Think Different Theory

How To Create Financial Freedom In 10 Years Or Less – With Brad Gibb

WHAT IS THIS EPISODE ABOUT?

Have you ever wondered if financial freedom is possible? Or maybe you know it is, but you just don’t know HOW to do it? In this episode, I sit down with Brad Gibb and we dive deep into breaking down step-by-step exactly how you can achieve financial freedom in 10 years or less. (A complete breakdown!)

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WHEN DID IT AIR?

February 14th, 2020

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EPISODE TRANSCRIPT:

Disclaimer: The Transcript Is Auto-Generated And May Contain Spelling And Grammar Errors

Brad 00:00:00
Well, why don’t I just invest with Grant Cardone? Right? And here’s good old Grant. Yep. And dude Grant’s amazing, right? He’s a very smart dude. He’ll make, he makes a lot of money. He’ll make you a lot of money. There’s nothing wrong with Grant, but look at it back at the system. If you invest with Grant, who owns the system.

Intro 00:00:21
You‌ ‌are‌ ‌now‌ ‌entering‌ ‌a‌ ‌new‌ ‌paradigm.‌ ‌So, ‌here’s‌ ‌my‌ ‌issue.‌ ‌I‌ ‌wanted‌ ‌to‌ ‌find‌ ‌the‌ ‌ answers‌ ‌to‌ ‌life’s‌ ‌biggest‌ ‌questions.‌ ‌Things‌ ‌like,‌ ‌how‌ ‌do‌ ‌I‌ ‌become‌ ‌happy‌ ‌and‌ ‌live‌ ‌with‌ ‌purpose?‌ ‌ How‌ ‌do‌ ‌I‌ ‌make‌ ‌more‌ ‌money‌ ‌doing‌ ‌what‌ ‌I‌ ‌love,‌ ‌and‌ ‌what‌ ‌does‌ ‌it‌ ‌mean‌ ‌to‌ ‌be‌ ‌truly‌ ‌successful‌ ‌in‌ ‌ all‌ ‌areas‌ ‌of‌ ‌life?‌ ‌My‌ ‌name‌ ‌is‌ ‌Josh‌ ‌Forti,‌ ‌@JoshForti‌ ‌on‌ Instagram,‌ ‌and‌ ‌I‌ ‌ask‌ ‌life’s‌ ‌biggest‌ ‌ questions‌ ‌and‌ ‌share‌ ‌the‌ ‌answers‌ ‌with‌ ‌you.‌ ‌My‌ ‌goal‌ ‌is‌ ‌to‌ ‌help‌ ‌you‌ ‌find‌ ‌purpose,‌ happiness,‌ ‌and‌ ‌ open‌ ‌your‌ ‌mind‌ ‌to‌ ‌new‌ ‌realms‌ ‌of‌ ‌possibility‌ ‌by‌ ‌helping‌ ‌you‌ ‌think‌ ‌differently‌ ‌about‌ ‌everything‌ ‌you‌ do,‌ ‌know,‌ ‌and‌ ‌understand.‌ ‌On‌ ‌this‌ ‌podcast,‌ ‌we‌ ‌think‌ ‌different,‌ ‌we‌ ‌dream‌ ‌bigger,‌ ‌and‌ ‌we‌ ‌live‌ ‌in‌ ‌a‌ ‌ world‌ ‌without‌ ‌limits.‌ ‌This‌ ‌is‌ ‌a‌ ‌new‌ ‌paradigm.‌ ‌Welcome‌ ‌to‌ ‌The‌ ‌Think‌ ‌Different‌ ‌Theory.

Josh 00:01:07
What’s up guys? Welcome back to another episode of Think Different Theory. My name is Josh Forti and guys, today is going to be a good episode. All I have to say is that no matter where you’re at right now, it’s probably going to be a longer episode because this next guest of mine and I do not know the definition of short or simplified or or things we tend to talk a lot, but it’s an absolutely amazing episode. So strap in for the next hour, hour and a half, maybe even two hours if you can’t listen to the whole thing right now. Be prepared to come back to it because we are going to talk about money and we’re going to talk about the election and how it impacts money and when we talk about financial freedom and how to invest in financial freedom. And before I bring my guest on, I have to get a little bit context around this because this is the second time that he’s coming on.

Josh 00:01:52
We had him on in a season one and it was season one, episode 100 and it was by far the number one most downloaded episode of any of the episodes that we have done. It got thousands and thousands of downloads. We had people requesting him come back on. I’m going to bring him on here in a second. We’re going to talk about how he thought that nobody was going to listen. And that’s, that’s kind of funny. But seriously, we got so many requests on this and we had so many people were like, Oh my gosh, I’ve never heard about money this way before. I, you know, I’ve never had this understanding of it. Like this opened a whole new realm of possibility for me. And so it was just like this mind blowing episode and sends them. Uh, Brad and I, who I’m about to bring on, Brad has become a very good friend of mine, a client of mine.

Josh 00:02:35
I become a client of his, um, we’ve given each other money. I’ve done stuff for him. He’s done stuff for me and he’s taught me a tremendous, a tremendous amount about money. And about investing about finances, about like what really, really goes down and so I’m so, so, so excited for this. Many of you guys know who I’m talking about. It’s the everything that you know about money is wrong. Episode interviewee Mr. Brad Gibb welcome back to Think Different Theory.

Brad 00:02:59
What is up man? I’m excited to be here. I don’t know who’s more excited me or the people listening, but I couldn’t sleep last night.

Josh 00:03:08
I feel like, I feel like I need like a, you remember when you’re like, where’s your button in the last episode it’s like here is Brad and because you at Funnel Hacking Live, they opened up the doors and like the smoke comes out and speaker comes out and is so epic and you’re just like, you just can’t get that effect on a podcast.

Brad 00:03:24
I’m not lying. I want to build a stage like that in my house so I can walk out of my bedroom into the living room. That way everyday.

Josh 00:03:30
I feel like it would raise your energy state totally was. Yeah. Yeah. Mr Tony Robbins there. Dude, I’m so excited. Thank you so much for coming back on. It’s going to be absolutely amazing. Um, I do have to, uh, I do have to bring up, we have to talk about this. Yes. Um, you have a podcast coming out.

Brad 00:03:46
I just finished recording an episode before we came on here.

Josh 00:03:49
and it’s amazing guys. It’s gonna absolutely blow your mind. It’s supposed to be in September, but you know, better late than never. But, two years ago, yes. Finally, but uh, when we had episode number one, you legitimately thought that no one was gonna listen.

Brad 00:04:04
No. And I was honest about that. Like this was off camera after we shut it all down. I was like, dude, like I felt bad. I was like, I apologize first I was like, Josh, dude, I’m so sorry. We covered some of that stuff. Like I felt like someone was out in my field and, and disjointed and I really like, if you want to, the first words were like, if you want to rerecord that, like I’ll make time because I don’t know if we can use that. Yeah. And it goes off. It went on to do thousands and thousands of download and be our number one most downloaded still to this day. Um, it hasn’t been beat yet. Um, we’re going to be at today. We’re going to meet today. We’re going to beat it today. It’s going to be good. It’s, it’s, it’s interesting because, um, Friday episodes are always interesting because it’s th they’re the least watched episodes live, right?

Josh 00:04:46
Like when we first drop them. Um, but typically speaking, it’s like Mondays typically are like the most, most watched, right? Monday, nobody wants to be at work or doing whatever there is. I want to be distracted so they’ll watch them live. But then Friday, like nothing comes out for two days, two more days. So you’ve got all of Friday, all Saturday, all of Sunday, and it starts to pick up and, um, it’s phenomenal. So anyway, um, where did I get into it? One of the guys, here’s kind of the layout here because, um, Brad has given me permission, which is so exciting, um, to talk about the election coming up and how the election will fundamentally change the landscape of money moving forward. We are going to get to that. But before I do that, I want to set the tone for what we’re doing in this episode because this is not going to be a repeat of episode one.

Josh 00:05:28
This is kind of the next step or the next space. So, um, I have written down here in front of me kind of the main topics that we covered in episode one. It was about a two hour and 15 minute long episode. Um, and so obviously we’re not gonna spend near that going over that, but I want to run over the top like four or five things that we talked about, recap them, spend maybe 10 or 15 minutes on that. For those of you that have listened to the first episode, this will be a really good reminder. For those of you that, uh, have not listened to the first episode, this will be kind of bring you up to speed on what we, and you can go back and listen. That is episode 100. For those of you, um, it’s season one, episode 100, uh, for those of you that are interested in that.

