choose Based on Lifestyle:
• If you prefer constant involvement and working daily to flip income, the casino effect is for you.
• If you want passive income and long-term freedom, the hard income producing asset effect will suit your needs better.
• Both strategies require clarity on your financial goals and lifestyle preferences.

Casino Effect and Hard Income Producing Asset

• You can create wealth using the casino effect with the intention of turning it into a hard income producing asset.
• Example: Investing in stocks with short-term strategies to take out money and place it into long-term assets like real estate.
• I am not a long-term stock investor anymore. I use the casino effect to make small wins (e.g., $3 per trade), then roll those profits into hard income-producing assets.

Stock Strategy

• I aim for at least 70% success in my stock bets.
• Even small gains (e.g., $3 per trade) multiplied over many trades can generate significant profits.
• Example: 700 wins at $3 each = $2,100 profit in an hour, which can then be reinvested.

Transition to Hard Assets

• Once I accumulate enough profits, I move that money into hard income-producing assets like real estate.
• Real estate is indestructible income compared to the volatility of the stock market.

Be Careful of Your Soundtrack

• The way you invest is often influenced by the circumstances of your life.
• You may hold a stock when you should sell or sell when you should hold because of personal financial pressures (e.g., bills, debt, etc.).
• Example: If you hold when you should sell, you miss out on gains. If you sell when you should hold, you cut your losses too early.

Stock Market Strategy for Big Investors

• For hedge funds or those with large holdings, missing just $5 in gains can mean a loss of hundreds of thousands of dollars (e.g., missing out on $5 per share for 50,000 shares = $250,000 lost opportunity).

Transition from Stocks to Real Estate

• My goal is to make $80,000 for a down payment using the casino effect in stocks.
• Once I reach that amount, I pull the money out of stocks and place it into indestructible income, like real estate.
• The stock market is volatile and depends on someone else's economy. I want to take money out of their economy and put it into my own economy (real estate).

Leveraging Someone Else's Economy

• The stock market is someone else's economy. I use it to generate wealth and then move that wealth into my own income-producing assets.

Art, Gold, Silver as Hard Income Assets

• Art, gold, and silver are long-term assets, not suited for the casino effect.
• These are examples of hard income-producing assets and should be used to sustain wealth over time.
• You can take out cash-bearing insurance policies against these assets, allowing you to borrow tax-free against their value.

Real Estate as the Best Retirement Plan

• Real estate is the best retirement plan because it:
• Always appreciates in value.
• Can be insured.
• Allows you to borrow against it tax-free.
• The stock market and other investments cannot provide the same level of stability and growth as real estate.

Art and Insurance

• High-value assets like art can have cash-bearing insurance policies, allowing you to borrow tax-free.
• Example: Mark Zuckerberg built a $25 million statue for his wife. Likely, he has a cash-bearing insurance policy on it to borrow against.

Three Levels of Spending

1. Poor: Income → Expenses (spending directly from income).
2. Middle Class: Income → Borrowing from Financial Institution → Expenses (spending via loans, credit cards).
3. Wealthy: Income → Income-Producing Assets (IPA) → Expenses (use assets to pay expenses, not your own income).

Managing Multiple Accounts for Investment Strategies

• Navy Federal Credit Union: Used for short-term, casino-effect investments.
• Dover Federal Credit Union: Used for long-term, hard income-producing assets. I don't have a debit card for this account, so I can't easily access the money.
• PenFed: Another account used for short-term needs or emergency funding.

Personal Finance Statement

• Use the personal financial statement to track income, expenses, and assets.
• It helps determine if you are in cash flow or deficit and guides long-term financial planning.

Income-Producing Assets (IPA)

• The wealthy create IPAs that pay for their expenses. They only borrow from financial institutions to create more assets, not to pay for personal expenses.

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Deaunna Marie

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Selfishness with Information

• People today are often selfish with information.
• You have to ask to receive it.
• Finding valuable information about success is difficult, even when you ask for it.

The Value of Information

• Everyone’s version of success is different.
• Real success doesn’t necessarily mean fame or stardom.
• Information from someone who’s experienced success can add value to your journey.
• You don’t have to follow it exactly, but it provides options and perspectives.

Sharing Experiences

• Life is full of ups and downs, speed bumps, U-turns, and brick walls.
• Through all these, mental fitness improves over time, like being in a mental gym.
• Making better decisions comes from learning from past mistakes.
• Sharing both successes and failures helps others view the landscape differently.

Inspiration from Success

• To outsiders, successful people often seem unattainable or like aliens.
• Honest stories about real-life experiences provide valuable fuel for others.
• Many motivational speakers haven’t experienced real challenges, making their advice less meaningful.
• Genuine experience builds trust and resonates more with people.

Truth in Financial Literacy

• Kevin Hart had a conversation with J.P. Morgan Chase about financial literacy in the Black community.
• He emphasized the need for people who have lived in inner-city environments to teach financial literacy.
• These teachers should speak from experience, not hypotheticals.
• There is no real financial education in Black communities. Topics like ownership, investments, and stocks are rarely discussed.

