00;00;00;00 - 00;00;26;22

Unknown

In Mark Willis on the episode today. Oh my gosh, this is awesome. I cannot wait for you to listen to this because he tells you the best rental property you've never heard of. And I am telling you right now, this is going to blow your mind. But then as a real estate investor, if you're not doing some of these strategies, this is something to consider greatly, especially if you are if you've implement a profit first and you've got some good cash flow, if you don't have that, that's another thing.

00;00;26;22 - 00;00;48;12

Unknown

Let's talk about that as well. But this is a great episode. I hope this brings you a lot of value. Thank you for listening. Welcome back to the Profit First Hour I podcast have special guest Mark Willis on today, which he's been on before. We talked on Bank On Yourself first. Man, that was probably a year or two ago like I do, I think, man, it's been a while, so I'm glad you're back.

00;00;48;12 - 00;01;05;03

Unknown

We're going to reach 201. But I love this because he's titled this. We were talking about this before, and it's called The Best Rental Property you've never heard of. We'll get to that eventually. But if you've never heard of Mark, or if you've never heard of Bank on yourself, I want to make sure he establishes a groundwork for that first.

00;01;05;03 - 00;01;20;29

Unknown

But Mark, do you want to just give a brief intro for yourself just before we start even laying the groundwork so people understand where you're coming from? Sure. Dave. Yeah, great to be back on. And it was such a great opportunity to have you on my show recently as well. That was so fun. You're such a great guest.

00;01;21;06 - 00;01;49;14

Unknown

The hosts make the best guest. So thank you again for coming on not your average financial podcast. Yeah. The the, the I guess the basics on what I'm all about. I'm not your average financial planner. I am a certified financial planner. So I fit that box and I went through and I, I'm still really proud to hold those, letters after my name, you know, went through that, that, those hoops to get that credential and serve my clients in that capacity as a comprehensive financial planner.

00;01;49;16 - 00;02;13;12

Unknown

But one of the strategies we specialize in is not so average, at least especially amongst other mainstream, oh so average financial planners out there and advisors. We're looking at using a dividend paying, whole life insurance policy of all things, to augment and accelerate your real estate portfolio. So we refer to that as a bank on your self designed whole life policy.

00;02;13;14 - 00;02;29;24

Unknown

Now a lot of folks are like, what the heck does life insurance have to do with my real estate? I'm trying to learn how to do real estate. What's life insurance got to do with any of that? So let me just kind of lay the groundwork there. So whole life insurance, it's been around for 160, 180, almost 200 years.

00;02;29;26 - 00;02;50;17

Unknown

And it's grown on a guaranteed basis every single year since the beginning, it has never had a losing year. These contracts, they grow every single year. There's also a liquid bucket of money inside that contract that you can access. Not when you die. You know, it's not as much fun to spend money after you're dead. At least I'm told, right?

00;02;50;19 - 00;03;07;29

Unknown

It's more fun to spend money when your life. Yeah. So this liquid bucket of money, they call it a cash value, can be accessed with no taxes due if we designed it properly. And no penalties and no restrictions. You don't have to beg anybody to get the money. It's your money. So you can access that money for any reason.

00;03;07;29 - 00;03;32;11

Unknown

We'll come back to that in a minute. It and and the cash value can also be used, for as a line of credit, almost like, a bank for yourself. So you can borrow against the cash value and the money will continue to compound and grow as if you had never touched the money. So in many ways, a lot of people see it as your money's doing two things at once.

00;03;32;13 - 00;03;53;05

Unknown

You can borrow against the life insurance, and it continues to compound and grow uninterrupted. What's that magical eighth wonder of the world? Oh, yeah. Uninterrupted compound growth. Yeah. So here we found it, guys. We found it. And what I think, Dave, you and I talked about, is what do we do with our cash value? Once we've borrowed it out of the policy, we can spend it on a vacation.

00;03;53;05 - 00;04;11;13

Unknown

We can spend it on, you know, a new car, but maybe better would be to borrow against your life insurance and put it to work in some real estate deals. And now you've got two assets. You've got the life insurance, and you've got the rental properties or the the flip that you're doing or whatever else that you want to do with your real estate.

