1:17

Welcome to the Thursday edition

1:19

of the Not Your Average Investor Show.

1:22

I'm your host, Greg Cohen. We have

1:24

an incredible show today.

1:27

Today we have a very special guest and

1:29

we're going to be talking about whether

1:31

or not non recourse

1:34

loans are worth it. These

1:37

are loans that you can get by buying

1:39

properties inside your retirement

1:41

account for those who are not familiar

1:43

with what a non recourse loan is. And

1:46

we have an incredible guest that's

1:48

going to help us dig into that and

1:50

give you an incredible amount of

1:52

value. As I mentioned, I'm Greg Cohen, and

1:55

I'm super excited that you're here today with us

1:57

on the Not Your Average Investor show. And

2:00

as I mentioned, we have a very,

2:02

very dear friend of the show a long

2:04

time JWB client that

2:07

I get to do a special introduction for.

2:09

He, is an avid motorcyclist.

2:13

He is a, was a

2:15

member of the Merchant Marines. Was

2:17

in corporate facilities and real estate management for

2:19

30 years and he saw the light and

2:21

went deep into the education

2:24

of real estate investing in

2:27

2016. Since then, he

2:29

has flipped a number of homes over eight homes,

2:32

but his real passion is being on that motorcycle

2:35

and the passive income that can come with

2:37

that. Investing in rental properties. And

2:39

he found JWB in 2017 and currently

2:42

owns four JWB properties that we've been

2:44

able to build a portfolio for him. He

2:46

is none other than a good friend of the not

2:48

traveling investor community. Mr. Glenn Schenken.

2:50

Glenn, welcome to the show.

2:53

Welcome. Thank you. Hello, everybody.

2:55

There we go. How about that? Glenn is a

2:58

supporter of JWB

3:00

cares and Glenn. Was

3:02

somebody who took up my daughter Bella as she

3:04

offered to make bracelets to support JWB

3:07

cares. So Glenn Thank you very much

3:09

for your support for JWB cares for my

3:11

daughter as she is You

3:13

know a young entrepreneur and somebody

3:15

who is passionate about creating

3:18

affordable housing opportunities for people here

3:20

in Jacksonville as well. So pretty cool.

3:22

You're a

3:22

little sweetheart. I'm glad I could help.

3:24

That's right. And Glenn was here for the,

3:27

for the Not Your Average Investor Summit and

3:29

got to see not just what's going

3:32

on in downtown Jacksonville, not just to, to meet

3:34

the team here, but to see all of you here. And

3:36

everybody that we have as a member of

3:39

the Not Your Avid Investor community, you guys show

3:41

up in force every Tuesday

3:43

and every Thursday. And we absolutely

3:46

appreciate all of you. We've got, geez,

3:48

50 folks or so that are live here

3:50

watching the show. And we couldn't do what we

3:52

do without your support. So thank you all for being here

3:54

and glad it's a perfect time for us to do a little

3:56

something that we call the roll

3:58

call. You in for it?

4:00

Let's do

4:00

it. All right, my friend. Let's see

4:02

who we've got here leading off today.

4:05

Number one, we have Cody

4:08

Adams, the mama bear, our community

4:10

manager, saying hello to everybody. If

4:12

anybody needs anything in the chat,

4:14

or you'd like any information, or you want

4:16

to reach out to JWB and set up a phone

4:19

call, just hit up Cody here in

4:21

the chat, and she will be happy to facilitate.

4:23

So thank you so much for everything you do, Cody. And

4:26

with that, we got the MVP, Mr. Lee Bishop, saying

4:28

hello, everybody. We've got the early bird, Dean

4:30

Curry, saying hello. We've got our leadoff

4:33

batter batting fourth today, John Heading,

4:35

saying good afternoon. We

4:37

have the real estate maven from Denver,

4:39

Colorado, Leslie Wilson, checking in.

4:41

She says, greetings from Cancun. That

4:44

sounds nice and warm. Hope you're having a blast

4:46

down there. Leslie, we've got

4:48

Allie King, JWB teammate, saying hi

4:50

all. Awesome to have JWB teammate

4:53

support in the show here. We've got John

4:56

we've got Jeff Pettyjohn saying hello. We've got

4:58

Gary, our regulars, Gary and

5:00

Rosalynn Riley from Murrieta, California.

5:03

We regard you. Thank you so much for

5:05

being here. Let's see who

5:07

else we have here. We have Mark Sauer saying hello

5:10

from Cincinnati, Ohio. Mark, you're becoming more and

5:12

more of a regular. We appreciate your support. I hope

5:14

you're having a blast here on the Not Your Average Investor show.

5:16

We've got the ringmaster, Drew Barnhill

5:18

saying good day to all. Let's

5:20

see here. We've got a past guest

5:23

of the show here just a week or so ago.

5:25

The man of steel, Mr. Vincent Barbarite

5:27

checking in, saying hello. Good to see you, buddy.

5:30

We've got the Shaw man, Nadim

5:32

Shaw, saying hello. We've got

5:34

the, the mountain man, Billy Green,

5:37

from the, and, good

5:39

morning from the infructuously tepid

5:42

mountains of Colorado. Billy

5:44

Green, always. Breaking out

5:46

the Webster's Dictionary and

5:48

tripping up Pablo and myself during the roll

5:50

call. You're doing, you're doing a great job of that, my

5:52

friend. we have, Pablo's lady,

5:54

Jag Chata saying, hello, Jag. Great to see

5:57

you. We've got, Steven Chmielewski.

5:59

We've got Margaret Smith checking in.

6:02

We've got just an incredible group here. So thank

6:04

you all for being here. Adam Berger, hello

6:06

from Cincinnati. It's great to see you

6:08

all here. And with that, Glenn, I think

6:10

we're ready to get the party started. You ready? I'm

6:12

ready. All right, my friend. So, Glenn, let's

6:15

talk about, before we get into non

6:17

recourse loans and investing in rental

6:19

properties with your retirement accounts let's

6:22

get into you and your

6:24

background and your background as an investor.

6:26

Can you tell everybody about a little bit about

6:28

yourself how you started to invest

6:30

and the types of things that you're investing

6:32

in and why.

6:35

Sure. So a lot

6:37

of it dates back to my early

6:40

youth. My father was a builder.

6:42

I grew up on the jobs, so

6:45

very familiar with houses and

6:48

lived a great middle

6:51

income life as a kid. So

6:53

I saw the value in houses.

6:56

From my father. After

6:58

that went to the Merchant Marine Academy,

7:02

shipped out for six years

7:04

and then

7:07

a ship is very similar

7:09

to a building. It just happens to float

7:11

rather than sit on the ground. Got

7:14

into corporate facility management

7:16

and real estate. Did that

7:18

for 30 plus years. And

7:22

decided it was time to

7:24

do something different. I,

7:28

my son and I took a

7:31

fortune builders course together and

7:34

decided to get into the house

7:36

flipping business along

7:39

with investing as

7:42

a fortune builder showed and

7:44

made the introduction to JWB. So

7:48

I thank them for that. I.

7:51

probably wouldn't have known about you

7:53

had it not been for them. so

7:55

that was late 2016,

7:58

2017. I bought my

8:00

first house with you. When

8:03

I left my corporate position, I

8:05

took my 401

8:08

and after learning about

8:11

solo K's, I

8:13

put the money into a solo K

8:16

and purchased that first house for cash

8:18

with you. I don't remember the specific

8:21

years. I believe it was 2018.