Real Life Financial Lessons

• People need to understand why practices like using check-cashing places or free credit cards are harmful.
• Educating about these behaviors early can prevent future financial struggles.
• Kevin’s relationship with J.P. Morgan Chase is built on his truth and authenticity.
• He advocates for delivering financial information in a relatable and real way.

Sharing Knowledge to Prevent Mistakes

• Kevin shares his mistakes to help others avoid them.
• Knowledge should be passed on to prevent others from making the same errors.
• Giving real, hard-earned advice can advance others’ possibilities.

Responsibility for the Next Generation

• Our job is to set up the next generation for success, whether we admit it or not.
• If the next generation isn’t set up to do better, it’s a failure on our part.
• Progress requires breaking ground and going beyond what was done before.
• Sharing information and experiences is key to growth.

The Role of Investment and Awareness

• Kevin realized through the pandemic how important understanding the economy is.
• He began teaching his kids to recognize the companies behind everyday products they use, like toothpaste and Starbucks.
• Investment is about recognizing where growth is happening and putting money into those places.
• It’s essential to pay attention to the world around us and learn from it.

The Simplicity of Investment

• Investment doesn’t require large sums; it can start small.
• It’s about consistency and understanding where money can grow.
• Many people ignore the simplicity of investing and miss out on financial growth.

Impact of Real Experience on Success

• Kevin’s career took off after the Shaq All-Star Comedy Jam, which led to sold-out shows and increased visibility.
• His success was fueled by hard work and the opportunities that followed from one breakthrough moment.
• Understanding the process behind success is crucial for continued growth and advancement.

Conclusion

• Financial literacy, sharing knowledge, and guiding the next generation are critical responsibilities.
• Real experience, honesty, and authenticity make a difference in inspiring and educating others.
• It’s important to stay aware of the economy, investment opportunities, and ways to grow wealth over time.

Financial Security and Freedom Levels

• He owns multiple sports teams, including soccer and football teams.
• Financial security is the first level.
• Financial vitality is the second.
• Financial independence is the third.
• Financial freedom is the fourth.
• Absolute financial freedom is the final level.

Breaking Down Financial Security

• Financial security: Passive income covers all your bills.
• Financial vitality: Your income covers half of your luxury lifestyle and half of your expenses.
• Financial independence: Your passive income covers all of your expenses and luxuries.
• Financial freedom: You have enough income to cover both your lifestyle and expenses without working.
• Absolute financial freedom: Your ultimate dream lifestyle is fully supported by your passive income.

Understanding Financial Independence

• You do not have financial freedom if you are still clocking in to work.
• Financial freedom means all bills and luxuries are covered without needing to work.

Three Key Money Principles

1. How to get money.
2. How to keep money.
3. How to multiply money.

• People get rich by producing money.
• The middle class gets trapped by earning money.

The Pitfalls of Earning Money

• If you earn money, you are vulnerable—one illness, job loss, or crisis away from financial trouble.
• Producing money allows for greater control and stability.

Absolute Financial Freedom

• Absolute freedom means that even when you imagine a new goal, your passive income can cover it.
• This is the highest level of financial freedom where dreams are supported by passive income.

Brokers and Annuities

• Brokers pushing annuities often prioritize personal gains.
• Financial advisors may not always act in your best interest unless they are fiduciaries.
• Fiduciaries are legally bound to act in the client's best interest.

Hidden Fees and Their Impact

• Compound interest can help your investments grow over time.
• However, fees such as trustee fees, legal fees, and transaction fees can eat away at your returns.
• Over time, fees can take away a significant portion of your potential earnings, much like termites destroy a foundation.

Choosing Investments Wisely

• Low-fee index funds are often more beneficial than high-fee actively managed funds.
• Active funds may not always outperform the market, and the fees can erode your returns.

Working with Financial Advisors

• Ensure that your financial advisor is a fiduciary, not just someone looking to earn commissions.
• Many financial advisors operate for profit, potentially giving advice based on their commission structure.

Real-World Examples of Poor Advice

• Grace’s financial advisor was not a fiduciary and gave limited options based on commissions.
• Fiduciaries offer a broader range of investment options and prioritize your financial goals.

Moving Beyond Cash

• Cash is not a true asset; assets are things that put money into your pocket.
• Use cash to invest in assets that grow and generate income.

Leveraging Relationships for Assets

• Leverage relationships and knowledge to acquire valuable assets.
• Focus on obtaining assets that matter and will generate long-term wealth.

Poverty vs. Prosperity

• Poverty includes anything that isn’t abundance.
• If you aren’t in prosperity, you are still in poverty, regardless of how you try to soften it.
• Once you transition to prosperity, your income will eventually catch up.

Two Financial Paths

• There are only two paths: poverty and prosperity.
• The moment you leave poverty, you are on the road to prosperity.