00;04;11;16 - 00;04;32;18

Unknown

And then whenever you're ready, you're the banker here. So you get to decide the repayment plan to the policy you own on your terms. So that's where I think life insurance and real estate fit like peanut butter and jelly. You know, it's like Batman and Robin. They work great together. Yeah. Yeah I would agree too. I personally use this as well too.

00;04;32;18 - 00;04;49;13

Unknown

And I, I guess in my mind, question I've always had is like, why is this not top? More like, why is this and especially in the real estate investing arena, because you're not just using it for a depreciating asset. You can actually buy a real asset in the heart and something that should spit off money for you.

00;04;49;20 - 00;05;07;10

Unknown

So I guess in your opinion part like why isn't this taught more often and out there? And like, why is it not average? You know, you have to go out there and listen to this. Well, I'm doing all I can to reverse that trend, but there's a whole lot of vested interest to make sure that this is not the go to option.

00;05;07;10 - 00;05;31;21

Unknown

Think about it. Would it make sense for Wall Street to to let anybody find out about this? I mean, what good does that do the lobby for Wall Street? I mean, there are trillions of dollars wrapped up in the vested interest of keeping Wall Street the only option you have in your, for one case, your IRAs. I mean, goodness, before 1981, there was no such thing as a 401 K, and before 1974, we didn't have qualified plans.

00;05;31;21 - 00;05;56;15

Unknown

The way we have them today through the passing of RSA, the RSA act of 1974, were we better off as a country in terms of savings before the 70s? So think of your grandparents. How did they save, you know, before all this stuff that we have today, they use life insurance, they use annuities, they use insurance contracts to buy, you know, and this is, written right into the US census data.

00;05;56;17 - 00;06;22;25

Unknown

You know, before 1940, two thirds of all American savings was inside insurance contracts. The rest was in banks. And of course, they didn't like banks too much after the 1929 and 30s crash and depression. So insurance really has been the bedrock of the American savings. Back when we used to be a nation of savers. Fast forward to now, and yeah, there's a vested interest in Wall Street maintaining its monopoly on your portfolio.

00;06;22;28 - 00;06;53;20

Unknown

When that would say one more thing, and I'd love to get your thoughts on this. Why we've never heard of this before. There's actually one and a half more things. So the second piece would be, most insurance agents, and there are 400,000 of them, roughly in the United States. Most of them have no idea that where you that this even exists or how to design it this way, you know, they've always been taught the same thing by term and invest the rest where they they sell you a indexed universal life policy, which I highly, am concerned about.

00;06;53;20 - 00;07;15;27

Unknown

Many people who have indexed universal life or other universal contracts. We can talk about that. But but there's just a lot of insurance agents that just don't know what they don't know. And if you do take a big commission cut to design the policies the bank on yourself way, Dave. And there's, you know, if there's, you know, there's a reason for an insurance agent to make a little more money on you.

00;07;15;27 - 00;07;35;10

Unknown

They're going to try to do it if they don't have the best, your best interest at heart. So that might be the second reason. The half of a reason I would say, is it's kind of the familiarity bias psychological trick. Right? Like, have I never heard of this before? Well, once you have heard of it, you'll start to see it everywhere, right?

00;07;35;10 - 00;07;56;09

Unknown

Okay. So it's like buying the red Corvette. You start seeing red corvettes everywhere. I see like there are examples of this in, in all aspects of the of our, of our, of our culture, you know, look at, you know, it's a wonderful Life. We just had Christmas as this is being recorded, he borrows from his life insurance try to loan to get some loan money from Mr. Potter.

00;07;56;09 - 00;08;20;13

Unknown

Right. There are presidential candidates every year that borrow from their life insurance. It's public record to help fund their campaign. Major banks, have hundreds of billions of dollars. Bank of America, in particular, has more in cash value life insurance than their entire real estate portfolio combined. So major, companies, corporations look up corporate owned life insurance.

