If you feel like you can retire on mutual funds and other crappy investments alone, think again! Okay, so the truth is you probably can… But another truth that you might not see yet is that you’re going to have to live a pauper life if you’re going to rely on your 401(k). There’s only so much you can “gain” from pensions, and it’ll never be enough if you want to retire a FREE man/woman. Even when you’re saving boatloads of cash from your current job, everything will get depleted sooner than you think once you retire. Before you know it, you’ll have to say “buh-bye” to the lifestyle you might be enjoying today. Is that a future you’re willing to risk? Or are you going to take a leaf out of Chris Miles’ book today? Meet the leading Cash Flow Expert for Real Estate Investors and Anti-Financial Advisor, Chris Miles! Having become financially independent TWICE by the time he was 39, Chris speaks from experience when teaching real estate investors how to quickly create cash flow and LASTING WEALTH! Chris is all about achieving TRUE Financial Freedom by turning transactional wealth into passive wealth; he’s about making your money work harder so that working becomes optional for you. Where’s your money locked up? Is it sitting in savings earning “0-point-nothing” percent? How do you unlock your money and get it to pay for your life of freedom? What investment vehicles are actually WORTH investing on? Tune in to learn more about the hottest and most relevant information on real estate investing! Thank you all for listening and I will see you on the next episode. When you are ready head on over to https://billyalvaro.com or go grab your tools to help you at https://billyssecrets.com
If you feel like you can retire on mutual funds and other crappy investments alone, think again!
Okay, so the truth is you probably can…
But another truth that you might not see yet is that you’re going to have to live a pauper life if you’re going to rely on your 401(k).
There’s only so much you can “gain” from pensions, and it’ll never be enough if you want to retire a FREE man/woman.
Even when you’re saving boatloads of cash from your current job, everything will get depleted sooner than you think once you retire. Before you know it, you’ll have to say “buh-bye” to the lifestyle you might be enjoying today.
Is that a future you’re willing to risk? Or are you going to take a leaf out of Chris Miles’ book today?
Meet the leading Cash Flow Expert for Real Estate Investors and Anti-Financial Advisor, Chris Miles! Having become financially independent TWICE by the time he was 39, Chris speaks from experience when teaching real estate investors how to quickly create cash flow and LASTING WEALTH!
Chris is all about achieving TRUE Financial Freedom by turning transactional wealth into passive wealth; he’s about making your money work harder so that working becomes optional for you.
Where’s your money locked up? Is it sitting in savings earning “0-point-nothing” percent? How do you unlock your money and get it to pay for your life of freedom? What investment vehicles are actually WORTH investing on?
Tune in to learn more about the hottest and most relevant information on real estate investing!
Thank you all for listening and I will see you on the next episode. When you are ready head on over to https://billyalvaro.com or go grab your tools to help you at https://billyssecrets.com
[00:00:00] BILLY: What's going on everybody. This is Billy.Alvaro the unstoppable BA this is episode 52. Today. I'm interviewing a gentleman from Utah, Chris Miles owns a company called money. Ripples. Chris is a unique individual. He became financially independent by the age of 39 and his niche. What he does is he teaches people on how to put their money to work invested passively so they can one day retire financially free. He considers himself the anti financial advisor. And after you listen to this interview, you'll understand why enjoy guys and make sure you put your money to work. So one day you no longer have. to
[00:00:35] Welcome to unstoppable real estate investing wealth. My name is Billy Alvaro, AKA the unstoppable VA former billion dollar mortgage banker gone bankrupt turned professional real estate investor where each week you'll learn the tools, strategies, systems, and secrets myself and other highly successful real estate investing entrepreneurs use to start, grow and scale [00:01:00] their businesses, creating massive profits and how you can too. And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started.
[00:01:14] What is going on, everybody, Billy Alvaro the unstoppable BA with another episode of unstoppable REI wealth. The name of the game is building wealth. And if you want to do it, there's no better podcast. And listen to this one because we didn't give you behind the scenes. Look at how my guests build their. The tools, tips, tricks. They use the strategies and systems to deploy that, get them from where they are, to where they, where they were, where they are today. And today I have a gentleman by the name of Chris miles, owns a company called money ripples, and he's also a podcast like myself, the Chris miles money show, anybody that talks about money is a friend of mine, brother, welcome to the show.
[00:01:50] CHRIS: Hey, it's a pleasure to be here, Billy.
[00:01:51] BILLY: Appreciate you coming on. So give me some insights of exactly what you do with your money ripples company
[00:01:59] CHRIS: yeah. We teach people [00:02:00] how to create passive income, right? So you work because he wants to not because you have to be right and we want you to be able to be financially free versus just, you know, actively investing, you know, that kind of thing. Right. Because active investments. Great. But you know, I'm part of a high level mastermind group. I know, you know, as well that there's guys making millions of dollars, flipping wholesaling and doing all kinds of stuff. But if that business were to stop today, They would be just as broke, look at scrambling for work like anybody else. Right? Because they don't have that passive income coming in. Those multiple streams of income, you're transactionally wealthy, not passively wealthy. So that's what we do. We teach people how to become passively wealthy, you know, where you have that true financial freedom, you work by choice or work on. Um, as well as getting people, their money to really work for them harder. So they'll have to keep working so hard for that.
