Learn How to Maximize Your Deals with Retirement Funds

Greg: So yeah, look, be an investor, take action. And these, you know, the vehicle we’re talking about, and Justin is talking about, you know, being an investor making money. You know, look, the rich keep getting richer because they’re using tools that they’ve created with their lobbyists and with the government, the IRS. There’s these rules that allow you to do what we’re talking about, and most people don’t even know these rules. It’s only like the rich that keep getting richer using the rules that are out there, and that’s a shame, and that’s our message. Is, like, you don’t have to be a multi-millionaire to start investing in a real estate deal using an IRA and avoiding taxes. You can avoid taxes altogether or defer them but avoid them. If you do it in a Roth, you can invest in real estate in a Roth and never pay taxes because it’s already, it’s already been taxed. It’s after tax. Money isn’t a Roth, so it’s really about being smarter using the tools the IRS has given us. And so when people talk about all these hacks, right? You can go online, to like, you know, the hacks to not pay that, you know, pay less in taxes. This is kind of one of those. This is a hack that has been approved since the 70s. This is not like a new thing. We’re talking to you about only 5% of Americans do this. Why only 5%? Because most people just don’t know how to do it, and don’t know they can do it.

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Justin: everybody, if you are on the VIP zoom, say, what’s up? Anthony coda, he loves the money. We know the Anthony CODAs.

Gregg: All right. CODAs are on. I like it.

Justin: Oh yeah. They look money. They like to make it, like, share it. Ray, Alonzo what’s up? dude, our guy Ray, within 30 days, I don’t know, right, how long you’ve been a part of The Science of Flipping, two weeks, maybe, and you already have your first deal that we are buying, Greg, you and I are buying this deal. He’s been a part of the science flipping, found a deal, comped a deal, made an offer, wholesaled it over to us all within first two weeks of him being a part of The Science Flipping. (That’s fast.) That’s fast and people always say, Well, how quickly can I get my first deal. Well, if you’re here, work like, Ray works two weeks. Gotta hustle. That’s the game. I mean, we were just talking what was the biggest year that you did that one year we were just talking about this one year you had like, several 100 deals that you did?

Gregg: Yeah 2009 Yeah. We talked about that, yeah.

Justin: What was the hustle like with that? You had, like, 200 deals or something, didn’t you?

Gregg: Well, that’s, if you remember, 2009 the market was still going like this. And I, I had, I had two kids, and one on the way. So I was like, Okay, I gotta figure this. I gotta figure this out. So it kind of like what you just said, there was no other option. I mean, you know, like next week when you got two kids, just like, all right, game on. Like, I can’t, I can’t work slower. I gotta go faster. And so that’s what I did in 2009 I was like, okay, the market’s kicking my ass, and I had to work.

Justin: Well, you were the one person. I’ll never forget your quote to me before little Siaga here. You’ll never work harder than you’ve ever worked once you have your first child, or children, I guess, is exactly how you said it. And that is true that is so true for sure. So, and you’ll never make more money than once your kids get here. And I was like, bro, we’re you and I are having some fun. We’re making some money, like, right? That’s not even the tip of the spear of what you’re doing.

Gregg: You go to bed earlier, get up earlier, right? You get better habits. You’re, you know, you can’t stay up late. Drink it anymore. You gotta, you gotta get home because the baby’s at waking up early. So you’re more focused, you know.

Justin: We just talked about it, guys, if you guys don’t have a best friend or a business partner, just in account builder partner, you can just be real can just be real and honest with, get yourself one, because Greg and I just had this exact conversation a lot deeper. Was that this morning or yesterday morning? Anyways, I think it was yesterday morning. Yeah, you know. And diving into just like bro, you see midnight, hit your watch, and you go, why am I not in bed? This is outrageous. Us and do things just get real. So alright, we’ve had some fun. What is up? Tim Ray, Ashley, the CODAs for everyone watching this on Facebook, say what’s up? Say what’s up to me and Greg, throw a money in the comments below. Say money in the comments below, because we are going to be talking about money. We’re going to be talking about where it is, how to find it, who has it, and then how to utilize it. How do you make more money? How do you become the bank? All of this is under this one training tonight. Tonight, we’re going to drop all those bombs. And by the way, back in the day, this would have little grandpa sauce in it. You know what I mean? You know what I mean? I know what I mean? This is tea. That’s, that’s the difference. 6pm on a Thursday night, we are drinking tea to rock a webinar. So there’s that.

Greg: I love it. That’s, that’s you. You gotta do it right now. That’s your, that’s your game right now.

