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

They tell us the truth, right?  Not so fast… Today you learn one specific and truly heinous way that the government lies to YOU about the economy… and how it can be a DISASTER for your finances.  It’s time to put your “big boy” or “big girl” pants on, folks, because it’s about to get ugly.  I’m Bryan Ellis.  This is Episode 117.

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

Something’s rotten in the state of Denmark, my friends.  Actually… it’s Washington DC where the foul stench originates, and it gets stinkier on the first Friday of each month when the feds release news stats  about unemployment in the United States.

We’re not going to talk about statistics and computation and that sort of thing today.  We’re going to talk about the reality of willful deceit from the government, and why it’s so important for you as a Self-Directed Investor.  This is a rubber-meats-the-road kind of episode.

Let’s imagine, for a moment, that you’re evaluating an investment.  Maybe it’s stock in a construction company or a consumer electronics maker.  Maybe it’s rental property in the heartland.  Maybe it’s the formation of your own business.

It doesn’t really matter… whatever the case, your investment ultimately relies on one thing for success:  Customers.  And not just customers, customers who have the wherewithal to spend money and buy, buy, buy!

And, by and large, that relies on one thing:  a well-employed populace.  Whether there are able-to-buy customers in the world isn’t something that’s merely nice to know… it’s critical.

And, of course, the government very helpfully provides information about the unemployment rate in this country on the first Friday of every month.  The last such announcement was for the month of July, when the national unemployment rate was 5.3% - the lowest of the entire Obama presidency.

But, my friends… something is wrong.  Something is terribly wrong.

Do you know anyone who is unemployed?  I certainly do.  Do you know anyone who has been unemployed for a very long time?  Again, so do I.

In fact… while there are fewer unemployed than at the height of the economic collapse… anecdotally, it still seems to me like there are a whole lot of able-bodied people who either aren’t working, or who are working at menial jobs, far below their potential and below their experience level.

And there’s something else that’s totally wrong.  The output of this country is barely moving at all.  Economic growth in the first quarter of this year didn’t even reach 1%... and the second quarter was reported as being “strong”… even though the growth rate was only about 2%.

Folks, this is not good.  There’s fundamental weakness… but to hear the government say it, everything is hunky dory.

But it’s not… and those of us who are self directed investors simply do not have the option of drinking the Koolaid.  We, by virtue of our acceptance of responsibility for our own financial success, simply must be aware of the REALITY… despite what Washington DC would have us to believe.

So here’s a painful example of how they’re lying to you… and expecting you to be stupid enough to trust them.

The basic way that the unemployment rate is calculated is by dividing the number of people who are unemployed by the size of the labor force.

Simple enough, right?  But here’s the problem… the Obama administration radically altered the definition of unemployment.  To me, a person is unemployed if they want a job and don’t have one.  But did you know that by Obama’s new rules, there are literally MILLIONS of people who do not have a job, and who would be THRILLED to get one… but none of them are being counted as being Unemployed?

It’s insanity.  It’s blatant deception.

But that’s not where the travesty ends.  Do you know who IS COUNTED as being employed?  Anybody who makes $20 by cutting a neighbor’s lawn… and anybody who works just a few hours a week flipping burgers to make ends meet.

Let’s dig in here just a bit, my friends.  Maybe it’s ok for the teenager who’s working 15 hours a week to count as “employed” because they have a job at the local McDonald’s.  But the feds ALSO count as fully employed the man or woman who was a mid-level executive making $150,000 a year before they were laid off, and who has taken a part-time job at Mickie D’s just to make ends meet until they find a job that’s actually SUITABLE for them.

So what we have is a situation where the feds do NOT count people as unemployed, who absolutely, clearly are.

And we have the feds counting people as FULLY employed who have menial jobs that are, quite honestly, far below their potential, and who are FORCED to take those jobs because the health of the economy is so poor that the RIGHT kind of jobs simply aren’t available.

We know why this was done – it was the worst kind of electioneering back in 2010.  But that doesn’t make it better.  It makes it worse.

Folks, this is a bad, bad situation.  And to compound it further, the labor force in America has been shrinking very, very aggressively, such that it’s now at the same relative size as it was in the late 1970’s when, let’s face it, the policies of Jimmy Carter had run this country’s economy completely into the ground.

All of this sounds like bad news.

And you know what?  It is bad news.  There’s no sugar coating it.

But this is why, now more than ever, it’s so critical for you to fully embrace Core Value #1 of Self Directed Investors:  To RESPECT your own capital.  And how do you do that?  By requiring… demanding… that every time your investment capital is deployed, it be done so consistently with the S3 Investing Critera of SIMPLE and SAFE and STRONG.

Yes, you can have all 3 of those elements in place at exactly the same time.  One investment CAN be SIMPLE and SAFE and STRONG.

For example:  People will always need housing, and the trend among the millennial generation is to make shorter geographic commitments by renting rather than buying, so it stands to reason that rental property makes good sense as an asset class.

But friends, please understand this:  Not all rental property opportunities are the same!  Each individual opportunity is different and must be evaluated on the merits of the deal, not simply on the merits of the person who brings the deal to your attention.

For example:  If you’re considering the purchase of a rental property, would it be better to pay FULL RETAIL value for that property, or LESS THAN full retail value for that property?  Obviously, paying LESS than full retail is better, so… you should only look for opportunities to pay LESS than full retail value.  That’s safer… it protects your capital better… it just makes better sense.

Rental property is one of those investments that just makes sense on a really core, fundamental level… but the trend I’m seeing right now, my friends, is that very smart people who are very successful in their own fields and have amassed substantial capital – but who have very limited experience as rental property investors – are being presented with rental property investment opportunities that appear very, very attractive, but that investors with even a modicum of experience in that asset class would reject outright as too risky.

Now, the good thing about rental properties is that even if you make a poor buying decision, you can probably hold onto it for 10-20 years and end up being profitable – if you ignore the opportunity cost of the initial poor decision.

But why don’t you just do it better to begin with, my friends?  If you’ve ever bought real estate from a turnkey rental property company, or if you’re interested in easily building a cash-flowing rental portfolio of your own, I’d like to offer you a better way… a way to get into great properties BELOW their retail cost, in areas where there’s STRONG REASON to expect future appreciation… and using tax-smart strategies that have a wildly positive impact on your bottom line RIGHT NOW… not just after decades of holding on.

