Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

HIGH-YIELDING RENTALS IN NORTHERN CALIFORNIA!  It’s the HOLY GRAIL… the pixie dust…  the flawless diamond of cash-flow investing:  To own rental property with a STRONG cash flow in a SUPER-HOT MARKET that you can buy at a FAIR PRICE.  My friends… I’ve got it for you, right now, in the HOTTEST of hot markets in America.  I’m Bryan Ellis.  This is episode 166.

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Hello SDI Nation!  Welcome to the Podcast of Record for savvy self-directed investors like you.

It was a great weekend this past weekend in Sacramento where I had the pleasure of meeting with investors in the SDI Private Equity fund.  That’s a great group of people and the real estate opportunities we have those folks involved in are… well… shall I say… QUITE IMPRESSIVE?  Hehehehe

It was such a pleasure to meet all of our new clients along with many of you guys who are involved in other projects with us and chose to move forward on our Northern California investment adventures as well.  These are exciting times, folks!

And I’d like to say to Karim – your next excursion to Walgreen’s is on me, man.  Carole and I are still just LOVING that your secret passion is visiting big-chain drug stores!  But we’re very happy to have you as a part of the SDI Private Equity family… and same for all of your who are part of our crew!

Speaking of Northern California a moment ago… did you know that’s the hottest real estate region in the entire country… maybe the entire world?  The latest list of hot markets from Realtor.com shows Northern California as being home to 9 of the 20 hottest individual markets in America.  It’s just astounding.

What makes for a hot market?  Well, it’s things like… rapid price appreciation, short supply, and bidding wars.  I recently saw that there’s only 1.5 months of housing supply in San Francisco.  That’s CRAZY – a normal supply level is 6 months, so San Francisco is INCREDIBLY low on inventory, as is the Bay Area and Silicon Valley as a whole.

But it’s not just those vaunted areas… Northern California as a whole is experiencing some astounding things… and frankly, it’s all driven by tech companies and venture capital flowing into the Bay Area and Silicon Valley.

And that, my friends, is where today’s astounding opportunity comes from.

So here’s the deal:

The SDI team has identified a source for CASH FLOWING RENTAL PROPERTY that can be bought very affordably… and it’s right in the heart of Northern California… commuting distance from Sacramento, Napa, Modesto and yes… even with commuting distance of the outskirts of the Bay Area.

So here’s are 3 quick examples that will make you DROOL:

Example 1 is a single family property.  Worth $100,000 CONSERVATIVELY… and frankly… I don’t believe that valuation.  I think it’s much, much, much higher.  Anyway, worth $100,000 – you can buy it for $90,000 – renovated and fully rent-ready.  Rent on this one is $800 per month… you’ll likely be NETTING over 7% just from cash flow on this one.

Example 2 is a duplex.  You’ll collect $1,000 from each unit.  That’s $24,000 per year gross.  This property is EASILY worth $200,000.  You’ll pay $180,000 for it… you could realistically net as much as 10% per year on this one from CASH FLOW alone.

But remember – this is in a highly appreciating area.  More on that in just a minute.

Final example #3 is a triplex.  You’ll collect $2,100 per month from this property, and it’s easily worth $230,000.  You’ll pay only $200,000… and again, could net nearly 10% per year from cash flow alone.

Folks, those are great numbers no matter where your property is located… but as you know, there’s a dichotomy that exists where single-family rental property is concerned:  There are deals that offer good cash flow, and then there are deals that offer solid appreciation potential.  It’s rare – almost unheard of – to get access to deals that offer both.

This is just such a circumstance, my friends.

You see, Zillow tells us that this area of Northern California appreciated at 12% in the past year… and they’re projecting another 19% appreciation in the coming year.

My friends… getting 7-10% net per year from cash flow… that ALONE makes a deal a very attractive deal.  And buying in an area with double-digit appreciation… that ALONE makes a deal a very attractive deal.

Put them together and what do you have?

Something that’s rare… a needle in a haystack.

And these deals truly are that rare.  How rare?  Well… in October of this year, there were more than 5 million homes sold in America.

But deals like this… well… we can only supply about 5 per month.  Sometimes, not even that many.

Yep, it’s a tiny supply.

But the potential here is AMAZING…  and I’ve got the data to back it up.

So how does that sound to YOU, my friends?

If you’re in the market for some EXCELLENT cash flow property with high yields, in-place property management and paying tenants, then your time is now.

Check out SDIRadio.com/nccashflow.  Again, that’s SDIRadio.com/nccashflow as in northern California cash flow.

Some of these deals are at the $100,000 – most will be in the mid $100’s to low $200’s… and every one of them located in the hottest housing market in the entire country.

Yes, we do have a very special source for these properties.  These certainly aren’t listed for sale on MLS, folks.  The only way you can get on the waiting list is to go RIGHT NOW to SDIRadio.com/nccashflow.

My friends… it’s great to be back with you.  I’ll see you again tomorrow, and until then:

Invest wisely today… and live well forever!

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What are the CORE BELIEFS of the true self-directed investor?  This isn’t a touchy-feely notion.  When it comes to the financial security of yourself, your family, of future generations… and of the world-changing causes you believe in, your CORE BELIEFS as a self-directed investor….  What are they?  Or rather, what should they be?  I’m Bryan Ellis.  Let’s talk it through right now in Episode 165.

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Hello, SDI Nation.  Welcome to the podcast of record for savvy self-directed investors like you!

So, folks, I’ve usually got a very clear idea of where I want to go with a show before I start it.

Today… I’ve got an inkling, but not perfect clarity.

Here’s the deal… There are certain core issues that bind people like me and you together.  Or, maybe not.  That’s really the issue.  I want to find the words that get to the commonalities that will be like a bright-shining beacon in the night to those who understand self-directed investing – and the opportunities and responsibilities of wealth – in the same way I do.

You see, I want to create – I will create – a “platform” for Self-Directed Investors… a set of core beliefs… things that are central, primary and unquestionably true for all of us… almost like a statement of faith, albeit not requiring faith at all… a statement of the things that bind us together.

And even as I say these words to you, the right term to describe it has come to me:  a manifesto.

I will create a manifesto for the self-directed investor.  I’ve got some clear ideas about what should be part of that manifesto right now… and some parts of it are developing still.

Here are some definite things to be a part of it… none of them yet well worded, but important each one:

As Self Directed Investors, our most core principle is that we RESPECT our capital.  Risk is our ENEMY.

We are open to opportunity but very rigid on principles.

One of those principles is the SIMPLE, SAFE and STRONG mantra I repeat for you over and over again.  We recognize that our investments must be simple – because complexity hides risk.  Our investments must be safe because, again, we eschew risk.  And our investments must produce STRONG results, because at the end of the day, unacceptable returns are just another form of RISK that must be avoided.

So yes… every investment we take must be simple and safe and strong.  No exceptions.  But those criteria can have different means at different stages of life.  Risk that’s acceptable once you’re already financially independent is very different than risk that’s acceptable while you’re still in building mode.  Simplicity means something different when you’re investing $100,000 to buy a rental property versus if you’re a billionaire with the capital to do a huge acquisition and to commission thorough due diligence by professionals.

That’s what I mean… we’re open to opportunity, but rigid on principles.