[00:02:42] BILLY: I love it. So, so who would be your ideal client? Like, what is your ideal for your avatar? What do they look like? Where do they live? What do they do? What do they earn? What are their, their wants their needs desires.
[00:02:53] CHRIS: Yeah. Generally they're either like high paid professionals, you know, like it managers, we get a lot of it, people that come to us because they're [00:03:00] always looking for something unique. Right. You know, we get dentists, pharmacists, chiropractors, you know, doctors, you name it. I mean, people that are usually making high-income either in their business or they're as an employee. But they're saying, okay, I've got this cash, you know, I'm the Dave Ramsey poster child, you know, in the sense that I've saved my money, I'm not blowing it all and go into debt super bad, but I'm still not financially free. Dave Ramsey was wide to me. I'm not free. What the heck can I do? And, uh, and those are the kinds of people that we usually help because saying, wait, let's turn this around to where your net worth, you know, which is typically worthless, unless it's actually paying you real cashflow, like real residual or passive.
[00:03:35] BILLY: All right. So I like it. And so your high paid individuals, your entrepreneurs that you're looking at, business owners, people that have have a high income base, but they have no actual cashflow coming in on a regular.
[00:03:47] CHRIS: Yeah, correct. Yeah. They're making at least a few hundred thousand a year and they're saying now what?
[00:03:51] Right.
[00:03:52] BILLY: Okay. So they come to you, they contact Chris miles at money rebels. What do you do? What do you actually take them through to get them, I guess, [00:04:00] indoctrinated into your business? Like, what does that look like
[00:04:02] CHRIS: yeah. If they go from the consulting side of things, right. Really the first thing we're doing is looking at where their money's in prison. Right? Where's it all locked up, you know, do we have money sitting in savings, earning point nothing percent, right. Do we have money sitting in the stock market where you could lose it? You'll overnight potentially, you know, like, you know, are you, are you gambling with your money? I talked to a guy yesterday. That's doing, he's trying to diversify, but he diversifies in the same freaking places. Like it's all stock-based type stuff. Even some crypto. But he's like, he's pretty much putting anywhere where he's just trying to throw spaghetti on the wall, hoping that it'll work. And, uh, the truth is we want to get to actually unlock it, you know, is it stuck in equity in your house? You know, do we get that money out of equity? Get it working for you that can not only pay your mortgage for you, but maybe we start to create more passive income. So you could actually retire in the next. Three to five years if he chose to. So that's what we're really doing is we're really just trying to unlock and figure out where the money is and come from a different angle where people just don't see it because they all come from that day Ramsey saver mentality, right? They're all taught to [00:05:00] save everything, spend nothing, save it forever in some crappy mutual fund. And then hopefully someday that might have something, but I was that financial advisor 20 years ago. And I'll tell you, I've seen the evidence. It doesn't work. And if the evidence of the clients aren't proof enough for you look at the financial advisor. Because I worked with guys that were working in my firms. It's the late seventies, right. Late seventies. And they still can retire off of those mutual funds. If the only people that actually felt like they could retire were the ones that had commissions paying them renewals. That was it. Nobody could retire off of those, those freaking mutual funds, 401ks and IRAs. It's virtually impossible unless you live a proper life. And for my people, that's not the kind of life they want to live. They want to live free
[00:05:42] BILLY: I love it. And everybody wants to live free financial freedoms. The name of the game, not just with money, but with time with your life, with your health, everything. If you have a full holistic 360 degree view of being free life is wonderful. So I want to go into the dice of the strategies, the vehicles that you utilize with the [00:06:00] people who are coming into your, to the, to the money ripples, what does it look like? What are the vehicles that you're utilizing to give people financial freedom through cashflow?
[00:06:08] CHRIS: Yeah, it's going to be whatever vehicle tends to work best with what they want. Right. Like for example, you know, one vehicle we look at as like turnkey, real estate investing. Um, again, I'm not opposed to them actively managing the property if they want to do it, but I don't want them to create another job because most of them already have work. They already have jobs. They don't need more time. To spend on something. So we look at like turnkey real estate, you know, can they own the real estate without having to manage it and deal with tenants? You know, so having a property manager, you know, doing things with syndications, you know, we deal a lot with that. You know, whether it's in apartment buildings, self storage, you know, even oil, mineral rights, we've done things with that as well to help create cashflow for people franchises. I actually had one client that they were active real estate investors and said, Hey, we want to diversify away from real estate. And so we actually got them. They just had their open house last month, where they opened up a new line. Here in the state of Utah. So they're there now got that thing up and running, like high-tech kind of laundromat thing. [00:07:00] And, and they've got a franchise, a certain to get them paid, you know, and they start earning residual income from that too. So all kinds of ways you can do it. I mean, even partnerships, like I, I partnered with a guy recently and I have several, my clients do the same thing where he's doing land flipping. Basically he's doing, you know, raw land seller financing, flipping things like that. We're just partnering on the deals. 70, 30 split, um, already they've made me about a 70% return on my money in the last three months, you know, so definitely going to stop that, but it's primarily going to be real estate or some real asset based type of thing. I even show them how to double dip, right? Like how do we get your money to pay you twice? You know? So we do that with like life insurance, you know, how we use whole life to get it to double dip, not the expensive stuff that you usually see out there, but like, how do you get as dirt cheap as possible? So that you can actually make a spread of two, 3% on top of the returns already earning in those passive incomes. So, you know, if somebody's doing turnkey and they're getting 12% cash and cash return, we add that strategy with it. We usually add another two or 3% a year on top of the 12th percent [00:08:00] using the same freaking dollars they would have been using. Anyways.