If that’s you – if you’ve got the capital position and the full intention to build a strong rental portfolio that’s totally consistent with the S3 Standard of SIMPLE, SAFE and STRONG, stop by SDIRadio.com/guidance to schedule a time for us to talk and I’ll give you some thoughts on building a rental portfolio smartly.  No… let’s do better than smartly, let’s do it BRILLIANTLY, my friends.  Let’s make it PROFITABLE FROM DAY 1!  Again, that’s SDIRadio.com/guidance to set up a time to discuss this with me.

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

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Who is the hottest stock picker on Wall Street… the one that millennials are adopting by the busload, venture capitalists are funding by the truckload, and is capturing the attention of the financial press in an amazing way?  I’m Bryan Ellis.  I’ll tell you RIGHT NOW in Episode #116

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Hello, my friends!  What a great weekend… a lot of time with Carole and the kids, a lot of rest… it’s just what the doctor ordered!  I’m back with you recharged, refreshed and ready for another big week of Investment Excellence, right here on the podcast of record for savvy, self-directed investors like you!

What do you do when you just don’t trust your stock broker or investment advisor, but you believe Wall Street is your only medium for growing wealth?

Well, of course, you turn all of your decision making over to a computer.

Huh?  Yep… you heard it right, folks.  A huge trend in financial planning – particularly among cash-rich millennials – is something called a “Robo Advisor”.  It’s essentially just a software program that you give fully authority to manage your investment portfolio on a fully automated basis.

The premise is an interesting one.  After all, isn’t it true that most of the mistakes made by stock market investors are mistakes born of emotional response that’s not supported by logic?

And wouldn’t the use of an emotionless computer help to mitigate that risk – and make it possible to factor in a breathtakingly large amount of information into every decision on a moment-by-moment basis?

Well, maybe.  I’ll give you my perspective on that in a moment… which, you might find interesting, as I’m both an active investor and was, for many years, a rather successful software developer.

This trend towards Robo Advisory is interesting, and it’s attracting major attention from venture capital firms, and of course, some of the major Wall Street firms – like Charles Schwab and Vanguard – have gotten in on the act with Robo Advisory services of their own.

I’ll admit:  The premise is appealing.  It’s easy to make the marketing case for why Robo Advisory would be a great idea.  After all, clearly, it’s possible to make profits in the stock market… so why wouldn’t a computer… with infinitely better information access than any human… be a superior choice?

Well, so far, it looks like the humans are winning.  Overall, results for RoboAdvisory firms, including some of the big names like Wealthfront and Betterment, are underperforming the market as a rule.

Here’s the thing, folks:  I’m a big believer in the notion of PROPER PREMISE.  And it’s pretty clear to me that the flight to Robo Advisory is based on a flawed premise.

What is that flawed premise?  It’s simple:  Wall Street is the best place to invest your capital.

My friends, the facts simply don’t bear that out.

Look, if you’re going to be an active and focused investor, carefully choosing your own investments and monitoring their performance regularly and adjusting whenever necessary, then it’s possible you can invest in stocks and beat the averages.  Note:  That’s possible, not likely.  It’s astounding, but it’s still true that the goal of most financial advisors is to beat the performance of the S&P 500 – and most of them just don’t do it with any consistency at all.

But the mere POSSIBILITY of making money is no way to choose an asset class.

Where is it POSSIBLE to make money?  Well… in stocks, for sure.  In Las Vegas… very low odds, but very high return potential.  If you really want to go where the money is, you could fund the production of crystal meth and become fabulously wealthy in just a few days, but at the risk of both imprisonment and death.

The stakes aren’t quite so high in the stock market, but the idea is the same.  There’s a concept I’ve discussed with you before:  Reversion to the mean.  That means that things to go back to their averages.  If you’re likely to win 1 time out of every 20 on the slot machines in Vegas, then that’s about how frequently you’ll win over time, even if you lose every round for a while, or even if you win 5 in a row.  If there’s a 90% chance you’ll end in prison or dead by getting into the crystal meth business and you’re presently neither incarcerated or dead, then you should buy life insurance and move out of the country.

And if you’re investing in stocks… the 80-year compounded annual growth rate of the S&P 500 is about 6.5%.  That’s the average.  That’s what it does.  Sometimes better, sometimes worse.  But that’s the average… and that’s what the S&P500 will revert to.

And along the way… volatility.  Unpredictability.  Stress.  Not good things.

Look, I’m not actually opposed to stock market investing.  I think there are almost always great opportunities… but those opportunities are almost never where the public is looking.

So here’s how all of this relates to the notion of having a PROPER PREMISE.  The 3 problems with the premise that Wall Street is the best place to invest your capital are:  (1) you’re investing in a market where the mean to which your returns will revert are basically only in the 6% range; (2) historically, individual investors perform BELOW the index as a whole because they don’t stay the course consistently over time; and (3) the low average return is DESPITE the fact that the market is incredibly volatile… in other words, the high degree of volatility… in other words, risk… is totally out of line with the low level of PROFIT.

And it looks like the Robo Advisors are not yet outperforming their human counterparts.  I think it’s possible that the Robo Advisors could catch up to the performance of human advisors, but the reality is that these applications are created by humans using algorithms created by humans, relying on patterns observed by humans… inherently, the human bias is built in to these services.

The one attractive thing about RoboAdvisors is that they are, by and large, relatively inexpensive.  So if you insist on gambling on Wall Street, at least you’ll lose less in the form of commissions.

You know another way to beat the averages?  Inspired by the 1973 book “A Random Walk Down Wall Street” in which Princeton Professor Burton Malkiel claimed that a blindfolded monkey would beat the market by picking stocks chosen by throwing darts at a newspaper’s financial page – a firm called Research Associates did an interesting study in which they chose 100 totally random portfolios.  And you know what?  98 of the 100 random portfolios actually DID beat the performance of the market!

My friends:  Not good.  Not good at all.

A smarter premise is this:  Everything reverts to the mean, so let’s choose investments with better averages!  And let’s choose investments that aren’t so volatile that the stress induced on the way to making those returns counteracts the financial benefit of the profit!

Want to know how to do that with YOUR portfolio?  Just text the word GUIDANCE to 33444 and I’ll be happy to give you my thoughts about that.

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

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ONE SINGLE WORD explains it all, my friends.  Why do so many people mindlessly plow so much money into stocks & mutual funds, when FAR BETTER OPTIONS exist?  I’m Bryan Ellis… I’ll tell you what that ONE WORD is, and how YOU can get more of it RIGHT NOW in Episode #115.

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Another day, and I get to be with you yet again!  I swear to you, my friends, I feel like the luckiest man alive to get to spend this time with you each day!

Welcome back to ANOTHER exciting episode of the podcast of record for savvy self-directed investors like YOU.