Another thing about us… we’re unapologetically seekers of profit, and we have the strength of character to realize that there’s absolutely nothing wrong with that.

And we’re protective of that profit and the principal that bore it.  That capital is the fruit of our labor… the results of our wise decision making… indeed, our just due.  And so we do everything the law allows to shield it from risk.

We recognize that the biggest risk to our capital isn’t actually bad investment decisions… it’s actually far more fundamental than that:  Taxes.  We believe in paying our fair share, and we always do.  But we will, without shame or apology, do everything we can to make sure that our fair share is as small as possible.  At a core level, we believe that government wastes money… and it’s worst when the money they waste is ours.

We also recognize that we’ve got to protect our capital from the wealth vampires who prefer to use the legal system to steal from us.  So we – with regret, and against our own will – will spend time and money necessary to make sure that what we’ve worked so hard to achieve can’t be easily taken from us by greedy lawyers bending the law to suit themselves.

But it’s not just about accumulating and protecting our money.  For self directed investors, investing has a purpose beyond mere profit.  Indeed, a purpose for the profit.

First is, unapologetically, to provide for the needs of our immediate families and ourselves.  We want the best for our families:  Safe homes, food to eat, fine educations and wonderful opportunities. These are the people we love… the people whose lives have been entrusted to us.  It is our job to provide for them, and we do so with unwavering abandon.

But for us, there’s more.

There’s both the FUTURE of our families… and there’s the PRESENT reality of those in need outside of our loved ones.

So we structure our affairs to pass on the assets we build to future generations.  We fully intend for our spouses, our children, our children’s children and our special loved ones to benefit from that which we leave behind.

Much of what we leave behind will be financial.  But as self-directed investors, we realize that there’s far more than just money.  So we work aggressively to convey the intellectual capital generated through lifetimes of wise stewardship.

Whether that intellectual capital is as simple as a secret family recipe for banana bread… or it’s as substantive as a long-standing banking or business relationship… these things are important.  They matter to us, as self-directed investors.  These are the things that make us who we are, much more than any amount of capital.

And there’s purpose for our profit in the present day, too.  Because we recognize that the blessings of wealth carry with it a responsibility to be a blessing to others.  It’s not a one-way street.  We are not a dead-end for wealth, where it reaches a point and continues to grow but never leaves again.  No… we’re more like a funnel, focusing resources where they need to go to make the biggest impact.

And those choices… of where the “deepest impact” can be made… those choice are deeply personal to us.  We are not fickle.  We do not let the shifting sands of public opinion or the waywardness of political correctness influence our commitment to the causes which we hold dear.  We listen to that voice inside that tells us where to go and what to do with the blessings of our success.

At the core of it all for self-directed investors is one word:  Stewardship.  We recognize that we are blessed… we recognize that there’s a power involved far beyond our own power… and while we all may not agree exactly what or Who that power is, we all know it’s much bigger than we are… and that living wisely leads to financial blessing… and those financial blessings lead to the greatest wealth we can imagine:  The wealth of generosity.

That, my friends, is what I believe it means to be a self-directed investor.

If you have any thoughts to add, I’d REALLY love to hear from you.  Can you share your thoughts with me on the website?  Just got to SDIRadio.com/165 and leave a comment.  That’s 165 because this is episode #165.  Again, SDIRadio.com/165.

I look forward to writing all of this up in a cleaner, more concise way and sharing it with you as the Self-Directed Investor’s Manifesto.

My friends… invest wisely today, and live well forever!

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What is ARROGANT MONEY?  ARROGANT MONEY sometimes disguises itself as conservative, careful decision making.  But at the end of the day, it’s simple foolishness, disguised as experience.  I’m Bryan Ellis.  I’ll help you to know if yours is ARROGANT MONEY right now in Episode #164.

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Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you.

Arrogant money… it’s a funny thing.

Ever heard of it?  It’s kind of like “Old Money” because it really refers to the owner of the money more than the money itself.

Arrogant Money describes the person who has had some success in one kind of investment, and thus presumes himself to be expert in all others as well.

I’d like to tell you about a recent example of Arrogant Money… and I hope you hear the caution in the story.

There’s a guy named Will.  Real guy, but that’s not his real name.

Will is in his 80’s and is clearly a very smart guy.  For years he focused his investments on note investing.  In other words, he’d lend out his money to home owners at a very high interest rate, and would secure his capital by getting a lien against the property.

So far, so good.  Will did really well for himself.  He did some real estate deals along the way too… some rehab deals and some other stuff.  But at the core was always his note investing strategy.

And you know… that worked very well for him.  It’s a fundamentally wise thing to lend money against valuable assets.  He was collecting 15% on his money… and just about anybody would be happy with that.

So, several months ago, Will called me up.  He heard what we were doing in Phoenix, in which we were working with clients who provided capital, which my team then used to purchase, renovate and resell those properties… and profits were split.  And by the way… those deals are doing very well, and the results have been very strong.

But Will called me up back then and we talked.  It was clear that he had plenty of capital to invest.  But what was also very clear was a “my way or the highway” type of attitude.

So… who knows?  Maybe I caught the guy on a bad day.  So I certainly didn’t close the door on working with him, but he seemed more interested at the time in selling off his portfolio of notes than doing anything else.  I was interested… but not terribly so… because I knew – whether he did or not – that many of his notes were simply not compliant with new regulations, so they had the potential to really blow up.

So, I hear from Will again this week.  He’s heard what we’re doing in Stockton – very similar to what we did in Phoenix several months ago, where we’ve got lots of happy clients – and he’s interested.

So, I explain the deal to him.  Not particularly dissimilar to what we did in Phoenix.  Basic idea is – we use client capital to buy, renovate and resell the property, then we split the profit.  There are no guarantees on the profit, but history has shown results that are, shall we say, substantially superior even to what Will has been accustomed.

That’s when Will drops the bomb on me.  His money won’t be invested into anything where he doesn’t have a guaranteed rate of return, and what he wants is 25%.  Barring that, he wants to structure the transaction totally differently to totally suit his purposes, and to the detriment of the other clients involved.

You know, Will has every right to be cautious with his capital, and I applaud him for his concern.

But in his case, caution has transformed into arrogance.

Will believes his capital is “more worthy” than others.

And you know, that’s ok.  But here’s the thing, folks… this is the lesson I want you to get out of today’s episode:

There’s an ebb and flow to global capital markets.  Sometimes markets are short on capital and long on opportunity… sometimes, markets are short on great opportunity and awash in capital.

Today’s environment is definitely the latter.  There’s a LOT of cash out there just waiting to be deployed, such that any worthy investment is not having difficulty attracting capital from reasonable investors.

People like Will do really well when there’s a capital shortage.  But when there’s not… and there certainly isn’t right now… people like Will see their investment portfolios dwindle through underuse.  Inflation is the killer of arrogant money.  Arrogant money sits, and sits and sits… ready to be deployed, but never finding an opportunity that’s exactly the right one.

Not because the right opportunity doesn’t exist… but because it isn’t the PERFECT opportunity.

My friends… there’s no such thing as PERFECT opportunities.  There are only opportunities.  Wise opportunities and unwise opportunities.  And at the end of the day, arrogant money uses the only arrow in it’s quiver:  Rejection.  Rejection of unwise opportunities, sure.  But also rejection of wise opportunities.