[00:08:02] BILLY: Smart, very smart. Chris, you have a very diverse background. I love this little niche that you're in because like, you're just, are you marrying the people that have the money with deals like you going out and actually, do you have a backend group that you, that has the deals that's doing? The long-term single family, turn keys, the apartment investing the syndication. So is that what you're basically doing? Marrying the two
[00:08:23] CHRIS: exactly. Yeah. We're a connector, a strategist and a connector, right? Like we're really just helping them create a strategy, connect them with the deals. The only thing we don't do is we don't say, go and invest here. or invest there right now. We'll narrow it down and say, here's the, for your goals, if it's growth or cashflow, whatever you're trying to create. And then the near future, we'll try to say, here are the ones you should focus on looking at versus these others, which don't fit. Right. But for the most part, we're not telling people, we're saying hey you know, you ultimately make the call about where you decided to invest, but here are the places that will give you the best results based on the goals you've got.
[00:08:56] BILLY: Got it. So you're not steering them. You just give me ideas, you're [00:09:00] vetting out and saying this group over here, I wouldn't recommend these solid groups of four. Definitely take a look at them, but you're not going through and recommending and saying, Hey, put your money here. You're going to get your return of X
[00:09:10] CHRIS: exactly. And even like, you know, I got a lot of friends in, in our mastermind groups and stuff that, you know, they do short-term lending. Right. They do things where they're saying, Hey, I'm flipping these properties or I'm doing wholesale deals any quick cash. Great. You know, I have a lot of clients that say, cool, we'll do that. You know, paying us 10, 12 plus percent a year. Yeah. We'll take it. We'll definitely do those deals. So that's, that's the cool thing. Is this really trying to help you marry them to those, those different people? Right. They have those connections. When you have multiple connections in the, in the right places. Now you get from a place of power. Now can be able to say, well, Hey, I can pick and choose and whatever might be the best in this moment. Let's go that direction.
[00:09:48] BILLY: I love the concept. Now, are you, besides your money ripples and that, that part of party business, do you have any active investments going in or are you strictly passive with everything you do.
[00:09:58] CHRIS: I really just do passive. I used to [00:10:00] do active investing before the last recession, uh, that really sucked, you know, go from millionaire to upside down a millionaire during the recession was fun. Right. And I realized at that point that he didn't want to be an active investor. Not that I have anything against it. I actually think it's kind of cool. But for me, like, I usually don't want to do anything with active investing. I just like to turn it over. I let my money work for me and just be a teacher, which is why I have my own podcast show like you do. And, you know, I do my own thing. It's just really to educate and just bang that drum, that really financial advice out there sucks. It's not working, has not worked for decades. Why do people keep expecting it to work? Right. So that's kinda where my passion and my drive is going into more on the active side.