So, folks, before I get started:  Today I’m delivering a POWERFUL webinar that’s exactly perfect for many of you.  If you need a way to generate a solid, predictable and astoundingly safe 7% on your investment portfolio, I’ll show you EXACTLY how to do that in today’s webinar.  It’s not an exotic strategy… in fact, you’ll understand the fundamentals in under 30 seconds.  But it is POWERFUL… and if you’re looking for a way to deploy the CORE of your portfolio… the part that you’re depending upon, and that you can’t afford to risk… well, join us today!  The webinar cost $97 for the general public but for you as a listener to the Self Directed Investor Radio show, I’ll admit you without cost.  But there are only a small number of complimentary passes remaining for today’s live broadcast and then for a couple of re-broadcasts that are coming up.  If you’d like to get one of those free passes, then text the word RESERVE to 33444 right now.  Again, text the word RESERVE to 33444 right now and I’ll send you a link so you can get one of those complimentary passes!

My friends, yesterday was a crazy, delightful day.  My team bought 4 different houses yesterday, all of which were bought so far below value that we have every reason in the world to expect to be able to turn these properties very quickly for really, really substantial profits.

I’d like to tell you about one of those deals.  It’s the one of the 4 I know most about, because my wife Carole and I bought it, at her urging.

A quick aside – gentlemen, aren’t you grateful for your wife?  Wow… that woman has improved the quality of my decision making immensely, both in steering me away from bad ideas and pushing me towards the good ones.  Carole… thank you.  I’m doing a terrible job of expressing how truly grateful I am for you, and how profoundly CENTRAL you are to the success of our businesses, but I want you to know, and I want everyone to know:  I *KNOW* I couldn’t do it without you… not even close.  And what I get from you isn’t just nebulous help in the form of being a good, supportive wife – which you certainly are – but you also contribute materially and substantially to our businesses in ways that nobody ever sees publicly, and I’m so grateful to you.  Thank you!

Ok, returning from that aside:  I’d like to tell you about the deal I got yesterday, because it’s a really good one.  But the reason I want to tell you about it is not to brag, but to express today’s point about the ONE WORD that explains why so many people choose fundamentally QUESTIONABLE investments – including stocks & mutual funds – when so many superior options exist.

So about this deal… I wasn’t planning to buy it.  I wasn’t planning to do any investing yesterday at all.  I was just minding my own business when the phone rang.

On the other end of the phone was a friend and colleague who I’ve come to respect and trust.  This guy is a dynamo at finding really great real estate deals.

He called me and said… “Bryan, I know you’ve been looking for some rental property in the Phoenix-Tucson corridor.  I’ve got one for you if you want it.”  Well, I wasn’t expecting the call, so I was a bit surprised, but certainly intrigued.

He went on to explain…  “Property is worth $100k.  You can rent it for about $850.  Including purchase and renovation, you’ll be in it for $55,000.”

Ummm…. Yeah.  I think I want that one.

The deal is great, and it’s in a region of the country where we have some serious inside information that leads us to believe that there’s massive appreciation potential.  It’s an exciting, exciting deal!

But that’s not where the story ends.  I wasn’t expecting to do any investing yesterday, and so I didn’t have all of my funding at the ready.  This was a deal bought at foreclosure auction, so time is of the essence.  It’s a pay-now-or-don’t-get-the-deal kind of thing.

So we’re funding this deal from a retirement account, and the person who controls that IRA is wholly unavailable to wire the funds until Monday.  Big problem, right?

Well, yeah… but when I expressed this to my colleague, and told him he could just let it go to someone else, he said – no worries.  I’ll carry it for you over the weekend.”

So the guy essentially lent me $55,000 on nothing more than the strength of a good relationship.

This deal is going to be profitable, my friends.  In fact, I may well just sell this one as a turnkey rental property and leave a huge chunk of equity in it for my buyer.

But here’s why I’m telling you all of this:  Yesterday, all over America, people called their stock brokers or logged onto their e-Trade accounts or whatever they do, and they bought mutual funds.  I’ll bet somewhere, somebody actually invested a similar amount of money - $55,000 – as the amount of my deal.

And do you know what?  Even if I sell it really, really cheaply, I’ll still put $20,000 in my pocket… in 45 days or less.  And you know what?  At the average annual return of about 6.8%, it will take that same stock market investor 5 years to achieve what I’ll achieve in the next 45 days.  And I’ll take FAR LESS RISK while doing it.

Why?  Why am I doing it that way – and hopefully you too – rather than the conventional route of mutual funds?

It all comes down to one word:  ACCESS.  I have access to these opportunities.  And in truth, it’s not really even access, as much as RELATIONSHIPS.  Relationships with people of influence, people with connections… folks, that’s the secret sauce of being a successful self-directed investor.  It really is.

Another quick example… and then I’ll help you to see why this is GREAT NEWS for you, even if you don’t feel like you have the access to these kinds of opportunities that you want.

So, I’m always on the lookout for opportunities to connect my clients – many of whom are listeners to this very show – with GREAT investment opportunities.  I’m always looking for things that match the S3 Investment Standard of Simple, Safe and Strong.

Well, one guy I’m evaluating has a pretty astounding track record.  He understands this “relationship” issue far better than most.  The guy does ZERO in the way of marketing, yet the kind of deals he gets… in VERY LARGE VOLUME – 35 deals in the last 60 days – is just astounding.  It’s all a function of his RELATIONSHIPS.

He just bought a house for $273,000 that needs ZERO renovation work.  In as-is condition, this property is worth $450,000.  That’s a MASSIVE paycheck about to happen… because of a strong relationship.

He got another one for $95,000 all in that’s worth $170,000.  And another all-in deal at $90,000 that’s worth $150,000.  He got a horse farm in a polo community for $258,000 that’s easily worth $600,000 which he’ll sell in a matter of days at the discounted price of $499,000.  He’ll only make about $140,000 in a few days.  Poor guy.  Hehehehe

Here’s my point, folks:  It’s all about ACCESS to high quality relationships.

And for those of you with whom I have the pleasure of working, and for whom I get to serve as YOUR ACCESS to deals of this quality… well, thank you!

What about YOU, my friend?  Would you like to be involved in deals like I just described to you?  Well… if this guy passes my due diligence process – and frankly, most do not – but if he does, then I’ll be looking for people – for savvy, self-directed investors – who would like to take part in transactions like that.

Interested?  I thought so!  Make sure you’re part of the Self Directed Investor 5-Star listener’s group, and I’ll share more information there.  If you’re not a part of the group, just text the word SDIGROUPD to 33444.  Again, text the word SDIGROUP with no spaces or periods to 33444.

My friends:  Invest wisely today, and live well forever!