That, my friends, is a very sad thing.

So, don’t be like Will, mmmmkay?  Hehehehe

Why is this on my mind?  Well, it’s far more than just the fact that this conversation with Will happened yesterday.  It’s because we’re coming up on Thanksgiving tomorrow.  And for me, that’s the most meaningful holiday of the year because gratitude is such a central key to success.  I mean genuine real gratitude… the kind of gratitude that acknowledges that none of us are here alone, that none of us succeed independently, that all of us are blessed far beyond what we deserve.  Gratitude, in other words… is the very opposite of arrogance.

And as the Good Book says… pride comes before the fall.  May that never be your fate.

Folks, I’d like to express my deepest gratitude to you for listening to this show.  This year – 2015 – has been an amazing one for me.  Very, very hard at times, to be honest, but so deeply rewarding.  While I’m really proud of how well this show is doing, and how well our clients in Self Directed Investor Society are doing… the thing I’m most proud of for this year so far is my relationship with my wife.  We’ve worked very consciously to grow and become better and stronger for each other, and I’ve got to tell you… the effect it’s had on every other part of my life – including business – has been profound.  Carole, thank you, thank you, thank you.  I can never, ever thank you enough.  You’re a spectacular woman and I love you with all that is in me.

Happy Thanksgiving, everyone.  You people are special to me, and I really do mean that.  So I hope you’ll…

Invest wisely today… and live well forever!

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Want to get cash flow, appreciation and tax benefits from Real Estate?  Listen to this episode before you even think about buying another piece of rental property.  I’m Bryan Ellis.  This is Episode #163.

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Hello, SDI Nation.  Welcome to the podcast of record for savvy self-directed investors like you.

I’ve got a dream… a vision… a new way of SERVING you, the affluent individual investor who seeks all of the great things that real estate investing can offer, like cash flow, appreciation and tax benefits.

This vision is burning in me, and it’s going to change the game… just mark my word.

So here’s the inside game that’s going on in my head that I’d like to share with you.

For many years, I’ve been PROFOUNDLY fascinated with self-directed IRA’s and their potential.  Really cool stuff, to be sure.  So I learned a lot about them, did a few things, made a few mistakes… and really got to know the topic along the way.

Then along came self-directed 401k’s… another huge change… another step up in potential… more great stuff.

And then it turns out that a huge percentage of people who are looking for great investments are doing so outside of retirement accounts… so that was a great realization, too.

And somewhere along the way, I accidentally discovered – just discovered, certainly didn’t invent – this notion of “turnkey” investing, in which affluent individuals deploy their capital into an investment – usually real estate related – because they want to make a great return, but not because they necessarily want to learn how to be real estate investors.  Rather, they want use their capital to fund deals that are found and executed by someone with a lot of experience… and for the parties involved to split the profits, somehow.

Well, here’s the thing… there are now a lot of turnkey investing companies.  Some are pretty good, and some are not so good.  Thing is, most affluent investors who are targeted by these companies simply don’t have the frame of reference to know in advance who is good and who isn’t.

So that’s a problem.

But here’s a bigger problem with that model:  Those companies don’t really have any skin in the game.  If you want a rental property, they sell one to you.  They get their money and move on.  And you get a rental property, which may or may not work out for you.  Hopefully, it does.

Now here’s the thing:  That’s not actually an indictment of the turnkey model.  But it is an opportunity.

You see, I like the idea of providing people like you with great investment opportunities.  Scratch that… I LOVE it.  It really does something for me.  I love it love it love it.  And in fact, I am still involved in that model too, having closed the sale of turnkey deal for one of my clients as recently as yesterday afternoon.

Concerning that:  Paul… thank you for your business, sir.  And for your trust.  It’s been a pleasure to serve you so many times already in such a short period of time, and I am grateful for the chance to continue to do so.

But here’s the thing… and I want to be careful how I say this.

When I started this show… and the broader effort behind it called Self Directed Investor Society… I did not want to build a business.  Rather, I wanted to build a portfolio.  I wanted to partner with people… the right people… very carefully chosen people… and I wanted to provide GREAT opportunities to them for investing… opportunities available to me and NOT to them… but to bring them into the loop by using their capital on my great opportunities… and that way, we’d all win together… and we’d all have some skin in the game on an enduring basis.

So I have a vision… it’s a vision I’m working on fulfilling right now, and it’s burning in me.  Here’s how it works:  I want to make rental property investing as simple as making a deposit at your stock brokerage or 401k.  Literally, that simple.

Here’s what I mean… Imagine if you wanted to enjoy the benefits of owning rental property… namely cash flow, appreciation, tax benefits, leverage, and hedging against inflation.

Those are all great benefits, but ask yourself… do you REALLY want the trouble that goes along with it, like picking out a market… then picking out a property… then evaluating that property… the financing the purchase… then closing the deal… then hiring a management company… then managing the management company… then deciding when to sell… and hiring a real estate brokerage… and preparing the property for resale… and going through closing… and all the while, struggling to make sure that your insurance policy is the right policy… and that your property taxes are paid reliably… and then there’s the specter of dealing with bad tenants and maybe even lawsuits… and on and on and on…

In other words… those are the things that you must endure to get the benefits of rental property ownership.  And here’s the thing:  Buying real estate from a turnkey investing company does NOT solve most of those problems.  Turnkey companies make ENTRY to rental property investing easier… but they don’t help much at all with the long game… and that’s where the important decisions are made.

Now look… it can TOTALLY be worth it to all of the hard stuff.  I’m not suggesting otherwise.  But it’s not a small matter… and that’s my point.  It’s far more complex than most people guess ahead of time.

So what if things were fundamentally different… what if, you were able to decide something like this:  You decide you have $100,000 which you’d like to invest in rentals.  But rather than going through all of the horrible headaches I just described, well, instead of that… you do something different:

You deposit your investment funds, which are then deployed to good real estate opportunities and handled entirely from beginning to end.  And by the way… you still get your cash flow.  You still get your tax benefits.  You still get equity appreciation.  You still get every single benefit you’re looking for… only without having to think of any of the ugly details.

And yes… whenever you’re ready, you can take your $100,000 back out… but of course, it will have grown because… that’s the whole idea, isn’t it?

It’s my vision to change the “turnkey” real estate investing idea into a COLLECTIVE… an opportunity for smart people to come together… where everybody has skin in the game… and where, if I recommend an investment opportunity… you know I’m giving you my best, because I win only if the investment itself does well.

I want to put my name on the line.  I want to stake my reputation on this stuff.  Because the difference I can make in the lives of affluent investors is… well, it’s a huge difference.

So, there’s no call to action today, other than to say that if you’d like to get involved in a great turnkey FLIPPING opportunity right now, then check out SDIRadio.com/stockton because the opportunity there is, in a word, staggering… and it’s every bit as hands-off as I’ve described to you today.

But my friends… all I can ask of you is this:  stay tuned.  Be patient with me.  I’m doing all I can to make this show and the services behind it the very best they can be… for you.

My friends, invest wisely today, and live well forever!