[00:10:38] BILLY: Why they not teach this crap at school is my question like there's so many educators like you out there that have some really good value that you bring into the table. And like the kids in school, they don't teach them anything about the real world nothing
[00:10:50] CHRIS: no. Well, they don't get either parents in adults. The vast majority of people just don't get it like we do. Right. Cause we were in this world. I mean, to the outsiders, you know, people that are just [00:11:00] learning about this stuff, or haven't heard of this stuff, they think it's high risk. They think it's gambling. They don't even know if the concept is proven. They still think that the 401k is going to work with them and save them. Right. But the truth is that if you look the vast majority of people, the average 401k only has about $300,000 in it for people in their state. That's people that have probably been max. Some of them been max funding it too, you know, so to say that, you know, they say that this is going to work is, is bull crap, you know, like, but, but there's tens of millions of us out of 300 and almost 50 million people in this country. There's probably, at least I would say. You know, 20, 30 million of us real estate investors out there. Right. Minimum. We've already proven it to work, but yet still people think, oh yeah, but these 200 million people are investing over here in their 401k. So that's gotta be the answer. It's like, you're not really a conservative investors. They will say that I'm more conservative. No, you're not. You're a comfortable saver. You got comfortable because the masses are doing it, even if they're all doing it wrong. That's and that's the problem. I see. That's the thing. I can't retire, [00:12:00] even though I I've been able to re you know, be financially dependent twice, once in 2006, and then the recession kicked my butt. And then again, in 2016, I became financially independent, but I can't stop. I can't just sit around and just be comfortable because of that real reason, I can't stand watching that bad financial advice is out there and people are just falling it. Hook line. Sinker
[00:12:20] BILLY: So all good information. You're right. I mean, if you're investing in a 401k and you're just putting it into mutual funds, you're leaving a ton of money on the table. We have a lot of people that have transferred their wealth over from. You know, 60, 70% of their savings, then now investing with us, whether it's a syndicated deal or a small fix and flip, or a few rentals that we have together, they'll just putting them on me to work. So one day they no longer have to, and they're realizing that they're earning double digits and the risk is always risk, right? I mean, look, every investment out there, even mutual funds for pricing is a risk, but we mitigate that risk by just looking at. And making sure that the numbers work and nine out [00:13:00] of 10 times 99 outta 100 times, the deal is going to go the way you're thinking. It might be off a little bit here or there, but it's going
[00:13:05] CHRIS: yeah. Absolutely. That's the thing that's amazing because there is so many lies, myths taught out there today, right? I mean, because like you said, double digit returns now, younger people, especially in the millennial generation, they think double digit returns are normal and any market right now. Right. Because they didn't really live through the last recession or last few recessions like we did, for example, I mean, we already have seen a record breaking period of time in the stock market. Right. We have never seen the stock market go up 13 years in a row. Like it has the last record was six years in a row that was in the nineties. You remember the late nineties, right before Y2K. That was the last record. Now we're gone 13 years in a row up in the stock market. And it's been an averaging almost between 14 and 15% of real returns, right? Not even just average, but real returns yet the 30 year average is only about eight and a half percent. Despite this record breaking streak, that takes almost half of those 30 years. It's still only about eight and a half percent from [00:14:00] 19 end of 1991 to the. Now 2021. And I think that's the thing that people don't understand is they're saying, well, no, the market average is 12%. Dave Ramsey said, so it's like, Dave Ramsey is full of crap first. I mean, he teaches stuff that I taught my first year as a financial advisor. And then later realize it was. And he's still teaching that stuff. Like it's true. So you can't buy into that stuff. You know, you can't buy into this horrible myths and lies that the, the, all the financial institutions are teaching people and they've got a lot of money into, you know, like that's, you gotta be careful that that's why, you know, if you're actively real estate investing, if you're doing that awesome, like you're already breaking the norm, you're breaking the status quo. Now the next step is make sure you also have passive wealth too. So you're not just transactionally wealthy, but you're passively wealthy as well
[00:14:42] BILLY: yeah, for sure, brother. So let me ask you this, Chris, when you have a client that comes in, you take you, I'm sure you have some sort of an intake process, right figuring out where they're at, money-wise what they want to do, their risk tolerance and whatnot. How do you actually then yourself and them, I want to just pick your brain. How do you actually earn [00:15:00] fees when they invest? Is there a management fee? Is there a placement fee? Like what does that look like? How does your company earn.
[00:15:06] CHRIS: No, it's just a fixed fee fixed rate fee that we do. It doesn't matter if you have 500,000 assets or 5 million in assets, right. It's it's the same. I've had a few people, especially the ones with 5 million. They're like, yes, this is awesome. Cause I get charged 1%. I'm paying 50 grand a year. Our big thing is like pre-qualifications. If we find at least 200,000 resources for them to deploy. They're a good fit. Cause they'll at least double the return, what they make with us, you know, what they pay us for. So they, if they don't have a couple hundred thousand that we've got other options for them to learn and prepare and grow their money to that point, but to work one-on-one yeah. If they got at least 200,000 between savings, you know, investments outside of the company, 401k right. Even equity in a house that you can leverage and utilize. If you got at least 300,000 there alone, um, we can usually leverage that to make at least 20,000 plus a year.
[00:15:51] BILLY: Are you going out as a financial advisor or? No, just as a consultant when you're
[00:15:56] CHRIS: just as a consultant. Yeah. I mean, I've got a few licenses still left, like on the [00:16:00] insurance side, you know, we talk about infinite banking, all design, those kinds of policies. But yeah, for the most part, I haven't had that security license since 2005 and I realized it was all. So, so I'm not advising people. That's why I'm an anti financial advisor and I teach people to go against that financial advice that's taught and regulated out there. That's really, it's regulated by big companies, right? It's not even so much the government's more big companies in bed with the government trying to lobby and make sure that you guys buy the same old crappy Mexican food of finance, which is called mutual funds, same ingredients, just different names, but they all have the same crappy ingredients, which are mutual funds and stock based type stuff
[00:16:36] BILLY: yeah. Tell me about this. Uh, you mentioned the internet banking, like once or twice. What is this internet baking thing that you're talking about? Is this an investment vehicle?