8:23

I bought the second house for cash.

8:26

And then I

8:29

started looking at the non recourse

8:31

loans, which allowed

8:33

me over the next couple of years to buy

8:35

three additional homes then

8:38

for me. One of the biggest

8:40

advantages to doing it with

8:42

the non recourse loan was I

8:45

did it all tax deferred.

8:48

I didn't owe any taxes when I

8:51

developed the solo K. And

8:54

you know, other than property taxes

8:57

we don't, I haven't paid any

8:59

taxes on any in the investment money.

9:02

Wow. I mean, that is something that

9:05

a lot of us can learn from right there. I think

9:07

your whole entire journey is something that a lot of people

9:10

can relate to parts of it. And

9:12

parts of it, people are like, how the heck

9:14

did you do that? So let's kind of break down.

9:16

You had a very successful career

9:19

in, corporate, Facilities

9:21

and real estate management. So let's just call it

9:24

corporate America ish regular w

9:26

2 world there, right? You

9:29

built up a nice retirement account of 401k

9:32

there. You decided to have a change in your

9:34

career and to go into More

9:37

of an active investment or a passive

9:39

real estate investment type of a scenario

9:42

But you made a very different decision than what

9:44

most people would expect average people would do.

9:46

You decided to invest in your education

9:48

so you could learn about things like a solo

9:51

401k and a non

9:53

recourse loan which led

9:55

you to have the opportunity to invest.

9:58

in an asset and not have to

10:00

be burdened by those taxes,

10:03

which most other investors are,

10:05

especially if they invest in real estate.

10:07

They don't know how to do it without paying

10:09

taxes. But most of, most of the folks

10:11

here don't know even what those terms are. Can we

10:13

just start, could, could, would you mind sharing what,

10:16

And it doesn't have to be the technical definition, but to you,

10:18

what, what is a solo 401k

10:20

and what is a non recourse loan?

10:23

So to me, a solo

10:25

401k is I

10:27

get to choose what I want to invest

10:30

in rather than Fidelity

10:32

or Fisher or one of those companies

10:35

giving me limited choices.

10:37

The solo cake gives me unlimited

10:39

choices. And having

10:42

had the background in the real estate,

10:44

as long as I did, I chose

10:46

real estate, the non

10:49

recourse loan. While

10:51

you have to put down 50%,

10:55

it does protect you

10:57

personally from any

11:00

recourse, thus the non

11:02

recourse. So that

11:04

was attractive.

11:06

Yep, and actually we'll, we'll dig in a lot

11:08

to these non recourse loans on

11:10

the show today. We'll go through what the current rates

11:13

are and what the down payments percentages

11:16

are that are required because

11:19

a non recourse loan is specifically

11:21

a loan that

11:23

goes towards a property that

11:25

is purchased inside the retirement

11:27

account and property

11:29

that is purchased inside your retirement account is

11:31

completely different. Then

11:33

a property that is purchased outside

11:35

of your retirement account when it comes to the type

11:37

of fining that you can get. And

11:40

if we just start at square one, most people don't

11:42

even think you can own properties in your

11:44

retirement account. but Glenn

11:46

and myself and many in this community are shining

11:49

examples that you can do that. And

11:51

if you, if you get to that level where

11:53

you can actually see how that works, you're

11:56

way above where most average Americans

11:58

are because they don't think that's possible. The next step

12:00

is how can you actually get debt

12:03

or leverage to inside

12:05

your retirement account to multiply

12:08

the number of assets that you have in your retirement account.

12:10

And that's one of the reasons we're so excited to have Glenn here

12:12

today is because he's lived that as well. And

12:15

the third thing is then you can see. How

12:18

do you get to the other side where that debt is actually

12:20

paid off? And for

12:22

Glenn, Glenn, if you wouldn't

12:24

mind, talk about your journey to where you are

12:26

now with those four properties

12:29

being completely paid off.

12:30

So, after

12:32

having bought the two for cash

12:35

and the three for non recourse

12:37

loans, I waited a couple of years

12:40

and came back. Talked

12:42

with Greg's team and said

12:44

it was getting close to where I

12:46

wanted the money to live on.

12:49

We worked out a situation

12:51

where JWB

12:54

bought two of the houses back from

12:56

me. I paid off all three

12:58

loans and

13:01

had enough money left over to

13:03

buy a fourth house with cash.

13:06

So that leaves me now with

13:08

four paid off homes.

13:12

And money coming in

13:14

every month.

13:15

So, that's just a great example of a vertically

13:17

integrated company who starts with a

13:19

plan in place for a client and

13:22

then works that plan all the way

13:24

through to the end. And we're nimble

13:26

enough to be able to adjust when certain things

13:29

come up and we

13:31

have the solutions and it's all under one

13:33

roof. So, I mean this is a really cool

13:35

example where not only can

13:37

you start with that plan, increase

13:40

the number of assets that you have in your retirement

13:42

account. Meaning the number of

13:44

properties you get in your retirement account because you got

13:46

loans in order to get those.

13:49

But then, through an aggressive schedule of

13:51

paying those loans down, whether that's

13:53

either through paying additional mortgage

13:56

payments on the loans, or

13:58

even just selling in assets so you can

14:00

take the money that Glenn earned and

14:02

pay off the other assets, however

14:05

we can get there. It's to Glenn's advantage

14:07

because now, because his lifestyle

14:10

requires a certain amount of income, he

14:12

doesn't want to have those debt payments on that,

14:14

on that portfolio anymore. Now

14:16

he can enjoy hanging out on the motorcycle

14:19

and going to bike week and bike Toberfest

14:21

knowing that he has four properties

14:24

owned free and clear. And as we get

14:26

into non recourse loans, Glenn, you and I were

14:28

chatting before the show, but would that

14:30

have been, would you have been able to have four free and clear

14:33

paid off properties if you had not taken on

14:35

the non recourse loans?

14:37

No, I never would have been able

14:39

to buy. the three

14:42

additional homes from the

14:44

original two without the non recourse

14:46

loans. So it gave

14:48

me the funding available

14:51

for those purchases.

14:53

So for everybody out there, this is a, this

14:55

is almost like a complete life cycle

14:57

of how a non recourse loan can be

15:00

a tool and be helpful for

15:02

your financial situation. So

15:04

I think it's great to kind of share the big picture. We're

15:06

also going to show the other side of the non recourse

15:09

loan. We're going to talk about

15:11

when it really makes sense for a client, and we're

15:13

going to talk about when it doesn't make sense for

15:15

a client as well. Cause there are some things that are a little

15:17

scary about non recourse loans today

15:19

as well, but it's really great to see such a, such a shining

15:22

example of starting out with a plan,

15:24

right? We've got a wonderful relationship

15:26

with Glenn, of course, over the years, he's placed his trust

15:29

in us and our team has continued to come up with

15:31

those solutions so that we can match that income

15:33

level. for the quality of life

15:35

that, and the income level that is required for that quality

15:38

of life for Glenn. So, I think it's really cool to see it

15:40

come full circle. Glenn, could you take

15:42

us back a little bit and just talk about, now

15:44

that we've seen kind of the big picture, let's start at the beginning.