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It’s CASE STUDY FRIDAY here at SDI Radio… Get ready for a real, recent example of a deal that’s going to motivate you because it’s REAL and because it’s REPEATABLE.  I’m Bryan Ellis.  This is episode #162.

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Hello, SDI Nation!  Welcome to the podcast of record for Savvy, Self-Directed Investors like you!

About 10 days ago, I shared with you an EXTRAORDINARY opportunity involving our passive property flipping program.  The basic idea is this:  In select, strategic markets, we at Self Directed Investor Society serve our clients by providing access to the SDI Flipping teams, who acquire, renovate and resell properties for our clients.

Our numbers have been consistently EXTRAORDINARY… in fact, we had another closing just yesterday in Phoenix.  I’ll share the numbers with you on that one in a couple of days.

But as for today, there’s another deal I’d like to share with you… and this one is in our hottest target market, Stockton, CA.  In that market, we purchase great properties – usually from the trustee sale – then renovate and resell them.  Nearly all of our projects there turn around in 4 months… even those that require evictions after foreclosure, so it’s a CRAZY HOT MARKET, to say the least.

Anyway, here’s the deal:

Many of you have listened in to the webinar we offer about this over at SDIRadio.com/stockton.  You heard the reasons it’s a uniquely perfect market for flipping, and why it’s still somewhat accessible to individual investors.  You know that Realtor.com pegged Stockton as the 11th hottest market in the country, and that a total of 9 of the hottest markets in America are all within about 100 miles of Stockton.  Without a doubt, that area of Northern California is the hottest real estate region in America.

So here’s the case study.  It’s actually an update of one of the examples that I described there at SDIRadio.com/stockton.  And yes, that webinar is available now if you’d like to check it out.

In that webinar, I gave a WHOLE LOT of case studies, including:

• Houston Avenue, where the project netted 26.8% cash-on-cash in 97 days
• Mendocino Avenue, where the project netted 30.3% in only 7 months
• Mist Trail where the project netted 22.2% in 67 days

All of those examples are without the use of leverage… those are straight-up cash deals, making those ROI numbers even more impressive.

But of all of the examples I gave you, there was one that was unique because it was in escrow at the time I made the webinar 2 weeks ago, unlike all of the other examples that were CLOSED transactions.  Of course, I fully disclosed that distinction in the webinar, and was using Guernsey just as an example of the freshest possible activity.

So that property was in escrow, and based on the contract price and closing date, it looked like the property would sell for $200,000 and close on November 26… which would yield an astounding net return of 21.9% in only 49 days.

My friends… 21% in a whole year would be a beautiful result… so 21% in only 49 days is just stratospheric.

But, my friends… not everything goes perfectly in real estate, and that’s what happened with Guernsey.

The buyer ended up not being able to close, and the deal fell out of escrow.

Bummer, right?  That was going to be a really great deal at a sale price of $200,000.

Well, sure… you never want deals to go south, but remember:  This area, Stockton, is the 11th hottest market in America!  What exactly would you expect to happen when a good property goes on the market in a super-hot market?

You guessed it:  It sold, and it sold quickly, and it sold at a premium price.

The original contract that fell through was for $200,000.

The new contract price?  Well, it’s a cool $220,000…. A nice gain of $20,000 over the original!

And we’ve got a SOLID BUYER… who is putting down $100,000 in cash.

And one other nice little item – it closes soon – so this entire deal will still only be about 3 months long, beginning to end… but with a total net yield of a whopping 34%.

Yep.  You heard that right.

Folks, we’ve got a GREAT THING going out in Stockton right now.  It’s SO EXCITING… and so profitable.

If you’d like to check out the possibilities for yourself, stop by SDIRadio.com/stockton right now.

And you know, this is a strategically EXTREMELY important period.  That’s because back in June, there was a strange SPIKE in the volume of foreclosures in Stockton.  The number of foreclosures – for that one month alone – tripled.  Big spike.

Now here’s the thing:  The properties that started foreclosure during that spike, well… they hit the trustee sale during December and January.  So there’s going to be FAR MORE OPPORTUNITY than normal during those two months… and that’s SUPER-EXCITING.

And the timing couldn’t be better, because houses purchased during December and January will be back up for sale during February through April – one of the hottest times of year to sell in an already super-hot market.  In other words, right now is a beautiful window of opportunity.

So, my friends, let me encourage you with the example I shared with you today.

That’s not the only one.  Our crew picked up another house just yesterday, and the all-in cost including renovation and everything will be just shy of $300,000… and then we’ll sell it… for $400,000.  After everything, if history continues as it has, then this deal will net about $80,000 in only 4 months.  If you’re doing the math, that equates to a cash-on-cash net of about 26%... in 4 months.

Folks, if you were actually pocketing HALF of these numbers, you’d be doing EXTRAORDINARILY well.

So here’s the thing:  If you’d like to learn more about how we’re doing this, you should go over right now to SDIRadio.com/stockton to check it out.  There’s a GREAT webinar there, and if you’re an affluent investor looking for a way to passively participate in the extraordinary flipping markets of Northern California, you’ve found your chance.

Take a look at SDIRadio.com/stockton right now.

My friends…

Invest wisely today, and live well forever!

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QUICK!  When $1.2 million drops in your lap, how do you invest it?  I’m Bryan Ellis.  I’ll tell you exactly how RIGHT NOW in episode #161.

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Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!

What would you do if $1.2M in investment capital just dropped in your lap?  That’s what happened to Ted, a listener to this show who recently completed the sale of one of his businesses and now has a cool $1.2 million of after-tax money just sitting there, waiting to be deployed.

Ted is a VERY SMART GUY.  Brain surgeon level.

But for Ted – like so many other people who are very successful in their own fields of endeavor – well, when it comes to investing, his logic turns off.

So Ted called me up and said:  Bryan, I’ve got $1.2M.  I’ve heard you talking a lot about these little houses in Birmingham that I can buy for under $60,000 each.  And that are yielding net returns of 10-15%.  My calculations say that I could buy 20 of them and would immediately have a net income of at least $120,000 per year, totally passively.  So let’s do it.  I’d like to buy 20 houses.

Well, folks, a few days ago, I promised you I was going to be even more transparent with you on this show.  So here it is… at that moment, I was counting my money!  Selling 20 houses to Ted was going to be a profitable event for me, and it was pretty exciting.

But then my rational mind returned to me.

Now look… I know something about Ted.  He’s a wealthy guy.  This money – the $1.2M he’s trying to invest now – it’s not his only capital.  He’s a serial entrepreneur and has done really well for himself.

So in that way, Ted makes the grade for someone who is worthy of making a $1.2M investment decision.

But I had to ask Ted a couple of questions, namely:  Tell me how you feel about this, and tell me how Vicky feels about it.  Vicky is Ted’s wife.

Ted told me he was really excited.  He’s done some research into Birmingham, and he “gets it”… though he’s still nervous about investing in the southeast, since he’s never done it before.  He also really likes the strategy we use for totally insulating him from the risk that the economy will decline or that his tenants will lose their jobs… those things are no longer a concern for him.  And he’s definitely excited about getting a large income totally passively for the first time in his life, and about the tax benefits.  He’s checked out our property managers, and he feels very good about them.  Sure, he’s nervous.  But Ted’s ready to take the plunge and buy 20 houses.