[00:16:45] CHRIS: It's a savings vehicle. Um, but it's a, it's a, it's an alternate to you using your checking or savings account to go and invest. Even if you're actively investing in flipping, you know, turning money over all the time, it's a different way to get your money to pay you twice. Right? So the vehicle of choice, the [00:17:00] only one that actually works really well with this is a whole life insurance. Now the problem is, cause I learned about whole life insurance. I was actually anti whole life in 2006, but then when I met a bunch of real estate investors, they're all gung ho on it. Right. And so I was like, all right, I'll, I'll pay attention. But I always taught people. Whole life insurance is like one, 2% returns makes no money. It's expensive. Right. What I found was that you could actually design it in a way to use it to invest the problem is that most, even those insurance guys at that time, that taught me that kind of stuff. They would do high, high commissions, high insurance costs in those kinds of plans because they're front-loaded right. So anyways, long story short, like when Dave Ramsey, Susie Orman, all those people say that whole life sucks. They're actually right. If you use traditional whole life that most insurance agent use bad idea. So it's not just about the product or the type, or even just the company, because it's all about how you design it the cool thing is if you designed the right way, where you get the minimum death benefit necessary to allow whatever cash you're trying to put in on a regular basis, right. What you can do is you can turn this [00:18:00] into like this tax-free supercharged savings account right. What it does is this, is that again, there's going to be insurance costs coming out, but you can minimize those quite a bit. Your money goes in there. It's just like a Roth IRA. Think of like a, it's like a tribrid right. It's like a savings account or a Roth IRA in a home equity line of credit, all in one. Right. So think of it this way. Like for one it's liquid. So under the cash that's in there, you can ask. Right away, especially if you design it. Right. Uh, for example, I was just showing you a real estate investor, just, just the other day. He went and got an infinite banking policy with one of those guys. Problem is half of his put in 24,000 a year. Half of it went to insurance costs that first year. Um, I tried to do it where the minimum is roughly about 20% going to insurance costs instead. And that's the most expensive year by the third year it's already paying for itself. So there's no net insurance costs where you're, you're now making more than what you're putting into it. But anyways, I showed him the same thing. I said 24,000 a year. I'm like you put it in 24,000. You'll have roughly like 19,000 from day one. You can leverage and use. Now. [00:19:00] Here's, what's cool about it is that it's liquid for one, by the way, as a bonus, besides the fact that it's, tax-free just like a Roth IRa Rate there's no 59 and a half rule. So you don't have to let it sit there forever. You can access it right away and not have any penalties or taxes on it. Um, you can also, uh, it's 100% protected from lawsuits and creditors in most states. So you can actually have millions of dollars in here and be creditors, lawsuits, even if they win, they can't. Where almost anywhere else you store money, they can, but here's what we actually do. We get a bank line of credit against that money, right? You'll say, well, wait, why would we do that? Well, if they're paying you, let's say 5%, tax-free on that money, right? You're earning 5% of your tax and that money, it starts to build up and pay for itself pretty quickly. Anyways, you can actually get a line of credit against it for 3% with certain. So you pay 3% and you already know, I mean, banks do the same thing to us, right? When they take our money and savings, they end up making more when they go and borrow it. Right. Same thing here. We're already from day one, you know, if you're [00:20:00] borrowing, you're paying 3%, but earning 5% tax-free so already you're netting a 2% gain and that's more like a 67% return on your money, right. Of the interest that. But then you're also still taking that money and investing in. So you can invest at wherever the heck you want. There's no rules like at IRA. Like if you do a softer IRA a, you have to be careful not to, for example, try to buy a real estate that have mortgages on it and things like that, because you can have UBIT tax and things, things of that nature right here, we don't have that issue because you're investing outside. So whatever tax benefits you get from real estate, which are. You keep it, you get all the same tax benefits, but the cool thing is now it's just like having a savings account over here that you can lend against, but it's going to pay you more than what you're borrowing. So you're making 2% over here, plus like you said, you make, especially if you're an active investor, 20% plus over here right now. Awesome. Now you're making 22% said it's 20 or more because if it compounds versus you paying simple interest on the loan, you actually make a little bit more than that. So I showed an example just at a part of a collective genius mastermind. That's out there. And I did a [00:21:00] presentation on this last week where I said, Hey, if you buy a million dollar apartment, put 25% down a quarter million and then you take that cashflow and you reinvest it back in savings. I show them, I said after nine years after paying the taxes on the point, nothing percent for your savings account, you made a whopping 1800 bucks of interest over nine years where using the life insurance, doing the same thing, but instead just getting the quarter million, doing a line of credit against the cash, that's sitting there still growing all in there. Right. I'm actually now I'm making about 145,000 over nine years. So now, so it's like 1800 bucks or 145 grand I think will take the 145 grand. So that's the kind of the big difference there is using that and surprisingly most real estate investors again, because most insurance guys aren't doing it this way. They're trying to tell you use this thing as a retirement strategy, right? Bull crap. Like I've done the numbers. There's no way you can retire off of those things. So why worry about the retirement? If he can use it instead as a short term thing, just start getting double, really doubling your money in a sense, right? Let me be able to get that double dip effect on [00:22:00] our money, where it's earning money in two places at the same time. It's pretty awesome.