Final Reflection on Assets

• Assets are key to financial freedom, and leveraging them properly leads to sustainable wealth.

Financial Teaching and Blessings

• The writer is emphasizing gratitude and blessings, regardless of current circumstances.
• Actively blessing the Lord while understanding what you're going through is key.
• Understanding scripture means breaking it down in practical terms.

Introduction to Financial Classes

• Grace and Tempestt (TNG) proposed doing 10 financial classes every Tuesday.
• Tempestt has a unique financial situation that will be discussed.

Cash and Finance Differences

• Cash is not finance.
• Knowledge and money are not finance either.
• Finance is a distinct concept from money.
• Financial problems persist even if you know how to raise money.

Spending Problems

• Grace asks how to stop having a financial and spending problem.
• The root cause of spending problems is often ego.
• People buy things they don’t need because of a lack of discipline.
• If you don’t have customers paying for your expenses, something is broken.

Customers and Spending

• Deanna doesn’t want to stop her spending problem but wants to finance it.
• Customers need to pay for everything.
• Leverage your current opportunities to funnel money into real estate.

Spending and Ego

• Spending problems are rooted in trying to keep up with others.
• Discipline is lacking when your worth is tied to things.
• Diana suggests having customers finance what you want to buy.

Commandments of the Millionaire Fastlane

• Commandment of Need: Never start a business just to make more money.
• Commandment of Entry: The harder it is to enter the business, the better it is.
• Commandment of Control: You must have full control of your business.
• Commandment of Scale: The larger your business can scale, the more you can earn.
• Commandment of Time: Make sure your business doesn’t require constant time investment.

Identifying Customer Needs

• Businesses should solve customer needs, not just fulfill the owner's desire to make money.
• Ask customers what they need and structure services accordingly.

Scalable Business Models

• Your business should be scalable to reach millions of customers.
• Cybersecurity, for example, is a scalable industry with high demand.

Investing Wisely

• If you want to own something (e.g., Lexus), don’t buy the product, buy the stock.
• Investing in assets, not liabilities, leads to financial growth.

Financing Your Lifestyle

• Customers and clients should be paying for your expenses.
• Focus on building a business model where your passive income supports your spending.

Financial Insights: Entertaining but Focused on Real Wealth

• Complaining Customers and Netflix
• In ATS, there's always that one customer who complains too much, just like everyone has that one person they want to avoid.
• Netflix keeps people from going to jail by offering an escape.
• Entertainment, such as Netflix, serves a need to distract people from stress.
• Entertainment as a Need
• Whether it's Netflix or other entertainment, people seek relief from stress or pain.
• This is why industries like strip clubs and porn continue to exist.

Commandment of Time – Automating Your Business

• Automating Business for True Wealth
• A real fast lane business must automate so that it can run without your constant effort.
• Example industries include:

1. Internet-based businesses: Lead generation, social networks, advertising, e-commerce, subscription-based models.
2. Innovation: Create a new or improved product and distribute it.
3. Iteration: Franchises and real estate, though they may violate scalability, can still be profitable.

• Duplication of Efforts
• If you cannot personally manage 100 companies, you need to develop technology (e.g., apps or tools) that automates your tasks.
• If you can’t build it yourself, buy or rent someone else’s tool and sell it as your own.

Millionaire Fastlane: Five Commandments

• Commandment of Need
• Don’t start a business just to make more money. Start because you’re solving a problem or fulfilling a need.
• Commandment of Entry
• The harder it is to enter your business, the better. A high barrier to entry protects your market.
• Commandment of Control
• Ensure full control of your business. Don't rely on third-party decisions that could ruin your operations.
• Commandment of Scale
• Your business must be scalable to reach millions of customers.
• Commandment of Time
• Your business must eventually be automated so you can earn money without sacrificing time.

Financing a Lifestyle

• Grace’s Spending Problem
• Spending problems often stem from an ego problem, where people buy things they don’t need.
• The solution is either discipline or ensuring that customers are paying for your lifestyle.
• Leverage current resources to funnel money into assets like real estate.

Business Models and Commandments Applied to Tempestt

• Focus on Automation in Cybersecurity
• Tempestt needs to automate her cybersecurity services through tools, apps, or programs.
• The goal is to create a proprietary system that doesn’t require her direct involvement.
• Multiple Streams of Income
• ATS’ success is rooted in scalability, entry barriers, control, and automation.

Earning Money and Growing Wealth

• Save More Money
• The only way to save more money is to make more money.
• Don’t just reduce spending; increase your earnings through side hustles, investments, or other ventures.
• Invest Wisely
• Don’t just buy luxury goods. If you want a Lexus, invest in Lexus stock.
• Every expense should be viewed as an opportunity to increase wealth.

Real Estate and Investing in Inflation

• Real Estate
• Buying fourplexes offers more income streams than single-family homes.
• Use tenant rent to fund your lifestyle and investments.
• Stock Portfolio Diversification
• In times of inflation, invest in commodities and gold, as well as inflation-linked bonds.
• Long-term and intermediate US bonds should make up a significant portion of your portfolio to maintain steady returns.