00;08;20;13 - 00;08;43;04

Unknown

Just Google that sometime and see what comes up. It's all over the place. And yet us average Americans are told you got to risk it. You got to put it all on red. You got to go put it in the market and hope and pray that you're you're going to reach your goals. Yeah, I was going to say because my reason I think it is because American greed at that that foundation from the Wall Street level.

00;08;43;04 - 00;09;01;02

Unknown

But then at the personal level, which is what sucks. It's like it's corporately out there. But then like you and mentioned, if someone knows that even if they had access to this, they are going to make less, what are they going to put in front of the person? That's why you have to be really careful who you work with, especially on the insurance side.

00;09;01;05 - 00;09;23;15

Unknown

I personally love this type of thing because I'm naturally a saver and this to me is like turbocharged super fuel jet, you know, like the for savings because it's not just the savings portion. You get the death benefit and you can use it to buy the assets or you can. I did this when I bought my last car, you know, and it's like I paid it off and saved 8000 in interest by doing this.

00;09;23;15 - 00;09;41;07

Unknown

And I'm like this. This is why, you know, like, you can do this type of stuff and just that's why. Mark, I appreciate you putting that message out there. So now you've kind of laid that foundation. Do you want to go a little bit deeper this time? Maybe a 201? And like some of the things that you were mentioning before.

00;09;41;09 - 00;09;59;04

Unknown

Yeah. No problem. So, you know, if you've got this understanding and definitely do your research on that, it's not something I'd recommend for everybody. It does have insurance expenses. There are things to consider. You want to sit down and work with a professional who did it right. But if you're really designing this well, you don't just buy a product.

00;09;59;06 - 00;10;18;06

Unknown

You know, even a perfect, super cool financial product. It's just a tool in the toolbox. You really do better when you can treat it like a tool. You know, I always say, if I could be given the choice between Tiger Woods golf clubs or Tiger Woods golf swing, I'd choose the swing. I want the I want the strategy, I want the skills.

00;10;18;09 - 00;10;41;20

Unknown

So I want to just give you an idea here for your listeners, and then you and I can talk about it some, so imagine and this is kind of an amalgamation of several clients of mine, but imagine, a client that comes in and he and his wife open up a new bank on yourself policy. And every year thereafter, for the next five years, he and she open up another policy.

00;10;41;22 - 00;11;03;12

Unknown

Now, let me pause for a minute. So a lot of folks don't realize. But yes, you can open up more than one of these policies. It's just like getting more than one rental property, you know, what's the benefit of having more than one rental? You multiply the benefits, right? When you have two doors, ten doors, whatever. So this couple over five years, let's say they open up one a year and they start packing money into the policies.

00;11;03;14 - 00;11;20;02

Unknown

Let's say that they start using the cash value in the policies, right? In the first month of the first year. You can do that if the policy was designed properly. And at first, let's say they use their policies for things, small things. Maybe it needs maybe they need to fix up the Hvac system on one of their apartments.

00;11;20;04 - 00;11;39;04

Unknown

So they do that and then they use it for down payments, for the next rental that they want to purchase. Maybe they use it again for paying some property taxes the next year. Maybe they pull some money out and pay off some old credit cards. Maybe they send their kids to college, but as they're doing that, their cash value is continuously growing compounded and uninterrupted for several decades.

00;11;39;07 - 00;11;59;17

Unknown

Let's say fast forward now, a couple decades, and they've got a total of $1.5 million and their combined cash values, and they've got the rental properties and their kids are off to school and, you know, they're ready to retire from their day jobs if they had one. And they've got $1.5 million in cash value. All right. So they're happy with the rental properties.

00;11;59;19 - 00;12;19;00

Unknown

But tell me, and this is where some of your tax expertise can come in here. There's only so much you can depreciate deduct off of your rentals. Right. At some point that rent money starts to become taxable. Right? Right. Exactly. Yeah. What do people do there. Like what are their strategies. So they just take it on the chin or what do they do once the rent money becomes taxable?