[00:22:03] BILLY: And to keep it secure from creditors, I mean, look, that's a, that's a big thing, especially as a real estate investor, you get you're prone to lawsuits. Is there a maximum amount that you can invest annually into the whole life? Or is it capped
[00:22:14] CHRIS: it's kind of capped, but it's kinda not. They'll let you put in up to 25% of your stated gross annual income right now. If you could try to go ridiculous.
[00:22:26] BILLY: When you say stated what does that mean?
[00:22:28] CHRIS: It means like, well, they take your word for it. It's an honor system on that. They don't ask for tax returns with paycheck stubs. Now, if you try to get a really huge, huge policy, now I'm talking about like, give me, let me give an example. I have, I have a client who's a syndicator, right? He buys apartment buildings and whatnot. You know, he's like, I'm going to dump it as much as I possibly. Now his tax returns only shows and making 25 grand a year, but he makes more like 800,000 to a million. Right. But of course he's depreciating the crap at everything. So textures doesn't show him making a lot. So he knows if he tries to go to the insurance company, it's going to be [00:23:00] like the headache to try to prove and qualify for it because he's trying to get over $10 million of insurance. So he can put in half a million a year is when he wanted to put it. But instead we said, you know what, let's just do a quarter million. Is that a quarter million? Yeah. You know, right there, he could still make easily, uh, you know, he could still do it and not have to prove any income prove anything that way. So that's what I mean. They kind of take you on the honor system a little bit. Now, if you say, Hey, I work as a secretary for a company or as a VA and I make 500,000 a year, they're going to call bull right. But you know, if you're an investor, I mean, you could make you be making millions of dollars and they would probably say. Yeah, that we've seen that before. Right? So you can put in up to 25% of that stated gross annual income per year. And the cool thing is that's not even, what's required. You get a window, right? So if you have the max there's no, wherever you set the max at their minimum is going to be roughly about one quarter of that. So if the max a year is going to be about 60,000 a year, right?
[00:23:54] BILLY: So that max minimum, that's what you're setting for yourself for the policy
[00:23:58] CHRIS: correct? Yep. So even if the max [00:24:00] is 10,000 a year, like I showed one guy yesterday, 10,000 a year. Cool. Well, your, a minimum is going to be about 25, 2600 bucks. Right? So it's proportionate based on whatever you want to, how you design it.
[00:24:09] BILLY: And you did the first couple of years of these whole life it's front-loaded and these things are kind of expensive to set up in the beginning
[00:24:16] CHRIS: yeah. If you do, if you do it the wrong way, it ends up all a hundred percent of the first two years, a hundred percent of your money ends up going to cost and commissions and fees, insurance costs. So you don't want that with mine. About 20% goes in the first year towards cost then the second year, it's roughly about 11 or 12% of what you're putting in that year. And then by the third year it's paying for itself. That's typically how it, I mean, again, it depends on if you're, if you're in your sixties, it might take till the fourth year, it pays for itself or whatnot. But for the most part, that's kind of how it works if you design it the right way. Um, and so by year five, so say you're putting in, you know, $50,000 a year, right by year five, you should have just about 250,000 or more by that. So like basically by those fifth, the fifth year is already made up for this [00:25:00] first two years of cost anyways. But again, I don't wait for that year, you know, still you can still use an investor now and make money off of it and double dip with it now. But yeah, that's the cool thing is that, you know, even term insurance, you're like, man, I might pay term shares for the next 20, 30 years. Never die and it's a waste of money, but here it pays for itself within five years, you know? And that's, to me worth it
[00:25:21] BILLY: to your point. I I've been told too that whole life is just all for expensive. It's not a vehicle of choice for a guy like me, but this what you were saying, like, I definitely want to get with you afterwards because it's an interesting strategy. Like extremely interesting to save yourself money, put the money away. Now it is like a rule. If you're not getting the tax write off upfront, you putting the money in, you're paying the tax on it, and then it's growing tax free
[00:25:43] CHRIS: that's correct. Yeah. It's just like a Roth that way, but again, without the 59 and a half rules and all that kind of stuff, 10% penalties. One thing to note though, is it can be a write-off if it's done where the company owns it. Right. Uh, but if you do it through the company, it's not going to be as big of a policy that you want to do. It's it's usually based [00:26:00] off your salary from that company and they figure out what the death benefit is off that. So you can actually do it where it does get a write off, but just be aware of. If you get the write off, up front, just like if you do disability insurance, you know, you have the company pay for it, then you might have to pay on the backend. Like when you die, for example, then that goes to the company that becomes a taxable death benefit, Potentially so, but there are ways to write it off. Um, or if you're using it for business purposes, cause you're using it to help fund something in your business or pay employees like people have done or even buy an office or some things like that. Then you write off the interest. If you borrow it and say it 3% or even as high as 5%, you're like, cool. Well, I'm going to write off the interest. Like I would on a credit card anyways, and now we get a little tax break on that as well.