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Warning sirens are sounding as a result of an ominous indicator in the stock market and the devaluation of the Chinese currency.  But what does that mean practically for the self-directed investor?  I’m Bryan Ellis.  I’ll tell you what it means for you RIGHT NOW in Episode #114.

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Hello, my friends.  You’re listening to the podcast of record for savvy self-directed investors like you.  I’m truly grateful that you’re listening right now.  It’s so gratifying to see how you folks are helping us grow.  For the last week or so, I’ve been waking up to see that this podcast has already been downloaded as many times by 8:00am as was happening in an entire day as recently as 2 weeks ago.  The growth is just amazing… thank you, my friends.

I’ll get to the information about the stock market and the Chinese currency in just a moment.  But I’d like to take a minute or two and make sure we’re all keeping our “eye on the ball” and are investing on PURPOSE rather than by default.

Folks, a very positive consequence of the fact that this show is growing and succeeding is that I’m slowly honing the message that I want to drive home to you every single day.

And one piece of that message is that the CORE VALUE of self-directed investors is this:  To respect your own capital.  Nobody else will do it for you.  That capital cost you time, energy and effort… or maybe it’s the result of the blood, sweat and tears of someone who cares about you.  Either way, the time, the energy, the effort it took for you to acquire it – the very LIFE it required for you to acquire it – makes that capital profoundly worthy of respect.

And NOBODY will ever respect that capital more than you will.  Not your financial advisor.  Not the government.  Not anyone else.  That’s why we have to require… we have to DEMAND… that every investment choice we make stringently complies with the S3 Investing Standard of:  SIMPLE and SAFE and STRONG.

But that’s not where the core values of self-directed investors end.  You see, there’s a core value #2 that I’d like to share with you right now, and it is this:

Profit has purpose beyond build wealth.  It’s a means to an, not an end unto itself.

Do you have clarity about YOUR purpose for the profit you’re making?  Certainly, part of your purpose is to create financial security for yourself and your loved ones, and that’s a central responsibility for you as a responsible adult.  But what about beyond that?  What about a broader, bigger purpose… maybe even a purpose that transcends just yourself and engages your entire family, maybe even for multiple generations?

I’m not going to delve deeply into that topic today, but can I encourage you to think about that in the coming days.  I’ll address it more fully in coming episodes… but my friends, I will say this:  When there’s clear purpose for your profit beyond mere wealth building, the clarity with which you operate when making investment and financial decisions steps up another level.  Your perspective becomes greater, your point of view is more enlightened.  Basically, you become wiser.  And wisdom is among the highest objectives to which any of us can aspire.

So, let this question simmer in your mind a bit:  What is the greater purpose for your profit?

Now, let’s focus on building that profit a bit more, shall we?

Folks, two very ominous events have occurred in recent days, and you need to understand them.

First:  China has devalued their currency.

And Second:  The death cross signal in U.S. stocks.

Both of those things sound a bit wonky, so here’s what those things mean in plain language:

About China’s currency:  The net effect of China’s currency being devalued is that Chinese goods will be less expensive, thus boosting sales and exports of Chinese goods, and in turn, the Chinese economy as a whole.  Currency devaluation is an artificial way to spur economic growth.  In effect, this is an acknowledgement from Beijing that trouble is brewing in China.

You are aware, aren’t you, that the Chinese stock market experienced a major crash last month?  Over $3 TRILLION in value was wiped away in a single month.  About a third of the Shanghai Composite Index vanished in just a few weeks.  And if all of the comparisons of the Chinese market crash to the great crash of 1929 prove accurate, then the Chinese market has a lot farther to fall.

Is this relevant to you?  Yes… particularly if you’re relying on Wall Street investments to grow your wealth.  To understand why, you have to look no farther than the long-time darling of Wall Street and the business world, Apple.

Apple’s stock has been very weak this year, in large part due to the realization that the Chinese economy is weak.  Since China is Apple’s primary growth market, Apple’s future looks far less predictable than it’s past.  Thus, Apple’s stock has been very weak, plunging about 14% from its high of the year.

So, follow the chain of events:  Weakness in China’s economy leads to stock market crash and currency devaluation, leading to lowered profit expectations from American companies (like Apple), leading to pressure on stock prices and declining markets overall, which leads to the second ominous issue of the day:

The DEATH CROSS signal in the U.S. stock market.

I won’t bore you with the details of the death cross, other than to say it’s one of those kinds of indicators that propeller-head types use to analyze and predict stock market movements.  The basic idea is that the long-term trend of the market is flattening out while the nearer-term trend has turned distinctly negative.  On a practical level, all it means is that more capital is flowing OUT of stocks than into them.

This signal is certainly a negative indicator, no doubt about it.  But it’s not necessarily a kiss of death.  While there have been some times that this signal has materialized and the stock market continued upward, there have been a few times when it materialized and the stock market took a real bloodbath.

But when considering the death cross in concert with the fact that China is finally beginning to admit to the weakness that all informed analysts already knew was there, well… it’s an ominous signal.

Wow… all of that is complicated.  Very.

The real point is this, my friends:  The stock market is not truly predictable… but the signals it’s giving aren’t positive.

And remember this, my friends:  if you look back at the past 80 years – the average lifespan of an American – what you’ll see is that the average annual stock market increase during that time is in the 6 percent range.

All of this volatility, unpredictability, and overwhelming risk… for a 6% average?

My friends… you have better information… better knowledge… better opportunity.

I want something better for you.

Let me ask you something, my friends, and I ask this with utmost sincerity:

Do you truly BUY IN to being a self-directed investor?  Remember – that means some… it means something specific.

It means that you RESPECT your own capital.

It means that your profit has purpose beyond wealth.

So ask yourself, my friend… is it showing respect to your capital to accept that risk… that unpredictability… that volatility… for something that, in the long run, will equal to 6%?

Will accepting such meager returns enable you to have enough profit for your purpose beyond mere wealth?

There’s a better way, my friends.  Many better ways.

If the time has come for you to think about transitioning OUT of the stock market – maybe even with just a portion of your portfolio – and into some options that are truly SIMPLE and SAFE and STRONG, I’d be delighted to talk with you.

Just go to SDIRadio.com/guidance and pick a time.  Or if you’re not in front of a computer, just text the word GUIDANCE to 33444.  Again, go to SDIRadio.com/guidance or text the word GUIDANCE to 33444.

My friends…  I appreciate you.  Would you do me a favor?  It’s this:

Invest wisely today, and live well forever!

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Do you own rental property?  Want to get paid – in advance – for an entire year’s worth (or more) of rental payments?  It’s easier than you think, and I’ll tell you how right now.  I’m Bryan Ellis.  This is episode #113.