Annuities and Managing Risk

• Annuities as Risk Management
• Annuities offer guaranteed income until you die.
• They are not investments but agreements with insurance companies.
• The downside: If you die early, the deal may not work in your favor.

Reverse Mortgages

• Reverse Mortgages
• Pay more upfront, but over time, the payments decrease.
• This strategy is ideal for those who want to reduce financial strain in later years.

Key Principles to Accelerate Wealth

1. Save and Earn More Money

• Increase your income and be strategic about savings.

1. Reduce Fees and Taxes

• Optimize your spending and negotiate with service providers (e.g., internet companies) to lower fees.

1. Improve Your Returns

• Invest in diversified portfolios that include stocks, bonds, and commodities.

1. Change Your Lifestyle

• Prioritize assets that produce income over luxury items.

Final Thought: Success Requires Continuous Effort

• To build real wealth, always focus on improving your financial position through smart investments, reducing unnecessary expenses, and ensuring scalability in your business.

Please follow Grace:

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Deaunna Marie

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Podcast Notes

Jay-Z’s Strategic Outlook:

• Jay-Z reflects on his journey and peers from the 90s.
• He anticipated his long-term success and noticed others missing opportunities.
• He views success in terms of strategic moves, not just talent.

Studio Experience and 50 Cent Warning:

• Jay-Z recalls telling Bleak, Beans, and others to release more music.
• Warned them about 50 Cent's impending success.
• Predicted 50 Cent's rise when "In Da Club" released.

Strategic Advice:

• Jay-Z emphasizes the importance of seizing opportunities.
• Encouraged his peers to flood the market with content.
• Some didn't act, leading to missed opportunities when 50 Cent rose to fame.

The 50 Cent Takeover:

• 50 Cent’s signing by Eminem changed the industry.
• 50 had street and mainstream appeal, supported by Eminem and Dre.
• His rise was amplified by a successful song on the "8 Mile" soundtrack.

Eminem's Role:

• Eminem didn’t fear 50 Cent’s reputation (getting shot nine times).
• Supported him purely based on his talent and music.
• His co-signing propelled 50 Cent into the mainstream.

Missed Opportunity in the Rockefeller Team:

• Jay-Z advised his team to release music ahead of 50’s success.
• They didn’t act quickly enough and had to sit out 50 Cent’s wave.

Pandemic Comparison & Content Creation Urgency:

• The current era is likened to a "pre-50 Cent moment."
• The digital world demands more content than ever due to the pandemic.
• Creators need to seize the moment and flood the market with content.

Content Strategy:

• Now is the time to create and distribute as much content as possible.
• Engage audiences while they are attentive, before a new wave hits.
• Avoid overthinking and just put out content—opportunity is now.

Influencers & Lane Occupation:

• Established influencers like Gary Vee and Grant Cardone dominate their fields.
• Once a person establishes a "lane," it’s difficult for others to enter.
• Success isn’t just about being the best; it’s about being first and consistent.

Gary Vee & Grant Cardone’s Success:

• Gary Vee and Grant Cardone have monopolized their respective markets.
• Their early adoption and content production solidified their dominance.
• Their influence is unchallenged because they capitalized on opportunities first.

Money & Investment Philosophy:

• Unlike specific niches, money has no fixed "lane."
• Anyone can invest, regardless of race, gender, or personal circumstances.
• Investment is the key to overcoming systemic challenges like prejudice or financial limitations.

Investing as the Ultimate Equalizer:

• Investment transcends societal barriers and systematic oppression.
• Green dollars multiply, regardless of who holds them.
• The answer to financial challenges, irrespective of background, is to invest.

Personal Stewardship:

• If you're not saving at least 10% of your income, you're not prioritizing yourself financially.
• Saving and investing 10% is crucial for long-term financial success.
• Giving to charity or religious organizations is valuable, but personal financial health must come first.

Universal Law of Money:

• The universe rewards those who are good stewards of their money.
• Mismanaging money or failing to save signals to the universe that you don’t value wealth, leading to fewer opportunities.

Closing Thoughts on Content Creation & Money:

• Now is the moment to act, create content, and invest.
• Missing this opportunity is akin to missing the 50 Cent wave.
• Money follows specific rules, and those who understand them will prosper.

Living Expenses:

• Hair, nails, food, air conditioning, and other necessities fall under the cost of living.
• These should be accounted for in your cost of living budget, not from your 10% savings or investment.

Budgeting Strategy:

• A simple budget structure: 10% charity, 10% to yourself (investment), 10% to debt, and 70% to live off.
• This is known as the 10-10-10-70 rule.

Debt Management:

• 10% of your income should go to debt repayment.
• Define debt as credit cards, loans, and personal borrowing.
• If your car loan exceeds this 10%, it needs to fit into your living expenses.
• Avoid overspending on car loans and ensure your total debt doesn’t exceed 10% of your income.