00;12;19;07 - 00;12;39;08

Unknown

Oh man. Sometimes it's the 1031 exchange, you know, and like rolling it over things like that or in a cost segregation if they're not, if they haven't done that before then they're going down that road. There's a couple things, but some of them just take it on the like if they make. Yeah, because some of them have exhausted all those other resources as well too.

00;12;39;08 - 00;13;02;10

Unknown

So it's all right. There's a couple. Yeah. Well so here's some, here's some ideas that, several clients have implemented over the years. One, if you if you have a bunch of money in your life insurance policies and let's say taxes double over your working years, is that possible? Yes, yes. And now you've you've done all the work of deducting and cost segregating.

00;13;02;17 - 00;13;23;13

Unknown

And now you're faced with this tax, you know, torpedo coming right at you every year called rent. Yeah. And unless you're going to be super generous and does not charge rent, that's going to keep coming at you. So what can you do? Well, what if you did this? What if you again, if you didn't need the rent money or if you had other savings i.e. your bank on your self policies?

00;13;23;15 - 00;13;50;20

Unknown

What if you could take money out of your life insurance which is tax free? By the way, there's no no income tax due on withdrawing dollars and loaning dollars from your policy. Now you're spending your cash values down and you're donating and getting a tax deduction on your rent money. So you've still got the rental properties, you've still got the rent coming at you, but now you can charitably give or even give to your kids or give to a charitable organization.

00;13;50;20 - 00;14;08;11

Unknown

Deduct your income from that rent. Take money out of your life insurance annex is almost a tax shield for you and folks. Folks, really look at you. Strange when you're like, wait a minute, Mark, are we still talking about life insurance here, or is this like a tax free loophole that we've found? Let's kind of both a little bit.

00;14;08;14 - 00;14;26;12

Unknown

So you can use your life insurance as a tax free income. That's kind of strategy. Number one, I want to play with a little bit. There's another strategy. But before I jump there, any feedback or comments or insights there Dave. Now I like that a lot, especially as over the years it continues to grow and your cash value continues to grow.

00;14;26;13 - 00;14;42;17

Unknown

It's like if your portfolio was growing, you could if you just use that strategy, you could continue wiping out that income if you were on it to do that. So that's what is cool about these two. It's not just like you said it. Forget it. It's like you can it's going to actively grow as your policy grows. Absolutely.

00;14;42;17 - 00;15;03;04

Unknown

Yeah. So you can replace your taxable rent money and get a deduction on rent. You receive and take tax free income from the life insurance contract. And that has the added benefit of not counting toward your Social Security as provisional income either. So this even beats Roth IRA income. I just find this to be the zebra among zebras.

00;15;03;04 - 00;15;27;22

Unknown

You know, it's the unicorn among unicorns. It's a really unique tool in the tool belt. Okay. Let me set that little strategy aside. Let's talk also about permanent guaranteed lifetime income. A lot of people in the real estate space get into this area because they love the idea of passive income. Yes. Rental properties are just, you see, with recurring income that you don't have to worry about.

00;15;27;25 - 00;15;50;26

Unknown

What's the five TS of real estate? I briefly mentioned before I hit record? Let me see if I can still do them. Taxes, termites, trash, toilets, and the worst of all tenants. Yeah, those five TS can be the destroyer of your income. And we might even add another one. Government. Although that one's not really a t.

00;15;50;28 - 00;16;09;12

Unknown

We learned in the, in the pandemic that they put a moratorium on rent collections, but they sure didn't put a moratorium on mortgage payments, did they know? So this can be a real risk if we're going to mess with people's portfolio, landlord portfolio like this. This could be a real problem if you see the government trying to do that again someday.

00;16;09;15 - 00;16;29;22

Unknown

All right. So what's an alternative? Well, okay. I was walking through this museum, Dave. It's a it's I'm out of Chicago, west of Chicago here we work in all 50 states, but I live out west of Chicago. And I was downtown Chicago with my buddy. And we were walking through the ancient Oriental Institute. And I was I'm just kind of a nerd for like, biblical archeology.

