Episode 024: Nothing But Net - NNN Show WEALTH STRATEGIES FROM THE CASHFLOW NINJA
M.C. LAUBSCHER SHARES HOW TO ACCUMULATE WEALTH FOR REAL ESTATE INVESTMENTS TO BECOME FINANCIALLY FREE
Guest M.C. Laubsher with Hosts Michael Flight and Adam Carswell on the Nothing But Net – NNN Show.
October 21, 2021 | WEALTH STRATEGIES FROM THE CASHFLOW NINJA
In this episode, hosts Adam Carswell and Michael Flight are joined by M.C. Laubscher, Cashflow Coach & Podcaster, to discuss how real estate investors can utilize proven wealth strategies to accumulate capital for investments and gain financial freedom. M.C. describes the many advantages of investors using the Infinite Banking system, meaning becoming your own banker, to invest in their own business and/or real estate ventures with capital creation and continuation. M.C., Michael and Adam also relay the differences between passive investing and active investing based on how involved an investor wants to be in the process, as well as what each level of involvement entails. They close the show by briefly touching on how to get started investing in digital assets, as well as where anyone looking to invest can find the resources to learn about it and do so.
Related Link: WHAT CAN YOU DO ABOUT INFLATION TO PROTECT YOUR WEALTH?
Learn more about International Investing and all things Triple Net on other episodes of The Nothing But Net – NNN Show. This show is a podcast all about the benefits of acquiring and owning Net Lease Properties (also known as NNN, Triple Net, Triple-Net Single-Tenant or Single-Tenant Triple-Net Lease properties). Listen to or watch this podcast on the Liberty Real Estate Fund Nothing But Net YouTube channel.
M.C. Laubscher On Wealth Strategies
The real estate investment market can be intimidating for those just starting out in it, especially since there are so many different routes investors can take, like Triple Net and Net Lease properties. That is why investors should educate themselves on the specific type of real estate they want to invest in and find a mentor they can learn from who has experience in that niche. But, how do you get capital to even invest in real estate? How do you put your stake together? M.C. Laubscher, cashflow expert, has a great outlook on the financial strategies to help you accumulate capital and the mindset to have when investing in real estate and income-generating assets.
The Mindset Of Successful Real Estate Investors
The biggest block for people to understand about real estate investing is when they want to start the journey. Investors must first know what they want to accomplish, what their vision is, what their ultimate goal is, and why they even want to pursue investing. Most people will find that their reason to begin is freedom; the desire is personal freedom, financial freedom, independence and self-reliance, as well as having income coming in from cash-flow generating assets. It is crucial to understand exactly why you are choosing to invest, what you are getting into and what that vision is because, if you don’t know where you’re going, any road will get you there and that comes with many options. You want to know exactly where you want to go in your investment journey so you can efficiently achieve the goals you set for yourself. Regardless if you’re a W-2 employee or small business owner, the framework is generally the same. Essentially, everybody has a way to make money, so whether they do it in their businesses within, they do it in a professional capacity, or with a skill, everyone generates income.
The Steps To Invest In Real Estate
So, the first actual step to investing becomes finding where to position your capital to produce and create more than you consume, and that excess capital then has to be positioned somewhere. If you produce and create, but you consume more than that, you’re never going to become a real estate investor to begin with. Learning to grow and accumulate capital is the crucial first step to successfully investing in real estate. So, produce and create; then, spend less than you produce and create, and position the excess capital somewhere it can grow effectively and efficiently.
After you make your money and protect it, then you look to deploy it into cash-flowing assets. This is the step where you have to research what types of investments actually interest you. There are multiple ways to invest in the many different asset classes, so you have to figure it out. One of the biggest questions is: Am I going to be an active investor or a passive investor? Am I going to actively or passively pursue the route that I went? For example, M.C. started out as an active investor but then turned into a passive one; he also pursues leveraged investing because he was able to find the best people from his over 700 Cashflow Ninja podcast guests, and learn about their specific niches, who the top players were, and who would make the best partnerships for his interests. As a passive investor, for example, investing in some of the best deals allows you to not have to deal with running the business itself, with the phone calls and headaches. Passive investing lets investors focus on continuing to produce, create and focus on capital allocation while diversifying more of their assets.
Passive Investors Versus Active Investors
To become a passive or active investor, you will have to rely on your skill sets, capabilities, knowledge, credit, access to credit and financing options, as well as your relationships, team, network, and essentially your business as a whole, especially if it’s a real estate business. As an active investor, you would buy property, fix the property up, put tenants in there, collect rent and so forth. There is a very large commitment to actively invest because you manage all the steps of the investment.