Justin: That is my game. I just, yeah, I was Daddy daycare last couple hours. So we went swimming for the first time this year. March 7. So that was fun. Alright, welcome everyone. Adam, what is up? Ash, my man, where you been? Brother again, if you are on Facebook, throw the word money in the comments. Let us know you’re here. We’ll say what’s up. Answer your questions. There will be plenty of questions here afterwards. Maureen, what is up? Lakeisha, what is up? Nick Lee’s wants the money? Chris, worry. Nick, what’s up? All right, so everybody is throwing in money in the chat. So if you guys don’t know who Greg Herlean is, as I just mentioned, one of my best friends, business partner, but he has created something really special with a trust company called Horizon Trust. Many of you guys may not even know what that is, but before Greg gets into all of this, I just want to give him the the respect to say you know, he has done hundreds, thousands of real estate transactions, single family flips, buying holds, commercial properties. You’ve lent almost $2 billion probably at this point somewhere between a billion and a half to billion. (Like, 1.1 billion). All right, 1.1 billion. I like to inflate your numbers. They sound cooler. So, 1.1 billion. He understand how money works. He understands where it is. He is my mentor. When I go to him and talk money and finances and numbers and breakdowns and math and funds like this is this is the guy, right? And so him and I were just talking about how we need to make sure there’s more financial literacy. In my world, The Science of Flipping is cool, but we need people to be thinking about the money and how that works, and financial literacy and debt and what’s good debt? Bad debt?  Where is the money? How do you structure the money, all of that stuff. How do you raise more money for your deals? Because I’ll tell you, you should never be using any of your own personal money to fix and flip or buy and hold. And for some of you, that might been a mind meld comment, but it’s true, you should never use any of your own money. In fact, you should be lending your money. You should lend your money and then use someone else’s money and borrow it to buy the asset. But with all due respect, dude, I’m super excited about this. We are going to be doing this more often. It is my intention to make sure everyone is well aware of understanding how money works, where you can go find it, but he is the expert, so I’m going to stop mumbling and jumbling and give the mic over to you. And we can, we can go back and forth, but let’s talk rise and trust where the money is. Why people get excited about real estate, all that kind of good stuff, and give yourself a background.

Greg: Yeah. Well, thanks, Justin, it’s always good being on with you, buddy. I man, we go back a few years, a few lives, lifetimes ago. So it’s always good being with you. And even more so I think in this last year, yeah, my my son, some of you might, may or may not know, is actually when, when he came to me, I and he wanted to get into real estate, I was like, that’s, you know what? There’s a few people I’d recommend you to talk to, and Justin’s one of those. And he went to Justin and and talk about The Science of Flipping I mean, he’s kind of inundated and totally jumped in with both feet, and it just goes and proves to you what you do and how you help people. I mean, he’s learning how to do real estate as a 21 year old, 22 year old, working through your process and your education, and so it’s been awesome, and I thank you for that, because you’ve been a mentor to him. So it’s kind of cool, cool and full circle here. So yeah, so anyways, look at just kind of jumping into as far You know, that’s I just wanted to thank you for that first and foremost. But number two, look, I this subject is near. And dear to me, because it’s one that I feel like many people can relate to from both sides. Just to mention, you know, I give a little background on myself, I’ll do so kind of sharing a story or two. But you know, if you’re listening this and you want to find more money, this is absolutely the subject for you. If you’re listening to this and you’re like, hey, look, I want to avoid paying taxes, or avoid paying some of my taxes, or I just want to be a passive lender. This is it for you as well. And let’s start with the first like when I was 20. Literally, I was 23 years old, a little older than what my son was right or is. I wanted to be a real estate investor, but I couldn’t get a loan. I couldn’t get banks weren’t letting me and my money, and my parents had no money, and my family had no money. And I was at an event, old school event, right? Like back when you used to see people in the same room, and I was sitting there listening, and someone brought up the subject of self directing, and I know a lot more about it now, obviously, but back then, I had no idea except that someone could give me part of their IRA money and be my partner, and I could do all the work, find the deal, rehab the deal. And I was like, Wait, so someone can move their IRA money. And so obviously, lo and behold, I learned a lot, but literally firehose, because I needed to, like, create revenue for myself. I learned everything I could about self directing, and I did so because I then could go talk to individuals about being my partner on real estate deals. And that’s kind of how my real estate money kind of world came along in the beginning. I just went to a place that I felt like people were underserved, unhappy. You might be in that boat today, like, if you have one of these retirement accounts with your traditional financial broker, and you’re used to the ups and downs, like, right now, right sure, the markets actually has been good the last, like, three, four months. But you know, the last year, the last two years the markets just as it’s up and down, up and down. And so most people, when I talk to them about their retirement accounts, they don’t know where the money’s invested. They don’t really like it. They don’t know what their options are. And so at a young age, I learned about self directing, so I could teach people like, hey, look, do you understand real estate? And most people I talk to understand real estate because they bought a home, right? Or they live in a home or an apartment complex. And so when I would talk about real estate, I’d say, hey, look, did you know that you could partner with me on my next real estate deal? It was a new subject for them. And so that’s how I actually began my real estate career. Was people with their IRAs lending to me now again, fast forward, like 22 years. I now on the other side of that. I love being the guy using my retirement funds to lend to people in businesses and in real estate. So I’m giving you kind of a couple examples when you told me, just to give a little background on myself, but I wanted to, like, put myself in your potentially, for those listening in your situation, that if you’re in one place or the other, there’s so much opportunity, and you might have to hear it three or four or five or 10 times, right? And I appreciate the code isn’t on here too, because they might sometimes get sick of me hearing it, but they’re probably one of the best of this. I see your name coming through my email all the time, where you’re referring clients into our company, and maybe you’re partnering with them, maybe you’re just working with them. Maybe you’re doing with your own money. But you have to hear the message, because every time that I hear you know different things from you. Justin about real estate, I’m always learning still today, and I’ve done real estate. I’ve been doing real estate for 20 something years, and so continuing to educate yourself so you know your options, I think is critical. So my background I start with, I guess most importantly, is I have five, yes, five kids, which is why I need to make, you know, money still today, but I have five kids and a beautiful better half and a phenomenal Trust Company business. That’s where I am today. But getting there was, you know, I went through my journey of of lows, of lows, being beat up in the real estate market, and then learning that, hey, I have to start all over again. And do I really know what I’m doing? And when I started all over again, 2008 when the market crashed and had to start all over again, I did. I was actually I was able to see that I knew real estate. I knew how to raise money. I knew how to partner with people and look at deals. And so I’m a real estate guy, but I’d say I am probably the best at money talking about finding money, and number two, working and helping individuals to avoid paying taxes, using their IRAs and investing in what they know and understand and that that’s probably my focus, not probably that is my love, my life right now is when I say, right now I’ve been doing it for 14 years. Horizon Trust company has been around for a hot minute, and we’re still a small, I call a small over a billion in assets, boutique firm 35, 40 employees and we help people teach them how to use their IRA monies to invest in alternative assets and I’ll stop here a second, because Justin, I go on and on, but just let me just, let me just say two things. And then I know Justin, you probably have some questions for me, but for those you listening that have an IRA, a traditional Roth, simple step, or if you have an old 401 k from a previous employer, this conversation was 100% for you.