Car Loan Guidelines:

• Jay-Z’s rule: If you can’t buy a car twice, you can’t afford it.
• Example: If you can’t buy two Ford Mustangs, you shouldn't purchase one.
• Practical rule: If half your paycheck goes to rent and the other half to your car (including insurance and gas), it’s too much car.

Overspending Warning:

• If your money is fully allocated before you receive it, you’ve taken on too much debt.
• Many people live in the negative, relying on overdrafts or future income to cover current expenses.

Wealthy Thinking:

• Wealthy people don’t think about money because they have enough.
• Aim to have so much money that it’s not a daily concern.
• If you have a number you don’t want your balance to drop below, you’re thinking like the middle class.

Credit Card and Mortgage Guidelines:

• All your credit card and mortgage debt should not exceed 10% of your income.
• In some cases, it can go up to 20%, but no more.

Income and Debt Ratio:

• If your house and car loans exceed 20% of your income, you’re living beyond your means.
• You’re keeping up with others when you should be focusing on living within your financial capacity.

Middle-Class Trap:

• The middle-class trap: borrowing more than you make.
• Banks qualify people for homes that exceed their earnings, leading to long-term financial strain.

Inflation and Borrowing:

• Borrowing for long-term mortgages means paying more than the actual value due to interest, inflating your total debt.
• A $100,000 mortgage becomes a $270,000 commitment over 30 years.

Economic Enslavement:

• Borrowing more than you make leads to economic enslavement.
• It’s similar to being a sharecropper—working for someone else’s benefit without owning anything yourself.

Working for Taxes:

• Most Americans work three months of the year just to pay their taxes.
• 25% tax rate means three months of your work goes straight to the government.

Universal Law of Money:

• Money flows easily to those who save at least 10% of their income.
• If you don't save, you get caught in the rat race, constantly working without building wealth.

Rat Race Definition:

• The rat race is leaving a house you can’t afford, driving a car you can’t pay for, to work a job that doesn’t make you rich, only to repeat the cycle.

Wealth Creation:

• To break out of the rat race, you need to invest and save consistently.
• Money respects good stewardship: it will multiply if you invest it wisely.

Hard Investments:

• Invest in hard resources like gold, silver, Bitcoin, Ethereum, and real estate.
• Also, invest in utilities—toilet paper, lights, water, etc. These are necessities that don’t lose value during a recession.

Financial Literacy:

• Financial education is key to avoiding the traps of overspending and borrowing beyond your means.
• Understand the rules of money and use them to build wealth instead of falling into debt.

Wealthy Habits:

• The wealthy use financial institutions, but their customers pay for their expenses.
• If you’re using your own money for big purchases, you’re not following the wealthy mindset.
• Customers should cover your financial obligations.

Bitcoin as a Tangible Asset:

• Bitcoin is now considered a tangible asset.
• Accepted by Amazon and many other places, making it a hard asset.

Examples of Utilities:

• Utilities include electricity, for example, Warren Buffett invests in publicly traded electricity companies.
• Another example is the internet. In a recession, Comcast stock went up.
• If the internet disappeared and someone reinvented it, they would control the world.

Utility Coins:

• Not a big fan of utility coins.
• Utility coins involve too much friction and space to tie them back to the asset.
• Prefer owning the actual asset rather than the token.
• Goal: Be as close to the skeleton of the asset as possible, not just the token representing it.

Sales Funnels:

• Sales funnels are like real estate.
• A hard income-producing asset.
• They take other people’s money and generate income, just like real estate.
• You don’t need a job, employees, or even a product for sales funnels—just sell someone else's product.

Sales Funnel Opportunity:

• During the recession, sales funnels could have been used for various products, like creating an app for drive-thru alcohol in Texas.

Pandemic Trends:

• Things like Viagra sales increased during the pandemic.
• Sales funnels would allow tapping into these trends without needing to own a product.

Data Storage as an Investment:

• Data storage is another no-brainer investment.
• Everyone and everything uses data, and the cloud has become critical.
• You may not fully understand the cloud, but it’s a vital part of modern data storage.

Cryptocurrency as an Asset:

• Since cryptocurrency was mentioned earlier, it counts as a tangible investment.

Lobbying:

• Consider investing in lobbying.
• This involves paying politicians to pass favorable laws.
• Buy land or assets near future developments after getting insider information.

Law 3: Wise Counsel:

• Money sticks to those who seek advice from wise counsel.
• If you don’t listen to smart money advice, you’ll lose your money.
• Example: Taking investment advice from a rug maker about jewelry in "The Richest Man in Babylon." They lost everything.

Law 4: Familiarity in Investments:

• You will lose your money if you invest in areas you are not familiar with.
• You must educate yourself or get a mentor before investing in something new.
• Don't just rely on advice from friends or people who don’t practice what they preach.