As a passive investor, you need to know and understand the investment environment, economics and the basic principles of real estate, as well as study and learn about the asset classes, different niches within that asset class you want to invest in, and then get to know the operators in the market within the niches and the asset classes that you have chosen. Once you have established that, you have to have other aspects in place from a strategic standpoint: tax strategy, proper estate planning, asset protection, etc. The goal with passive investing is to make money, protect money and multiply money without as much management responsibilities of the assets themselves.
Both passive and active investors, however, go through the same process for cash flow: 1) cash creation, 2) cash capture, 3) cash flow creation, 4) cash growth, and 5) cash control. Cash control is the step in which you protect what you’ve produced and created, what you’ve positioned it in, what and what you’ve built from an investing standpoint through taxes, estate planning and asset protection. Investors protect what they produce and create where they put the money through their investment.
The Value Of A Mentor
Though you can, you don’t have to find physical mentors; you can start by reading books, listening to podcasts, following people online, etc. Most people can communicate with you on social media; watch their content online, then figure out a way to reach out. Commercial real estate has had one of the greatest bull markets since 2011, so it is very easy to look at what others have done and learn from their success and failures.
How To Grow And Accumulate Investor Capital
Capital positioning is one of the most important things right now during a global money system change. It is very important to look at capital allocation as an investor. For example, there are many that are maximalist in their specific niches, whether it’s gold, silver, Bitcoin or even certain fiat currencies. But, it is very important to allocate capital efficiently and effectively in a diversified way. M.C. and his investment companions put capital in mutual insurance companies, in life insurance contracts that are overfunded by cash value so they are employing the Infinite Banking concept strategy. The Infinite Banking concept means you are positioning your capital in a place where it could do many things for you simultaneously. For example, you could put it in a place where you can allocate it, like gold or silver as a kind of a hedge against fiat currencies. We still live in a US dollar world where the US dollar is the reserve currency, so putting capital in life insurance contracts is great because of the guarantees that it has in a dividend versus paying whole-life insurance policy that’s overfunded also known as cash value life insurance. Mutual insurance companies are not listed on the stock exchanges, so the shareholders of a mutual insurance company are the policyholders. This means you are putting your money in a dividend that pays whole-life insurance policies with a mutual insurance company, which has guarantees on the principle and growth. The dividends that are paid are tax free; the growth in the policy is tax free, too. The powerful part of this is that you can position capital in a life insurance contract with a mutual insurance company that you know is not in the banking system (it’s in the insurance company), so the principle is guaranteed and liquid. It grows tax-free but you can collateralize it, meaning you can use your cash value to back a loan from an insurance company. For example, if you have $100,000 in the insurance contract, you can get a policy loan that is secured by that $100,000 in your cash value of $90,000, and you could get that loan from the insurance company and that $100,000 is still in there. This means your capital is guaranteed to grow tax-free and while you receive dividends.
There is a lot of capital flowing into insurance investment right now because of the uncertain time in the economy. In an insurance contract, the principles guaranteed and growing tax-free which is very prevalent as taxes continue to rise. Investors will be getting a much better return than they would be if they deposited the money in a bank account.
A real world example: Last year, a couple was working with M.C.’s team who had been with them for about four years. They set up life insurance policies for both of them and picked 2020 to retire. As their retirement year, they did what everyone told them to do throughout the years: max out their 401K contributions, but leave the rest in an IRA and max those out. (They also had some money in stocks.) In March or April of last year, the couple frantically reached out because M.C. had just lost 40% in their stock portfolios. But, since the couple connected and set up the life insurance policies, they could take out money tax-free in 2020 to fund the money needed to live on that year. Then as the market came back, they moved into cash accounts and set up more policies, but it provided that one thing that they could count on. They had money in their insurance contracts that they could access. It was a volatility buffer for them.
Another key point for investors is that they can borrow the money from their policies to invest in their businesses, grow their portfolio and, as situations arise and other investments are liquidated, they pay the bank back any loans because they always share one of the principal’s key principles. If you’re a business owner and investor, you want to position your capital effectively and efficiently to grow your real estate portfolio, or to grow your business. For a real estate investor, you should be investing in growing your own portfolio, whether it’s a passive portfolio with other operators or an active portfolio.
How To Save and Grow Cash In The Infinite Banking System
You don’t need a lot of capital to start investing; real estate investing is a great way to start saving money while building capital and building a reserve. You can put away 10% of your earnings and create your own bank through life insurance policies or real estate investing since they are tax-efficient, cash-flowing assets safe from the actual bank. Think about where you want to allocate capital; most people do not understand the pitfalls of the current global economy. There are threats in the current environment to many of the financial markets with the instability of the economy. You can learn and study what the wealthiest families and individuals are doing to understand how to better respond with your own capital and financial goals. You don’t have to be Rockefeller to do what the Rockefellers do. You could start small, take small steps and do the same thing within your own life. Once you build up cash value, then you can start to grow your earnings by borrowing against investment assets that have a stable cash flow.