Josh 00:06:03
And then from there, transition in episode one, the first one that we did are at website 100. We laid the groundwork for w how many works and a lot of like understanding the financial markets, going back and bringing context around things. And now I want to transition over into, okay, listen, now that we’ve actually gone and done this and understand this, for those of us that have a little bit of money, or once we reached that phase, what do we actually do called you? Absolutely. All right, let’s do it. Okay. So let’s dive in and then, and guys, we’ll wrap up with the election. Mr. Donald Trump. Oh, you said it for me, it’s really not all that uncommon anymore. People are just kind of expected if I don’t say it, they’re like, what Josh? Well, Josh didn’t say it’s wrong. Okay. So sorry man. So, um, last episode we laid the foundation and I kinda wanna just go through these one at a time here, but let’s run through them real quick and then we’ll dive in.

Josh 00:06:57
The rules of money and how money works. Inflation and why printing money is a bad thing. How it affects interest rates and things like that. Why the stock markets for suckers typically speaking. I was so fun. That was [inaudible] and we get a lot of, you get a lot of hate for that one. Yes. A lot of hate for that one. For sure. I’m like almost just as many ahas like Holy crap. Did you feel as though, yeah, it was good. Yeah. And we’ll recap that here in just a second. Um, how Warren buffet invest in the stock market and how he actually makes the stock market a business, not an investment. Um, and well yeah and then the Berkshire Hathaway effect with that, we briefly touched on the core four, four pillars, which we, I’m sure we’ll dive into further here today, which will be super, super good.

Josh 00:07:39
Cause that’s kind of the next phase. We talked about the process of produce, protect, profit, prosper and then your number one takeaway in life that you wish you knew when you were 16 years old, which was dollars follow value. So I’m going back to step number one here. Let’s just quickly the foundation, talk to me about a three minute, five minute tops overview of what money is and how it works. Like the rules of what we’re dealing with here.

Brad 00:08:03
Yeah, so money, most people think money is the effect are, it’s the outcome that we want where really it it becomes, yeah. [inaudible] it is our, it’s a tool, right? It helps us accomplish the thing that we want. So when we stop focusing on, I want more money, but understanding the, the natural, then outcomes of that becoming a tool and how can I use it as a better tool to get the things that I want the entire, the entire way we approach the world, the way we approach investing, the way we approach this game, that is money. It will completely shift and change. So if we understand that money is inadequate, money is simply just a tool, it’s a scorecard, it’s a receipt, then we can really get in and make the right decisions rather than focusing on money as the outcome itself.

New Speaker 00:08:49
Okay. So I want to just ask one more question on that because this is, so the more I study money and the more I learned from you and we spend a lot of time together like over Voxer and things and going back and forth and I do a lot of marketing for your guys and your company. But the more, the more I learned about this, the more I understand the importance of that right there and how your perception of money will ultimately decide your success with it.

Brad 00:09:21
Well, because most people don’t understand like it’s one of those topics we don’t talk around the dinner table, right? It’s one of like the three or four taboo topics and nobody wants to talk about. But it’s insane to me that, that that’s the reality. But here’s what I’ve discovered in studying because after I studied all the, what about money, I started to really get into, and this is why I think Josh, you and I connect so well. I studied a lot of psychology around money as well because we really have to understand what we’re thinking when we look at how do we make decisions. But the thing that happens is the reason why money is such a hot topic is because money is tied to the things that we actually value. Because we cannot get the things that we want without money in in the picture. And if you don’t believe me, think about this from it. You might say, Oh no, the things that matter in life really don’t require money. Great. Totally agree with that. Money can’t buy happiness. I’ll, I’ll agree with that. However, if I want time to do the things that bring me happiness, that requires money somewhere to give me permission to not go be working for it, right, or not be stressing about it or not be. So no matter how we slice it, whether it is actually transacting to get the thing that we want, that will bring us happiness or understanding that that’s not always the case.

Brad 00:10:34
Money is also what gives us the space and the time to be able to do it. So the things that are the most important to us are directly tied to money. So it’s not money that triggers us. It’s not money that gets us excited. It’s the things that we’re passionate the most about in our lives. That money becomes the tool to get that thing. Yeah. So when we get frustrated with money, it’s actually, money has nothing to do with it. It’s the, we’re stuck in something that is important in our life. Why is it that so many people have so much guilt and shame around money? I think [inaudible] it’s a fundamental misunderstanding. It’s, I think it’s a scarcity mentality that has been brought into our world, across the board. And money is not the only place that it exists, but we think of money in a win lose scenario that if I give up money, I lose. Or if I take money from somebody, I’m taking advantage of them. Like we, we have visioned this utopia where money doesn’t exist, but actually that’s the, like the worst version of a dystopia. Money is money is fundamentally moral, but we’re, we are taught because of this, this, you know, somebody’s going to take advantage of me. Game zero sum. There has to be a loser. Um, that then the guilt and the shame comes in around that. And then piling on top of that when we make poor decisions with money because that’s so to the things

Brad 00:11:54
that give us identity, we’ve then not only failed in money, we failed. Interesting failed in business, we failed in education, we’ve failed in the thing that really matters to us. And it sort of compounds that. I like that. I want to touch on that more as we transition, but I want to continue through setting the tone here. Um, inflation give, cause we, we talked about that and the guys were just kind of going through, we’re going to be talking about these points and so I want to just make sure that we have the definitions and understanding down. Explain to me at a very basic level what inflation is and why inflation and interest rates. Talk to me about that. Yeah. Okay. So most people think inflation is the prices of things going up, right? A gallon of milk 20 years ago is not what we have to pay more dollars for the gallon of milk.

Brad 00:12:40
That’s the result of inflation. That’s how we can see it and measure it. But that’s, that’s not what it is. The thing that drives up prices is the supply of money in the economy. So inflation is adding money to the economy. We call that printing money. Although printing presses aren’t running the same way they were when inflation was first really studied and discovered, we still use that term. Adding money to the economy is inflation. The result of that is increased prices and then the, the rate at which prices increase we can measure in terms of interest rates. So those are directly related because interest rates help us understand how money is changing or what money is worth because you can’t price something in itself. You can’t say a loaf of bread costs. A loaf of bread will duh. Right? So we can’t price money in terms of dollars.

Brad 00:13:29
We price it in terms of interest rate, the cost of money is the interest rate. And so, um, those, those two things, as we’re printing more money, the internet has to, has to change and fluctuate with that. So those two are related that way. Got it. Okay. And guys, for those of you that want more context and clarity around that, once again, go back, listen to episode 100, which is the first episode that we did back in season one, uh, on this. OK. um, stock market, our favorite topic ever. Everybody thinks that, Hey, if you want to be, combine actually free, if you want to retire rich Brad, right? Then the stock market’s where it’s at because even if you just want to be a responsible, dedicated, hardworking person, then of course the stock market is where you have to be.

New Speaker 00:14:12
And it’s because if I listened to Tony Robbins, which we love on a personal development level and I listened to it, yes, I’m personal development right on, on the mindset of Tony Robins. He’s phenomenal. But, but, uh, I love what you said about his book. You said his book is all this stuff and that tells you all this great information, but then it’s like, Oh, but here’s basically just how to do what you already are doing just a little bit better. It’s not a new vehicle. And the thing that stuck out most to me that you said was, it’s showing you these examples of how all these rich people are going and investing their money and it’s, but it’s not showing you how they got their money first. So, so I, and that was a, a big like, yep. Tony fundamentally asked the wrong question. You asked what those who are already rich are doing, not what the rich did to become rich in the first place. Yeah. That’s the most power step number one, which is how you got to actually produce the money in order to then multiply it.

Josh 00:15:09
But stock market, we talked about this. We say it’s for suckers as a traditional sense. We talked about how Warren buffet invest differently. Talk to me in a, in a very, once again, break it down in a simple way. Why is the stock market for suckers?

Brad 00:15:24
Because I think, um, it has to do with definitions. Uh, the meaning of words matter. As much as we want to think that it doesn’t, it very much does. We’re taught that we can save into the stock market or we can invest in the stock market. And those two things are fundamentally incorrect. We can’t do that. What we’re, we’re not, when we’re putting money into the market, we’re not saving. And when we’re buying shares of companies or stocks or mutual funds or bonds or any of those things, we’re not actually investing. Investing is a completely different concept.