Law 5: Avoid Impossible Returns:

• Money will run away from you if you force it to make impossible returns.
• Expecting unrealistic gains will lead to losing your investment.

Practical Example from Warren Buffett:

• Follow Warren Buffett’s moves, like when he stockpiled cash before a recession.
• You don’t need to ask if you should follow him—just do what he does.

Investment Mindset:

• When you make an investment and it drops in value (e.g., from $1 to $0.75), buy more—if it was a good investment at $1, it’s even better at $0.75.
• This principle is called Dollar Cost Averaging.

Investing Journey:

• Initially, I checked my investments every 37 minutes.
• I found it difficult to trust the process because of my past struggles with money.
• At first, I was constantly checking my accounts, especially when I started using apps like Betterment and Acorns.

Learning to Accept Risk:

• Acorns triggered multiple overdrafts by rounding up small transactions, but I realized the importance of risk in investing.
• I was more excited about the small amount in my investment account than the overdrafts, because I had never had an investment account before.

The Power of the First $1,000:

• Saving my first $1,000 gave me immense confidence.
• Once you save your first comma, it becomes addictive, and you’re more likely to continue investing.
• Challenge: Save 10% of your income, reach your first $1,000, take a screenshot, and reflect on the feeling.

Emotional Connection to Wealth:

• Seeing commas in your account can be euphoric, but losing them can feel devastating.
• The focus should be on building and maintaining that sense of achievement and security.

Changing Perspective:

• As you grow, you check your investments less frequently because you trust the process.
• At this stage, I only check my investments about once a week.

Financial Discipline:

• If you have extra money after paying off a house or a car, don’t spend it recklessly—continue to invest it, whether in crypto or other assets.
• For example, if you pay off your car note, start putting that monthly payment into investments like cryptocurrency.

Seven Cures for Not Being Broke:

1. Start fattening your purse: Save at least 10% of all income.
2. Control your expenses: Spend less than you make; don’t overspend.
3. Multiply your money: Invest wisely to make your money grow.
4. Guard your wealth: Protect your money from loss.
5. Make your home profitable: Either find ways for your home to generate income or ensure you get tax benefits.
6. Insure everything: Always say yes to insurance, whether for your car, home, or electronics—this prevents costly repairs later.
7. Increase your earning potential: Continuously learn new high-income skills to boost your ability to earn more money.

High-Income Skills:

• If you’re unsure about your future, type "high-income skills" into Google and start learning those skills.
• Sales is a timeless high-income skill, and even in difficult times, sales skills are necessary for survival.

Sales and Value Creation:

• Everything in life, besides bread and water, needs to be sold.
• If you don’t want to master sales, you will end up paying someone else to do it for you.

Acorns

Betterment

Traderview

MT5

https://www.betterment.com

https://www.acorns.com

https://www.metatrader5.com/en (download and install)

https://www.mql5.com (website)

ChatGPT Prompt For Identifying Low Fees

Antonio T Smith Jr taught me that fees on exchange apps should be low, in order to not have my earnings be paid out in fees. Can you please give me worse case scenarios fees in percentage and best case scenario fees in percentage. Make assumptions based on best practices and assume I want to make a lot of money and keep that money, while trading thousands of times a year. 

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Deaunna Marie

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• Ladies, I forgot the subject for today, but first, what are you drinking or smoking?
• I'm drinking something called Red Fuel. It’s strawberry and pomegranate with organic fuel, like an energy drink, along with water.
• That sounds unhealthy.
• Grace, what are you drinking?
• I had Coca-Cola earlier with breakfast, and now I have water.
• That's unhealthy too. Coca-Cola for breakfast? Seriously?

• "Drink, Smoke, Stocks, and Crypto" Podcast is live.
• What’s the subject today?
• Subject: Generating income to invest.

• Making money: Trading time for money.
• Generating money: Creating a product with trading power and presenting it to a market.

• Start with:
• Current salary
• Checking or savings account
• Selling clothes from your closet (e.g., eBay)
• Borrowing from family
• Other options:
• eBay, Amazon, or sales funnels (ClickFunnels)
• Sell physical goods like pies or products outside of stores.

• Start investing with as little as $10 to $500.

• Acorns – good for starting small investments.
• Betterment – low fees and provides investment guidance.
• Consider using apps with low fees to get started.

• Younger investors (under 59):
• 90% stocks, 10% bonds
• Older investors (60+):
• More bond-heavy to hedge against risk.
• Your risk tolerance and financial goals should guide your allocation.

• TradingView and MetaTrader 5 (MT5) for more advanced stock trading.

• Watch out for high fees.
• Avoid 5% fees on trades, especially when trading hundreds of times a year.
• Aim for lower fees, like 0.5% to 1.5%.

• Use ChatGPT to ask:
• What are the best and worst-case fee scenarios for exchange apps?
• Include assumptions for trading thousands of times per year.