Justin: So let us know in the comments. So for the VIPs on Zoom, let us know if you have something somewhere. Could be an old one, could be an active one. Could be you know, one that was, you know, given to you through inherent whatever. Who cares so, so in the comments on the VIP and in Facebook, right? Because, you know, it’s good for us to know who we’re talking to, because there’s things that you guys could be doing tonight after this call, like immediately, to help change the trajectory of what you’re doing with your current money and how you guys can be making money. So if we know that, then we can point you guys in the right direction answer your questions more effectively and efficiently. So just let us know, righ? Whether it’s an active one because you work somewhere. Whether it’s an old dead one, whether you’ve already moved something over to, you know, self directed, whatever. Right?

Greg: I mean, if you look, if you got an old 403 B, an old 401 K, from your previous employer. This message is absolutely for you and so so I want to, I definitely want to share that first and foremost of if you’re if you’re listening, and you have an old retirement account, most likely this, this will pertain to you. And if not, you don’t have those accounts, you can actually start one from scratch. And we’ll talk about that as well. So I wanted to share that with you before we kind of jumped into kind of jumped into some of the questions and things that you want to talk about today Justin.

Justin: Yeah, again, I think we have a handful of people who have some old ones, some active ones. They have a Roth, they have 401Ks, you know. And then here’s the the other layer of this, right? When we’re talking about it, there are still a handful of people, and I’d be curious to see if they are on here that, like, keep their money in savings. And while I can understand saving some money for a rainy day type thing, sure, but like, I don’t even know why savings accounts exist, because if you want to have a savings, what we’re going to talk about tonight is a better utility for savings, right? Because you can still take it out, you can play with it, you can lend it, you can keep it. You can pay your bills with it. If you have to, you just take the money out and pay your bills, right? But you actually can create opportunity to make more money while sitting in there. So, if you are someone that’s like, I have 100 grand, 200 grand, million dollars. I literally have a member in our community sitting on a million dollars cash, and I’m trying to mentally break him of like you’re just losing to inflation. That’s all you’re doing. Is losing to inflation, right? Because in 10 years, that million dollar does not have the same value it does today, I promise. So if you are one of those people would love to know that, because this can help you guys think differently. What I want to do tonight for all of you, more than anything else, I want you to think differently. Think like Greg, think like myself, right? Think like an investor. And why I say that is because it’s not about stocks and bonds, it’s not about crypto, it’s not about real estate, it’s about being an investor, right? I’m not a big stocks person. I have some crypto, which has been an incredible run, but you never know with crypto, but I’m all in on real estate and the utility and understanding of what you can do when you can become a lender, when you have money that you can utilize that is tax free, where you need to help save in your own taxes, or you want to make more money, but you don’t want to be taxed on the money. That’s how I want you guys thinking. That’s how I want you guys acting moving. Because even if you don’t want to be a full time real estate investor, fine by me, but be an investor, right? Be someone who literally makes money while they sleep. That’s what I want for all of you guys, is to actually make money while you’re sleeping, not making active income all the time, wholesaling or flipping. So, I’ll leave it there. And Greg, if you want to add on to that, you can, you can if you want.