Brad 00:15:52
One that Warren buffet understands, but one that we are not taught. What we’re doing when we’re doing that is we’re actually speculating or bedding. And because we’re fundamentally taking different actions, we’re actually getting the very result that the action would, would dictate the reason why the stock market is chaotic and you’re, you feel stuck or frustrated is you’re, you’re saying that I want to save and invest that should come with certain outcomes, but you’re getting the result of speculating or betting. Okay, so, but what is the definition of investing then? So investing is deploying capital with an expectation that your, your principal is secured and with a reasonable rate of return in the form of rents. Now rents not meaning rental property rents or income, but cashflow. That’s the economic definition of regular cashflow. So it’s, it’s a safe investment with an expected and understandable rate of return, not what what will you actually get in the stock market where the thing we’re going to buy goes up in value, right?

Brad 00:16:52
Appreciation is by definition, speculation and speculation. It comes with this negative tone. It’s not good or bad. People can be very, very good at speculating. It’s not good or bad, but we need to understand what it is. Right? We enter the stock market with this expectation of principle protection and then and then a regular consistent return, but we get the result of speculation which is and outcome. We can’t control [inaudible].

New Speaker 00:17:17
And I think this is one of the biggest misconceptions in the money game or the biggest misunderstandings in the money game is that we just go in with the wrong expectations of things. Yeah. Because we don’t actually understand what they are. The, the, the terminology of invest in the stock market is probably one of the most well known or used phrases when it comes to investing and where it comes to creating money. When what you’re saying is, Hey, listen, being in the stock market itself is not inherently bad thing, but if you go in with the expectation that it is an investment, that is where it’s going to be dangerous.

Josh 00:17:54
I talked to you yesterday, you and I had a phone conversation and I was talking to you about um, capital and getting capital and whatnot and you’re like, okay Josh, here’s what you need to understand. You can’t go in with this expectation. You need to go in with the expectation of blank. And he’s like, and you said, you know, I’m not saying don’t do this. I’m saying understand what it is that you’re actually doing. And I think that I understand what you do from a marketing standpoint. Don’t get me wrong, you ruffled some feathers. You say some things that you know are going to get attention. I love it. Right? I’m a marketer. I love that. That being said, I think the reason that most people think that you are wrong or that most people, financial advisors or whatever we’ll have you we’ll yell at you is because they don’t actually understand or realize that you’re actually taking things in the literal context of what you’re talking about here when it comes to investing. And that’s something that I very much appreciate of what you do. Um, okay, so once again, next, next thing here guys, and we’re moving quickly because we’re about to get into the meat of things. It’s going to be absolutely amazing. It’s gonna be so much fun. Okay? But we have to like lay this foundation for those of you that are like, okay, mr Brad second or third, fourth richest man, whatever he is in the world, Mr. Warren buffet over here, he’s invested in the stock market. So clearly I’m going to trust Warren over you. What’s your, what’s your response to that?

Brad 00:19:12
And now that we’ve defined investing, yes, Warren buffet invested in the sock market, but you don’t [inaudible] explain the really thing and, and what, and this is, this is natural human tendency to say, what did somebody do? And when we want to answer that question, we look at the thing that they did. So Warren made his money using the public markets, right? So we want to say, well, we, if we used the same vehicle, we would get the same outcome. But as I’ve spent time studying money and I’ve spent a little bit of time in this, probably 20 years doing nothing but this, um, the last book I read, Oh dude is really good. The big debt crisis. Um, really good book. But, uh, but as I study this and look at it, what started to pop out was there are a million ways you can make $1 million.

Brad 00:20:01
There are lots of different things that we can go participate in to make money or, or to have the outcome that we want. So it’s not the thing that we’re doing, right? It’s the, how did we do it? What was the formula or the process used it to create the wealth and when you step back and study money from that angle, everybody that’s wealthy did the same thing, right? Rockefeller did the same thing that Warren buffet did but Warren buffet used the public markets and Rockefeller used oil but they did the same things and you need to understand your not doing the same thing Warren buffet is doing even though you might think you have the same vehicle. The same thing

Josh 00:20:41
And just to be clear, the vehicle that Warren used is the stock. The vehicle that Rockefeller used was oil. The vehicle that bayzos using is Amazon, Amazon, however you can do different things with the same vehicle and so, so some people are looking at Warren buffet and being like, I’m going to go be like Warren Buffett. Warren Buffet is using the stock market as the vehicle for investment. Somebody else could use the exact same vehicle, the stock market as the vehicle for speculation, which is what, 95 or I don’t know what this percentage is obviously, but like a large majority of people are doing. When it comes to the stock market. So really briefly then,

Brad 00:21:23
Let me say it this clear. Okay. You can own the exact same assets Warren Buffet owns, but you will never be a billionaire because you don’t own them in the same way and not acquire them or use the same tools to own themSo it’s not that your portfolio can mere his and you’ll be a billionaire. You never will be if you’re using 401ks and IRAs and brokerage accounts, stocks, bonds and mutual funds to do it. Cause that’s not how Warren buffet did it. And that’s important. So, so from a principal standpoint, how did Warren Buffett used the stock market at a very, very simplistic level? Yeah, the, the, and, and we’ll, we’ll recap this. So I’ll just come back to it. The framework that we teach cause frameworks aren’t infinitely more powerful than an answer. Josh, you know this, the more you’ve hung out with me, I never give you an answer. I give you the framework and then we can, we together come to what the answer should be. The framework that he uses, what we call the core four and the four pillars. And the framework that that Rockefeller used was the core four and four pillars.

Brad 00:22:23
Paizos for port core for four pillars. Mark Ford, a mentor of mine, core four, four pillars. It’s the same framework that can be applied to anything. So that’s the framework if you want to recap that now. Yeah, so that’s actually the next thing on my list here. Let’s walk through what the core four four pillars is, and we’re recapping the last episode, right? So as the, as the wealthy look into the world to try to make a decision of what should I do, they instead of saying, well, we all want a good return, high return is high as required for everybody, right? We can’t be wealthy unless we’re getting a return, right? So to increase our return, we’re told that to T to increase our return, we have to take more fill in the blank risk risk, right? It’s not what the wealthy do. What the wealthy do is they say, in order to get a high rate of return, I first have to require a high amount of control over my investment.

Brad 00:23:13
So we increased two things. The return has to be worth it and I have to understand and raise my level of control. The third thing I do is I have to systematically decrease my risk. Okay? You get paid in this world across the board in proportion to the amount of risk you can eliminate. Okay? That’s fundamentally different. Right? And then the last one is we don’t pay taxes. The rich don’t pay taxes as much as politicians. And we’ll get into politics later. Want to try the rich don’t pay taxes. So we, we, we decrease our taxes. So the core four is increasing control and return while decreasing risk and taxes. That’s the core four. And to clarify, and just so that I’m aware, the rich don’t pay taxes in the sense that we think of paying taxes like personal taxes, things like that. The rich fundamentally contribute more to the system of capitalism and the United States then any traditional tax Bayer would ever to do things that Amazon doesn’t pay. Taxes is ludicrously insane. They just don’t, they just don’t pay a specific type of tax that is great for a headline on CNN.

Brad 00:24:21
Right. And, and to be very, and they usually try to do it like as a proportion of their income or something. They’re paying less if you added up the sheer number of dollars. Yeah. They’re the only ones keeping the skids greased like their why, why do we have anything at all? Right. But yeah, they, it does not destroy their wealth at the same rate as it does for everybody else. [inaudible] and once again, it’s going back to how you do things, right? Like if I have, and I’m, just going to use the Amazon and in one specific case here, I don’t know how many employees Amazon has, but like I don’t know, let’s say 50,000 I have no idea. Right? Like let’s say a 50,000 people.