Vicky, well… she’s also interested, and she’s happy with she sees on paper… but she’s far more cautious.  Vicky is familiar with all of the information that Ted has… and she agrees with his assessment.  But she’s really nervous.  To Vicky, even though she and Ted have other assets, to her, $1.2M is practically all of the money in the world. 

And you know what… she should be feeling cautious.  The fact is this:  Ted and Vicky have never done business with me before.  They’ve checked me out… that’s for sure.  Given me the third degree, actually.  As well they should.  But they know me only because a friend of theirs who is a doctor in California referred them to this show.  This particular doctor is a client who trusts me explicitly and allows me great latitude in allocating his portfolio, and we’ve done very, very well for him.  So my client’s referral carries a whole lot of weight with Ted and Vicky.

And here’s the thing:  I’d like to do this deal with Ted and Vicky.  It would be good for them.  It would be good for me.  A real win-win.  But now… as in right now, this very moment in time… well, the timing is right for Ted and Vicky.

I told Ted I absolutely believe he’s making a great decision for how to deploy that capital based on his financial situation and the other assets in his portfolio.  But I proposed that he adjust the timing.  Here’s what I mean:

Instead of buying 20 houses right now, which Ted could do with the stroke of a pen, I proposed he buy only 2.  Invest only about $120,000 rather than $1.2M.  Put the rest of the money in a 6-Month CD.  And during that 6 months, watch and see how those 2 houses do for him.  If things go like he and Vicky expect, then they can deploy some, or even all, of the remainder at that time.

Vicky liked that plan – a lot – and here’s what really tipped her over:  I guaranteed her success.  If things DON’T go like they want, then I offered to buy those two houses back from them for exactly what they paid.  Who ever heard of a money-back guarantee on an investment property?  Well, that’s the way we roll here at SDI Radio, and it’s a no brainer to me.  These are great deals, and removing their risk is something I’m happy to do.  There’s a 99.99% probability they’re going to love the experience.  And if they don’t, then I get to own an asset I believe in at a price that totally makes sense.  Total win-win.

Hey… what about you?  Many of you have been seriously considering either starting your rental portfolio, or maybe expanding it… you’ve heard me talking about some of the great things we have going on in Birmingham… the insanely high cash flows, the complete immunity from economic risk, the absolute consistency of payments, the near elimination of vacancies… and you’re really interested.

But hey… who are we kidding… you’ve got some reservations.  Maybe you live out in California or Hawaii and to you, Birmingham and the southeast is practically another world.  Or maybe you think you know something about the business of owning low-priced homes that makes you nervous.

So here’s the deal:

For a short time, I’m actually going to contractually guarantee your satisfaction as an investor in our properties in Birmingham.  How?  I’ll commit – in writing – to buying back your property for what you paid for it if you’re unsatisfied in ANY WAY WHATSOEVER.  I’ll give you the details about this in the coming days, but for now, there are 2 things you need to know:

Next week, I’ll offer a webinar that tells you all about the EXTRAORDINARY opportunities we have available to you… and how I’m personally guaranteeing your success.  Again, this isn’t a theoretical thing… I’m guaranteeing your success in writing.

To register for that webinar, go to SDIRadio.com/cashflow.  Again, that’s SDIRadio.com/cashflow.

Now here’s the other thing:

For now, I’m only going to offer that guarantee for the next 10 houses sold.  I’ve got to be able to honor my commitment and want to make sure we have the financial ability to do so.  3 of those guarantees are already issued, leaving only 7.

So… if you’d like to TRY OUT what is absolutely among the very best real estate cash flow opportunities in America… and you’d like to do it without risking your capital, the time is now.  If that’s you, and if you have at least $60,000 in liquid capital you’d like to deploy right away into a strong cash flow opportunity, then you should set an appointment with me right away by visiting SDIRadio.com/consultation.

You should do so immediately because I suspect there’s a very real possibility that all 7 of the remaining guarantees will be gone even before the webinar begins airing next week, particularly since so many investors prefer to buy more than one of these properties at the time, and I’ll be issuing the remaining 7 guarantees on the next 7 houses purchased, even if they’re all purchased by the same person.

So again, if you meet those financial qualifications and you’d like a chance to generate STRONG cash flows, perfectly reliably – and have a full guarantee, set up a consultation with my team RIGHT NOW by visiting SDIRadio.com/consultation.

So, to Ted and Vicky… and to every one of you out there:

Invest wisely today, and live well forever!

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Why does this show – Self Directed Investor Radio – even exist, and why is it strategically wise for you to be a listener?  Today I open up about my motivations for doing this show… and my friends, it’s all about YOU.  I’m Bryan Ellis.  Listen in right now to discover whether I really know who YOU are, or not!  This is Special Episode #160.

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Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like YOU!

It’s another beautiful Monday morning, and I’m SO GLAD to have another day on planet earth and another 7 minutes to spend with you!

Let’s cut straight to the heart of the matter, shall we?

This show is designed to serve the unique needs of the affluent self-directed investor.  What does that really mean… who is this show really for?

First, you must have an interest in growing your financial portfolio.  In other words, you must be an investor.  Second, is “Self Directed”.  While you might have a financial advisor and a conventional portfolio of stocks and mutual funds, chances are good that you are strongly inclined to shift AWAY from Wall Street and it’s retail investments.  And third, you must actually have sufficient capital to make those investments, which requires a degree of financial affluence.

Now if any of these don’t apply to you, you’re still welcomed to listen to this show as an aspirational exercise.  But if all three of those things describe you – you’re an affluent self-directed investor, then you are precisely who we here at Self Directed Investor Society exist to serve.

A little background.  Most of you who are listeners to this show don’t know that this show isn’t the only thing I do.  Empirically, this show isn’t even the biggest thing I do – even though this show has been wildly successful from day 1 – and I thank you for that.  And by the way, I suspect this show will be the biggest thing I’m doing as it continues to grow stratospherically in the coming 12 months.  But my other activities are part and parcel to why I’m here to serve you today.

I also am the publisher of a newsletter for real estate investors called the Bryan Ellis Investing Letter.  That newsletter has a subscriber base of over 700,000 real estate investors of all experience levels, focused mostly in the United States but with subscribers in many dozens of countries all over the world.  (As an aside… did you know this show has listeners in 139 countries?  Very cool… and welcome to all of my listeners outside the United States!)

That newsletter is sent out on a near daily basis and contains news and strategy for investors.  We regularly host training events targeted at new investors, as a commanding percentage of the readership of that newsletter are people whose experience as real estate investors is limited.

That business has been a fun, fulfilling and profitable business.  We still run it to this day.  In fact, my wife Carole is now wholly in control of that business and is, frankly, doing a better job running it than I ever did.

But here’s the thing… a few years ago, a bug bit me, and I got a fever of sorts.  And I’ve never lost that fever.

Here’s what happened:

Several years ago, before the real estate crash, I was contacted by a group of people who were seeking to find actual investors for real transactions.  In other words, they were not EDUCATORS, they were INVESTORS looking to deploy capital, and they wanted my help with finding more clients.