Greg: Well, yeah, I mean, I mean that that’s our message, like, so what we we implore and try to educate, is you have more options, and you can invest in what you know, like and understand. And if that’s not the market, that’s fine. If it is the market, that’s fine as well, you know. But for those people that are looking to unlock and use the retirement accounts in some invested how they want and choose. You can do that through a licensed company like us, for example, if you go to like Fidelity or somewhere, you can’t do that. You can’t be like, hey, look, I want to lend money on this deal or wholesale a deal, not an option. They don’t get paid for that with a trust company like ours, you can do that. You can lend to individuals, and you can wholesale deals or do investment flips, etc. or do a syndication. And so, a lot of people also buying precious metals, right? That’s been a hot thing lately as well, besides Bitcoin and businesses. And so it’s really fun, and that’s part of the why I like it so much. Because you get to, you know, you get to manage, for the most part, your money, and nobody cares more about your money than you do. I don’t care more about your money, and so I assure you your advisor, for the most part, there’s some good ones out there, a few of them. They care more about their own money than your money. So, pick and choose things that you understand, that you like. And you know, real estate’s definitely been one of those for me, and a couple other alternative assets as well. So yeah, look, be an investor, take action. And these, you know, the vehicle we’re talking about, and Justin is talking about, you know, being an investor making money. You know, look, the rich keep getting richer because they’re using tools that they’ve created with their lobbyists and with the government, the IRS. There’s these rules that allow you to do what we’re talking about, and most people don’t even know these rules. It’s only like the rich that keep getting richer using the rules that are out there, and that’s a shame, and that’s our message. Is, like, you don’t have to be a multi-millionaire to start investing in a real estate deal using an IRA and avoiding taxes. You can avoid taxes altogether or defer them but avoid them. If you do it in a Roth, you can invest in real estate in a Roth and never pay taxes because it’s already, it’s already been taxed. It’s after tax. Money isn’t a Roth, so it’s really about being smarter using the tools the IRS has given us. And so when people talk about all these hacks, right? You can go online, to like, you know, the hacks to not pay that, you know, pay less in taxes. This is kind of one of those. This is a hack that has been approved since the 70s. This is not like a new thing. We’re talking to you about only 5% of Americans do this. Why only 5%? Because most people just don’t know how to do it, and don’t know they can do it. And look, advisors in general aren’t going to advise you to move your money from them to into another company where they don’t get paid. So you can do whatever you want to do. So so, you know, that’s a little bit of content as well. And I would say you don’t have to do it all. That’s the other thing is, so for individuals, they’re like, hey, look, I have $100,000 IRA. Let me just try this out. You can leave $50,000 to your stockbroker, put $50,000 you know, in an account with a self directed account with us, and you can direct it and see which does better after a year or two or three, and then kind of make decisions. So it’s, it’s a it’s a powerful tool to avoid paying a lot in taxes when you’re doing these bigger games like and like Justin. Look, for example, you’ve got a lot of people that you teach that are investing in passive real estate investments, notes and other deals, and they’re doing it in their LLC, or they’re doing it in their name. The vesting, all they gotta do is open up a direct, self directed IRA, put a contribution in there and start doing a little bit of that inside of an IRA so you can avoid paying taxes on those gains. It’s the same thing that they’re already doing, just doing it in a vehicle that saves you money on taxes. And so it’s, it’s, it’s been a game changer. Probably we’ve got almost 7,000 clients now horizon trust that are doing this on an active basis.

Justin: Well, just even your experience, in my experience, right? So I would encourage any of you out there just to think these thoughts, right? So I’ll ask a couple questions. First, do you have a bunch of money sitting in a savings account? And a bunch is relative, right? Like, if you have $100,000 sitting in a savings account, open up a self directed IRA, like, you just don’t need 100 grand. Like I live a very nice lifestyle. Greg lives in a very nice lifestyle. We don’t need 100 grand to be able to pay our bills for a couple months. We don’t need it, right? So no one does, but I understand the concept is you’re saving, you know, you have a war chest for a rainy day and those but your self directed IRA is still your money. And the key term here is you’re self directed, meaning you can utilize it. So for example, if you have money sitting in a savings account, you’ve already been taxed. So now, now that’s done, right? And so Greg can talk to you about what you know, what investment tool, or is that the right name for what bucket you go in.

Greg: Which type of retirement account? Like, which, which type of retirement account?

Justin: Yeah, like advice to that, right? Meaning, whether it be a 401, k or IRA or Roth or, you know, all the different things. But I want you to think like you’ve already been taxed on your money, so you should be opening some level over retirement account. And here is the reason why, even if you took the 100 grand. I made an example of you. Took 50 left 50 in your savings, 50 over to a retirement account. Then you find someone like me that is constantly buying real estate, and you say, Well, okay, Justin, I there’s 50 grand sitting here. You’re not doing anything. Well, this is where you say, Justin, I’m willing to lend you the 50 grand on your real estate for a return and someone like me pays 12% on your money, and it’s backed and protected by the real asset of real estate. And someone like me personally guarantees your money. Because I know the real estate game that well, right? Does it mean like you have to go all in on that? No. So you take 50 grand when you invest it at 12% returns, when I turn the money, and we’re turning your money, you know, on a fix and flip, or even a buy and hold. Then you have the option to reinvest it, because you’re like, the returns, or take it back. It’s not some long term commitment. So when Greg says, like, you don’t have to be all in on any of this. Just start getting going on it. That is the important thing here, because the money you make lending it to me now is tax free. So if your mindset is I’m saving for retirement, I’m saving for a rainy day war chest. But now that money is being lent and the income you’re making from it is all tax free. Now you’re growing it, which means you get to lend more because you have more. And now you’re starting to think like we think. And then when that rainy day comes, or whatever happens, or maybe you say, I got a lot of money here, and I want to buy a rental, then you can buy a rental in the name of your retirement account. So you buy that rental.

Greg: I Well, I’m going to interrupt you on this because you’re talking about your particular self directed IRA account. So I just want to clarify that, because he keeps saying, tax free, why don’t you get me in trouble? So you’re you’re talking about your which is right, because you have an account with Horizon Trust, and yours is a Roth. And because it’s a Roth, it grows, you know, it grows. You don’t pay taxes, obviously, as it grows, and when you pull it out, you don’t pay taxes. That’s the tax free type of accounts, the tax deferral type of accounts. And so this is the boring part, but I still, I want to make sure I clarify it.

Justin: You have to. This is CYA moment right here.

