Are you still holding onto cash as a means of saving and investing?
It’s time to rethink that strategy.
In this video, we reveal why the old adage “Cash is King” no longer holds true and how cash has been deemed “trash” by many experts in the financial world.
Join us as we delve into the reasons behind this surprising turn of events and what it means for your financial future.
Don’t miss out on this eye-opening and informative video. Click to watch now!
Transcript:
Chris Bounds 00:00
Cash is trash, like if you got cash, if you had $100,000 Murton and say you had a million dollars in your quest account in 2020, and you’re scared and like things are blowing up, like the world’s gonna end, so you did nothing. And then 2021, everything’s just too expensive. So you still did nothing. And then here you are in 2022, things are a little cloudy now, because now we got a recession coming in, and you’re still not doing anything, anything that that million dollars that you had now worth about 840,000. Now, ish. And it’s not that you still have the million dollars in the account, it just has less buying power today. And that so far, is going to continue to trend. So for every day that your your money is in your account, not invested, it is being devalued. Get rid of it, you’ve got to put it into assets now, do the financial responsible thing of having, you know, emergency funds and whatnot, but ultimately, buy real estate that this is what I’m doing. So it’s not financial advice.
I’m not a CPA or anything, think you’re a CPA, right. So there you go. Um, so buy real estate, it is an inflation hedge asset that happens to also provide a strong cash flow, if you buy it, right, provide cash flow, you’re basically getting someone else pay off your mortgage, while the property goes up in value over time. And you can use accelerated tactics by whether you’re going to refinance later on and take the equity to buy multiple properties, or you’re going to sell it and basically do the same thing. Or 1030 wanted to not have to pay or delay defer capital gains, or go into opportunity zones where you could potentially pay no taxes at all. Ultimately, you’ve got to invest, you got to invest, if you keep your money just sitting in your account, you’re going to lose it. And if you don’t want to do all the heavy lifting, like the operational work, like if you don’t want to go out there knocking on doors and all that stuff.
I’m going flea infested houses or make 1000 cold calls, or go under right multimillion dollar apartment deals. Lend your money out to folks that will do it for you for a good return. Now, look at the look at the person you’re working with, like underwrite them, but they can, that’s just the passive way that you can invest. And you can do it either through debt where you’re basically loaning your money out. And that’s what the $19 million I gave, when I was the sponsor section, we use $19 million, almost all of that has been from a debt position where I need to borrow 100 grand of ideal, I borrowed it from you went bought the deal, fixed it up, sold it for 150, I made 50 grand I paid you 100 back plus interest.
But there’s also equity, and you typically see equity investments, usually in the multifamily space. And it’s not exclusive to, there are a lot of other ways you can do it. But that’s where maybe you are getting a certain yield or preferred rate, you’re also getting some of the upside and like so that way when the property is sold, you get a piece of the profits, and you share on that too. So you can do it actively takes a lot of time, great rewards. But if you’re busy, you don’t have time for that. Or you’d rather just yield someone else’s expertise, you can do it passively. Which is I mean, we that’s where we all play.
03:22
Let me add on that. Well, that’s as good, as Chris has absolutely right. You gotta get your money working. It’s in the bank, you’re losing 10% or more, or someone say, out, man, because the the common economist was on the radio, the way they calculated inflation back in the 80s. The 9.1 We have now it actually been 17. Three, inflation is worse than the government was supposed to say it is. So cash is trash. That’s absolutely right. If you’re if you’re if you’re trying to save your way, the retirement it, you’re backing up. So nothing else Linden will take it because we’ll take it briefly take by assets, a lot of people wonder why our hedge funds paying so much for the properties.
It paid to even cash flow. Both are by the way, yeah, we have a meet up here last Wednesday of every month. And I was showing the example of if you got if you’re breaking even you’re still depending on how much money you got the deal, but this was a deal where a person had like maybe $12,000 left in the deal. They’re still making 38% return on that single family just between the appreciation at 4% and the principal Bytown that the tenants paying so you just you just like appreciation. If you get 10% It’s nuts, right? You start adding positive cash flow to that.
So if you’ve got you know, I was always guys I had old gas yeah For 40 years, but I always had a side hustle. I think most people probably started that way. By assets if you don’t know how to learn how education is important, Chris does a great job fair Ventures is there are people in town that can can teach you the ropes, learn how to do it, but you’re gonna make a lot more money by an assets. But if you can’t buy assets, you’re too busy and people are busy. You got two kids, you got soccer, you got baseball, you got football, you’re busy right church and give it to us. We’ll we’ll get that money to work and lease at nine 10% this you’re going to maintain and keep up with inflation.