• Acorns: acorns.com
• Betterment: betterment.com
• TradingView: tradingview.com
• MetaTrader 5: metatrader5.com, MQL5: mql5.com

• High fees can erode your investment returns.
• For example, 5% fees on hundreds of trades add up quickly.
• Look for apps with lower fees to protect your earnings.

• Play Monopoly with real estate:
• Buy every property you land on.
• Even if you don’t want it, buy it for trading power later.
• If you don’t buy, someone else will, and you’ll pay them.

• Billionaire Answer: You need $250,000 liquid to invest in commercial real estate.
• Use it to buy properties worth $1 million.
• Invest in properties that are already generating income – avoid fixer-uppers.
• In Monopoly terms: Buy four green houses, trade them for one red hotel.

• Start with smaller properties like fourplexes, which are great for building wealth quickly.
• As you grow, you can leverage equity from those smaller properties to invest in larger deals.

• Commercial Property:
• Buy something already cash-flowing.
• No need for repairs or fixing.
• We are not buying distressed properties, we are buying assets that function like banks.
• Residential Property:
• Buy something that needs to be fixed (distressed properties).
• These properties aren’t already cash-flowing.
• Distressed Properties: Could mean the owner or the property itself is distressed.
• Target: Buy at 65%-75% of its value.

• Example: Buying a $1 million apartment complex.
• The property’s cash flow will pay for the loan.
• Use this cash flow as collateral to:
• Prove financial responsibility (after 6 months of on-time payments).
• Refinance or get a loan for another property.
• DCSR Loans (Debt Service Coverage Ratio):
• No need for a credit score, the loan is based on whether the property can cover its debt.
• Properties are used as down payments for future investments.
• Revolving Line of Credit:
• Prove you can service the debt, then continue using it.
• Antonio’s example: $20 million revolving line of credit.

• Commercial:
• Focus on cash-flowing properties.
• Use their value to support future investments.
• Residential:
• Focus on distressed properties (buying undervalued assets).
• Pay 65%-75% of the market value to leave room for repairs and equity.

• Property Worth: $225,000.
• Offer 65%-75% of value.
• Example: Offer $168,750 (75% of the market value).
• Use the savings for repairs and renovations to increase equity.

• Goal: Always buy properties with equity.
• Don’t pay full price for properties that need repairs.
• Equity ensures you make money when you buy, not just when you sell.

• Loan: Largest expense.
• Taxes & Insurance: Either paid monthly or included in the mortgage (escrow).
• Property Manager: Typically takes 10% of rent.
• Maintenance Budget: Recommended $200-$500 per month.
• The amount depends on whether the property has undergone 100% repairs.

• Responsibilities:
• Collect rent.
• Handle maintenance requests (e.g., fixing cabinets, AC, water heaters).
• Manage tenant relations (e.g., lease agreements, inspections).
• Negotiation:
• Standard 10% of rent.
• Possible sliding scale (6%-12%) based on performance and property volume.

1. Loan Payments.
2. Taxes (e.g., $3,000/year, divided into monthly payments).
3. Insurance.
4. Property Manager: 10% of rent collected.
5. Maintenance Budget: Typically $200/month for well-repaired properties, more for those needing work.

• Maintenance Budget:
• Ensure you have a budget for unexpected repairs (e.g., tenant damage).
• Avoid being a slumlord—do full repairs before renting out.
• Hiring Property Managers:
• Look for people with integrity and good character.
• Build long-term relationships (30 years or more).
• Construction Waste:
• 50% of all construction costs are typically wasted.
• Find contractors who are mindful of your budget and focused on efficiency.

• Question: Is the offer based on 65-75% of $400,000 or $450,000?
• Answer: It’s based on the asking price (in this case, $400,000).

• House Value: $450,000, Asking Price: $400,000.
• Multiply $400,000 by 65% to get an offer of $260,000.
• This is to leave room for repairs and build equity.
• Further Calculation:
• You could subtract the estimated repairs from $260,000 to lower the offer, but Antonio recommends negotiating using 75% of the asking price to avoid complications.

• Multiply the asking price by 75%:
• $400,000 × 75% = $300,000 (initial offer).
• From this number, subtract repair costs to finalize the offer.
• Example:
• If the roof repairs cost $30,000, adjust the offer to $270,000.

• Personal Walk-Away Price:
• Antonio negotiates down to $300,000 and won’t go over that.
• The $300,000 becomes the firm price—if the seller demands more, he walks away.

• Include repair costs in your loan request.
• Example:
• Roof costs $30,000, and other repairs cost $50,000, totaling $80,000 in repairs.
• Total purchase price becomes $300,000 + $80,000 = $380,000.
• Equity after Repairs:
• If the property is worth $450,000, with repairs it may increase to $650,000, giving $270,000 in equity.

• After repairs, get the property appraised to increase its value.
• The property was bought for $300,000 with $80,000 in repairs, but the value rises to $650,000.
• Result: $270,000 in instant equity after the new appraisal.
• Next Step: Use this equity to finance the next property.