00;16;29;22 - 00;16;50;26

Unknown

It's kind of my jam. I love that stuff. So I'm walking through the halls of this, and I'm looking at these old clay tablets and it's cool. And then I look on this wall and I was not expecting this, but I saw this long parchment. It was about 20ft long, and it was written in some strange language. And I look at the placard underneath the parchment and it said Annuity contract 325 BC.

00;16;50;28 - 00;17;15;19

Unknown

Hahahahaha. What? So the the other half of my brain starts lighting up and I'm like, this is an incredible realization that insurance contracts have existed for 2300 years. And why have we never been told about this? Right. Yeah. All right. And what was the value of that annuity contract to that? Probably a Roman soldier or somebody in Alexander the Great's army or something.

00;17;15;21 - 00;17;40;13

Unknown

He was getting a paycheck for life. That's what annuities are. Yeah. You know, if you own Social Security, you already have an annuity. It's one of the best, most cost effective, inflation protected annuities on the planet is Social Security. If you thought rental properties were cool, check out annuities. Okay. What is annuity? It just means, lifetime income machine.

00;17;40;16 - 00;18;03;02

Unknown

All right, just imagine a money printer in your living room, in essence. Right? Of course not. Literally. And you're able to generate income every month hitting your bank account. There's nothing we can really do to stop that contractual, guaranteed lifetime income from hitting our, our our bank account from that, annuity policy. So how does that compare to a rental property?

00;18;03;08 - 00;18;26;29

Unknown

Well, if we've done annuities properly again, there's, there's probably 19, 20 different categories of annuities. Dave, I would not recommend life 16 of those who's maybe 3 or 4 that are really good categories and of which there's maybe several dozen really good products out there. So there's a lot of bad ones out there, but if you've done them right, there's almost no or maybe zero fees.

00;18;27;01 - 00;18;50;16

Unknown

Okay. There's also reasonably good accumulation. And it creates, most importantly, a lifetime income you not outlive, even if you lived to 120, the paychecks would keep coming. In fact, even if you ran out of money inside the annuity contract, you'd never run out of income. So this blows the minds of most people, especially people like,

00;18;50;19 - 00;19;09;26

Unknown

Oh, who's the guy who, Ken Fisher, his investments group. He says he'd rather die and go to hell than sell an annuity. Well, I always found that kind of interesting answer is advertisement. He literally says that on his advertisements. I like, why do you. What do you hate so hate so much, man? Come on, take a chill pill.

00;19;09;28 - 00;19;32;22

Unknown

But what I found out is, and this is just upon reflection, I was thinking about his commercial. Why would he hate annuities? Oh, wait a minute. He loves annuities. Ken Fisher and folks like him love annuities. And here's why. You if you invest with him, if you're his client. Yeah. Then you are his annuity. Yeah, yeah. You know, he's getting a fee off of your assets under management.

00;19;32;29 - 00;19;53;27

Unknown

And that's a passive income that'll last the rest of his life. Your life. So he loves annuities. And most people, once they really understand what annuities are, also love annuities. As long as we realize what they're there for. You know, I don't use my rental properties, to, like, speculate in the stock market. No, that's not the point of a rental.

00;19;54;00 - 00;20;12;13

Unknown

The point of a rental is, you know, predictable income appreciation on the asset tax advantages. Use the tool properly. Back to swings and clubs. Right. Use the right club and the right moment. Don't take my putter into the sand pit. Right. But if you use the right tool for the right moment, you can really be a great golf player.

00;20;12;13 - 00;20;31;18

Unknown

Same thing with annuities. If you use your annuity as a reasonable place for principal protection, lifetime income, and leaving a legacy to your family, it's a great tool. So why am I saying annuities? But before I get to that, let me just jump off my soapbox again here. David, what feedback do you have on this crazy idea of annuities?

00;20;31;21 - 00;20;47;22

Unknown

Well, I don't have any feedback other than it sounds great. And it's like my question would be like, who is this for and at what stage, like you said, like the tool, when do you take this tool out of the tool bag to hit it? So yeah, which is what you're getting to. So yeah. Yeah, that's what I'm like on bated breath here.