15:47

Many people have no idea how to start

15:49

when it comes to buying a property in their retirement

15:51

account, or Where, how

15:54

to go from a 401k that's in

15:56

a, call it a W 2 kind of corporate

15:58

America type job. how do you unlock

16:01

that? How did you unlock that to, to get

16:03

to a place where you could use that retirement

16:05

account money to now have these

16:07

four assets owned free and clear in your,

16:09

in your solo 401k? Can you, can you talk about

16:11

the challenges that you faced and then how you overcame those?

16:14

the challenges because of

16:17

the education I received, as

16:19

you mentioned, I took a little bit different

16:21

path, got some education

16:24

the roadmap to

16:26

rolling over out of my

16:28

corporate account into the solo

16:31

was fairly Easy J. W.

16:33

B. recommended at

16:36

the time. Horizon trust

16:38

as a, partner

16:40

to work with and through

16:44

probably. Four meetings

16:46

between JWB

16:48

and horizon trust. the paperwork

16:50

was completed and the money

16:53

was transferred. So for

16:55

me, the bigger challenge

16:57

was going to get the

16:59

education at the time to learn

17:01

how to do it properly and then

17:03

making the right connections.

17:06

I think that's where it all starts. We talk about the value of

17:08

this community. It's the education

17:10

that comes from this community. And then it's the,

17:13

you know, just the connections to people that are, that

17:15

are doing it. And for any of you who

17:17

are thinking about wanting a better retirement

17:20

account and a better way to do it, I'm sure you're

17:22

gaining some confidence from. From seeing Glenn's

17:24

story, and there's dozens of other

17:26

stories from the roughly 80

17:28

folks that are on the show live listening

17:30

in, so that's why I would encourage you to say

17:32

hello in the chat and make a friend. Cause

17:34

that's really where all this starts. It's the way it started

17:37

for me as well. It started with education and with

17:39

relationships. But there is some, there

17:41

is some, some, it's not hard

17:43

work, but it's, You know, it's a little taxing,

17:45

that process of rolling over your

17:47

funds from a typical 401k

17:49

into a solo 401k. For

17:52

everybody out there if you haven't done it before.

17:54

But through those partnerships you're able to,

17:56

to, to do that. It, it might take a few weeks.

17:58

You have to find the right partner. It's a series

18:00

of phone calls. There's some different terms

18:03

that you need to understand. But when

18:05

you start to think about the outcome that Glenn's created for

18:07

himself, you start to see why it's such a an advantageous

18:09

thing to do. Glenn, we're getting some questions

18:11

here specifically from the audience

18:14

on your, on the solo 401k activity.

18:16

we've got the MVP, and he says, Glenn, is your solo

18:18

401k LLC, a

18:20

Roth IRA account, or

18:22

a straight self directed IRA.

18:25

Is a straight directed, it is

18:27

not a

18:27

Roth. It's not a Roth, right?

18:30

And so we're, we're throwing around a few terms

18:32

here. A solo 401k

18:35

is a self directed retirement

18:38

vehicle and you have

18:40

different types of self directed retirement

18:42

vehicles. Solo 401k

18:45

is an example of that. There's also a self

18:47

directed. IRA and

18:50

there's a self directed traditional,

18:52

excuse me, a self directed Roth IRA.

18:55

And so there's a few different vehicles that we have

18:57

here, but the key here is, and this is what Glenn

18:59

shared early on, the reason that he did this is he wanted

19:01

to have control over his investments.

19:04

You know, if I'm kind of speaking for you a little bit, Glenn,

19:06

you're probably looking at the options that

19:09

you had in your traditional 401k,

19:11

or excuse me, yeah, your traditional 401k

19:13

when it was with your previous employer, and you're probably like,

19:16

there's like five or ten options here. I want

19:18

to do something else that I probably have more

19:21

knowledge, experience, and I think is a little bit of a better

19:23

asset. Did I, did I kind of put words in your mouth there, or

19:25

is that largely how you were feeling?

19:27

Well, that, that's exactly it. The

19:30

40, the self directed 401k

19:33

gave me the opportunity to

19:35

choose a multitude of

19:37

investment vehicles rather

19:40

than fidelity giving

19:42

me a limited choice. Mm hmm.

19:45

There you go. So, control, more

19:47

choices, and one of the things that that

19:50

Glenn and I were talking about right before we jumped on the show

19:53

is I, I hear of,

19:55

there's a lot of folks out there that are switching jobs

19:57

at this time. One of my best friends is just switching,

20:00

switching a job. And I just was talking to him last

20:02

week and I said,

20:04

What you definitely should not

20:07

do. Well, let me scale back a little bit. I try not to do

20:09

always enough. I said, what you

20:11

really, really, really want to take a hard look at

20:13

is whether the best thing for you to

20:15

do is to roll that 401k

20:17

that you had earned at your previous employer

20:20

into a new

20:22

employer's 401k plan, or

20:25

consider going the self directed

20:27

option. Because what many people just

20:29

do blindly, that's what they've been told is just they

20:31

take their previous 401k and they roll

20:33

it into their next. Employers 401k,

20:37

but there's really not a whole lot of benefits to doing

20:39

that. It's not like you're getting the matching

20:41

on that, on that money. You know, your previous

20:43

employer is not matching you anymore. Your

20:46

new employer is going to match

20:48

you on the money that you put into the new employer

20:50

401k. But if you just roll

20:53

your previous employer's 401k into

20:55

the new one, you're just restricting your options.

20:58

You could do it like Glenn did, which take

21:00

the previous employer's 401k, put

21:03

that into a solo 401k, or

21:05

a, or one of those self directed

21:08

retirement account vehicles, and just open up your

21:10

options there. You're not taxed

21:12

on it. If you do it the right way, there's really

21:14

no, no downside there. And

21:16

then of course you would continue to earn your

21:18

401k and your new employer and hopefully get the

21:20

match there. So just, if anybody's

21:23

thinking about that, please take a minute

21:25

and You can call JWB. We can talk

21:27

through other clients that have had success

21:29

rolling that over. I would definitely encourage

21:32

you to reach out to your CPA and

21:34

talk about that. I'm not a CPA. We

21:36

don't have a CPA on staff here. So

21:38

don't call JWB and ask specific

21:40

tax questions there, but

21:43

just know that there is an alternative there. And what that

21:45

can do is free up potentially hundreds of thousands of

21:47

dollars for you. that you could then invest

21:49

in rental properties or private

21:51

lending or anything that

21:53

would be an alternative investment there. So,

21:56

all right, Glenn, we got another one. Jeff Pettyjohn

21:58

says, do you have to deal with unrelated

22:00

business income, otherwise known as UBIT?

22:03

And if so, how did you find an accountant to

22:05

help figure that out and the taxes

22:07

on it? Do you know about UBIT, Glenn?

22:09

I don't. That's new to me. Hopefully

22:11

I haven't missed something.

22:13

Well, there's a reason that you don't know about UBIT.

22:15

It's because you are not subject to

22:17

UBIT. And again, I'm not a CPA.

22:19

Consult CPA for tax

22:22

advice. But when you invest

22:24

within a solo 401k,

22:27

you're not subject to UBIT. UBIT

22:29

is unrelated business income tax.

22:32

And, you can, it basically,

22:34

if you take out a loan in your retirement accounts,

22:36

you have the potential for being taxed

22:39

on that money, that

22:41

you earn as a percentage of it. And that's

22:43

called unrelated business income tax. through

22:45

Glenn's, relationship and education,

22:48

he was able to learn about investing in a solo

22:51

401k and a solo 401k is not

22:53

subject. So, it's

22:55

all good that you don't know about YouBit, Glenn. You're

22:57

not on the hook for it because, again,

22:59

the value of your education, you know,

23:01

again, a credit to our friends over at Fortune Builders

23:03

for pointing in the right direction there. All right, Glenn, we've

23:06

got another one. You guys are firing in some great questions.