• Monopoly Strategy:
• Use one property to get equity and buy another.
• Keep scaling up until you own multiple properties.
• Each property can act as collateral for larger deals, like 200-300 unit apartment complexes.

• Commercial Formula (5 to 12 units):
• Different formula, based on DSCR loans (Debt Service Coverage Ratio).
• DSCR is used for commercial properties and measures whether the property can cover its debt.

• DSCR Loan: Measures if the property’s income covers the loan's debt.
• You may need 25% down, depending on the bank and the property.
• Down Payment Example:
• Property purchase: $380,000.
• 25% down = $95,000 required.

• Search for down payment assistance programs by county.
• Example: Google "Galveston County Down Payment Assistance" to find local programs.
• Assistance can cover up to $35,000 of the down payment.

• Use the 4-plex strategy to build wealth:
• Instead of buying 5-12 unit properties, buy 4 fourplexes (16 doors total).
• Use these as collateral to acquire larger properties, like a 200-300 unit apartment complex.

• Loan Example:
• With 16 doors as collateral, you can get a loan of around $12 million.
• Use this to buy a large apartment complex in a prime location, such as a metropolitan area.

• Considerations for Asset Protection:

1. No assets in operational companies (to protect from lawsuits).
2. Each property in its own entity for protection.
3. Establish a revocable trust to hold valuable assets.
4. Move assets to an irrevocable trust for long-term protection.

• Execute on advice from each episode to learn and adjust.
• Keep all income-producing assets in their own entity and maintain strict separation between operations and asset ownership.

This episode exposes the system and how it operates, as well as gives you the basics of bitcoin.

Hit that bell. Turn on my notifications so the algorithm won't stop you from seeing my videos. 

🥃 MY OTHER PODCASTS ❤️

• Secret To Success: https://redcircle.com/shows/the-secret-to-success

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• Drink, Smoke, Stocks, And Crypto: https://redcircle.com/shows/drink-smoke-stocks-and-crytpo

• Mexit News: https://redcircle.com/shows/mexit-news

• Business To Business: https://redcircle.com/shows/b2b-from-a2z-podcast

You can either.,,

Get into the top 1% and get out the middle class ASAP

👉  👉 https://therichestmaninthetrashcan.com/

OR

Get into the top 1% and keep going higher, (Get my FREE book) 👉  👉 https://therichestmaninthetrashcan.com/

Did you see what I did there? Both options are your Middle Class Exit (MExit)

I'm willing to help you either way 🚀

🥃 CONNECT WITH ME ❤️

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#lawofattraction #teamats #money #finance #business #sales #marketing #riqueza #antoniotsmithjr

This episode is pretty straightforward, this is where we build a solid foundation for you to step into crypto greatness.

Hit that bell. Turn on my notifications so the algorithm won't stop you from seeing my videos. 

You can either.,,

Get into the top 1% and get out the middle class ASAP

👉  👉 https://therichestmaninthetrashcan.com/

OR

Get into the top 1% and keep going higher, (Get my FREE book) 👉  👉 https://therichestmaninthetrashcan.com/

Did you see what I did there? Both options are your Middle Class Exit (MExit)

I'm willing to help you either way 🚀

🥃 CONNECT WITH ME ❤️

Leave a comment on this video and it'll get a response. Or you can connect with me on different social platforms too:

• Instagram: http://instagram.com/theatsjr 

• TikTok: @ats9696

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You ask questions, I will answer. Get free products, discounts, be the first to know and more. Send in your video questions and Be featured on my platforms and podcast. #thekidfromGalveston

#lawofattraction #teamats #money #finance #business #sales #marketing #riqueza #atsjr

You do not earn wealth, it is impossible. Wealth must be manipulated through earnings of income, piled and multiplied on top of other earnings of income- continuously. You can always just buy wealth if you have enough leverage and money, or whatever the person is missing, you can buy that as well.

In this episode, follow Antonio as he takes a group of CEOs and talks about building wealth.

Hit that bell. Turn on my notifications so the algorithm won't stop you from seeing my videos. 

You can either.,,

Get into the top 1% and get out the middle class ASAP

👉  👉 https://therichestmaninthetrashcan.com/

OR

Get into the top 1% and keep going higher, (Get my FREE book) 👉  👉 https://therichestmaninthetrashcan.com/

Did you see what I did there? Both options are your Middle Class Exit (MExit)

I'm willing to help you either way 🚀

🥃 CONNECT WITH ME ❤️

Leave a comment on this video and it'll get a response. Or you can connect with me on different social platforms too:

• Instagram: http://instagram.com/theatsjr 

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🚨 Text me on my cell at +1-409-500-1546. I respond personally. 🚨

You ask questions, I will answer. Get free products, discounts, be the first to know and more. Send in your video questions and Be featured on my platforms and podcast. #thekidfromGalveston

#lawofattraction #teamats #money #finance #business #sales #marketing #riqueza #atsjr