Josh 00:24:56
Okay. So they’re writing, they’re writing payroll and salaries for 50,000 people. Well guess what happens to have 50,000 paychecks, taxes get taken out of 50,000 paychecks. And guess who’s a matching the taxes as an employer? Amazon is so them in and of themselves, right? There are paying literally 50,000 people’s taxes. I mean, you know, matching the employer contribution of that on top of EV, all of the, you know, stuff that their PR, they’re producing things that produce taxes, like sales tax on all of this stuff that they sell. So I mean, they, they contribute so, so ridiculously much. It’s just that one category. Okay. Um, and we’re gonna dive into the core four, four pillars more here in a second because as we get into the investment side of things here, last thing that I want to just kind of touch on here is talk to me a little bit about for those people that don’t know you and what you do.

Josh 00:25:48
Mmm. Mmm. Oh, excuse me. Um, I don’t want to go into your story so much. Sure. Uh, because we did that in the first episode. Okay. You’re, you’re a nerdy kid in college. You went Goldman wall street fallout. Great. Now you’re here, talk to me about cashflow, casual tactics, you, your business partners, and what specifically you guys do here. Because we’re going to be getting into a pretty bold claim. I mean I titled this how to create financial freedom in 10 years or less regardless of age, income experience. It’s a pretty bold claim. So talk to me about a little bit about what cashflow tactics does and how you’re implementing this so that people know, Oh this guy isn’t just like a hype man. Like he actually has a whole business around that actually does this.

Brad 00:26:25
Yeah, no, that’s a, that’s a great question. And one that, you know, for the first 10 years I was doing this honestly couldn’t answer. Um, cause I hadn’t refined this to a point, um, to, to where we could do that. We were still really trying to figure out [inaudible] not just how to teach this, but how to get results. Right. Cause I didn’t want to stand up and say I could do anything until I first had done it myself. And then I had been able to systematize it to where somebody else could follow it. And get the same result I got right? Otherwise I just got lucky, right? And I really wanted to be sure of that. But what we do at Cashflow Tactics, as the name implies, cashflow, we focus on the one biggest needle mover in your finances, which is creating cashflow. We are the cashflow King guys.

New Speaker 00:27:05
This shirt for those of you that are listening on audio and can’t see this, I am wearing a shirt, it’s black and it says cash flow King, three lines, cash flow in gray King and white big bold letters across it. It is courtesy of mr Braddy gave here and Ryan, uh, Ryan Lee, uh, I think Ryan was the one I actually brought it wasn’t it? Several hike alive. So shout out Ryan, which is cofounder as well. Yep. Is six shirts. So thank you.

Brad 00:27:31
So cashflow and then tactics is we’re not just teaching theory, um, but we’re also not telling you what to do, right? We’re, we’re in the middle of that game. We’re teaching the tactics so that implementation can happen. So really we look at this really two big buckets of what we do. The first is we teach the formulas and the frameworks, right? We do not give advice, right advice and it’s, and it’s not because I’m not allowed to write or anything like regulation wise because they want to regulate that pretty heavily. I don’t do it out of what I feel is my moral obligation because advice is dangerous advice hurts you because if you wait til somebody tells you what you should do, you’re not any better off because then the next time you run into a problem, you have to find somebody that is willing and able to give you the right advice for your particular circumstance that weakens you. It actually takes away your power to to like to rely on advice. So we don’t give advice, we teach formulas and frameworks. So that’s the first part.

New Speaker 00:28:29
So when a formula, and I just want to clarify that because there’s a lot of people that misunderstand that and me being around you, I totally understand obviously what you’re coming from, but you know, the question arises of, well, isn’t everything you’re teaching here fundamentally just advice.

Brad 00:28:44
Josh, let’s go back to the question you asked me just yesterday, right? We were talking about business capital. We were going through it. I could have, it was a 10 minute conversation that I could have done in 30 seconds that we got to at the very end, Josh, you should do this, right? I never said those words though. I said, Josh, let’s frame the problem. Let’s think about the inputs required. And then you went through the formula and told me what you should do. And I was just there guiding through and helping you make, and there were a couple parts where you came to a conclusion. I said, Whoa, wait, we skipped this back up. Let’s go through this. Let’s understand this. But you did the mental calculus and came up and you said, Brad, I think I should do this. [inaudible] different than advice.

New Speaker 00:29:21
Yes. And what’s interesting there is a lot of people would, if they weren’t in the conversation, well it could be like, well yeah, but Brad’s just guiding you to the advice that or to the ultimate outcome upon which you would choose, which in the, let me bring some context around this. I’m sitting here, there’s a business opportunity, if you want to call it that. There’s a, there’s a business venture that I’m considering going into. It will require an investment. It would require me getting capital. I basically asked the question that said, Brad, uh, stock economy’s great right now. Interest rates at all time low. People send me money, wants to send me money every single day, like PayPal or Wells Fargo or you know, all these things. I said, do you think I should do it or not? Right? Like what do you think? And you walk me through and guess what? At the end of it, I came to the conclusion of understanding, okay, here is the result of my different actions, but I have three different options essentially. Right? And you weren’t like, dude, one of these, you simply said, understand the result of what you are choosing. And that is very, very important because if I were to go and get money in this particular place, because there was essentially three different ways that I could go and get money and you were like, if you get it from here, understand this. If you could get it from here, understand this. If you get it from here, understand this. Now you go make your informed choice accordingly. And that is essentially, yep, correct me if I’m wrong here. That’s essentially what you do at a large scale.

Brad 00:30:40
100% and then we still give our opinion. I still said, Josh, I think you should do this. Right? But it wasn’t advice. That was my opinion. Right. And and I and him were very clear about that. So we have a framework. I run through it, I tell you my opinion, but then you kind of look at it and, and you’re now empowered. That’s our goal with the formulas and the frameworks is to empower you in the conversation of money. Now as you go to implement the, the decision that you came to that I happen to agree with that time as you’re implementing, you now can lean back on the framework and get your results. You don’t have to stop every time and be like, Oh, what did, what would Brad say? And go back to Brad, and this is different than most financial advisors because we’re taught that we need to find somebody with lots of degrees and lots of acronyms after the name and dresses in a nice suit and drives a nice car and then have him tell us what to do. Right.

Brad 00:31:27
And that doesn’t help you because then you’re always reliant on having the right guy and that guy being in the right frame of mind and that guy being really knowing who you are and what you value and what your best outcome is. And it’s just an impossible game to consistently win. And it keeps you needy, keeps you dependent. It doesn’t actually give you free, which is literally the polar opposite of freedom. So, so, okay, so that’s bucket number one. The second one I do want to talk about quick. So we teach the formulas and the frameworks and then we help design for you a game plan and that’s the part that we missed for a long time of really understanding like the one key metric we look at in our company every day, every week, every month, every quarter and every year is how many game plans we deliver. That is the chance to get eyes. I love the saying that you can’t read the label when you’re inside the bottle. So after understanding the frameworks, we then help get you outside the bottle for a second and build out. Cause the other thing missing in money and finance is clear, objective, measurable targets. We’re all investing for someday we’re all in it for the long run, right? It’s all gonna work out. Just play the game where we come in and say, no, no, no, no.

Brad 00:32:34
Never anywhere in my life if I ever got success by just saying someday I’ll do this. Right? Right. My podcast is not going to launch next month because I said someday I’m going to do a podcast. I said some damning to do a podcast and I met Josh Forti and he said, you’re going to do a podcast in this amount of time and these are the things required to get there, right? So inside of the game plan we set 10 year outcomes, 12 month objectives and 90 day targets. So you know what you need to do in the next 90 days to move the needle and what have you do that consistently, what you’re going to accomplish in the next 12 months to be on track for your goal. We know we can, we have a scoreboard for the first time for people and we’ve now done, Ryan and I, we’re adding it up.

Brad 00:33:13
Um, we’re going to get the hard number, but in the last 10 years we’ve done over 5,000. That’s an individual personalized game plans and we just, so guys, I’m going to pitch Brad here for you. Um, Brad just launched his Facebook group, Mmm. That he was so gracious enough to let me help with. And when I say so gracious enough, I mean I literally pulled him by the teeth and made him do it. Josh was gracious and say, I’m just going to do this.

New Speaker 00:33:40
Um, but Brad and I were together and, and I can’t take credit for most of it. I mean, truly the content in there is revolutionary and life changing. And it is, it is so interesting to me to see. We, we did, um, we did the five day challenge you had in the first week. 1800 members in the group, 1700 members in the group first week, 600 people on the vibrate challenge. Hundreds of people complete the challenge. It was amazing. And the, the thing that always stood out in there, and if you go in the group, even now you see the post, you see the comments that people are like, this is the most eyeopening group I’ve ever been a part of. This is the, this is fundamentally waking me up and empowered me to actually go out and do that. And I’ve watched people’s lives even in just the short period, it has been open, fundamentally change. And for the first time in their life have this sense of like, Oh, I can actually do this. And my financial game plan shifted from hope to an actual game plan. So I appreciate you for doing that. Thank you, Josh. That’s awesome. Let’s, let’s, let’s dive in. Um, let’s get into the meat and potatoes here.