23:08

We'll take a couple more here and then we'll save a few for

23:10

the remainder of the show as well. But, Conrad

23:12

Gassney, which I think is a new name, Conrad, welcome

23:14

to the show. Thank you so much for the question. Glenn. He

23:16

says, when Glenn sold the two properties back to

23:18

JWB, did he have to pay capital gains

23:21

taxes?

23:21

I did not, because the money

23:24

rolled back into the 401k.

23:27

before I turned it back over

23:29

to JWB to buy

23:32

the fourth house with

23:34

cash. That's the beautiful thing. This

23:36

is how you're able to invest in

23:38

real estate and not pay

23:40

the taxes when you sell an asset.

23:43

It's because it's in that tax deferred

23:45

vehicle, which is the solo 401k.

23:48

So great question, Conrad. And you're really

23:50

getting to the, to the, to the,

23:52

to the meat of what this call is, is that you

23:54

can invest In assets and

23:57

not be burdened by paying the taxes on

23:59

it, which helps your assets grow tremendously.

24:02

And, you know, eventually I get to a place like Glen is where

24:04

those assets are paid off and his

24:06

lifestyle is supported by money that he hasn't

24:09

had to be burdened by the tax man.

24:11

Yeah. And for that matter, none

24:13

of the monthly rent is

24:16

taxed either. I don't have to claim

24:18

that each year because it's just

24:20

going back into the solo. Okay.

24:22

Okay. Exactly.

24:24

Exactly. So I, I will

24:26

say it's not all roses. You do have to pay taxes

24:28

at some point. And. Yes.

24:30

You know, again, this is. Which

24:32

I'm starting to do. There

24:34

we go.

24:35

It's a tax deferral strategy. The cool thing

24:37

is that. Glenn gets to decide

24:39

how much he wants to be taxed. Whereas

24:42

when you typically buy and sell real estate,

24:45

right, you have to pay capital gains taxes on

24:47

it if it's outside of a retirement account. When

24:49

you do it inside of a retirement account, you

24:51

can buy and sell assets. It all stays in the

24:53

retirement account. When Glenn decides

24:56

to transfer and distribute money

24:58

from his Solo 401k to himself

25:00

personally, then he has to pay the taxes

25:03

on that. But I'd much rather be in control of

25:05

what, what I want to pay the taxes

25:07

on, rather than being forced to pay them the

25:09

other way around. Now it's at a lower rate.

25:11

There you go. Now it's at a lower rate. Glenda

25:13

is living, portfolio management

25:16

and planning and education

25:18

and relation, he's living it out in front of

25:20

everybody here, and you can see, You know, how

25:22

it all coming together is how you can be super

25:25

successful. and now you can ride

25:27

your bike all down. I was asking

25:29

Glenn, he, you came to, um, in

25:32

the bike week, right after you did the summit

25:35

and I was like, are you, are, did you, did you start

25:37

your, your bike? Did you start your ride from,

25:39

Massachusetts? He said, I'm not crazy, but

25:42

I will tell you, you know, I've talked enough

25:44

to Glenn to know that he's rides all over the country. Where's,

25:46

where, where else do you ride? Other than bike week? No.

25:48

I've been out to Sturgis.

25:51

From Sturgis we went to the

25:53

Grand Tetons, up to Yellowstone,

25:56

crossed Beartooth Pass into Montana,

25:59

back all through Wyoming. this

26:02

year, I'm going to

26:04

Glacier National Park, to

26:06

do, there's a road called Going

26:09

to the Sun, and it's supposed

26:11

to be spectacular, so

26:13

I want to go ride that this summer. The

26:15

fall, I'll be down in Tennessee,

26:18

in the Smoky Mountains. So

26:21

if there's a road, I'll ride on it.

26:23

That's pretty awesome, man. I've, I've been out to Yellowstone

26:25

and the Grand Tetons with my family, and

26:27

I can just imagine, being an avid motorcyclist

26:30

like you are, that's, I mean, that

26:32

is pretty cool. That rides pretty cool.

26:34

It's amazing. I would encourage

26:36

anybody to go out to

26:39

the Dakotas and Wyoming and Montana.

26:42

I don't care if you're in a tour bus, on

26:44

a bicycle, in a car. It's

26:46

spectacular if you've never seen

26:49

it. 100%. What it does to me is

26:51

it just takes all the problems that

26:53

we all face in the world, and when you're looking at

26:55

the beautiful mountain ranges, it just makes them seem

26:57

really small, which I think is really good for

26:59

us. You know, you're just like, listen,

27:02

beautiful day. The big problems that we think

27:04

we all have, we can overcome them. All right.

27:06

So I wanted just to kind of do a little bit

27:08

of a teaching moment here to help everybody understand

27:11

when non recourse makes sense for

27:13

you as an investor and when

27:15

it doesn't. So, I've put a couple

27:17

of slides together for everybody here

27:20

All right, And we're going to start off with our lovely,

27:22

uh, disclaimer, uh, which, always

27:25

got to do as we have more and more folks checking out

27:27

the show. We're about to get into some numbers here

27:29

as I show the difference between, uh, when

27:31

non recourse can really work for you, and

27:33

when, might not be the best idea. And

27:35

so we're going to look at expected

27:38

returns on investment, we're going to look

27:40

at real numbers. these are

27:42

estimates, these are not

27:44

guaranteed, and I am

27:46

not a financial advisor. So,

27:49

I would highly encourage you to do your own due diligence

27:51

before making any investment decisions.

27:53

And, with that, we will get

27:56

this party started here. So, big

27:58

question right now is, does a

28:00

non recourse loan make sense? So I

28:02

put some numbers here together. And

28:04

we're going to go with the scary part of non recourse

28:06

loans first. Let's talk about the

28:08

scariest part of a non recourse loan. The

28:11

interest rate, okay? What you have to

28:13

understand from an interest rate perspective,

28:16

is that non recourse loans create

28:18

a very different set of risk for the lender

28:21

than what a typical loan

28:23

on a property would be that is

28:25

not in your retirement account. So

28:28

think about when you go to the bank and

28:30

you buy your primary residence, you

28:33

know, the interest rate's relatively low. And

28:36

the reason is because if you don't make your

28:38

payment to the bank, well, the

28:40

bank is going to say, not only am

28:42

I going to take the house back, But I'm

28:44

going to damage your credit for seven years

28:46

so that you can't buy another house. And that's

28:48

a big decrease of the risk

28:50

for the lender. And that's one reason why your

28:53

interest rate is so low, relatively

28:55

speaking. Well, when you buy a property

28:57

in your retirement account, you're getting a very different

28:59

type of loan because you

29:02

are not your 401k. You

29:05

are not your IRA. It's a different entity

29:07

and your 401k or your solo 401k

29:10

or your IRA does not have a social security

29:12

number. And so for a non

29:14

recourse loan, which is the type of loan that

29:16

would have to be made in your retirement account,

29:19

the lender is taking on way more risk.