Greg: You get, your account does that, and by the way, probably most of you can do the same kind of account. You can do a conversion, or you can create a Roth in the beginning, depending on how much money you make. And we can answer those questions here towards the end as well. If you have questions on what kinds of accounts. Our job at horizons, we want to help you set up the right kind of account for you. And so if you’re looking for tax write offs today, you’re going to set up a traditional account, or a simple or a step, because you’ll get tax write offs today. But then the the problem with that is later on, when you pull out your money, when you go to retire, you’ll pay taxes on the whole, you know, on the whole amount. And so, there’s pros and cons. I also would say, you know, if you’re a business owner and you’re an individual business owner and and you want to open up a 401K, that’s a really sexy thing. And the reason why that’s sexy is you could put money in a 401k and you, as the employee and employer, can put up a pretty large sum of money, and you can then if you need to borrow up to 50% or $50,000 whichever is lesser. So if you like a like, let’s say you have $150,000 account. You can borrow up to $50,000 and you can use it for anything you want, pay off debts, go on a vacation, whatever the cases that you want, you got to pay back that loan, but that is also gives you some security. Justin. You’re talking about like opening up an account. Don’t leave it in a savings account, you know, put it into a certain account of account where you have some liquidity. This could be that kind of account. And again, I don’t want to generalize it. Everyone might not qualify for this, but if you are a business owner, a lot of your clients and people you talk to Justin are entrepreneurs. They have an LLC. They want, they don’t have a four, 1k we help them open up a 401K, get that money out of saving account. So now it’s working in a tax, you know, a tax strategy kind of account, saving money on taxes, but still gives them some liquidity to pull money out. Now, that’s a little bit of a mouthful. I know it’s the details, but I do want, I did want to clarify that, like, there’s different types of accounts. And obviously you can reach out to Justin, or myself or my team, we’ll help you to find out what’s the right kind of account for you. The other thing we can do, just as you’re talking about all these investments and and you’re talking about rental income, and I interrupted you there, and you know you can do Airbnbs, etc. If you’re in that boat where you don’t have funds, you can be teaching and introducing people to companies like ours to say, hey, look Greg so and so, you know they’re going to partner with me on my next deal. They have an IRA. Let’s get you guys together with your team and get their account set up so they can partner with me my next deal. Like, I feel like I get one of those texts or emails from somebody almost every day. I get them with my team. They help them out. We’re kind of we help your reference, your referral to get their account set up so they can potentially partner with you or lend to you. You know, we don’t at Horizon make investment recommendations a. We help with the structure and making sure it’s all set up correctly.

Justin: Well, this is probably a good time for for many people who are going to have, like, probably more in depth questions, right? But if where can people kind of connect with you or your team to kind of get some we’ll keep going. But I want people to, like, already know, man, this is what I need. I have comments on the Facebook group. This is exactly what I needed. Thank you. So like people need to know this. Where can they go? You know, to talk to you, your team, probably not you, but your team about this stuff?

Justin: https://horizontrust.com/tsof/ the science of flipping. So go there.

Greg: You know, that’s how they know that you know where they we like to know where everyone’s come from. So that’s how we know that you listen to Justin and I today, is if you go there, set an appointment. Look there. There’s zero hard sell. I mean, our goal is, if you want to use a competitor of mine, I’m totally fine with that. I mean, not totally fine with it. A little bit fine with it. But my, my look, our goal is we want to educate you and and when you set an appointment with our team, we’re going to answer all the questions for you, all that we can possibly so, so you’re so you’re very comfortable. This is your retirement money and, or potentially someone that you know referring to us. It’s their retirement. They saved for 5, 10, 15, 30, years. So, we hold your hand through the process. We’ll answer any questions you’ve got. It’s not a very hard thing, obviously not for us, because we do it hundreds of time every single month. But yeah, you can set an appointment. It’s easy. I got a phenomenal team who does this day in day out, that can help answer your questions about your account. Everyone’s got different accounts. You might say, hey, look, I don’t I got this old 401k It’s only $15,000 is it worth it? Yes. Number two is like, I don’t know how to I don’t know how to move it over. We’ll handle that. We’ll, we’ll talk you through the whole process. It’s a very simple thing. So, yeah,

Justin: yeah. And what I would say for any of you, if you’re on here, you’ve been following me to some level, right, social media, email somewhere, right when you you know, Greg just brought up, like, I only have 15 grand or 10 grand. Is it really even worth it? Here’s why, the answer to me is going to be an emphatic yes, A: My money’s there. So if it’s good enough for me, damn sure good enough for you guys. But B: because Greg and his entire team think like I think they Greg specifically is a real estate investor himself. Greg has the last 15 years of experience in the real estate space. His team and then meet when there are opportunities for real estate investing, it is very easy for them to understand what you’re trying to do. If you I have a friend who tried to lend us money years ago, working with some other company, and it took them 45 days to get his money out to lend it to us. That is not the case with Horizon trust, I promise you, because they are very efficient in understanding what you’re trying to do in the real estate space. So things like this, earnest money deposits, many of you guys are a part of my membership. There are people that may not have an extra two or three grand for earnest money deposit, but that deal can happen with the two or three grand because all the competition, all the other people, are giving $20 earnest money deposit, $100 or need about earnest money deposit, but they want two or three grand? Well, you can become the lender on that with two or three grand, and you can get a stroke of a commission from that deal getting done, and you can lend it right. And so Greg, I’ll let you go, as you were kind of I mean.