Josh 00:34:38
Okay. We’ve got at least at least an hour left on this podcast guy, so don’t worry, we’re not gonna. We’re not gonna. We’re not going to cut it off at in an hour. Um, let’s go to part two here. We laid the foundation, and correct me if I’m wrong here, this, I’m going to say this is part two of the series, but really this is the third phase. And what I mean by that is phase number one, you laid the foundation and the groundwork, which is understand how money works. Understand, you’ve got to shift your, you’ve got to fundamentally shift your view of money, your understanding of the definitions of what’s going in right, and understand the game that you’re playing. That was step number one. Step number two, which we also talked about in the last podcast episode, was now you’ve got to go out and produce, which you are not fundamentally teaching.

Josh 00:35:25
You’re saying go find a vehicle, right? Whether that’s a Russell Brunson model or a, uh, you know, a Ty Lopez model or a Grant Cardone model or even a job, right? Like jobs are fine. In fact, a majority of your people have jobs that are in your community, find a vehicle that allows you to produce money. All right? So if you’re broke right now, and I, I found a, I get in trouble for saying this all the time and then I went back and listen to the podcast and I’m like, Brad said it too. I’m not getting in as much trouble, which is, it’s not that hard to make a fuck couple hundred grand. It’s just not, not right. But, but it’s not that hard when you understand how money works. And it’s so interesting how empowering it is to be able to go and make money when you just understand how money works.

Josh 00:36:11
And we covered that in episode one. So go back and listen to that. But um, okay, so now, now let’s assume that someone has come in, they’ve listened to episode one, maybe they’re in your group, are they? They’ve gone out and they’re like, okay, I get how money works. I’ve made a couple a hundred thousand dollars I brought home 85 90,000 a hundred thousand dollars or whatever. Right? And they’re in a good financial position moving forward. All right. Probably similar, maybe not quite to the level of I am right now, but like we could use me as a Guinea pig there in that scenario. I’m to the point now where I’m like, all right, I’ve got, I’ve got some money in the bank, I’m ready to go. Invest is this person that, and maybe I’m not the best Guinea pig example cause my life’s crazy. But you know what I’m saying here, like there’s that person I want to go and I want to begin to invest.

Josh 00:36:56
I want to begin to start this process of financial freedom. You make this big bold claim of 10 years or less rad. I’ve got some debt, meaning I’ve got monthly payments or I’ve got, you know, a lease on my car, which I do, right? I don’t have debt, but I do have a lease. Um, I’m living in a house or you know, an apartment with a, a monthly payments or whatnot. I am by no means rich, but I am not a paycheck to paycheck, can barely scrape by struggler. Now I’m living in this abundance mentality. How do I go and where is step number one? Like where do I even begin to make sure that I’m going down the right path with this? And like let’s dive deep into this.

Brad 00:37:34
Okay. So awesome. So you guide me and make sure I’m clear on this. Absolutely. As we go through. So, uh, you, you hit a very important distinction. If anybody is telling you to start making decisions with money, if you are not first from a producer standpoint, stabilized, like it doesn’t, I was, just to be clear, Josh, I was financially free before I ever made six figures. Okay? So it doesn’t require high incomes, but it requires stability, right? It requires you to be in control of the amount of money that’s coming in and the amount of money that it’s going out and can’t be underwater on that and you can’t be drowning.

New Speaker 00:38:06
I want to pause you really quick, sorry. Because this is a fundamentally important thing that we have to cover. Definition of financial freedom is.

Brad 00:38:12
is the cashflow from my investments of which I’m not actively involved. Right. The rest of the world calls that passive income. I’ll say that so that everybody understands that because as I understand my passive income, we call it leveraged income, exceeds my monthly expenses. So no matter what it is and in my time. Yup.

New Speaker 00:38:30
So no matter what it is, you’re basically saying, and th,e reason that you could confidently say I financially free at before I made ever made six figures was because your leveraged income, passive income, quote quote for her. For those of you on audio, what exceeded your monthly bills and that passive or leveraged income did not require you to be involved.

Brad 00:38:53
Yup. So I didn’t have to wake up and do anything for, for me to have the financial means to live my life. Right. And so then I walked back all of my time and I want that. Yep. And I’ve showed you my numbers, like you’ve seen my scorecard. So I track this every day and you’ve seen it and you’ve verified it.

New Speaker 00:39:07
And I can verify that guys, like I’ve seen some of those numbers and I go, Oh, someday I will be someday. I will. Um, but I want that. And, and I think most people probably everybody listening to this does, right? Yup.

Brad 00:39:22
So if you’re in that stage, step one is to do exactly what we’re talking about It is to set, we call it your strike number. Okay. Uh, I, I love to read. I love economics. I love theory. I love a lot of that. And, and iron Rand is as, as, as amazing as she is. She’s also crazy too. So that there I N Rand a, Y,N , R, and D, if you haven’t read any of her stuff, she wrote Atlas shrugged. Uh, and that’s what inspired this idea of the strike number, right? The number at which we can go on strike, um, and, and take control of whatever it is that we want to do, right? So step number one, if you’ve now stabilized and you’re in that state of, okay, I know what’s coming in, it’s not, uh, there’s enough to cover what I need to do and now I have some room to breathe. [inaudible] and I cannot stress that you don’t need any money to start this, right?

Brad 00:40:08
This isn’t the, the regular financial world will tell you go have a whole bunch of money before you figure out how to do things with money. It does that sound backwards? Like, yeah, knowing things help us get to the thing that we want. So the very first thing that we need to do is we need to set what we call our strike number. We need to know how much cashflow we need coming in to be able to make the next decision. And most people want to go right to being financially free. And that’s great, right? When we talk about being free in 10 years, like that’s what we’re shooting for. But there are lots of other numbers that come before that. Like for me, I wanted out of, um, a business that I was in and I wanted to make a transition, but it was moving from something that had stability and history and it was inside of what my degree was, um, and my notoriety and my reputation.

Brad 00:40:55
And I wanted to go outside of that to something that was 100% eat what I kill and I’d never done it before. So I needed to know how much money did I need coming from my investments to be able to make that shift. Right. And I didn’t need took over everything. But as I looked at it, I added up, I was like, okay, if I can pay for my mortgage and I, and I had a car payment at the time, if I could pay for my mortgage and my car, then I was willing to take the risk of that shift because if I couldn’t make enough to it, just like put food on the table, I’ll, I, yeah, I don’t deserve anything. So I was at least confident that I could put food on the table, but I wasn’t confident I could pay the mortgage. And the risk of losing my house wasn’t worth it. So I, my very first strike number was enough to pay for my house and my car, and then I made a choice and then I reset my next strike number that was bigger than that. And then I can move toward that. But we need the target that we’re shooting for. And it’s not net worth, it’s, it’s, it’s not things paid off, it’s not out of that. It’s a cash flow number that will let you make the next choice that you’re moving toward.

New Speaker 00:41:57
Okay. So let me, let me just restate what you just said there so that I’m understanding this. All right. Um, I’m not looking for a w step number one to becoming financially free is I need a target. Yup. And that target is cashflow and that target is a cashflow target, not a net worth. Target and cashflow meaning monthly recurring revenue. Yes. Right. Okay. So you’re not actively involved in that.

Josh 00:42:23
I’m not actively involved. And this is my cash flow net. Well, technically by definition cash flow is just any man lay incumbent in this particular case, what we’re talking about in the, in the context of financial freedom, I will go and then I would say, what are my monthly expenses that I need to be able to cover in order to become financially free and make this drag number. So for me this was going to be okay, how much do I need for my car payment? You know, my lease, my apartments, uh, um, cost, uh, my health insurance, my food bills every month and I don’t know, gas, money, things like that. And I tallied that entire number up and I come up with said number every month, am I including any? And I want to get like, I want to dive in here, right? So like am I including here right now at the beginning? Am I including money putting aside for savings or am I just covering expenses?