29:22

Because if you don't, if your 401k doesn't have

29:25

a social security number and the 401k

29:27

doesn't pay the loan back, well, the

29:29

bank will take the house and But

29:31

they can't attack your social

29:34

security number. It will have

29:36

no relevance to your personal credit

29:38

score. And so, for

29:40

that, those lenders need to be compensated.

29:42

And as interest rates have, you

29:45

know, gone higher, they were up to, jeez,

29:47

8%, you know, October November of last

29:49

year. You would expect that the

29:52

interest rate that's required for a more risky

29:54

loan for the lender would also go up. So,

29:56

a little bit of background there. All that to be said, the most

29:59

scary part of a non recourse loan is

30:01

the interest rate. Interest

30:03

rates on non recourse loan right now are

30:06

15%. Prior

30:08

to this, they were 12 percent and even at

30:11

one point they were down to 10 percent when

30:13

interest rates in the economy were a

30:15

lot lower. But as interest rates have gone

30:17

up, non recourse loans are

30:20

now at 15%. Non

30:22

recourse loans also require

30:24

50 percent down, so 5

30:27

0 percent down. Whereas, when

30:29

you're buying a property outside of your retirement

30:31

account, you'll be able to get

30:34

loans and put down anywhere from

30:36

a minimum of 20% up

30:38

to typically 30 or 35 percent

30:41

is pretty, pretty standard for outside of

30:43

the retirement account. So, all these things

30:45

are a part of investing in

30:48

your retirement account and using debt This

30:50

is just how non-recourse loans work.

30:52

And I know that's new for some people. You

30:54

know, but Glenn, when you

30:56

started down the process, and I think it was

30:59

your first, I think it was, I, I think it

31:01

was three of the first five properties

31:03

you purchased, had non-recourse loans on

31:05

them, correct? That's right.

31:08

You, you walked in knowing similar things,

31:10

right? Knowing that interest rate was gonna be higher and higher

31:12

down payment, why did

31:14

you make the decision to do a non-recourse loan

31:16

knowing those things?

31:17

At the time, I was still,

31:20

working pretty regularly and

31:22

wanted the tax deferment ability.

31:25

So, aside the

31:27

401k, let me

31:29

do that. And to the best

31:31

of my knowledge, you can

31:33

only get a non recourse

31:35

loan inside of the

31:38

retirement accounts. Is that correct, Greg?

31:40

Correct.

31:41

That's right, that's right, because your

31:43

lenders, by definition,

31:46

need to be willing to make a loan with no

31:48

recourse. Recourse means

31:50

they can't go after your retirement, go

31:53

after your social security number if you don't pay the

31:55

debt back. So yeah,

31:57

if you are getting debt, if you're getting leverage

31:59

and you're buying properties inside your retirement

32:01

account, you won't be able to go to Bank

32:04

of America or a traditional bank

32:06

and say, hey, can you give me a loan in my retirement

32:08

account? They'll look at you like you have. three

32:10

heads. They'll say it's not possible.

32:13

It is possible, just not through them. And

32:15

that's where, you know, a non recourse loan comes into play.

32:18

So, the interest rate's a lot higher

32:20

than we all want it to be, but

32:22

we need to train ourselves to think

32:24

about the outcome here

32:27

and understand if the risk

32:29

is worth it for us to get to the desired

32:31

outcome. For Glenn, his

32:34

outcome was that he wanted to be riding

32:37

motorcycles five to ten

32:39

years after he started his investment portfolio

32:41

with JWB and he wanted those assets to be

32:43

paid off free and clear and he had a certain

32:45

set, a certain bag of money,

32:48

let's call it, And he said, I want to get as many

32:50

assets as I can in that portfolio.

32:52

And I want it to be owned free and clear when

32:55

I'm, you know, five to 10

32:57

years down the road. And because

33:00

he had that investor mindset, he went and he said, okay,

33:02

well, I understand that my interest rate is

33:04

higher than what I want on these non recourse loans,

33:06

but we can put a plan together

33:09

to get those assets into my portfolio

33:11

and then get those things paid off quickly.

33:14

And we were able to pay those things off. Geez.

33:16

I think it's been six or seven years

33:19

since you took those loans out, Glenn. So

33:21

it's not like those loans need to be in place for 30

33:23

years. It's not like we have to pay 15

33:25

percent for 30 years. It can be used as

33:28

a tool. But I want to show you a place

33:30

where investing with a non

33:32

recourse loan probably doesn't

33:34

make a whole lot of sense for you as

33:36

an investor right now. And

33:38

so now we'll get to the numbers on the screen. So

33:41

what I'm showing here is if we look at the top section

33:43

here, this is if

33:46

you were to come to JWB and

33:48

want to buy one property inside

33:50

your retirement account, let's say that

33:52

you had about $130,000

33:54

in a 401k that you rolled

33:56

over from a previous 401k into

33:58

a solo 401k, and

34:01

you said JWB, I'd like to

34:03

to buy a property in my retirement account. Well,

34:06

we would start to run some numbers like this, okay?

34:08

We would see that you could purchase one

34:10

property. 50 percent down would mean

34:12

that you come out of pocket about 130,

34:15

000. This would include your down payment and

34:17

your closing costs and all that good stuff.

34:20

So you technically could do it from that perspective.

34:23

But then we're going to look big picture and we're going to say, okay,

34:25

well, what is your return on investment?

34:28

Your initial return, your initial investment would be

34:30

about 127, 000.

34:32

We'd be able to generate significant

34:34

capital over 280,

34:37

000 over the next 20 years. To

34:39

put your portfolio value at about 407, 000

34:42

estimated by that year 20. But

34:45

we're looking at how much is your money working for you.

34:48

And your total return on your investment, your internal

34:50

rate of return, is just 4. 9%.

34:52

I'm here to deliver better returns than 4. 9%,

34:55

generally speaking. It's not the worst.

34:57

It's a consistent asset. But that's

35:00

not everything. exciting. For me, it probably is not exciting

35:02

for you. So that's the first thing we're going to look at.

35:04

We're going to say, well, I don't know.

35:06

I don't know about that. The next thing,

35:09

and probably the more important reason why it's probably

35:11

not a good fit for you as

35:13

a client right now, is this

35:15

year one cashflow number. You

35:17

know, we talk about assets

35:20

that pay for themselves every single month

35:22

and every single year and that are assets

35:25

because we have more income going

35:27

in than expenses going

35:29

out. And so we always look at year

35:32

one cash flows for our clients. And for most

35:34

clients, we want that to either be

35:36

break even or slightly positive. It's

35:38

okay to go negative for a certain client,

35:40

a certain plan. We're not afraid to go negative.

35:43

But they have to have other income sources

35:46

to offset whatever negative and there needs to

35:48

be a reason to go negative. You need to have a better

35:50

return on investment potential. So it's

35:52

okay here. But when I look at 7,

35:55

000 negative in year one, I don't like that. And

35:58

so if anybody was to come to my team

36:00

and say, I've got 130, 000 in my

36:02

retirement account. I want to buy non

36:04

recourse. We would politely say, hey listen,

36:06

we don't think this is the right thing for you because

36:08

of kind of the path that I've just walked you down right

36:11

here. Now, there's other investments that

36:14

you could do with JWB. There's

36:16

private lending with JWB where

36:19

especially in your retirement account, that can work quite

36:21

well. So we would probably go down that path there.

36:23

Glenn, anything that you see here that

36:26

I didn't cover or something

36:28

to point out, or do you think that was, that

36:30

was largely kind of what you would have said

36:32

as well?