Greg: that’s good. Like, I let’s talk about some real life examples, like you just did, like a few of them, because I think people want to hear like, Okay, this sounds cool, but like, what are people doing? Give me some examples. So let’s, let’s go through a few examples of what people I mean. I see too many examples on a daily basis what people are doing. I’ve seen some crazy stuff that’s all obviously legal, but some stuff that is, you know, consistent and boring. And for me, that’s what I like, consistent and boring. I don’t need let me make 25% of money. Just give me some consistent returns that are, you know, that have some good collateral, or really good borrowers. So let me give you. Let me give one or two examples, and Justin, maybe you can think of some as well, but I’m on the on the real estate side, you know, I’ll take the note Quick example you just gave first. I would say a large percentage, probably 25% of, our clients, are really passive, meaning they’re lending it to someone else that is finding the deal, rehabbing the deal, fixing indoor flipping or holding an asset. But it’s completely passive. It’s a it’s a note secured by a first lien of trust or a promissory note, and it’s monthly or quarterly interest. That is very normal, and so I see that a lot, and when that’s probably one of those boring ones, I invest in some of those that are eight to nine or even 10%. Making 10% and not having to pay taxes every year on the gains or ever, because it’s in a Roth, is equivalent to making, like 15% if I was investing outside of my IRA, so I don’t have to take the same risks as others. So that’s that’s one example I see today. And I mean this put that in perspective, though, for a second. So like an individual who has $100,000 who can make, let’s say 10 or 12% inside their IRA for, you know, 10 or 20 years. And let’s just say that individual compounds it, and all of a sudden when they go to retire, it has a million dollars in there. Now I know a million dollars is different than like 10 years ago, 20 years ago, but let’s just say it’s a million. It’s easy number to work with. At a million dollars, if you want to just live off the interest at the age 60, going forward and make nine or 10% you could take $100,000 per year of interest only earned on your million dollars to to at, you know, be additional income for you in your retirement years. Now, that same individual who has $100,000 who’s investing outside of an IRA most likely is going to end up around 650,000 to 700,000 so when think about just that simple example of making the same amount of money, except one’s taxed deferred or tax the avoidance altogether, and one one isn’t making $65,000 on your interest when you go to retire rather than $100,000 think of your lifestyle, an extra $3,000 a month. That’s a vacation per month, maybe not Justin Colby vacation, but that is a vacation every single month, or whatever it is, or it’s a car or two. I mean, $3,000 a month is a big difference just by being smarter with it. So lending is probably one of the sexiest things I see people do. And I need one more example, and I’ll throw it to you Justin, actually, I’ll throw it to you because I think I’m going to take your so gonna take yours so you go next. Go, examples. (Go, shoot). Okay, well, I’m not gonna pick the Bitcoin example, because that’s Justin did that and I gave him crap. Can I say crap I just did about, yeah, but um, and you can, by the way, like I’ve invested in Bitcoin and and actually did pretty well. My son made me do it, and I was like, pushing against it, and Justin, you’re like, Yeah, you should do it. And anyways, I do things like that still today, like I will invest in people and people I trust and or new opportunities, because sometimes those have the bigger upsides, little riskier potentially. So I only put a smaller amount of money there. But wholesaling is another thing you can, you can be, you know, you know, you know paces group talks about the sub two stuff, right? You could be. You could be wholesaling, you should. You could be lending that earnest money to somebody and and you’re, you can turn your $5,000 into 10,000 or 15,000 in one transaction. And you do that once or twice a year. That’s it. You turn your five to 10, 000  or 15,000 twice a year, per 10 or 20 years. You now have a serious retirement in United State, believe it or not, and it’s just about starting it now. And so those are a couple examples. I’ve got so many more, but Justin is there something, you know, any other examples you want to share that you’ve done or that you’ve seen?

Justin: I mean, we could go into all sorts of different type of stuff. I think some of the things that are really more sexy is like, can you be a part of I have a lender right now that literally is getting an equity percentage on one of my apartments because he’s cutting a rather large check. Well, that check is in a retirement account of his, and so it’s just sitting there. So now he is getting ownership of a rather large asset class that is going to pay him, that is going to go to his retirement account, and he has the equity. And now he doesn’t care about the things that I’m caring about, because I own it in an LLC. So I’m looking for the tax write off, the true tax write off. So we’re going to do a cost segregation study. We’re going to get a big tax write off on it personally, which is great. I care about that. For him, he’s like, that’s not that sexy for me, because I’m not going to get it because it’s in his retirement account. But he does like real estate. I mean, he loves real estate. He just doesn’t have time to be in it. And so for him, he’s done very well financially in life, and he’s in sales, and he’s like, Justin, if I can grow my portfolio because of you and what you do. And now he’s cutting a big check, but he’s getting equity for it. So, when this turns into a multi-million-dollar exit. He’s gonna have a really big payday, and we’ve already talked about how he wants to take that payday and turn that in over into the next really big deal we do. And so, for him, this is like an obvious no brainer. Now he’s a little more unique relative to what we were talking about. His account is rather large right? But he can get a massive equity piece right of an apartment that he would never have been able to found, remodel, in this case, like rebuild, essentially cash flow from it, and then have a multi-million dollar exit. He would never have been able to do any of that, but because he knows me and found me, he’s able and willing to do that. Now, if you have $3,000 now we’re talking more about the earnest money deposits, right? That’s where you might lend down an earnest money deposit. You find a wholesaler that doesn’t have the money. You might split the fee, 50:50, whatever. That money goes back to your retirement account. So, it doesn’t matter how much you have. But if it’s there, you should be using it, right? Like Greg said, I mean, I threw money at, uh, Bitcoin through my retirement account, and it’s done really well, right? Because I’m more of a for in terms of crypto. I just hold it. I don’t day trade. I don’t do any of that. I’m in real estate. So for me, that was a smart play, too, right? And when I exit that, at some point, it’ll be all tax free, right? And so as long as I don’t touch it until I’m 65 then if I touch it before I’m 65 then it would be taxable, right Greg?

Greg: 59 and a half.

Justin: 59 and a half See, that’s why you’re here. Can’t let me run this game,

but yes, so I can’t touch it for another 50 years and nine.