00;20;47;22 - 00;21;05;15

Unknown

Oh cool man. Thank you. Yeah. Well you're, you're you're thinking in the right realm here. I'm thinking, when does this make sense? It's not a good fit for everybody. But imagine this for a minute, Matt. Let's go back to our couple who bought their five policies way back decades ago. And let's say it's accumulated again to, let's say, 1.5 million.

00;21;05;17 - 00;21;32;25

Unknown

It's technically possible that we could spend that life insurance cash value down to $0, right? I mean, technically, you can spend 1.5, you can spend $10 million and be out of cash if you spent it wrong, seen it before, seen it before. They all have. Yeah. You can always outspend, a savings or an income. So, however, if you're familiar with 1031 exchanges, you're going to love the 1035 exchange.

00;21;32;27 - 00;21;56;29

Unknown

It's just a few more paragraphs down in the tax code, and you can transfer a like kind exchange, right? Yeah. Hacks. Free cost. Cost free. There are no expenses, costs or taxes to do a 1035 exchange going from one insurance policy to another. And that can also be an annuity. So are couple let's say has five policies.

00;21;57;06 - 00;22;21;14

Unknown

Maybe they choose to take three of those policies and do a tax free 1035 exchange into a brand new annuity. And 30 days later that annuity starts kicking them some income. Pick a number. I'd have to do the math on it. Let's say that they moved over a million bucks out of their 1.5 million. They move a million into a brand new annuity that's going to, depending on your age, that can be where we don't have the policy active.

00;22;21;14 - 00;22;36;11

Unknown

So I just want to make sure I'm like, in my mind, yeah, I've got the life insurance over here. You took a million out of the cash. You know, the cash that has been built up over now, decades of them rolling into it. And now they've got that 1.5. They take a million, they go and buy an annuity.

00;22;36;16 - 00;23;01;05

Unknown

What's right. And they still got two policies. They didn't mess with their whole life policies. Two of them are still around. Yeah. Three of them. They got they transferred it over to an annuity. So they they have two policies, whole life policies and one annuity. Now they use their five whole life policies during their working years to gobble up rental properties and do their kid college thing and all that liquidity needs that they had during their working years.

00;23;01;07 - 00;23;22;15

Unknown

And then they transfer, you know, 3/5 of their whole life policy portfolio into one annuity and their annuity is going to generate somewhere between 60 and 80,000 bucks a year of permanent lifetime income, with the potential for increasing income if we design them. Right, so it can keep up with inflation in that regard. Okay. So that's the overall strategy.

00;23;22;15 - 00;23;42;12

Unknown

And they still have, you know, whatever. What was that 500,000 or so in liquid money in the life insurance for unexpected medical costs as they age, grandkids going to college, whatever else, you know. And of course, when they pass away, there's lots more in their death benefits that they can leave their family as well. Income tax free. Oh, wow.

00;23;42;14 - 00;24;09;04

Unknown

Now that's that sounds awesome. So let me give you a couple scenarios that I'm thinking in my head. So let's say the people what's just say it is a couple a young couple in their early 30s. And let's say they have two policies. One of the policies is, you know like substantial. So then what's just horrible, horrible case scenario here.

00;24;09;04 - 00;24;28;05

Unknown

But let's just say the husband dies, so he dies and that is always the husband man. Or is the husband I'm going to die here. So it's like and he leaves millions of dollars, you know, like let's say 2 or $3 million to his wife. Would it be best for her to seek a new policy, or would it be best for her to seek an annuity?

00;24;28;07 - 00;24;48;13

Unknown

Well great question. This happens, I hate to say, but on occasion I was going to say is my clients. Yeah I'm sure. Yeah. It's funny how everybody's there's 100 100% mortality rate here so far on this planet. Yeah. And so and and so yeah, it's going to happen. Bottom line is it depends. That's the CFP answer right there.