36:33

Spot on, Greg. So

36:36

then I said, all right, well, let's come up with a

36:38

scenario where a non recourse loan

36:40

at 15 percent could

36:43

work for you. And so that's

36:45

what this slide is showing. So now,

36:47

same things that we're looking at, starting

36:50

out with the purchase details. Well, now

36:53

we're going to buy one property inside

36:55

your retirement account with one

36:57

cash purchase. And

37:00

cash purchases have

37:02

a tremendous amount of

37:04

net rental income coming in,

37:06

as well as the other profit centers. But

37:09

that's where cash purchases shine.

37:11

So we're going to put a portfolio together.

37:13

We're going to have one cash purchase in

37:15

your retirement account. We're going to have one

37:18

non recourse loan. This might be

37:21

some, somebody here is listening, where let's

37:23

say you just left a job and

37:26

let's say that you had 400,

37:29

000 in your 401k

37:32

with your previous employer. And

37:34

you're saying, I want to be able to have

37:36

the options and the control and

37:38

the flexibility to invest in what I want

37:41

to invest in now that I'm no longer

37:43

a part of that previous company, just

37:45

like Glendon. Well, if you came to JWB

37:47

and you said, listen, I've got 400,

37:49

000 in this old 401k, how

37:52

can I build a better portfolio? This

37:54

is a path that we may go down with you.

37:57

So if we bought one cash And

37:59

one non recourse loan, that

38:01

would put your total portfolio investment

38:03

to about 358, 000

38:06

here. The cash purchase, I'm using

38:08

a purchase price of, and closing costs

38:10

included, of around 230,

38:12

000. And again, for the non

38:15

recourse loan purchase, you're able to put

38:17

50 percent down, so your

38:19

total out of pocket is about 127,

38:22

000. Now,

38:24

over 20 years, The numbers

38:27

start to change. Your total initial

38:29

investment of about 358, 000.

38:32

We bring returns through this asset and

38:34

through JWB's management of over

38:36

880, 000

38:39

over 20 years. And that brings

38:41

that total portfolio up to over

38:43

1. 2 million by year

38:45

20. That's what it would be estimated at

38:47

based on historically accurate data.

38:50

assumptions. And

38:52

that means your money is performing a lot better

38:54

than what it was previously. It's performing at

38:56

7. 1 percent

38:58

for a return on investment each and every

39:01

year. And getting 7 percent in your

39:03

retirement account with the consistency that comes along

39:05

with owning real estate, I'll take that all day

39:07

every day. Most people don't have that

39:09

and certainly don't have the consistency or

39:11

the income that's generated in their

39:13

retirement accounts. And then

39:15

of course, we're looking at year one cash flows. And now

39:18

because we have the influx. And

39:20

the large amount of net rental

39:22

income from the cash purchase That

39:24

offsets the negatives that come

39:26

from the non recourse purchase, and

39:29

year one cash flows are over 3, 000

39:31

for this portfolio that we're talking about.

39:35

So two examples here. The first one, just

39:37

a non recourse loan, doesn't typically

39:40

make sense today because of the

39:42

net rental income and because of

39:44

the lower return on investment. But

39:47

non recourse still does have a place.

39:49

It has a place in a combination

39:51

type portfolio, where if you combine

39:54

it with cash and non recourse,

39:56

you can set yourself up for a better retirement

39:59

through rental properties. How'd

40:01

I do there, Glenn? Perfect. Cool.

40:04

So here's the big win, and this is what Glenn is living

40:06

out, right? The goal here is to

40:08

use the debt to your advantage, and

40:11

then let's pay off that high interest debt

40:13

as quickly as possible, either with

40:16

the cash flows that are happening every month

40:18

and every year, or even other

40:20

sales of other assets. But whatever

40:22

we can do, let's keep that debt for that non

40:24

recourse loan there, For as short a period

40:26

of time as possible, because when we do that,

40:29

we open up a tremendous amount

40:31

of net rental income when you need

40:33

it. When Glenn wants to be traveling

40:36

and all those wonderful places and riding his motorcycle,

40:39

you know, his lifestyle right now needs

40:41

that and he's sitting in a place where it's all paid

40:43

off and you can too. But I wanted

40:45

to show you what it looks like

40:48

and the power of getting more assets

40:50

in your portfolio. And

40:52

here's the way it looks. Thanks. Okay, if you were to invest

40:55

in one cash and one non recourse

40:57

property do that let's say while

41:00

you're relatively young and

41:02

give that 20 years or 30

41:04

years not only do you

41:06

have that one cash property paying

41:09

you a tremendous amount of net rental income.

41:11

But because you use non recourse loans

41:13

to your advantage, you now have two assets

41:15

that are fully paid off. And so looking at these

41:17

two assets that are fully paid off after

41:19

the debt has been paid back, this is how

41:21

it starts to change your life. And this

41:24

is why we believe that retirement

41:26

is best suited with a better asset, like

41:28

rental properties investments. So

41:31

year one cash flow starts at 3, 300

41:33

combined of those two purchases. But

41:36

by year 30, that non recourse

41:38

debt has definitely been paid off. And

41:40

look at the amount of net rental income

41:42

that you're expecting in retirement

41:45

when you need it. 50,

41:47

000 just for that year. And

41:50

next year, it's going to grow on top of that.

41:52

And the year after that, it grows on top of that.

41:55

And so hopefully for everybody, this just reinforces

41:57

when you buy rental properties, it's not going

41:59

to change your life from a net rental income perspective,

42:02

and really from all five profit centers. It's not going to change

42:05

your life that day. But

42:07

give it 10 years. Give it 15

42:09

years. Give it 20 years. It's

42:11

that cash when you need it

42:13

that really does make life

42:16

either a little bit easier or a whole

42:18

lot easier, especially as you get closer

42:20

to retirement. All

43:03

right, Glenn, so I think now would be a great

43:05

time to dive into your personal

43:07

journey. You know, you're okay with that?

43:09

Let's do it. All right. Yes.

43:10

And so for everybody this is something that

43:12

we love to do is to put the, kind

43:15

of the big picture together for all

43:17

the clients that are courageous enough to jump in

43:19

the hot seat like Glenn. And

43:21

what I do is I put an entire port, I put

43:23

their entire portfolio together and I look at

43:25

all five profit centers for them. So

43:28

Glenn's never seen this reporting. He

43:30

of course is a JWB client and we have our monthly

43:32

reporting, but it doesn't show

43:35

the home price appreciation.

43:37

And you know, that's a big component, like

43:40

we talk about. So Glenn's going to see his total

43:42

returns for the first time here with

43:44

all of you. And Glenn, thanks for being a great sport

43:46

and being open to sharing your success here.

43:49

Oh, that's great.

43:51

So here are the four, the four properties that

43:53

you still have under management with JWB. and

43:56

you can see that the one in 2017

43:59

was purchased with all cash. Then

44:02

the next two in 2018 and 2019

44:04

were purchased with those non recourse loans. And

44:07

then through us managing the portfolio together

44:09

to pay off the other ones and sell some of the assets,

44:11

you were able to purchase another one in 2022. And

44:14

I think you purchased that one with all cash. Is that, that

44:16

line up correctly? That's how it worked out.