Brad 00:43:14
We don’t because we, we, we reject the idea of retirement, right? So once you own all of your time, then the savings component or the growth component, well, what the heck are you going to do with the rest of your time? And you should continue to be a productive human being. You should find what your purpose is and as you add value to the world, dollars will follow that, right? We’re just trying to get you permission to not sit in traffic, to not sit in a cubicle and not sit in Monday meetings that you don’t want to be in and, and give yourself permission to find the skillset, your unique ability that you can pursue to continue to add value to the world. That’s the strike number.

New Speaker 00:43:54
And I want to use a perfect example of this guys. So the difference between what Brad is teaching right now and a typical retirement based on savings and I’m going to use my own life as an example of this. Okay. Um, back in 2018, beginning of 2018, funnel hacking live happens. I go and you know right after FunnelHack alive and you guys know the story. I hit rock bottom right? Like it wasn’t because of Ohio but like lives. Amazing. But just where I was at in my life was I went from making like $50,000 a month with all these clients to freak out moment, hit rock bottom for the next like eight or nine months of my life. I went and got right and understood like, okay, like what do I have to do with my mind? What do I have to do? Like what do I want to do with my life? Think Different Theory was born.

Josh 00:44:39
Out of those eight or nine months of figuring life out. The only reason I was able to go and do that was because I had money in the bank saved up. The problem was is I only had X number of dollars of money saved up. So every month I stopped working. Guess what happened? My savings went down, down, down, down, down. What Brad is saying here, correct me if I’m wrong and I want to make sure I’m understanding this is yours saying, Whoa, what number do you need to to maintain that lifestyle to where if you took six years to go figure out what you wanted to do with your life, this is the money you need per month. That’s the target number so that we can, what do like, no, no, no, no. Why? Why do, why, why that like, okay, no, what am I doing with that number? Like why? Why is that that number?

Brad 00:45:32
It’s that number. So your example was perfect. So let’s say that your expenses were $5,000 a month. Yes, you had $50,000 in the bank, right? The formula, the way I want everybody to think about this and do this at home. Like if you think about it, mentally think about or go look it up. Look at how much you have accumulated and how much you spend every month and divide those two numbers. So in your case, $50,000 divided by $5,000 a month, you owned 10 months of your time, right? That’s the scorecard, right? But I’m not accept I, for me, financial freedom was not enough months that I, I hope I die before those months run out. And that’s typical retirement and that is rent doesn’t run out before we do, right? There’s a natural scarcity to that. I looked at it and said, well, I want to own infinity amount of my time.

Brad 00:46:18
I want to own all of it. So once, so, and that’s where the shift to cash flow comes from because there’s no guarantee that your net worth will stay or will be there. I mean, that’s what I’m talking about. That’s why that’s a fundamentally wrong number. So the strike number says I need, why do, okay, let me rephrase the question. Why do I need to know my strike number first? Like what am I going to do with this information that’s going to then let us build our plan of how we’re going to slice that, right? It’s going to get you out of the idea that, Oh I need to be making as much money as Brad is before I can get started. No, no, no. You’ve got your strike number. Everyone’s strike numbers individual unique to their situation and then that will line up, well what’s our next step, right, right.

Brad 00:46:57
Which we’re all, if we’re all trying to shoot for the same strike number now that now somebody that’s closer has an unfair advantage, right? And and you live in New York city versus Fort Wayne, Indiana. Like those are two fundamentally different numbers. $1 million on do squad in New York city where it’s like, and, and then what we’re going to calculate is where you go through, what we’re talking about right now is we have to then calculate the gap between where we want to be and where we are. Because cause everybody says, what should I do? Well, I don’t know because I don’t know what you’re shooting at and I don’t know how big the gap. If the gap is a tiny little crack in the sidewalk, we don’t have to do very much to get across it. But if we tow up to that gap and it’s the grand Canyon, you got some work to do and the, the amount of change required, the amount of effort to be put into it, the amount of shifts necessary is going to be determined by that gap.

Josh 00:47:47
Does debt factor into this?

Brad 00:47:49
It does because everything comes back to cashflow, right? I don’t care about your debt balance per se, but the payments to service that debt have to come out every month. And if you’re going to own your time, your cash flow has to not only cover your expense, but service that debt. So we can solve that. We can solve that problem two ways, right? And this is where it becomes empowering and helps us understand where debt fits in that that cashflow, exceeding expenses. We can either increase our cashflow or decrease our expenses, but could pay off debt to solve that.

New Speaker 00:48:18
But in hype, just so I’m understanding correctly, cause I noticed the question you probably get a lot, but I know I get it a lot when I talk about this is the amount of debt that I have hypothetically in a basic scenario does not matter.

Brad 00:48:31
Totally and utterly irrelevant. I have more debt than most. Like when people see how much debt I have there, they like, Holy crap Brad, you’re totally irresponsible. I can’t believe you have that much debt will, it doesn’t matter to me. I’m financially independent still, right?

New Speaker 00:48:46
That debt, your debt and just to clarify, your debt produces income. Most people’s debt that are starting out does not produce income, but either way it doesn’t matter because the only number we’re focused on is okay. If my, and I’m just going to use an example here. If my monthly mortgage payment is $1,500 a month, right? That’s how much I’m paying every month in my mortgage. That’s the number we need to focus on. We add that number to our strike number is, Oh, if it’s 1500 plus $500 a month for my car payment plus $250 for insurance, plus, you know, health insurance at 250 bucks.

Josh 00:49:19
Okay. Add that all up plus food, I’m at $4,000 a month is what I need to come up with hypothetically. Right.

Brad 00:49:24
And, and the reason why this works that we can’t break down, you know, probably here is 99 times out of a hundred. Let’s talk about a mortgage specifically. Um, and it comes, it sounds so counterintuitive, but it’s the same counter-intuitive argument of it’s, it’s actually pretty easy to go make money. Like you should do that first. It’s the same with that. It’s actually in most cases, easier to go produce $1,500 in cash flow from investing than it is to fully pay off your mortgage. So we’re going to pick whichever one gets us the outcome fastest. If it’s high interest rate credit cards, yeah, it’s probably going to be better to pay those off versus trying to produce our way out of that. That’s such an anchor.

Brad 00:49:59
Right? Right. A lot of times it’s way easier to just go start creating the cashflow to offset it. Then the amount of effort and time it takes to pay that thing off. Yeah. That’s what we’re trying to balance here when we measure the thing we want, which is financial freedom and cashflow and time.

New Speaker 00:50:15
Okay. So, I’ve calculated my strike number. Got strike number I, and for the sake of this conversation, we’re going to make that strike number five grand. Okay, perfect. Like here out our dummy guy over here that we’re doing, it’s $5,000 a month. How do I go now? Because based on what you said, you said step number one is you calculate my strike number so that I know what number I’m shooting for and then my goal with that strike number is how do I get my passive or leveraged income to match or exceed $5,000 a month?

Josh 00:50:50
This right here, this transition is where I feel like everybody get stuck at there like this. Like, this is the key thing that if you just answered this, Oh my, the million dollar question, how do I now go and let’s say, and I’m going to assume that the person that we’re talking about here, guys, is they need $5,000 a month. And right now I’m making more than $5,000 a month. That can be, I mean, we’re not bleeding here, right? Let’s say I’m making five grand a month. I mean I need five grand a month and I’m making 6,500 okay? Like I have a good job or whatever it is. So how do I now go and begin to create leveraged or passive income? Yup. Though. So that, how does that process even begin? Because in most people’s mind, if I were to go up to them and say, where does passive or leveraged income come from, they’re going to tell me one of two things.

Josh 00:51:43
They’re going to say the stock market, LOL real estate. Oh, I need tons of money to do that. So where, where am I starting?

Brad 00:51:50
Yup. Perfect. So I’m going to insert a couple of steps here because, because yes, we need to learn how to do that, but if we jump right in and, and, and have you asked Ryan and Jimmy, this is what they did, but , they’re two cofounders of cashflow tactics, they dove right in and said, great, I’m going to passive income. And as you talk to them about their ride to that, um, it, it was a very risky way to do it. Right? And this is where everybody gets scared about things like real estate or alternative investments or whatever it might be. It’s like all that that feels so risky and it’s because people skip this, this middle part of building the right foundation before we actually acquire the assets.