Greg: Another five years, right? (Yeah) 5 more years 59 and a half.

Justin: That’s right. What a dick. But I really wanted to say like you’re in the right hands with the company, because they think like us, like you’re you’re listening to Greg give real estate advice because he’s done this. He does this with his own money. He’s done this for 15 years. I’ve done it for 16 but the reality is, doesn’t matter whether it’s five grand or whether it’s 50 or whatever the maximums are. Like you need to be thinking this way, because this is how again. Now let’s maybe talk about the Tax Scenario. I know people. It’s not quite taxes in this minute, so it’s not on top of everyone’s mind, but april 15 coming up, right? And then October is coming up, so taxes are going to be coming. Let’s talk about that scenario. How do people play this game? Because, to your point, the people like Donald Trump like him, hate him. I don’t care if it’s not about Donald Trump. He knows the rules, and he plays with the rules, right? The PayPal guy, Thiel, right? (Peter Thiel, yeah). Peter Thiel, like the rich get richer because they know how to play by the rules, frankly, right? And because of that, they’re able to stack up chips and have much bigger plays because they know the rules are made and written for a very specific reason and way that they just take advantage of. So let’s talk about the taxes in to get away from having to pay taxes.

Greg: Okay, so before I do so, I just thought of something my team has not said. I can do this, but I’m going to do it. For those, you have a lot of entrepreneurs and business owners that you work with, and so if you’re listening to this, and you do not have your account set up yet, you haven’t transferred over your account yet, and you are a business owner and don’t have a 401K i, what I want to do is, like, the first five, you know, the first 10 people that come from this to set an appointment, we’re going to give them a free LLC. And you know that the LLC is, you know, anywhere from 1,000 to 2,000 bucks. So the first 10 people that schedule appointments with us, we’re going to give an LLC. And the reason why I was just thinking about that because you’re talking about taxes and like it. Sometimes people there’s the LLC is an important part. I don’t sell LLCs for a living, but I’d say about a third of our clients open up and need an LLC because they’re create, because they’re a business owner, just they’re new in the real estate business world, or whatever it is, what new business venture they’re getting into. They need an LLC to open up and create a 401K, a self directed 401K. And normally you have to pay for that. So, for the first 10 that get make appointments with us and open up accounts, we’re going to give them the LLC and and that’s important, because once you have the 401K, you’re able to do a lot of these things that you and I are talking about. You’re able to borrow against it. You’re able to do bigger contributions, like, who, who’s maybe listened and heard like, oh, I make too much money to contribute to a Roth Have you heard that before? That’s a real thing. Well, guess what? If you have a business and you have a 401k plan. You actually can have a Roth account inside your 401K and you can contribute to a Roth regardless of how much money you make. Talking about loopholes and tax advantages, this is definitely one of them. So from that perspective, as far as you asked me, of the tax benefits, you know, the biggest tax benefit. That I’ve seen people utilize is the Roth account. The Roth is by far the best account, in my opinion, to avoid paying taxes when you know going down the road, when you take take your bigger nest egg out. And what I’ve seen people do, for example, let’s say you have a like Todd, our mutual, really good friend, Todd, I pick on him all the time because he’s he is probably the most calculated person when dealing with this self directed IRA. If many of you may have, may or may not have heard of a backdoor Roth or a conversion of an account, so meaning you have, like, a traditional, like, if you’re listening, you have a traditional retirement account. And you want to make it a Roth, you can roll it over to us at Horizon Trust Company and then convert it to a Roth what does that mean? It means that you’re going to pay taxes on that dollar amount. Let’s say you convert your whole $100,000 you don’t pay a penalty, but you pay taxes. So, let’s say that’s $25,000 so your 100 goes down to 75 now you’re working off a $75,000 number. But now whatever, it grows to hundreds of thousands or millions of dollars, it’ll all come out tax free. And so that’s kind of been critical, and I think, kind of a big deal. Because, you know, when it comes to taxes, if you’re looking to, like, I would say, one of the biggest things, if you’re looking to make big money and not pay taxes on a bigger number down the road, the Roth is probably, you know, the absolute best thing. Did I lose Justin? Did I bore him right now? Is that what happen? Oh, there he is. Okay. I felt like I lost you for a minute. (No, you’re good). But with Todd, what he does and I wish I thought of this, or is more creative about this, is he converts a portion of his account every year into a Roth. He converts the amount that he’s going to get in a tax write off from depreciating assets on his tax return, so it offsets his gains on the conversion, if that makes sense. So if he has a $25,000 tax bill, when he converts, he’s going to make sure that he has other write offs that year that can offset it so he actually doesn’t have to pay the 25 grand out pocket. Anyways, I don’t want to get too deep into that in the Roth conversion. We can do a one on one call with you, and kind of dive deeper into what that looks like for you, or if that makes sense for you. But I would say the Roth is probably one of the most powerful tax opportunities, or avoiding of taxes, opportunities that there is, there’s other kinds of accounts as well that we can help you get transferred over and work with. But I would say the message on those accounts, which I would say, is, majority of our accounts are not Roth. They’re coming from somewhere else. There’s a $400,000 let’s say traditional IRA, or simple off set. They move it over, and then they start investing with what you and I are talking about. You’re going to pay taxes on that someday when you pull it out, but you’re going to continue to compound in a consistent way, if you’re picking consistent kind of assets, again, real estate, indoor businesses, precious metals, etc, things like that. You’re on mute.