44:19

There you go. So, we've got

44:21

a great example of cash. and

44:23

non recourse and portfolio management here

44:25

with Glenn. And here's

44:27

how it's shaken out, my friend. After

44:30

your, or through your seven years of ownership

44:32

with and of those properties and management by

44:34

JWB, your return on

44:36

investment year over year in

44:38

your tax deferred account, so you haven't paid

44:40

taxes on it yet, you've earned

44:43

10. 24 percent returns

44:46

each and every year and a total

44:48

profit of over 305,

44:51

000. Pretty cool, huh? That's

44:53

Awesome.

44:56

And look at how we broke that down. That's why

44:58

it's so exciting, especially to be able to share these stories

45:01

live with all of you and to have our

45:04

Not Your Average Investor community

45:06

come into the hot seat with me. When

45:09

we start to look at how we got there, most

45:12

people pay no attention. They,

45:14

they give no credit to home price appreciation,

45:17

but we try to show people is over

45:19

a full market cycle. You can count on

45:21

home price appreciation. If we didn't

45:23

count on home price appreciation, Glenn, do you think we'd be

45:26

missing the boat a little bit? And when it comes to your portfolio?

45:28

Just a bit.

45:31

Over two, well, 224, 000

45:34

of home price appreciation, just

45:36

in those four assets that Glenn currently has

45:38

under management with us. In reality,

45:40

it was higher than that because Glenn made profits

45:42

on the properties that he sold as

45:44

well. So this is actually not

45:46

reflecting that, so it'll only get better and better.

45:49

Speaking of the other profit centers, You have

45:51

21, 403

45:53

of principal paydown. Now, what that's

45:55

reflecting is those non recourse loans

45:58

that Glenn took out for those properties. The

46:01

principal that gets paid back every

46:03

single month increases

46:05

his equity, increases his return

46:08

on investment. And so, that

46:10

really adds up. That's why we talk a lot

46:12

about these five profit centers and principal paydown is

46:14

one that many people don't know about. Forget about

46:17

another one that people forget about, the tax

46:19

savings component. Although I've got to

46:21

be honest with you, Glenn, this one, I

46:23

know for a fact here, this one,

46:25

I think I messed up the numbers on

46:27

it because it

46:28

looks a little well,

46:30

well, I was going to say I messed up the numbers

46:32

because I forgot that your most recent purchase

46:35

was in your retirement account. So

46:37

when all of your properties are purchased in

46:39

your retirement account, the tax

46:42

savings actually is already built in.

46:44

So we don't claim credit for additional tax

46:46

savings there. But when you're saying

46:48

it's a little bit low, you're right, because you've saved

46:50

so much when it comes to tax savings.

46:53

It's because you bought it in your solo 401k,

46:55

not specifically about the tax savings.

46:57

So. That's on me. That's on

46:59

me on this one. I forgot that most recent one was in

47:01

your retirement account. That tax savings component

47:04

should be zero there. And the only reason,

47:06

especially since the appreciation

47:10

from the two that you bought back is not

47:12

included in this

47:14

exactly that I didn't

47:15

pay taxes.

47:17

And that was a lot more than 4, 287,

47:19

so, it's a win, it's actually probably

47:22

underrepresented, but you know what, that's on me,

47:24

right? One of our core values at

47:26

JWB is to fail forward and empower people

47:28

to make mistakes, and I live that out every single

47:30

day, so. the

47:33

one that I know is accurate there, too, and

47:35

I know is, you know, something that

47:38

has been, really impactful for you is the

47:40

net rental income. And so over 55,

47:43

510 here of net

47:46

rental income delivered to you through just these

47:48

four properties, again, doesn't include those other two

47:50

that you had at one time as well. So

47:52

if we break down how we got

47:55

to this total wealth

47:57

pie for Glenn, we start to see something.

47:59

And for, for our, friends,

48:01

our veterans of the Not Your Average Investor community,

48:03

you see this every time we're lucky

48:05

enough to have a client on the show with us. It's

48:07

this pie. And I try

48:09

to show everybody the way that you're going to build

48:11

your wealth is not equal.

48:15

It's not equal to each profit

48:17

center. There is one profit center that dominates

48:20

the total wealth pie. And

48:22

that's what you see here. So home price appreciation

48:25

has accounted for over 70 percent

48:28

of Glenn's total wealth

48:31

pie. And what I share with folks

48:33

is And you see this, it's the same

48:36

thing over and over again for

48:38

all of our clients, regardless

48:40

if they started a purchase in 2007 like

48:43

Glenn did, 2015, 2012,

48:46

even before then. If you look over

48:48

time, you're going to see between

48:50

60 to 80 percent of your total

48:53

wealth pie comes from

48:56

home price appreciation. And

48:58

that's why it's so important to pay attention to home price appreciation.

49:01

You need to know what the market that

49:03

you're investing in is expected to appreciate

49:05

at, and the way you figure that out is you look

49:07

historically. What is it appreciated

49:10

at? What are the opportunities

49:12

for more people to want to come and move to

49:15

your area, to your your

49:17

MSA, meaning your region, because

49:20

that continues to drive population

49:22

growth. And the other thing, the

49:24

reason why you need to pay attention to home price appreciation

49:27

is because If you understand

49:29

how this is going to be so impactful, you need

49:31

to buy and hold the asset.

49:33

And that's where the team component comes in because

49:35

no matter how good the profit potential is, if

49:38

you're like average investors, when it comes to

49:40

rental property investing and you don't have great management,

49:42

you're not going to last long enough. You're not going to be in

49:44

it for 10 years. And so when

49:46

you can be in it that long, that's

49:49

when this asset really starts to shine. So

49:52

with all that, Glenn what are your thoughts overall?

49:54

Oh, I'm so thankful

49:57

that, I've walked the

49:59

journey I've walked and that I'm

50:02

with JWB.

50:04

You know, we just love

50:07

serving clients just like you, Glenn. I

50:09

mean, it is. No. You know, when I started

50:11

this company 18 years ago, I was

50:13

like, man, I hope one day that

50:16

somebody will trust me with their retirement

50:18

account. Somebody that worked 30 years to build

50:20

up their retirement account, served in the Merchant

50:22

Marines. It's done all these great things. I

50:24

hope to, to earn the trust of that individual

50:27

at one point. And

50:30

you gave us that trust. You know, we had never

50:32

met prior to you investing with us.

50:34

So you took a leap of faith there. No. And,

50:38

you know, you, you putting your trust in

50:40

us is, is what it's all about.

50:42

And we just love these success stories. We get to do them over and

50:44

over and over again. You guys get to see it here

50:46

on the Not Your Average Investor show. It's,

50:48

it's normal course of business here at JWB.

50:51

That's why we love what we do. So thank you, buddy. Thank

50:53

you for being here today. And thanks for being a JWB

50:55

client.

50:56

One other, probably crazier

50:58

piece. The first two houses

51:00

I bought by seeing them online,

51:03

I didn't even come down to

51:05

physically see them.

51:07

So I'm curious, you're the son of a, of a

51:09

builder, right? You have real estate in your family.

51:12

Did anybody call you crazy for doing that?

51:14

Yeah. A lot of people like You

51:16

didn't go look at the house? I'm

51:18

like, no, they were great videos of it.

51:23

that's a common hurdle for people. What, what would you say

51:25

to somebody who's thinking that same thing that might be on

51:27

the cusp of investing with JWB? What, what

51:29

would you tell them?