I got involved with them and lo and behold, the craziest thing happened…. My clients made money.  Like real, spendable profits.  Some of the clients made a lot, some of them made a little.  I don’t believe we had any losses, thankfully.  But the point was that my clients were seeing REAL, TANGIBLE results.

That was a refreshing change for me.

Why?  Prior to that, most of my business was wrapped up in providing educational programs to my subscribers.  So if a person wanted to learn how to flip real estate, we sold them a training program on real estate flipping.  If they wanted to be a private lender, we sold them courses on private lending.  That sort of thing.

And you know what?  I was, and am, proud to be involved in that business.  There are people out there who are very self-motivated and who just want to be taught how to get a result so they can go out and produce that result.  I, myself, am the product of such an approach to learning and have thoroughly enjoyed being a part of the mix for the inestimable number of people who have learned from and implemented the training we’ve provided.

But here’s the thing… education is a LONG GAME.  In other words, a person who buys a training program today COULD learn the information and start right away.  But that’s not what the overwhelming majority will do.  Most people will go through the program, or parts of it.  They’ll then put it on the shelf for a while and let it simmer in their minds.  Then at some point in the future, they’ll come back to it… or maybe not.  Education is as much about DISCOVERY as about learning… discovering the things about which you’re really actually passionate.

So the education business, while rewarding, is a slow-moving thing for people who are new real estate investors.  And that’s ok… it’s very necessary.

But folks, I’m an engineer.  For me, things are very black and white.  And from my vantage point, what I want now, and what I always wanted, was to produce MEASURABLE RESULTS for my clients.  And not just in the distant long term, but right away.  Over the years, I developed a working theory:  I want it to be the case that a year after doing business with me, a client can look back at their BALANCE SHEET and see where there was a clear, positive impact as a result of doing business with me.  Education and discovery isn’t enough… there must be results.

Thus, Self-Directed Investor Society was born.  We still provide education, but usually it’s in the form of individual consultations for specific circumstances.  But more than anything else, we help our clients make wise decisions about deploying their capital into investments that are SIMPLE, SAFE and STRONG.  Many deals have closed for our clients in recent weeks, and many more will close this week in the next few weeks, that will match perfectly with my working theory:  The clients in those deals will have a clear, undeniably positive measurable financial impact as a result of working with the team here at Self Directed Investor Society.

It’s been so humbling, folks, with so much success so quickly, and having already received substantial trust from our clients in such a short period of time.  It’s humbling, it’s gratifying… it’s amazing.

And it’s all about serving one very specific group of people:  Affluent, Self-Directed Investors.

So if that’s you… if you’re an AFFLUENT, SELF-DIRECTED INVESTOR… you’re in the right place, and these are exciting times.  And thank you for listening to this show.

Tomorrow I’ll return with more about some truly SIMPLE, SAFE and STRONG investment opportunities that will absolutely get your attention.  You don’t want to miss it.  In fact, be sure to get on our notification list right now by texting the word SDIRADIO to 33444.

My friends, invest wisely today… and live well forever!

Hosted on Acast. See acast.com/privacy for more information.

Every American walks around with a bazooka strapped to their should all of the time, right?  What CORE BELIEFS of yours are totally false… and are costing you the chance to enjoy astounding investment results?  I’m Bryan Ellis.  I’ll expose the profit-sucking bias you don’t even know is controlling your mind RIGHT NOW in Episode 159.

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Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!

So there we were in an elevator.  My wife and I were heading downstairs in a hotel to a presentation to some affluent investors.  I had a large cylinder strapped over my should which contained a poster I was going to use in the presentation.  The doors opened on another floor for a lady to get in, and when she said “hello”… it was clear she was European.

But she kept staring at my poster tube.  She seemed really uncomfortable.

So, clearly joking, I looked at her and said – “This is my bazooka.  Where’s yours?”  If you don’t know, a bazooka is a cylindrical weapon used to launch grenades at tanks.

Well, the lady turned pale white.  She appeared to choke up.  So I told her to relax… I was only kidding… it’s just a poster.

She then said the strangest thing to me… she said:  “Well, I watch news.  I know all of you Americans are heavily armed.”

That’s right, folks… that’s what the rest of the world thinks of us.  That we all walk around with bazookas strapped to our shoulders.  And this is NOT a fabricated story, folks.  But it’s a GREAT example of ignorant, false bias.  More on that in a moment.

My friends… I’d like to thank you for the incredibly kind response you showed to my show on yesterday where I opened up a bit about a mistake I nearly made concerning raising capital to work with my clients.               If you didn’t get to hear it, I’d really recommend you do so now… you can hear it at SDIRadio.com/158.

As a result of that show, I got a really cool note from one of my clients named Joe out in Arizona, thanking me for the transparency and offering a word of encouragement.  Joe… man, I really appreciate your note of support.  Joe has placed several hundred thousand dollars into play in other transactions he’s doing with us, and he very kindly indicated he plans to deploy another $100,000 with us.  I really do appreciate your confidence, Joe… as always, we’ll serve you very, very well.  I thank you for the opportunity, sir!

So what about this CORE BELIEF that many of you hold… a latent form of discrimination, which is costing you REAL financial opportunity?

Here’s an illustration:

I have a friend who’s just a really great salt-of-the-earth type of guy.  Loves his kids.  Works hard.  He went through a divorce recently, so that was tough on him.  He’s a t-shirt and jeans kind of guy, but is a respected professional too… regularly speaks to very large audiences and is well known in his industry. This guy drives a normal car.  He has a nice, but not particularly extravagant home.  Not because he can’t afford it… but because his personal style is more subdued.  His kids go to good private schools.  On the surface, this guy has an upper-middle-class kind of lifestyle.

But BELOW the surface… this guy is FLUSH.  I mean… he has stupid-high cash flows… consistently, each and every month.  He will never be worried about money for a single day in his life, because he’s got money coming in – in VERY LARGE VOLUME – each and every month.  His cash flows would enable him to live anywhere in the world that he wants to live.

And his cash flow is TRULY PASSIVE.  He does NOTHING to maintain it.  I mean… not a darn thing.

One more thing… he’s young… in his mid 40’s… and achieved this without an inheritance or winning the lottery.  How’d he do it?

He buys little houses in just a few specific markets in the south and east… He particularly likes Alabama.  He pays no more than about $55,000 each for them, full renovated. He then leases them out through a government program that provides housing for lower income people.  And he has property managers handle it all who specializes in this particular program.

Here’s what I know:  Even right now, a lot of you, my dear listeners… well, you’re having a “bazooka moment” just like the European lady in the elevator.  Whether you admit it to yourself or not, the misinformation you’ve accepted as truth is raising big red flags in your mind.

That is your profit-sucking bias at work.  And I’d like to begin to free you of that monster today.

For some of you – many of you – your bias is against anywhere that’s not your home… that’s particularly true for my friends in California.  Many of you have a clear bias against investing in the southern United States, particularly the southeast, thinking incorrectly that the region remains the exclusive domain of hillbillies and gap-toothed morons… when in reality, there are more Fortune 500 businesses headquartered in Texas than in any other state and 3 of the top 5 states are in the south and east; the two largest research parks in the country are in the Triangle Park area of North Carolina and in Huntsville, Alabama; and four of the five biggest banks in the country are headquartered in the east. Those gap-toothed hillbillies have done quite well for themselves, haven’t they?