In M.C.’s strategy, one of the things that he shares is to have a minimum of six months of living expenses that ultimately works as your life insurance policy. As an investor, he borrows against this capital to deploy it into a cash-flowing asset. Then, the income from that asset is just used to pay down the policy loan, which allows you to take more loans against the cash value. Asset-based lending is borrowing against a certain amount of stocks, specific stocks or a stock portfolio, which can secure you a loan. Most business owners know this; they could get a credit line for their business, by a business loan secured by the business assets, or by the receivables of the business. Real Estate Investors know that they can get a HELOC (Home Equity Line of Credit) or do a cash-out refinance to access some of the equity. It is essentially the same collateralization strategy because the investors do not have to sell the asset to actually get the capital out of it and they get it out tax-free,as well.
There is also some flexibility with digital assets as blockchain is becoming the new financial system. You are outside the banking system when you are in the blockchain financial system. A super stable coin backed by cash-flowing real estate can actually increase your returns, receiving passive income from the fund that you can either have paid directly to your bank account in an ACH payment, or you could take it in a USD stable coin or Ethereum. You can actually dollar-cost average out of the dollar by investing in real estate.
If you want to learn more about the best strategies to implement cash flow, cash growth, right or cash flow creation, visit cashflowninja.com and start deciding what your best wealth strategy is. To begin infinite banking, you can visit YourOwnBankingSystem.com to get started today.
M.C. Laubscher, Cashflow Coach & Podcaster
As a cash flow investor & serial entrepreneur, M.C.’s passion is to assist investors & business owners to create, recover, warehouse & multiply cash flow through advance strategies. Having figured out how to escape the rat race and replace his income through cashflow investing, he shares how highly paid professionals and business owners can replace their incomes through cashflow investing strategies to escape the matrix. M.C. is a member of the Forbes Finance Council and has shared his strategies on Forbes Magazine, Entrepreneur Magazine, Grant Cardone TV, and Biggerpockets. M.C. is the creator & host of the top-rated business and investing podcasts, Cashflow Ninja & Cashflow Investing Secrets and Chief Cashflow Coach at Cashflow Ninja LLC. The Cashflow Ninja Podcast has been downloaded over 4.5 million times in over 180 countries and has been featured as one of the top 48 podcasts for entrepreneurs by Entrepreneur Magazine & is regularly featured as one of the top 100 podcasts by Apple Podcasts. M.C. is also the President & Chief Executive Officer at Producers Wealth, a virtual wealth creation firm that assists investors, and business owners to set up and implement Infinite Banking.
Contact M.C. Laubscher:
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About the Podcast Hosts:
Michael Flight was named the Godfather of Blockchain Real Estate by Forbes Crypto. Michael achieved that distinction by co-founding Liberty Real Estate Fund, the World’s First Net Lease Security Token Fund, creating the Blockchain Real Estate Summit. More recently co-founding Invest On Main (IOM.ai) the Real Estate & Alternative Asset marketplace of the future and AcceleratedLaw a faster, cheaper way to create and tokenize securities offerings!
Michael is a real estate entrepreneur and real estate tokenization pioneer who is an expert in retail real estate investment, redevelopment and real estate on the blockchain. He started his commercial real estate career in 1985, and then co-founded Concordia Realty Corporation in 1990, which continues to partner with some of the world’s most well-known banks, insurance companies, hedge funds and institutional investors in many successful investments.
Liberty Real Estate Fund LLC is The World’s First Single-Tenant Net-Lease Security Token FundTM, joining 30 plus years of institutional real estate investment experience with blockchain technology to deliver very stable, diversified, tax efficient returns combined with liquidity, security and transparency.
Liberty is a real estate investment fund that acquires Single-Tenant Net-Leased (NNN) essential business retail, auto service and medical properties in the United States. It is designed for investors to achieve: Geographic Diversification; Industry Diversification; Tenant Credit Strength and is built with hard assets that have intrinsic value. Our portfolio of Net Lease properties is constructed with brand-name Essential Businesses operating in high growth markets throughout the United States. These Net Lease assets have long term contractual rents backed by excellent brand name, well capitalized companies.
Liberty is focused on investing in high quality, well located Single-Tenant Net-Leased (NNN) properties in targeted high growth, low tax areas of the United States. The portfolio has been specifically designed to provide stable, recession resistant income combined with inflation protected wealth preservation and equity growth.
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