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Welcome back to the podcast of record for the Self Directed Investor community.  Thank you for making us the undisputed king of the jungle among savvy individual investors like you!

My friends, it’s the stuff of fantasy for landlords:  the tenant who will pay 100% of their annual rental fees up front, freeing the landlord from cash flow worries for an entire year at the time.  It’s practically nirvana!

Well, my friends, as it turns out, that’s possible… and much more easily than you think.

But before I tell you how that works, 2 quick announcements:

First, we’re getting a steady supply of REALLY GREAT cash-flow properties that are stocked with a paying tenant, that have solid property management in place, and that, most importantly, you can buy for FAR BELOW retail value.  No inflated costs for turnkey rental properties here, my friends.  Only problem is, because the deals are so good, we have a fairly low supply… we might get 10-15 or so of these deals per month, which is nowhere near enough to service all of my valued listeners.  Do YOU want to know the very moment these high-cash flow, high-equity opportunities are available?  Then join my TOP PICKS notification list.  It’s free for listeners to this show.  To join that list right now, please text the word TOPPICKS to 33444.  Again, that’s text the word TOPPICKS – no spaces, it’s spelled TOPPICKS – text the word TOPPICKS to 33444.

Second, and kind of related to the first, we’re going to host a very special event for those of you who want to build a strong portfolio of cash flow-producing, high-equity rental properties… but without having to get your hands dirty in the details of being a landlord.  There are a lot of people who will sell you rental properties… those are just commodities.  But cash flow properties that meet the S3 Standard of being SIMPLE and SAFE and STRONG?  Well… there’s only one way to get properties, and to build a portfolio, that meets that standard, and that’s to join us for the upcoming Self Directed Investor Cash Flow Summit.  I’ll host that event in a couple of months and it will be for a very limited number of attendees… each of whom will be shown how, and specifically given then opportunity, to build an astoundingly strong stable of cash-flow-producing, high equity properties.  My friends… why should you pay high prices for your rental properties from turnkey companies when you can get TRULY strong cash flow AND high equity, all from day 1?  So if you’d like to be notified about this opportunity, please be sure to get on the Self Directed Investor Radio email discussion group by texting SDIGROUP to 33444.  There are no spaces or periods, it’s SDIGROUP, text SDIGROUP to 33444.  You’d do well to be on that email discussion group list for early notification of the SDI Cash Flow Summit, as our last live event – the Passive Property Flipping Summit – filled to capacity weeks ahead of time.  So, again, text SDIGROUP to 33444.

My friends, if you own rental property presently, and you like the idea of getting paid all of your rental income for an entire year UP FRONT, then listen up!

I learned a very cool strategy recently that I want to share with you.  Folks, definitely get advice from your attorney before using this one, but I’ve got to tell you… the potential is ASTOUNDING to me…

You may remember back from episode #102, I told you about a special type of real estate deed called a “life estate”.  I’d suggest that you go back and listen to that episode again, because the strategy therein is REALLY amazing, and it’s definitely related to what I’m going to teach you today.

But today we’re going to have fun with another type of special real estate deed… and I’ll show you landlords how it can be used to generate income for large periods of time rather than on a month-to-month basis.

Here’s how it works:

You own rental property.  You’ve got a tenant paying $1,000 a month for your property.

Thing is… you want or you need a chunk of capital for something else… and getting most or all of your rent up front would be a great way to make that happen.

Here’s one way you could do that:

Find somebody who’s interested in TAX-FREE cash flow.

Do you think there might be SOMEBODY, SOMEWHERE who’d like to have tax-free income?  Hehehehe… yeah, I think so, too.  And I’ll tell you why this income can be tax-free, or at least, extremely LOW tax, in just a moment.

So here’s what you do:

You deed that rental property to this person – we’ll call her Barbara – who needs to have some income.  That’s right, you sell the property to Barbara entirely.  You make it HER rental property… HER tenant… HER cash flow, BUT…

There’s one big difference:

When you deed this property to Barbara, you’re not going to use a standard deed.  That would give her permanent ownership of the property… and that’s no good.  What you do instead is use a type of deed called an “Estate for Years” or “Estate for Term”.

What’s an Estate for Years?  It’s really just a type of deed that conveys ownership for a set, limited period of time.  So, going back to our example, you’ve got this rental property that’s producing income, and you’ve got Barbara who needs to have that income.

You know that what Barbara is looking for is an 8% ROI, so what you do is work backwards.  You use your trusty-dusty, handy-dandy financial calculator and you plug in the numbers and you determine that you can sell a year’s worth of payments to Barbara at an 8% yield for about $11,500.  So you’re taking $500 less to get all of your money RIGHT NOW…

And actually, you may not even need to take a discount at all because of another huge advantage that Barbara will enjoy as a result of this transaction:  Tax Savings.  Because for that year while Barbara owns that property, SHE is entitled to take the depreciation deductions.  As you may know… depreciation can yield some VERY substantial tax savings… and in this way, the income she generates is going to be worth more than 8% to her, because she’ll pay zero, or very little, in taxes as a result of that depreciation.

This is PARTICULARLY cool for those of you who own rental property in your IRA or 401k.  Why?  Well, you’re not using the depreciation deduction anyway.  So you’re not even losing any tax benefits by doing this!

Now, my friends, I realize that there are lots of variables and important things to consider that we’ve not discussed in this brief show, but look, my point is to expose you to a new idea… a new way of thinking.  And my friends, this is some SERIOUSLY COOL stuff.  For those of you who are a little bit creative, I’m sure the wheels are really turning in your mind right now!

That’s all for today, my friends!

Remember – be SURE to get on the SDI Radio private discussion group list by texting the word SDIGROUP to 33444.  That’s how you’ll get early notice for my upcoming events – which always fill weeks in advance – and early notice of other great benefits of being a listener to Self Directed Investor Radio.

And hey… right now is a GREAT time to go back and listen to any of the 112 episodes that came before this one.  Every one of them is at SDIRadio.com – enjoy, and please, tell your friends!

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

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If you’re thinking of buying a rental property right now, STOP!  Do you know what you should ACTUALLY pay for that property?  I’m Bryan Ellis.  I’ll tell you how to know if you’re overpaying RIGHT NOW in Episode #112

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Welcome, my friends, back to another exciting edition of the podcast of record for self directed investors the world over!

Let’s talk about rental properties, shall we?  Many of you have the impression that I disapprove of owning rental property, or that I somehow disapprove of the notion of “turnkey” rental properties, in which you buy a rental property from a company who also stocks the house with a tenant and selects a property manager so that all of that stuff is in place without your having to do anything.