Some of you have bias against smaller, inexpensive homes… thinking that because a tiny 1-bedroom condo in San Francisco costs way over $500,000 that if a 3-bedroom house that costs 1/10th of that, it must be in a crime-ridden slum, when in reality, there’s far more crime in L.A. than in the neighborhoods where these homes are located.

And some of you have a bias against being involved in government programs that serve lower income Americans… assuming that all such people are inherently disrespectful of their place of residence and incapable of being good tenants.

Hogwash, folks.  I can’t count how many HIGHLY experienced investors I know who now strongly PREFER well-screened tenants from the government program because they ALWAYS get their rent on time and because those tenants have a huge incentive – that of getting a free place to live – to be a good tenant.

Your assumptions are, respectfully, outdated and misinformed. 

So, to the person who just sold a highly appreciated property in California and now wants to reinvest the $1,000,000 profit – maybe even as part of a time-sensitive 1031 exchange – and you’re considering taking that money and using it as a down payment so you can buy $5,00,000 of property elsewhere…

What if it was possible to take that same money… and instead of taking on more debt, you buy 18 properties… all newly renovated, each owned totally free and clear, and each managed by highly competent professionals and, IMMEDIATELY, within DAYS of your purchase, begin to net way over $100,000 per year… and get some EXTRAORDINARY tax benefits to boot?

All, might I add, without your active involvement?

This can be done.  And it can be done in places that are good, safe areas.  Probably not places where you live.  Certainly not in the place that I live.  But in good, safe areas… areas that offer real leverageyou’re your capital and lead to real on-going wealth… real financial freedom.

So here’s the thing:  I’m going to challenge you right now.  Begin to release that discrimination.  Let it go.  Let truth be your guide rather than the media and Hollywood.  Because my friends, in the coming weeks, I’m going to UNLEASH some astounding opportunities to you… opportunities you won’t see if your point of view is so narrow that you may as well be viewing your portfolio through the barrel of a bazooka. 

And yes… since I always get this question, the answer is YES… yes, if you’re looking to deploy capital – particularly into high-quality, full managed cash flow opportunities – yes, you should reach out to me right now… great options are available.  You can do so right now at SDIRadio.com/consultation.  Again, that’s SDIRadio.com/consultation.

My friends… invest wisely today, and live well forever!

Hosted on Acast. See acast.com/privacy for more information.

Ever had a BIG SETBACK in your investing objectives?  Yesterday, I had one, and I’d like to tell you about it so we can all learn together.  This one is expensive, folks… and will be good for you to know.  I’m Bryan Ellis.  This is Episode 158.

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Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you.

Folks, I’m guilty of something that I’d like to confess.  It’s not really a sin or a moral failing, but something that I need to correct nonetheless.

This show… which I LOVE doing… I mean I truly LOVE it… every episode is like a dream fulfilled for me, well… I’ve not been as fully authentic with you as I want.  That’s not to say I’ve been deceptive… that’s far from the truth.  In fact, I pride myself on offering you brutal honesty.  And that must come through, given then really nice review that Dave the Cop left for this show on iTunes where he said “Bryan’s program and information is refreshing!  His honesty and integrity come through.”

Dave, I really… REALLY appreciate that very much.

But where the authenticity issue comes into play is this:  I’ve been providing information to you – good information, relevant information, actionable information – and been doing it in a highly scripted manner.  Every morning, I write this show – word for word – and then I record it.  I try my best to make every single word perfect, every pause meaningful and every topic timely and relevant.

And I think, based on the way you folks have responded, that I’ve done pretty well… and I thank you for your kind feedback.

And here’s the thing:

I’m a true self-directed investor.  Like, at my core, that’s what I am.  I LOVE this stuff.  I love it!  The reason I do this show is because this is what I think about all day long every single day.  I think about investment opportunities, I think about legal constructs, I think about ways to help people grow their portfolios.  This is really who I am.  This is me at my core, and I LOVE this stuff.

But you know… my existence as a self-directed investor is NOT well scripted.  It’s pretty chaotic sometimes.  Sometimes – like yesterday – big fires appear out of nowhere that must be faced and put down.  And frankly, up to this point in the show, I’d never consider sharing that kind of stuff with you.  Even though I’ve never really admitted it to myself until now, the truth is that I hoped you folks would see me as some sort of exalted aspirational figure with all of the answers… as the wise man at the top of the mountain, so to speak.

And I still aspire to that.  But from now on, I’m going to be more transparent with you about what’s happening here with Self Directed Investor Society on a day-to-day basis.  Not because you care about my business, but because, at the core, remember this:  You and I are the same.  The exact same.  The reason I do this show is to advance my own self-directed investment objectives by way of providing value to my listeners.  That’s 100% of my motivation, and nothing else.  So, you and I are the same… and hopefully my experiences can benefit you.

So the big lesson from yesterday:  Securities law.  Let me set the stage for you:

Like I said, the entire reason I do this show is to advance my own self-directed investment objectives by way of providing great opportunities to my clients.  We’ve got a deal going on right now whereby we’re taking on new clients for a turnkey flipping program in Stockton California.  Frankly, the response has been overwhelming.  We’re having an event out in Stockton in early December, and within 3 days of opening that offer, it was full.  If you want to learn more about it for the next round, you can check it out at SDIRadio.com/stockton.  But bottom line… the response has been amazing.

Now, understand that I’m not making a pitch to you right now for the offer at SDIRadio.com/stockton.  I’m just giving you some context.  So the way that deal works is that our clients put up some capital, which my team then uses to purchase a property, renovate it and resell it.  We then share the profits.  Everybody wins… it’s a good thing, with a massive amount of successful history to prove it.

So here’s the deal… a lawyer out there in the great state of California told me that he sees this deal differently than other lawyers I’ve spoken to, and that he believes that we could have some trouble with securities laws.  Now folks, if there’s one area I don’t want to get tangled up in, it’s securities laws.  When you mess up there, it’s go-to-jail type of stuff.  Now, securities laws don’t matter until somebody loses money, and I have no plans for anybody to ever lose money.  But until I have a crystal ball, I’ve got to plan for the worst, right?

Well, bottom line… this lawyer says that we need to form a particular type of investment fund – called a 506b – that allows us to raise money from accredited investors, and that exempts us from those securities concerns.  Ok… fair enough, I think… let’s do it.  It’s inconvenient because it’s going to introduce a minor change into the structure of the deal that I’ve already mentioned to my investors, but it’s a very small change for them, so I don’t think they’ll care.

But then comes the big news – it’s going to cost a LOT of money to do this.  I’m not going to say how much, but solid 5 figures.  As in, I’ve got to wire him the money tomorrow… and that’s only because today is a bank holiday.

By the way… Veterans:  Thank you for your service.  Thank you from the bottom of my heart.  Thank you on behalf of my family.  Just know that many of us – most of us – in America are truly, truly, truly grateful to and for you.  May God bless and keep you.

So, just like that, a huge expenditure that I wasn’t expecting… a painful expenditure… one I didn’t really want to make.