[00:26:42] BILLY: I love it. And when you, when you did the, uh, when you spoke about borrowing the money, getting the line of credit, borrowing the money and then putting that money. That money that comes into your earning interest on whatever it's syndication putting in death does not have to go back into the insurance policy that morning can actually go to you correct?
[00:26:58] CHRIS: That's right. Yeah. When you, when you [00:27:00] were in returns from the real estate, like you, you can keep it, you can do whatever you want with returns. Uh, the truth is you can do whatever you want when you borrow the money, you don't even have to use it to invest and you don't have to give them a reason. Unlike a heat lock, right. Where they say, wait, why do you want this money? Because they want to reject you potentially, right. You don't have to give him a reason because they know it's collateralized, it's guaranteed. It never loses money. That's the thing there's well, currently it's a 4% minimum. It's going down to like 3% or 2% if you do use the wrong companies, but there's a minimum guarantee. So because banks know that they know that they'll lend you sometimes 95 or a hundred percent of the money in there. And in some cases, by the way, not even require an interest only monthly. So where a healer would require a monthly payment. Um, some of these companies will even say, Hey, we'll, we'll tack on the interest on a daily basis. That total to be three, four or 5% a year, whatever it is. Right. But you don't have to make any payments. So if you're doing a short term lending deal, right? Or are you just trying to do a quick flip, you need six months in before you actually get paid on the money. Great. No problem. They'll charge you interest, but you're not actually gonna have to pay any payments in the meantime, unlike card [00:28:00] money where you are paying points, you know, then you're paying interest and they want to at least quarterly, if not monthly right now, more, at least at the end of the deal, same thing here. It's like the end of the deal. But dirt cheap interest,
[00:28:10] BILLY: I heard you say, yeah, you can borrow 95 to a hundred percent of the value of the whole life policy when you're, when you're you want a line of credit?
[00:28:17] CHRIS: That's correct. Yep. You can borrow that and not make any monthly payments.
[00:28:22] BILLY: Yeah, that's great leverage. That's a great, that is a really cool technique, man. How many people that are in that have gone through money? Ripples? How many people leveraging that strategy?
[00:28:31] CHRIS: Uh, just about all of them at some point, I mean, there's a few people, like if they're pretty tight, like I get some people that have cash, but then they got furloughed during the, you know, during the last little COVID recession. Right. Those people, I just like, Hey, we'll buy cheap term. We can convert to whole life later. Right? If your paycheck, paycheck is not a good fit, I have some clients that are like 69, 70 years old may not be a great fit there. Um, although they might buy policies on like their kids or their grandkids instead. So, uh, almost all of them will do some kind of [00:29:00] strategy with this
[00:29:01] BILLY: really cool. Give me a, let's talk about another, like off the wall type in spit investment strategy that people and listeners might not be aware of. Anything you can think of.
[00:29:11] CHRIS: Yeah. Well, there's a few that just popped to my head now I'm, I'm trying to choose, but I would say off the wall for your listeners, because I'm sure you guys have heard a lot, one that I would say an investment strategy, but doesn't really require money is leveraging your credit card. Right? I would specifically say a credit card. You'd never had late payments on maybe you've had for at least five years. Uh, it doesn't really matter the limit. All of the higher, the limit of the. Um, there are actually companies out there that, that are like tradeline companies, right? That will pay you to have your credit card on their site, where you can add authorized users onto your card. And you might already have done this before. If you have a company you might've added like employees on your credit card, they have a credit card they can use right here, similar, although you don't give the credit card to this complete stranger, right? So there's people brokering deals out there that there's people that want good credit [00:30:00] boosts let me give an example. This is what I did in 2006, when I had very little credit. Cause I was in my twenties. Right. I remember I was trying to buy a Mercedes and I had all the cashflow. I had all the debt to income ratio is good, but I didn't have the credit history. And so I went to my dad and I said, dad, I just learned a strategy. Can I remember that credit card? He let me use in college to buy books. He's like, yeah, I'm gonna get that visa. Can you put me on as an authorized. It's like, why, why do you want it? I'm like, no, I I'm like, I'm not going to use it. In fact, you can ship the card to your own home address, shred it. I don't need the card. I just want the credit history from that one card, because that card, he got back in like March of 1995. Right? So he has me as a user to that card. He gets the card and he shreds it. All he has to do is get my personal information, like my social security number, date of birth, that kind of thing. He gets it there. Well, now the next month that credit card shows up on my credit report as if I had it since 1995 the credit score jumped up 23 points the next month, right? So there are people out there, especially as prices are [00:31:00] going up for doesn't matter if it's cars, houses, right, prices are going up. If they get a better credit score, they save on interest that saves a monthly cashflow. Some of those people will be willing to say, Hey, if you put me on that car for. I'll pay you 600 bucks or maybe even up to a thousand bucks to do that. You don't get the full amount if somebody brokers it, but you know, you could get paid good a hundred bucks or so for every person you add to your card. So if you have say five open slots in your. You could add those people to your credit card, five people, you might make 500 bucks at a time, every few months. Right? So it's kind of a cool strategy to make no money at all.