00;24;48;15 - 00;25;17;06

Unknown

Maybe she wants that guaranteed protected income. Maybe she takes several chunks of money and drops him into a her on her financial IQ, like on that spouse's financial intelligence to like maybe the annuity would just provide that income for the rest. And she did it if she did a policy. I feel like you need to have a little bit more hands on because of all the things you can do with it and being able to, you know, withdraw it and like making sure that it all correct.

00;25;17;06 - 00;25;42;00

Unknown

So I don't know if that's one of the qualifications like like how here. Yeah. There's a bit of nuance to and the annuities too can provide their own protection. Maybe I'd say it has more to do with what are her risk tolerance and that sort of thing. Okay. So a lot of families will say it. Let me just make sure, Mark, that if I die, I want my wife to have some of this money go into an annuity that covers all the basic bills.

00;25;42;01 - 00;26;04;15

Unknown

Yeah. You know, we call it the paychecks and then play checks. So the paychecks, the base minimum bills covered for life, we're going to let the annuity cover that. So she's never going to be starving okay. And then everything else can go into life insurance and or investments. That gives her some play fun money to go on that cruise with the, with the with the older, kids and that sort of thing.

00;26;04;15 - 00;26;38;17

Unknown

That makes sense. Okay. Now I like that perspective because then it's like because obviously the other what if what would you suggest? Then here's another scenario, because that was like a young couple where obviously the tragic happens. And then there's the windfall. Then you get you gave the example of someone that had five policies, but over decades, what about if someone comes into a windfall of money at some point because that happens as well to and I would think it's the same scenario as the spouse that comes into a lot of money.

00;26;38;20 - 00;27;00;08

Unknown

But now it's just a, you know, a duo no matter. And I guess it would depend too, on what, you know, like of what decade of life they're in and where they are and what they really want. Yeah, as well too. So. Well, I'll tell a very quick story. Just before this, this meeting with you earlier this this day, I spoke with someone who did exactly that.

00;27;00;11 - 00;27;20;01

Unknown

They had just finished their parents estate, and they had come across several hundred thousand dollars, as closing out the estate was complete. This couple, they're both medically uninsurable to get life insurance. So they. That's not on the table now. They could probably get insurance on their children and business partners, which is, by the way, a real possibility for them.

00;27;20;03 - 00;27;38;26

Unknown

However, they needed to make sure that their income would be protected. So, yeah, putting a chunk of that money into an immediate annuity is what it sounds like. You drop money into it. And, I mean, so they were thinking, should I get a rental property or should I get an annuity? And so we looked at the options.

00;27;38;26 - 00;28;02;10

Unknown

And this is going to be probably both is the answer. We're going to get some rental properties for the tax advantages and the appreciation of the asset. But the annuity will produce usually twice as much income as the rental property will on the national average. Yeah. Of course cash return. Cash on cash return. Exactly. Yeah. So you're going to be able to see a nice income per dollar from the annuity.

00;28;02;17 - 00;28;21;29

Unknown

Now every person's different and every rental property there's obviously better rental properties. You can find a really good one if you do an Airbnb or whatever. You know, you might be able to find some really good cash firm. Yeah, exactly. But for guaranteed, like get the baseline covered. It's a great tool to add into the mix of the real estate portfolio that you might be building.

00;28;22;05 - 00;28;39;13

Unknown

Yeah. Know that. And I love how you said even before you start like the title of the episode. So it should be the best rental property you've never heard of because I've heard of annuities even going through getting my life license. You know, you go through all that, but the way that you've explained it is really simple and it brings up, when is this appropriate?

00;28;39;13 - 00;28;57;08

Unknown

In my life. And I love, of course, like we're real estate investors. So we want to know, okay, how is this guaranteed income? And you mean like I don't have to have the tenants toilets and all that stuff? And I love that you had that example at the end, too, of like, well, if there's a windfall of money, like, yeah, you should buy some rentals because of these things.

00;28;57;08 - 00;29;16;00

Unknown

But then also like look at the annuity for, you know, the flip side of do you want some guaranteed cash in that. And you know, on the average, you know, cash coming from a rental, it sounds like it's a better cash on cash return for the annuity too, which is really great. So then my final question here is people are going to have lots of questions.