Brad 00:52:26
This is the part that we like, it’s so hard in, in just in business in general, like I have to get you so excited about being financially free in 10 years, but they’re going to pull the reins back on you and say, Whoa, Whoa, Whoa. We got to go slow to go fast. So this is the go slow part that nobody wants to take the patients or time to do. That actually makes the financial freedom possible. Okay. So the slowing down part is we get clear about, we actually go through a process now we did this in the five day challenge, but we go through a process where we rank what you’re already doing in terms of the core four and four pillars. Cause we’ve got to identify the problem. We’ve got to identify the thing, Josh, why aren’t you financially free? What is holding you back? What actions have you taken and what are they getting for you? And through these lenses of the core four, four pillars, we can start to identify that. Okay? So we get clear on, we call it the present, like where you’re at right now. Okay. And then we roll into, we build what we call the, the base of pyramid. And we talk about having um, we talked about having protection, liquidity and a hedge. Okay. We start building that foundation out first. To the next level.

New Speaker 00:53:36
Okay. Talk to me about this. In, in three year old,

Brad 00:53:39
In three year old terms. Um, the base, the best way to think about it is we need to get liquid, we need cash, we need, we need to be in a position to make a different decision. So that’s either going to come from, if you’re starting with zero assets, but you’re earning 6,500 and spending 5,000 it’s taking that $1,500 and putting it in the appropriate place. So it’s positioned to perform for us. Okay. So it’s better to not try to just generate a return and lock it up somewhere. It’s better to, to have the right foundation and position it correctly.

New Speaker 00:54:14
What, where is that place or where is an example of that place like, yep, this is the thing. It’s like, okay, great. I need to get Lakewood. Yeah, I need to put some what, like what am I putting that money in?

Brad 00:54:24
Perfect. And then I’m gonna, I’m just gonna so the, we can add this to the conversation. Okay. You also need to look at, let’s say you had $25,000 in an IRA account or you had a, you know, a bond portfolio or something. We would look at those, rank them. If they don’t pass the core four, we’re going to again position those existing assets, everything. So assets and new savings. So, so the core four is almost like a filter. It’s a lens. Yeah,

New Speaker 00:54:47
it’s a, it’s a thing that I, I make sure that whatever I am putting my money in has to pass the core four or I’m sorry, the core four cause I go the core four and the four pillars, it has to pass this test. I go in and I say I’m only going to put my money here. If this place I stacks up and passes these requirements. Correct.

Brad 00:55:08
Yup. And so then now we’re positioned. So the reason we call it liquidity is the base of that pyramid. Is it has to be positioned to where we can do something with it. Right? Let’s take a 401k cause most people are familiar with that. If I, Josh, if you put your $1,500 a month into a 401k, can you then access it? Can you do something with it?

New Speaker 00:55:32
No. And before we go into this, what are recap for me because I, I’m thinking about the people listening here. Okay. What are the core like what are the core four that we’re measuring them against?

Brad 00:55:42
So a high enough return to be free return control, decreased risk, decreased taxes.

New Speaker 00:55:50
Okay. So I am only putting my money into something that is going to give me a return. Yup. Number two is?

Brad 00:55:58
That I have a high amount of control over that you have a high amount of control over which fundamentally a 401k what we just mentioned does not, is not right. That I can, that I can work to decrease the risk that I don’t have to take all of the risk.

New Speaker 00:56:09
Okay. That you don’t have to take all the risks, which, which by the way, maybe the 401k meets that one but not all four.

Brad 00:56:15
And then, and then on the tax side of it that I can reduce or eliminate my tax and it has to meet all four, all four, all four. Okay. So, so, so understanding that, that we need a place to store our cash that can do that. Okay. So, so, and this is why we pick a very specific vehicle for it, but we need to understand our intent before we understand the vehicle. Right, right, right. I could, I could put money in a bank account and that would Mmm. [inaudible] we’ll check off control. Cause I can do anything I want with it whenever I want. Yeah. It doesn’t have any risk. Right. And it doesn’t have any taxes associated with it, but it’s sitting there not genuine after you paid initial taxes on the money. Yeah. Right, right, right, right, right, right. So it’s three of the four. So that’s a pretty good option. Right. But it doesn’t make you any money, so it doesn’t make us any money so that it fails on, on the return side. Right. Um, we could do, yeah.

Brad 00:57:02
So as we want to look for that, we’ve only found one vehicle that actually passes all for any vehicle. Fundamentally it gives up one or the other. And this is why we talked about in last episode, but this is why we use whole life insurance is it actually gives all four of those. It produces a return. It’s liquid for us. So we have, it’s uh, the, everything is guaranteed and protected inside of it. So we have, we’ve mitigated our risk, we retain access and control to that capital. That’s why, or like we can, we can access anytime we want. So we have high levels of control and then everything that’s happening inside of there is tax free. So it passes all four of those and it positions us to where we can then make the moves. [inaudible] and I want to be really, really clear about this.

Brad 00:57:41
Like I love whole life insurance, but it is not the vehicle that’s going to make us financially free. It is not right. It is a holding place that as you go out and you are your number one asset, you go produce. It’s a holding place that passes all core, all four, four pillars, core four, four pillars that then allows us to bridge into things that are gonna create the financials.

New Speaker 00:58:00
So it is, it is a holding pot essentially that meets all four of these requirements so that if something goes wrong, the economy tanks, uh, you know, something happens to taxes get raised, there’s no matter what happens, you’ve got this essential pot that says, okay, I’m sitting here I am, I’m letting this build up because you said it’s getting me a return in some format or another. And then I’m going to take that and now that it’s in a secure place, that happens to also be earning me a little bit of a return.

Josh 00:58:31
Now I’m going to use what’s in there to go out and invest. Now a question that people that I happen to know what whole life insurance is not only because of you but because I used to sell it, but like for, for those people out there that are like, what the heck? I thought life insurance policy was a, you pay and the money and if I die I get a check. Yes. Whole life insurance gives you the ability to take money out and invest.

Brad 00:58:52
Yeah. The, the way we’ll, without getting like super nerdy and technical about it, the way we’ll talk about it is there’s, there’s kind of two grades or two types of life insurance, right? There’s retail and there’s wholesale or there’s, there’s retail or what we call investment grade life insurance. So there is an investment, an asset piece to it in addition to a death benefit. Okay. So, so yes, it has a liquid portion. Think about it like a bank account. I mean basically the simplest way to think about it is a whole life insurance policy is a bank account. So when I put money into it, I have it, it’s liquid that produces a rate of return and the [inaudible], the minimal rate of return that I want to have on the money that’s sitting around is it has to be beating inflation. Right. I don’t care if it’s making me enough to be financially free, it just, I have to have a place where I can put money and it’s safe and it’s not losing, losing to inflation.

New Speaker 00:59:40
Because guys [inaudible] and I, that’s a great point that you brought up. Inflation is happening and bless you and everyday all day long, all day long. A typical savings account in a bank, if you were to take a hundred grand and stick it into a bank account in 10 years from now, that would be worth so, so much less because of inflation.

Brad 00:59:59
There would be the same number of zeros, but you could buy less things. So it’s worth less to you. Right. Has less purchasing power and a life insurance policy had is for 200 years has kept up or beat inflation. So that’s why I like it. Okay, so going back to, Oh, so it’s a bank account beats inflation and has a death benefit. So if I die then I get a whole bunch of more money than I had. So that helps me to like order things and protect things and operate out of a position of abundance. It’s just that it’s a bank account. The beats inflation with a death benefit. Okay. That’s as simple as I can really explain it.

New Speaker 01:00:32
So, so going back to, Hey, I’m, my expenses are $5,000 a month, I make 6,500 I have 65 or I have $1,500 a month to play with. You have your first like step number one is low after calculating and strike number is let’s go and begin to look at a vehicle, which in this case is whole life insurance to start putting your money in a whole life insurance.