[00:31:37] BILLY: I never even thought about that on making money with it. I've added my girlfriend and my new, my mom and dad had me when I was younger. And to your point my credit score would just bump up quickly you know, by getting this longevity credit issue without actually having to have the credit yourself
[00:31:51] CHRIS: Yeah I actually did that with one of my clients, I said, I brokered the deal with her. I said, listen, if you go find my credit card on this company, you'll pay like 700 bucks. [00:32:00] Tell you I'll charge you 200 bucks. I'll put you on my card because I know you and that kind of thing. And it's totally safe for you. Like it doesn't affect your credit score at all. It doesn't do anything to you. If anything, they have to trust you because you're taking their date of birth and their social security number to do it
[00:32:13] BILLY: right. And then what do you, do? You have the card sent to your house so they don't get it and just shred it up.
[00:32:17] CHRIS: Yeah, exactly. Yep.
[00:32:19] BILLY: So one of the sites that people can go, cause this is a cool little trick that some people might want to hone in on. So you have sites out there and you could recommend for these brokered credit cards
[00:32:29] CHRIS: I do. I can't remember it off hand cause I always look it up on my email, but I'll, I'll shoot you an email so
[00:32:33] BILLY: Yea I'll add it in the show notes, just so, cause I know I'm going to get hit and I hate answering questions with shit that I don't know about.
[00:32:40] CHRIS: Exactly
[00:32:40] BILLY: So tell me what, what, uh, what kind of deals investment deals are you? Um, like the last one or two deals that you did that you put some money from the folks that are in money ripples over into either a syndication or whatever. Like what was your most recent deal you did?
[00:32:54] CHRIS: For myself or for my clients,
[00:32:56] BILLY: your clients.
[00:32:57] CHRIS: Okay. Cause I, I did like four deals in the last few months, [00:33:00] so yeah, for my clients, some of them did some of the same things I did too. I mean, for example, I mentioned like the land partnership, right? Where the guys buying and selling raw land and doing things like that. I have a few clients doing that as well. And it's really more of a growth strategy than a cashflow strategy because you know, the reinvest your money and use it over and over. But again, huge returns on that better than I expecting. I was just hoping. Maybe a 60% return in a year, not to see 70% already year to date, you know?
[00:33:25] BILLY: That's insane. Are they finding raw land and sub dividing it up and selling off the lots. Like what's the strategy with that?
[00:33:34] CHRIS: Uh, whatever they feel like doing. Yeah. I mean, I don't have to do anything cause it's all passive for me, but for them they're like buying the raw land. Most of it's already sub divided. Or should be sometimes it's not, but sometimes they do. The nice thing is they have a pool of people they can sell to is often they'll try to sell the neighbors. But now, now they're realizing that there's so many people wanting to go do prep stuff, or just have recreational land to go hunting or fishing or whatever camping on. Um, they're finding that even the average, [00:34:00] Joe is buying land from them right now. So hardest part is finding inventory, but you know, when you get enough cash to deal with, you can buy huge tracks of land that most people would never tell.
[00:34:10] BILLY: I love it. I love it. Brother. Give, uh, I want to plug in your, uh, your show, your podcast at Chris miles show. When does that come out? Is it coming out weekly
[00:34:18] CHRIS: it comes out twice a week. Yeah. So we're about 560 some odd episodes in right now. So take a pic. I recommend the newer ones versus the older ones, because the older ones were, they kind of, you know, you get better over time. Right. So
[00:34:32] BILLY: you just get it going.
[00:34:34] CHRIS: Yeah, for sure. But yeah, I mean, look up the Chris miles money show on YouTube iTunes, wherever you watch podcasts
[00:34:39] BILLY: good. And then let's talk about money ripples. How do they find out about that? Where do they go?
[00:34:43] CHRIS: Yeah They go to money ripples.com. That's M O N E Y R I P P L E s.com. And you gets to check out information there too.
[00:34:50] BILLY: Awesome brother. You've been a great guest to have on. I love your energy. I love the fact that you are doing these off the wall. Very different investment strategies. I'm definitely going to connect with you after [00:35:00] this. And listen, if you guys, if you have money, you want to invest contact. Chris. Chris is a guy. Get you into some of these, um, passive investments that are out there. If you're a fix and flipper wholesaler, start putting your money to work and somebody whose investment deals take care of brother.
[00:35:14] CHRIS: See ya.
[00:35:16] BILLY: Thank you so much for listening to today's episode of unstoppable real estate investing wealth. My mission is to give you my listeners, the blueprint for success inside the secrets for starting growing and scaling. Real estate investing business, So you could experience and live unstoppable lifestyle. I've made it simple for you to catapult yourself to success. Go to Billys secrets dot com@thebillyssecrets.com. There you will find every single tool. Trick strategy system. And you used to make millions of dollars as real estate. Everything my team uses and my guest views all in one place for you to [00:36:00] tap into, you could start, grow and scale the real estate investment business. I really hope you implement what you're learning. I hope you utilize these tools, tips, tricks, strategies, and secrets, and I hope to see you on the next episode god bless. Bye-bye.