Both of those things are wrong.  I absolutely approve of owning rental property.  And I absolutely approve of solid turnkey rental deals.

But let’s be careful to pay the right prices, ok?  Remember:  The core value of a self-directed investor is to RESPECT YOUR OWN CAPITAL… and the most basic, fundamental way to do that is to NEVER, EVER pay too much for an investment.

So what is the right price to pay for a rental property?

Let’s start with what ISN’T the right price.

Do this:  Before you buy your next rental property, call up a real estate agent in the area.  Ask them what that property would sell for on the open market.  Whatever they tell you is a good approximation of the retail value of that property.

The right price for you to pay for a rental ISN’T the retail value.  You must pay LESS than that.

My friends, remember this:  you will be successful primarily as a result of getting good deals.  What makes for a good deal?  Property bought below it’s retail value.  How much below?  I’d say 10% below is a good starting place.  15-20% or more is better.  But what does NOT make any sense is to pay full retail value for that property.  Paying retail is for bush league investors who don’t know what they don’t know.  That’s not you… now you know better.

But I’d like to give you a warning.  Many people selling turnkey rental property will try to confuse you by basing their pricing on something called cap rate, or capitalization ratio.  Honestly, if you hear the word “cap rate” in connection with single family houses, somebody is probably trying to confuse you.  It’s VERY, VERY easy – repeat, VERY easy – to do some financial magic such that it looks like your “cap rate” is very high, at 12-15% or more.  They want to do that because it’s easy to justify charging higher prices for the property when you perceive the rate of return to be stronger.

My friends:  Repeat after me:  Cap rate doesn’t matter.  What DOES matter is the REAL VALUE – what would the house sell for on the retail market?  And then, you ALWAYS pay LESS than that number!

Folks, this is one of those places where your intelligence actually puts you at a disadvantage.  If you’re like 95% of my audience, then you’re a smart, successful person who is probably an engineer or a sales person or a computer programmer or a physician or some other type of professional who is very good at your job, and it’s likely you have a high income.  It’s also likely you’re not a real estate expert, and that’s OK!

Here’s the thing:  Like me, and like everyone else, you simply don’t know what you don’t know… and like me, you may be inclined to think that because you don’t see any holes in the argument being put in front of you, that there are, therefore, no holes in the argument.  And buying a turnkey rental property presents a fertile ground for you to be confused while falsely feeling very confident.  What happens is that you are redirected to focus on other issues like CAP RATE or the potential for tax savings through depreciation or discussions about the difference between “nominal” and “actual” dollars, and of course, why real estate is such a great hedge against inflation.

My friends, all of that is interesting stuff, but it’s not relevant at the point of your portfolio balance.  All of that stuff exists in EVERY real estate deal… not just the one they’re trying to sell you.

Can I show you how I might evaluate a deal?  This, by the way, is a real deal… it’s actually available right now.

So this is a little house in a strategically VERY attractive area of the country.  The property is solidly worth $95,000, arguably even $100,000… and that’s based on comparing it to other houses in the area, not based on any cap rate-related sleight of hand.  It’s totally rent-ready and rents for $850.

Here’s a really simple analysis:

$850 rent means $10,200 in gross income per year.

By the time we factor out property taxes, insurance and property management, you’ll net $8,186 per year.  So what’s your ROI?

Well, that’s the interesting thing.  If you’re buying this from a typical turnkey rental company, you’re going to pay – repeat after me – FULL RETAIL or higher.  In this case, that would mean $100,000 or more.

Not here.  You’ll get this property for $80,000 – a full $15,000 to $20,000 below it’s REAL value.

And based on that price of $80,000, your cash-on-cash yield will be 10.2%!

Folks, that’s cash-on-cash of 10.2% - and that doesn’t even include the substantial EQUITY position that you’ll have from day 1!

Now, let’s be clear:  That’s the pre-maintenance profit.  There WILL be maintenance costs.  Likely less to begin with and more as the property ages.  And I’ll tell you… you’d be VERY wise to set aside the entire first year of cash flow for use as rental reserves.  That’s an aggressive approach… but it’s one that will make sure you don’t find yourself in trouble.

So what makes this deal a good deal?  Well, it’s a very attractive price – well below retail value – the cash flow is very solid… and… it’s in a great, appreciating area!  This one is really attractive.  I think that buying a turnkey property 10% below retail is a really good start… but when they’re 15-20% below retail like this one… well… it’s a no-brainer.

And do you see that I didn’t have to try to confuse you with discussions about tax benefits or inflation rates… and a really big one – I didn’t try to tell you that equity doesn’t matter, and that you should look ONLY at your results in terms of cash flow.  Whenever you hear that one, my friends, you should RUN.

Sure, you get tax benefits with this property, just like every other property in America.  Sure, this property is a hedge against inflation, just like the property you’re considering from a turnkey property provider.  But the difference is – this is ACTUALLY a really good deal… and you simply don’t need a degree in finance to understand that.

Remember the S3 Investment Criteria, my friends:  Simple. Safe. Strong.  This investment is SIMPLE… it’s a rental in an appreciating and growing market!  It’s SAFE… you’ve got a solid equity position and very good cash flow from DAY #1.  And it’s STRONG – strong cash flow, strong equity, strong market.

This one, I believe, makes a LOT of sense.

Incidentally, this property is a real deal and really available.  It came across my desk this morning.  We only get about 10-15 deals like this a month where you get a GREAT cash-flowing rental property with a vetted tenant and solid property management… along with a GREAT below-market price.  In fact, many of our deals are so inexpensive, that you’re getting the house BELOW what it costs to build, and you’re getting the land, effectively for FREE!

So, those deals tend to go very, very quickly.  Are you interested in getting into some GREAT turnkey rental properties that actually MAKE SENSE…  Well, my friends, I’ve got them!  If you’ve got at least $100,000 of capital – which is about where most of these properties are priced – and you’d like to be on the Self Directed Investor rental Top Picks notification list, just text the word TOPPICKS to 33444.  That’s just one word, with no spaces.  Text the word TOPPICKS to 33444 – but only if you’d like to be notified as we receive access to great turnkey rental properties you can buy well BELOW retail cost… in other words, truly SMART deals!

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

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How would you like to own a certificate of deposit with returns that actually BEAT the stock market?  Something so reliable that it’s a great way to invest that part of your portfolio that you absolutely can not afford to lose… yet you still get a great return?  Well, I’ve got something even better, and I’ll tell you all about it RIGHT NOW.  I’m Bryan Ellis, and this is Episode #111

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Hello, SDI Nation!  Welcome to the podcast of record for smart, individual investors!