51:30

trust JWB, you guys

51:33

are probably one of the most ethical

51:35

companies that I've ever

51:37

dealt with. it's just

51:40

refreshing to know in

51:42

today's world you exist.

51:44

Thank you, buddy. Thank you. it means a lot. It means

51:47

a lot to us. It's, it's who we aspire

51:49

to be. It's the 115

51:51

folks that we have here at JWB all

51:54

using our North star as doing,

51:56

doing right by people. And that's

51:58

really rare in today's day and age. And, and, you

52:00

know, it's easy to do right by people when we get to serve such wonderful

52:02

clients. So thank you, buddy. All right, Glenn, we've got

52:05

a number of questions here to round out. If

52:07

anybody has any additional questions, go ahead

52:09

and fire them in right now and

52:12

and we'll send us out on a high note here. So, we

52:14

have one question and

52:17

the person says, what do you recommend

52:20

if I am less than 10

52:22

years away? Glenn, how would you answer that? If

52:24

somebody is thinking about investing in rental properties

52:26

and are less than 10 years away from retirement,

52:29

what, what would you say to them? I

52:30

mean, it's the time to start. I

52:34

was, less than 10 years away

52:36

myself. So, don't

52:38

wait, jump in.

52:40

So, when I talk about how the,

52:42

the asset works so well over a full market cycle,

52:45

and I talk about how holding for the long

52:47

haul is important, I think people in

52:49

their minds start to say, Oh, well, if

52:51

I don't hold on for 10 years, then it doesn't

52:53

make sense. And that's absolutely

52:56

not the case. But what you got to compare is,

52:58

how does this asset work compared

53:01

to your alternatives today,

53:03

one year from now, two years from now, three,

53:06

four, five, six years from now. All

53:08

I'm saying is you get the best and

53:10

most upside by hanging in for a full

53:12

market cycle. But if you look one

53:14

year from today, two years, three years, five years,

53:17

and you compare it to where you're investing right now,

53:19

very likely that it's going to be better

53:22

than it And what you're investing in one

53:24

year from today, two years, three years, four years,

53:26

five years as well. And

53:28

if you're curious about that, start

53:31

to actually just run the numbers. Look

53:33

at what your money is investing in today.

53:36

Look at what it's done over the last three years.

53:38

And then you can look at the numbers that we've just shared

53:40

here with Glenn's portfolio, where

53:42

I would encourage you to reach out to JWB.

53:45

We can sit down and show you the returns that we can

53:47

generate for you. That's where

53:49

you can reach out either just reach out to Cody here

53:51

and she's happy to facilitate a call for you, or

53:53

you can send an email to info at jwbcompanies.

53:56

com, or you can go to chat with

53:58

jwbcompanies. com. But

54:00

start with looking at what are you comparing it

54:03

because I think what you're very

54:05

likely to find is that One year

54:07

increments, three years, five year increments, real estate

54:09

still wins. Great question.

54:11

We, we really, really appreciate those. A

54:14

longtime client, Mike Foster and Mike, I

54:16

just personally wanted to say, thank you, Mike,

54:18

you sent in one of the most incredible testimonials

54:21

that we read aloud in the team meeting

54:23

on Tuesday. It was the testimony that you gave

54:25

about Jamie Crawford and our

54:27

private lending team. So thank you so much

54:29

for sending those testimonials in. Means

54:32

the world to Jamie and to, and to us. So thank

54:34

you. And Mike's question is for those with funds

54:36

in a self directed traditional IRA where

54:39

potentially enormous UBIT is not

54:41

avoidable after selling, would you

54:43

still recommend investing in property with

54:45

a non recourse loan there as

54:47

well? So I know Glenn, you're not really familiar

54:50

with UBIT. So I'll take this one. Right.

54:52

And Mike, I

54:54

think this one is that classic

54:56

answer that is that we

54:58

throw out there a lot because it's real. It's

55:01

is, it depends. It depends

55:03

on your tax situation. It

55:05

depends on your investment alternatives.

55:08

And I think that's where, you

55:10

get on the phone. you, you know, everybody here

55:12

at JWB Mike. So I think

55:14

this is a great opportunity for us to sit down

55:16

and just kind of map out the numbers with you.

55:19

And then of course, for you to, you know, bring

55:21

your own tax consequences

55:23

and your knowledge of your own tax situation

55:25

to it, and we figure out the best answer

55:27

for you there. So I think, I think that's the classic answer.

55:30

It depends, my friend. We've got

55:32

a long time client, Vic Mudrick saying

55:34

and asking a question, how do you handle RMDs,

55:37

which are required minimum distribution. So how

55:39

do you handle RMDs when required

55:41

for the solo 401k, especially

55:44

if you don't have another retirement account

55:46

to pull that from? Are you familiar with

55:48

required minimum distributions, Glenn?

55:50

I know of them. I'm not quite

55:52

that old yet. So,

55:55

I have not had to deal with those, but

55:57

I am starting to take distributions

55:59

already. So that

56:02

probably will not be an issue

56:04

for me.

56:05

Required minimum distributions are something that needs

56:07

to be considered again with the planning process.

56:09

It's something that You know, first, you

56:11

want to reach out to your CPA, that,

56:13

that, you know, due diligence is really

56:16

on you because we, we don't know your tax situation

56:18

and we're not CPAs ourselves. So

56:20

start there, but when you come to

56:22

JWB and you say, okay, I want to put

56:24

my portfolio into rental properties,

56:27

I might be closer to 70 or

56:29

72 as required minimum distribution

56:32

start to become more and more of a thing and

56:34

you know what those required minimum distributions

56:36

are going to be. It's very easy for us to put

56:38

a plan together to make sure that there's enough

56:41

assets to be able to do that required

56:43

minimum distribution. So it all comes back to the planning

56:46

and and so Vic, I would encourage you to

56:48

reach out to your portfolio manager

56:50

here at JWB and if you're considering

56:52

adding more properties in your retirement account, we

56:55

can plan for that and set you up for success. All

56:57

right, Glenn. Well, thank you so much.

56:59

I want to say thank you to everybody for

57:01

being here on the call. I thought it was just

57:03

incredible to have Glenn here. I

57:06

thought the questions were incredible. Hopefully

57:08

you all got some information and value

57:10

out of this, especially if

57:12

you were putting yourself where Glenn was seven

57:15

years ago and trying to find a better

57:17

way to build his retirement account. I

57:20

just think there was so much to relate to there, Glenn.

57:22

Thank you so much for being here. Thanks for sharing

57:24

your story. And you

57:26

enjoyed it. I had a great time. Yeah,

57:28

we did too. We really do. And thank

57:31

you to all of you. It's never lost on Pablo

57:33

and myself that you all spend so much

57:35

time, give so much of your own time and your,

57:37

knowledge and just the good people

57:39

that you are to welcoming everybody into the community.

57:42

So thank you all for being here and spending an hour

57:44

with us. We're really excited for next Tuesday's

57:47

show. I'm sure all of you have heard

57:49

or read articles or heard podcasts on

57:51

it, but the National Association

57:53

of Realtors Settlement Bombshell

57:55

Settlement is really going to change

57:58

the real estate investing industry, the

58:00

real estate industry overall. And so we're

58:02

going to do a deep dive on that on

58:05

Tuesday's show. Pablo will be back in the house.

58:07

I hope you all will be as well.

58:09

And until then. what advice do you have for everybody,

58:12

Glenn? Don't be average.

58:15

Thanks everybody, see you later.