Justin: Yep. I’ve had several people ask, uh, where do we, you know, get a book a call. So the link is in the chat for all those on Zoom, for my VIPs, https://horizontrust.com/tsof/ The Science of Flipping for all my Facebook members. Go to https://horizontrust.com/tsof/. It is also in the comments.

Greg: If you just want to focus on us talking, I actually like that better. Look the first 10. If we have to make it 12, I’ll do that. That set the appointment because you’re listening to us. But you can also email myself or Justin. Just email Justin and be like, Hey Justin, get me in on that and leave it. We’ll take care of you. We’ll do it tomorrow. So, Alex is here. He’ll track but my team’s gonna get mad at me any more than that. So, but yeah, send us an email. Set an appointment. We’d love to help you with that. We’ll help you with the right types of accounts. It might not make sense for you to convert your account to a Roth. I get all excited about it, but there’s certain years that might not make sense. There’s certain years where you might just have stellar, great income years and you don’t have any tax write offs. And so that’s not the year to convert part of your retirement account. You know, if you do a cost seg on a deal, Justin like you’re talking about, you’re gonna cost seg something and have some tax write offs. That could be the year that an individual might want to convert a portion of the retirement account to the to the Roth account, Roth account. So, look I’m not a CPA. I don’t know all the tax rules, you know, I know enough for myself to be dangerous. But you know, we’re going to educate you on what the options are, and then you can talk to your CPA. You know, I always recommend go to your CPA and say, hey, look, I heard this bald man talk about self directed IRAs and told me 65 years old, it’s actually 59 and a. Half. And then he said, everything’s tax free. Everything’s not tax free. No, I’m just giving you crap. But you can go back and be like, Okay, this guy in the black shirt, but the Vegas thing behind him said, this, is this really true? Now I will tell you, when you start talking about self directed one of the biggest pushbacks I get from people is they go talk to their CPA, who’s old school CPA, or their financial advisor, like, Whoa, this is scary. I wouldn’t do it. And they’re right and wrong. They’re right, from a perspective is, it’s not for everybody. If you’re listening to like, I want to self direct, but you’re not going to do any due diligence. You’re not going to when you, when you go to the alternative investment class, there’s a lot less regular regulation, meaning you need, you need to make sure you have the right documentation in place. If you need to have an attorney reviewed, have an attorney reviewed, go through the process. This is your your money. I just feel like my confidence in the regulated financial area and the stocks is pretty scary itself. I don’t have confidence in the regulated industry, in the stock market. I rather do my own due diligence with my attorneys. And in my experience, looking at contracts and investing my retirement money is something I understand. And so that’s, you know, my disclaimer is, you know, I’m not those things. You should look and do it yourself. After you hear some of this advice, go ask an advisor of your own,

no doubt. Well, dude, I appreciate it. I know it is a Thursday night in here on the east coast at 7pm. I’m sounding like a (yes you are, yes you are, huh, yes you are). This knows the gift that keeps on giving right now, (Yeah). So, I appreciate everyone dealing with my voice right now, but go to the link book a call with their team, if nothing else, just ask further questions. Right? You guys all have probably different scenarios, and maybe we didn’t cover the scenario in tonight, but it doesn’t mean we can’t be covered with Greg and his team. And you know, at the end of the day, the reason why we wanted to give is because we want you to think like an investor. We want you to get incredibly rich and incredibly wealthy, because it’s a lot more fun when we’re all playing in the same sandboxes together than having the sandbox with just two of us. Right if you guys can figure this out and understand how money works? Where money is? Guys, there are trillions of dollars of dollars sitting on the sidelines, right in these retirement accounts. You know people that have money, even if you don’t, you know people that you should get it over to Greg, because tell them to fill out that form. Get them over to Greg, because they can lend you money. They can be your lender on your next flip or rental. I just told you, don’t buy a flip, don’t buy a rental with your own money. Well, they should have been on this training. Get them this training.

Greg: Yeah, and look, once you’re a client as well, you’re going to see and even our website is there’s more information. Once you become a client of ours, there’s a portal you can go in and you get to educate yourself on more content, more videos, which you can and can’t do. We’ll help you with that process too. Look like I said, for those of you that haven’t you know, open up an account with us at Horizon Trust. If you move over an account, the first people that set an appointment move over an account, the first 10, we’ll give you an LLC as well. After you get your account set up with us, or why you’re getting your account set up with us. And so look forward to working with you, your team and in your community, there’s a lot of you know, you have a lot of listeners and followers that are actively engaged and doing what we’re talking about now. And that’s, that’s why this is so much fun, is you have people that are taking action. So get your account set up if you’ve set an appointment again the first 10 and never do this. By the way, I’ve never heard you do this in my new podcast room? Alex, you making fun of me. Why are you shaking your head at me? Right now? He’s like, he thinks maybe I’m in trouble for this. But anyways, once you get your accounts to that, we’ll get your LLC as well. So, thanks.

Yeah. And what I tell you guys, for many of you, you may even be Horizon Trust customers, and then I’ll tell you, start taking action on some of the stuff you learned. Right? If nothing else, lend me money. It’s 12% right, but just understand it’s backed by the real estate. So get going. Start being a bank. Start lending money, start taking advantage of how the rules were written, and you guys are going to be good. Are you smarting? Because I sound like this. (A little bit, yeah)

Justin: Because I can hear it, and I’m like, Oh my God. If it sounds this bad, it’s awful. I appreciate you guys bearing with us. Enjoy your night, seven o’clock. I appreciate you spending time with me, Greg. Greg, appreciate you. Alex, what’s up? See you guys later.

Greg: Thanks guys.