I didn’t get to be with you on Friday, and I really missed that!  But boy did I have a great time with some of your colleagues and fellow listeners at our Passive Property Flipping Summit.  That event was for affluent investors seeking to deploy their capital into passive real estate flipping opportunities, and it was an extraordinary experience.  The event filled up many weeks ahead of time and it was just truly wonderful to actually meet so many of you face-to-face!

My friends, I’ve got some great info to share, and I’ll get to that in about 30 seconds.  But first, let me say THANK YOU for listening!  This podcast is only about 6 months old and it’s already a major force to be reckoned with because of YOU.  It’s astounding how many other shows feel the need to respond to what I say, because what I teach is completely counter to the advice given by others who have a conflict of interest.  And heck, there are a lot of shows that are now rather directly ripping off my material now.  Yes, my friends, what you’re now hearing is SHOW PREP for the other shows you listen to.  Hehehehe  You know what they say… imitation is the sincerest form of flattery!  Until the cease-and-desist letter, that is.  Hehehehehe

But seriously, we’re doing so well because of YOU, and I’m SO VERY GRATEFUL to you.  Nobody would care about what I have to say if YOU didn’t care about what I have to say… and so really, YOU are the hero, the person of influence, in this situation.  And I’m so grateful to you.

So, I’m going to give you some great value yet again today!

Here we go:

It would be great if there was a bank that would issue a CD that could beat – or even equal – the long-term average of the stock market.

Well, my friends, such a CD does not exist, as you know.  But something that’s BETTER actually does exist.

And before I tell you about it, let’s determine what is ACTUALLY the long-term return of the stock market.  What would you guess?  A lot of people think that number is 10% or 12%.  What do you think?

Well, my friends, let’s look at the actual numbers, shall we?

We’ll use a period of 80 years, because that’s the average lifespan of an American citizen.  And over the last 80 years, the compounded annual growth rate for BOTH the Dow Jones Industrial Average and the S&P 500 has been in the 6% range.

Surprising, isn’t it?  Much lower than you guessed, no doubt.  But the news is worse than that.  Around 6% is what the MARKET has averaged.  The results for the typical investor in stocks has been FAR WORSE.

There’s a fascinating study that’s published every year called Dalbar’s Quantitative Analysis of Investor Behavior.  Sounds like a great read, doesn’t it?  Hehehehe.  Well, there is one particular piece of information in that you MUST pay attention to:

The average investor who invests in stocks does NOT achieve a 6% rate of return.  Far from it.  According to Dalbar, the average 30-year annualized rate of return is a whopping 1.9%.

Yes, you heard that right:  1.9%.

How could that be?  The painful truth is that you and I aren’t very good at stock picking or timing.  Remember – that magical 76 number is based on the assumption that you put money in 80 years ago, and that you leave that investment alone for the entire 80 years following.  But is that reality?  No, of course not.

Folks, do you remember back as recently as 2008… a year when there were 3 SEPARATE days when the entire S&P500 fell by about 9%?  It was a bloodbath.  Or do you remember back to Black Monday – October 19, 1987 – when the ENTIRE MARKET fell by more than 20% in a single day?

The ugly reality is most investors revert to their baser instincts of survival mode when such things happen.  That’s the nature of the stock market.  It encourages emotion-based decisions, which leads to buying high and selling low.  And that, my dear listeners, is why even though the long-term average for the market is about 6%... the average for people like you who invest in the stock market is less than a third of that, at 1.9%.

Have your results been better than that?

Then pay close attention to this:

My friends, there’s a concept in statistics and finance called “reversion to the mean”.  This means that anything you’re measuring tends to return to it’s long-term average over time.  If right now you’re below average, it’s likely your results will rise.  If right now you’re performing above the average, it’s quite likely your results will revert to the mean.

What’s the answer?  Let’s invest in assets that have a higher average!

How about, say, 7%?  That way, we beat the stock market and the average investor!

So where can you get such a result?  It’s easy:  don’t look to Wall Street.  Look to Main Street.

Imagine a local guy named Joe.  Joe found a piece of real estate he can buy WAY below it’s value.  I mean… WAY below it’s value… about half.  Problem is, he doesn’t have all of the money he needs.

This is an opportunity for you to get a SLAM-DUNK investment.  Here’s how it works:  You make a loan to Joe.  You lend him money at 7% interest, and so that it’s easy for him to make payments, you only require interest-only payments.

Joe loves it… he’s got a really low payment and now he can do his deal, but the reason this deal is safe for you is this:

You will ONLY lend Joe half of the value of the property.  If the property is worth $100,000 then you’ll lend him $50,000.  If it’s worth $300,000 then you’ll lend him $150,000.

Whatever the value… you’ll lend half.

And then, there’s one other thing:  If Joe doesn’t keep up his payments, you get to take that house and sell it.  And the reality is you’ll likely make a WHOLE LOT MORE money from doing that if you must.  In other words, you have a Plan “A”… where you collect 7% interest… and you have a Plan “B”, where you can make FAR MORE than that, if for any reason Plan A doesn’t work!

But you know what?  Joe isn’t going to miss his payments.  Because this house is such a SMOKING-GREAT deal that he wants the profit that’s built into it.

And thus, you get paid 7% interest – guaranteed – every single month.  No volatility, no complication, no trouble.  It’s just simple.  It’s safe.  It’s strong.

Now, you probably don’t want to do this with all of your portfolio.  But folks, most people wisely consider about 1/3 to 2/3 of their portfolio as the “conservative” portion… the part where they just can’t afford to lose money.  You’ll want to really optimize the other 1/3 for high returns, but…

…For that core of your portfolio… the part that matters the MOST to your financial future… isn’t it appealing to think you could BEAT the stock market… and have NO VOLATILITY and virtually NO RISK to your money?  It’s like a REALLY AWESOME Certificate of Deposit… only the rate is much higher… and it just MAKES SENSE to you why it works!

But the big problem for you is finding somebody like JOE who wants to borrow money under those terms.

My friends, I can help you with that.  Actually, I can make the problem go away entirely… it becomes a totally “turnkey” opportunity for you!

Want to learn more?  Join me for a special webinar THIS WEEK for Self Directed Investor Radio listeners ONLY.  I’ll tell you more about the strategy – including why it’s so incredibly safe and predictable, along with very profitable – and further, I’ll show you how to get those results in a totally turnkey manner, so you never even need to understand how to find somebody like Joe or evaluate real estate or any of that stuff.  You just get to make incredibly safe loans at a 7% interest rate and forget about everything else!