But here’s the upside… and something I want to help you to understand… now, I can run that part of the business with confidence that I’m compliant, and we can do many, many millions of dollars in real estate business in the next few months… and everybody wins!  My clients will enjoy exactly the same profits, my business partners will enjoy exactly the same profits, and I will enjoy exactly the same profits, too… minus this big chunk.  But that’s ok.  That’s the way it’s got to be if you’re a self-directed investor who serves the interests of other investors, as I do.

Here’s one more bit of vulnerability:  The fact that I didn’t know this already – about the need to structure our business in that particular manner – well, it’s disturbing. In this case, we took care of it before there was a problem.  But it makes me wonder… what other things don’t I know?  What other lessons of experience have I yet to learn?

Thankfully, we’ve endured no real calamities in our business in the past, and God willing, it will stay that way.  We try very hard… and focus very hard on getting great legal advice… to avoid problems in the future by being smart today.

That’s all for today, my friends…  Tune in tomorrow and I’ll tell you more about the particulars of raising money like we’re doing.  You’ll benefit from that regardless of whether you want to raise money, or if you’re considering partnering with someone like me who is doing so.

Invest wisely today, and live well forever!

Hosted on Acast. See acast.com/privacy for more information.

WHAT IF you could buy a GREAT MUTIFAMILY property that stands on it’s own as a GREAT INVESTMENT… but without spending a single penny more, you get a HUGE tax benefit for this year’s taxes… and in the process, you feed over 1,500 desperately poor children 2 meals every single day?  Today’s DEAL OF THE WEEK is the ultimate example of doing very well for yourself while doing great good for others.  I’m Bryan Ellis… this is Episode 157.

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Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!

I’m REALLY JAZZED about today’s show, people!  You’re going to hear about an awesome investment opportunity that – even if there wasn’t an EXTRAORDINARY social and spiritual benefit attached to it – would be a great deal all by itself.  But with this add-on benefit… wow… this one is impossible to ignore.

So here’s the thing…

My wife Carole and I have a burning desire to bring practical help to people who are desperately poor and without hope.  We don’t talk publicly about this private passion of ours very much, but we – and our companies – give rather aggressively to that effect.  I’ll not share the numbers with you, but suffice it to say:  We absolutely put our money where our mouth is on this.

But I’m not really a fan of making the nebulous statement that, for every new client, we’ll donate to charity XYZ.  I’m not critical of that, I just don’t think it’s for me.  I like specificity.

So how about this:  Whoever gets in on the deal I describe to you today will not only get a GREAT and HIGH-CASH FLOWING multi-family investment deal that absolutely stands on its own in terms of quality, but you’ll also get a tax deduction of about $65,000 for THIS YEAR… and that money will be used to feed over 1,500 children 2 meals a day… children who live in the desperately poor slums of Nairobi, Kenya, in Africa… the single biggest slum in the entire world.

If you’re listening to this show over at SDIRadio.com/157 be sure to check out the picture of the Nairobi slums… it’s heartbreaking… and that’s where you’ll be making a HUGE difference… literally a life-saving difference.

Here’s the deal:

I’ve got a GREAT multi-family unit in Birmingham, Alabama.  It’s a 5-unit… each unit has 2 beds and one bath and it’s just been COMPLETELY renovated!  It’s practically a brand new property!

All 5 units are ALREADY rented.  The Veteran’s Administration has rented the entire building for veterans who need housing.  Each unit will collect $600 per month… a total of $3,000 per month.  And here’s the thing:  With the VA, you get your payments, period.  On time, every time, every month.  There’s no squabbling with tenants.  You get your income, period.  No question about it.

Now folks, I’m not going to go into great detail on this deal, but I’ll put it like this:  After factoring out property taxes, insurance, property management and very generous allowances for vacancy and maintenance, my calculations suggest you’ll end up with net annual cash flow of about $25,000.  So after factoring in the purchase price of $250,000… well, you’ll be yielding a solid 10% on your money every year… not to mention the on-going tax benefits of depreciation and the potential – the probability, actually, of growing rents over time.

So bottom line… this is a very, very good deal all on it’s own.  No doubt about it… a very good deal.  The numbers are solid… the valuation is appraiser-supported, the income is already contractually committed, the property management is experienced and in place… this is a turnkey investor’s dream scenario.

But here’s how we’re making a deal that’s already WISE and PROFITABLE be even better… by adding a rare adjective for real estate investments:  LIFE-SAVING.

I’m going to be brutally honest with you about this.  This property is worth $250,000 as I mentioned.  And I’ve got a good opportunity on this one… I can buy, totally finished, for $185,000.  That’s a difference of $65,000.

What I want to do is see that money – the part of the deal that would normally be my profit – go to our team in Nairobi, Kenya for our feeding programs.

So I’m prepared to adjust this deal however it needs to be adjusted to see that happen.  We’ll certainly have to get some tax advice to make sure that we do everything properly, but here’s the bottom line – you can either reduce what you pay for this property from $250,000 to $185,000 and simultaneously make a charitable donation of the balance, or you can pay the full $250,000 and I’ll donate the profit.  Doesn’t really matter to me, and the right answer is probably relative to your tax situation.

My goal is one thing:  To make a huge, immediate impact for some children who, without this help, may not see the end of the year.

And depending on how you want to structure this deal, you could get a tax deduction for THIS YEAR of a whopping $65,000!  That could reduce your income taxes by over $25,000 this year alone… and that’s just federal income tax.  For you people who live in confiscation states like Hawaii, New York and ESPECIALLY California… you’ll have an even bigger immediate benefit!

Plus… since you’ll effectively only be paying $185,000 for this deal, your cap rate will explode upwards to well over 13%!

Now like I said, this deal stands on its own merit without the huge extra benefit.  No doubt about it, it’s a solid, solid deal.  But with this tax benefit… well, this one is a SLAM DUNK.

And if you’re wondering… no, there’s no sneaky structuring whereby I actually profit from this deal.  That’s not my goal.  I’ve been blessed already, and I believe the entire purpose of being blessed is so that I can be a blessing.  And by using this deal as the medium through which that happens… you can have an astoundingly positive benefit, too!

So what I’m going to do is host a webinar later this week and I’ll tell you all about this deal.  It’ll be an online pro-forma of sorts.  I’ll also tell you about my team in Nairobi – with whom I’ve been working closely for YEARS… this isn’t a new relationship – and exactly how they’re having such a huge impact on those who are truly, desperately poor.

This deal has everything, folks… great value, high cash flow, massive immediate tax benefits, great enduring tax benefits through depreciation… and maybe even most importantly… you’ll LITERALLY be saving lives.

I dare you… go find an investment with returns better than that.  I dare you.

So you can get it on the webinar this week by going to SDIRadio.com/kenya.  Again, that’s SDIRadio.com/kenya.

My friends… if you’re a real estate investor who has ever dreamed of making a real difference in the lives of others… of somehow bringing a tangible, substantive, truly life-giving benefit to others as a direct result of your investing… well, this is your chance.

Remember:  This deal, without the extra incentives, is a great deal.  No doubt about it.  With the incentives… it’s of incomparable value.

So come over to SDIRadio.com/kenya right now for more information.

My friends:  Invest wisely today – and help yourself, your family, and thousands of children in Nairobi, Kenya to live well forever!     

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