00;29;16;00 - 00;29;38;14

Unknown

So it's like this is just one of those things that okay, this is the profit first ROI podcast. Honestly, you don't even need a fractional CFO, which is my company that I hold, you know, to implement profit first like profit first is so simple. It helps you set up the accounts. Honestly, the I would suggest like your profit and tax account be like a bank on yourself policy.

00;29;38;14 - 00;30;00;09

Unknown

But that's I think we covered that in the first one. So go listen to that in our first episode together. But you know, if you want to grow as a business owner, that's where we come into play and making sure you know where your money's going. But I would say if you enter the insurance world at all, like you need someone who has your best interests at heart, who isn't just in it for the commission.

00;30;00;16 - 00;30;16;11

Unknown

That's why. Mark, I love that you say it's not your average podcast, and then it's not your average financial planner here because you're not going to just push on them. Here's what I have to sell you. And here's the most money I can make off of you. It's really about the where are you in your stage of life right now?

00;30;16;11 - 00;30;34;17

Unknown

And like out of these different all of the different things that we have available, I was I love on your site, you've got like a bunch of different like this is a real estate that we need to talk about. Is it the annuities, is it the life insurance? Is it this that like all the different things like, that I really like where you're coming from and the way that you approach things.

00;30;34;20 - 00;30;49;02

Unknown

So I just want how can they get a hold of you. What's your do you want to put them to your website, or do you have a landing page that you want people to go to, or a free thing? Whatever it is, I know people will probably want more information, I appreciate that, yeah, thanks. We've had a lot of fun and I love coming on your show, man.

00;30;49;02 - 00;31;06;18

Unknown

Any way we can, we can keep collaborating together. It'd be a lot of fun for me. So if there's a if there are folks listening that imagine what this might look like for them. And they're starting to catch the catch, the drift of what this could do for you and for your financial future, your real estate portfolio and more.

00;31;06;20 - 00;31;33;25

Unknown

I can help me and my team have been trained in specifically the bank on yourself and also the income maximization strategies we talked about today. So you can go to kick start with Markham. Let's kick start with Mark with A.com. And we'll have a good 15 minute phone strategy brainstorming session. And at the end of that call, you're going to know exactly whether or not one of one or all of the strategies we talked about today fits your unique situation and goals.

00;31;33;29 - 00;31;55;27

Unknown

So let's kick start with Markham. Awesome. So that's where you can go to get information from him. Honestly this is where if you are taking care of your money, if you're listening to my first audio podcast and you're like, help me, I have no idea what's going on, this is really where to start. On becoming a better steward of your money, especially if you already have profit first in place.

00;31;55;27 - 00;32;15;16

Unknown

To like you need to have cash like this does not work. If you're $10 billion in debt and you are like you owe everyone and their mother money. So it's like making sure that you can get down this road as well too. And that's what we're doing. It's simple. CFO like, if you don't even have the financial basics in place or a foundation and you're like, I saving money?

00;32;15;17 - 00;32;33;29

Unknown

Hahaha. Like that's funny. So it's like, if that's where you are and you're making money but feel broke, go to simple cfo.com. And that's where you can book a call with our team. And then we're going to pay it to someone like Mark as well to to make sure that you know not only where your money is going, but that you're maximizing every single dollar that you have in your system.

00;32;33;29 - 00;32;49;12

Unknown

So if you're a business owner, real estate investor, I would highly go to that was kickstart with Mark with a k.com. So make sure you go there and book with him as well too. Thank you so much, Mark, for coming on and being a great guest. And thank you for listening to this podcast and being a listener here.

00;32;49;18 - 00;33;23;21

Unknown

Appreciate you. And thanks again. Mark, for this episode of the Profit First for RBI podcast is over, but there are plenty more where that came from. Are you ready to learn how David and his team can help implement the profit first system in your business? Schedule a discovery call at simple cfo.com right now. We'll see you next time on the Profit First for RBI podcast with David Richter.