To get a link where you can register for this premium webinar at no cost, just text the word RESERVE to 33444.  But there is a limited number of free passes available, and to get one, just text the word RESERVE to 33444.

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

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Why did the Federal Government specify THIS ONE SPECIAL TYPE of business structure as a way to build millions in your IRA?  I’m Bryan Ellis.  I’ll tell you right now in Episode #108.

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So many of you have given me feedback that says something like this:  I’m learning things from you that nobody else is talking about!  I suspected these things could be done… but before Self Directed Investor Radio, nobody told me how!

My friends, get ready… what you’re going to hear today fits squarely into that “HOLY COW” category!

A quick note – the strategy I’m teaching you today is easy to understand but a bit complex.  I’m going to do a great job of explaining this to you in the 7-minute confines of this show today.  But I STRONGLY recommend… VERY STRONGLY… that you make a point to watch the more complete training video that I’m posting to the Self Directed Investor Radio 5-Star Listeners Group this week.  The training is called “The Profit Partition Partnership:  Uncle Sam’s Way To Millions” and will expose additional ways to use and benefit from this strategy – at least one of which will absolutely blow your mind with potential, particularly for those of you with very large Traditional IRA’s.  It’s free to get this training:  Just join my 5-Star Listeners Group right now by texting the word SDIGroup to 33444.  Again, that’s SDIGROUP, spelled s-d-i-g-r-o-u-p with no spaces or periods.  Text SDIGroup to 33444 right now.

So, you’ll recall from yesterday’s episode that the Government Accountability Office published a report that provides data that is supposed to convince Congress to change the rules on IRA’s so that nobody can amass a very large IRA balance.

And in that report, they – very curiously – outlined 2 strategies used to actually build very large IRA’s.

One of those – to buy into a corporation with your Roth IRA before it goes public – well… that CAN happen for anyone, and will work.  But the odds aren’t in your favor for that to happen.

But the other one is HUGE for you and me, even though it doesn’t seem like it to start.

The example they gave was that of the formation of an investment fund, where the fund raises $1Billion and the partners are compensated by payment of a “performance fee”… and that performance fee lands inside of the partner’s Roth IRA.  I believe in the example GAO gave us, one of the partners ended up with $20million in her Roth IRA.

So… are you expecting to raise a $1Billion investment fund anytime soon?  Me either?  But there’s still some REAL GOLD here for you and me.  I’ll stick with the investment fund example for a moment before I broaden it out to you and me.

Now before I go any farther, I’d like to point out 2 things:  First, get confirmation of all of this from your own attorney, because I’m not one.  Second, for those of you who are attorneys or who have a high degree of legal acumen, please don’t write to me explaining all of the details I’m not exposing here.  Really, I know what I’m talking about you probably do too, but my listeners are busy people who want to know the CONCEPT to determine if it’s right for them, not every arcane detail.

So, the partner whose Roth IRA made $20Million owned what’s called a “Profits Interest” in the investment fund.  What that means is that the investment fund was organized in such a way that there are 2 different “classes” of owners – one class for the clients and one class for the partners.  These different classes of owners are entitled to different distributions of profits and different authority in the fund.

Specifically, the clients get their share of the profits before the partners do.  That’s only fair!  And similarly, the partners have authority to manage and invest the capital of the fund, but the clients have no such authority.

So let’s give some names to these roles.

Let’s call the class of ownership given to the CLIENTS of the investment fund the “PRIORITY” class, because they always get their profits before anybody else.

And let’s call the class of ownership given to the partners – in other words, the owners – let’s call that the “REMAINDER” class, because they get what’s left after the clients are taken care of.

So maybe this investment fund is structured like so many, whereby the rule is that 80% of the profits will be distributed to the PRIORITY class of owners – those are the clients – and the other 20% of profits will be distributed to the REMAINDER class of owners – those are the partners.

So it’s pretty simple… having multiple classes of ownership allows us to divide up things like profit distributions as well as management authority and control of the company.

So how is that relevant to self-directed investors?

Oh, let me count the ways!

The answer to this, in a word, is LEVERAGE.  Think back to the partners who created the investment fund.  Usually the way those deals work is that the partners who start the business contribute 1% of the value of the company, and the rest – 99% of it – is funded by clients.  But those partners get to keep 20% of the profit.  20% … even though their investment is only 1%!

And that leverage can be a beautiful thing.

Imagine this, my friends:  You find a great real estate deal.  You can buy it for only $100,000, which is FAR below it’s real value, and the cash-on-cash yield will be 20% - that’s $20,000 per year.

Great deal!  You should jump for joy!

But how could you make that better?

What if you could invest only $10,000 instead of $100,000 without taking on any debt whatsoever?

Here’s how it could work:

You find a partner who likes this deal.  They put up $90grand.  You put up the other $10grand.

Your partner, because he put up more money, gets priority.  So every dollar of net income that comes in belongs to your partner, up to the point that he makes $7,000 per year, or 7% on his money.

But remember – the total net return on this deal is 20% per year, or $20grand.  Your partner automatically gets the first $7grand.  That leaves $13… and you know what?

The two of you SPLIT that money.  Down the middle.

So you get $6,500 per year… and your investment was only $10,000.  65% ROI.  THAT, my friends, is a beautiful thing.

You get a higher yield… you invest less money… and you accept ZERO debt.

By using the power of the Profit Partition Partnership, you’ve taken what is a solid deal, and you’ve turned it into an AWESOME deal… and it’s awesome for both you and your partner!

If you’re wondering why you’d be entitled to half of the profits above the first $7k since you only funded 10% of the deal…well… remember this important factoid:  YOU found the deal.  There is no deal without you.  That has great value.

This description is modeled after deals I’ve actually done, my friends.  This isn’t theory.  It’s powerful, powerful stuff.

Now, the amazing thing is this:  The example I just gave you only scratches the surface of what’s possible using the Profit Partition Partnership.  I take that back… as awesome as this example is, it does NOT scratch the surface of what’s possible with the Profit Partition Partnership.

And I’d love to give you the rest of the story.  But we’re out of time today.  If you’d like the rest of the story on this powerful tool, I’ll give it to you for FREE… this week, I’m posting an AWESOME free video training on this very strategy - the Profit Partition Partnership in the SDI 5-Star Listener’s Group training vault.  To get it, just join the SDI Radio 5-Star Listener’s Group for free by texting the word SDIGroup to 33444.  Again, text the word SDIGroup – with no spaces or periods, spelled s-d-i-g-r-o-u-p – text SDIGroup to 33444 and that will get you access to the 5-star group, and to the special video training.

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

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