Brad 01:00:57
Yup. And because it’s so specifically designed, we’ve named it, we call it the vault, right? So that, cause not everybody sells these. Not everybody understands them, but we call it the vault. So the first thing is to do is to secure as much capital and start to have your capital flow into that vault. Right. And that that’s step one is we set up a vault and we begin to fund it and we accumulate and grow our capital there. We reposition our assets to there. That becomes ground zero. Okay, now what? Okay, then step two and then,

New Speaker 01:01:24
Oh, actually let me, let me, and maybe this is [inaudible], but let me, let me re ask us. Yeah, yeah, I’m making 1500 bucks a month. Is it profit, right? Or or savings? I can put it into my vault. Let’s say I’m, I’m a good, but I’m not perfect. So I’m like, I’m going to put 1000 bucks a month into my vault, right? I’m going to play around my 500 how long, how much money do I need in that vault? Or how long am I putting money into that vault before a, before I can go do something with it, or B, before I stop or does all the money of investing always go through the vault first?

Brad 01:01:55
Again, I just require that my dollars are always subject to the lens of the core four, four pillars. So for me, every single dollar starts in the vault. Okay? Every single dollar that I save, right? If like income minus my expenses, all of that capital that is, we call it freedom fuel, it’s our, it’s our fuel to build freedom. It all starts out in the vault. So from now until I’m financially free, I’m going to be funding that vault because I want all my fuel to go. Okay. And then as I produce cash, this is the other crazy thing is I, you know, when I made my first passive income, I still had a job and I didn’t actually need that cash. It was awesome and exciting, but I didn’t need it. So then it needed a home, right? And that’s why the vault is great as well because it allows us to bring that cash flow in and have a place for it to go meets all the core four, four pillars. And then we’re off to, to then using that as, as additional fuel. Okay. So now as now that we’ve got taken care of the, our money is flowing into the vault, it’s secured, it’s ready to go, we now turn our attention to where can I go with the, and this is key, the least amount of time involvement, like the least gap from who I am now and what I know to, to be able to produce cashflow, what we identify the appropriate vehicles for you that have the core four or four pillars that are going to produce the return to be financially free.

Brad 01:03:11
Okay. So as the core four, four pillars here are very, uh, very, very important because it actually eliminates about 97% of the options out there. Okay. Cause they don’t pass it, right? It’s not that they will make you money. It’s not that they don’t have a great history or things like that, but it will, it does not pass the core four, four pillars. So we say no to them. Okay. And so step one is just eliminating that and accepting that and then it’s like that phenomenon, I can’t remember what it’s called, but like, uh, when I, when Ford released the Ford Raptor pickup truck, I like it. I was, it was sexy man. It was cool. It was exactly what I wanted and I had never seen it before. But then as soon as I decided I’m going to buy a rafter and I started saving up for it, guess what I saw everywhere I went everywhere was Raptors.

Brad 01:03:56
A Ford Raptor. Right? It’s that concept that if we’re not looking for cash flow, we don’t see it. As soon as we’re looking for cash flow, all of the opportunities that have been there hiding in plain sight line, we now right there. I love that. It’s a change. A change of perspective. Yeah. I love that. That’s all. That’s all that it is. But until, and this is the thing, like this is the crazy part you asked, sorry, go ahead.

New Speaker 01:04:19
I was going to say, but you’re still cutting out 97% is that right? What you’re telling me is Bitcoin is probably not a great,

Brad 01:04:26
It doesn’t, well, let’s analyze a couple of those together here really quickly, but no, the average person who doesn’t, right? But Josh, this was very important. I told you that you needed first the possibility, right? You needed to know what our target was shooting for, what we were looking for. Then we needed to get clear about where we are. I didn’t say shift your perspective right after we set our strike number, because we didn’t have the tool to be able to do that. The tool was what do I have? What problems are standing in my way and then re looking at the lens right now, my perspective actually shifts. We go back and do that other piece of work. Right? But if we immediately jump out and pretend that we know what we’re doing and now I’m a whole bunch smarter, you’re still going to play by the same broken set of rules. Yes. Right now, true possibilities really open up and we have this happen in our community all the time. Okay.

Brad 01:05:14
We get messages every single week where they’re like, I thought Brad was crazy and no way this was gonna work. But I, you know, I stayed in it. I was committed. Now I’m two years in and three years in and four years in and there are so many opportunities that I can’t take. I can’t process them all. I have to hand them off. I can’t even do them all. Like my inbox is full of, of possibilities all the time. So, so let’s go down that route. What is that like? What is the next step here? And again, we teach cashflow packet, right? So there are lots more options than this available to you and you may have a very specific unique unicorn snowflake opportunity in front of you that passes a corporal for port. Awesome. I’m going to teach you the rule. Don’t try to keep me on the exception, right? Cause everybody has their exception that makes them unique.

Brad 01:05:55
What they could do something one off, trying to deliver a system that anybody can replicate and get the fastest run. Perfect. Well that system you asset that over time has proven that we call it the most time tested antifragile method of actually creating financial freedom is what we call turnkey real estate. It’s single family home, three bedroom, two bath pieces of real estate that you can buy own and rent out for cashflow. That’s the quickest, fastest, easiest, simplest, least risky vehicle that we can start creating that cashflow.

New Speaker 01:06:29
Okay, so, so many questions about the theater are going to come up about like, and we’re going to get to them all guys to stick around here. And by the way, for those of you that are listening on video, if you have questions, we’ll see if we have time at the end for a Q and A. So drop your questions below and hit the like button. Hit the love button, show some love for all of this. But before I go into, but Brad, Oh my gosh, I don’t have the money to buy or a single family unit house, which I get, I don’t, I don’t feel like I have the money for it yet. I do because I know you, but okay. Alright. First question is, Brad, I thought you were talking about leveraged passive income here. I feel like, and I know you said the word turnkey, so I was talking about that because to me buying a piece of real estate means, uh, I have to be changing heater or water heaters when they go out or fixing plumbing issues or being called at three o’clock in the morning. Tenants, toilets, toilets and termites, right? Right. It’s the whole thing, right? It’s this headache and how can the average person go out and avoid that? How are you, how are you setting this up in a way that’s actually passive or leverage?

Brad 01:07:32
And so I’ll answer that by telling you how we came to this solution of saying, look, everybody should look at and explore turnkey real estate first. Um, if we back up, we need to understand one thing. First off, true investing is not so much about the asset, as we already talked about. It’s actually owning a system, right? A business, if you think about it, you and I run businesses, right? Businesses is just a system to produce an outcome repeatedly, right? Yes. That’s all it is. Investing is the same thing. It’s the system that can produce an outcome repeatedly. So rather than then owning an asset, I would rather own a system. Right? And that dovetails into a second proof. We’ve said passive and is a lie. I’m going to explain that now.

Brad 01:08:13
I said that it’s at the end of the last interview, that dollars follow value, right? So if I want more dollars, value has to be created, right? So there’s no such thing as sitting around and doing nothing and getting paid for it. It Biolase the rules of the universe. Like we can’t do that. So we have to accept the truth that all active activity, it comes on the back, or sorry, all passive income comes on the back of hyper active. It’s stuff going on, right? So we have to understand the active activity required to produce the value that ends up in my pocket. The only way to do that without you being the one to produce the value is to own the system instead. So what are the reason why we select single family homes specifically is it’s the easiest asset class to build a system around it. I have like my system looks this way, right?

Brad 01:09:02
I have a good buddy of mine, his name is Jimmy. I happened to be his business partner but there’s lots of Jimmy’s out there. Jimmy loves finding property he loves negotiating with and he loves doing all of the things required to full time job in and of itself to find the property. Then Jimmy and his team rehab the property. They will hammer, they bring the Thailand, they make it look nice, they paint it, they fix all the things cause I am not good at that either. I don’t like doing any of that. Then they market that property to a tenant and they screen the person more, ask, asking all the questions and they collect their deposit and they put him in the property and then they have a property management company rent and deals with the issues and fixes the toy that when it breaks, I own that system where I understand and can monitor and measure all of the active activity happening. But because I own the system, I can get the leveraged outcome. That’s what we’re talking about.

New Speaker 01:09:53
And so for the person here now that is trying to become financially free, are you suggesting that they have to go set up that system or by that system or are you saying you just go hire a company to do it or like how does that work? Because it sounds like, and this is why I’m giving you the chance to clarify, it sounds like what you’re saying is, well Brad, I don’t, I mean I’ve got to save up all my money. Then I got to go buy a whole entire company or a system that does all this and then I got to go and come up with money for like property like that. That sounds like a lot of work.

Brad 01:10:25
Oh, but Josh, you’re right. It feels like a whole lot of work to be financially free. I’d rather not do anything. Yeah, there’s going to be work involved. There’s new skill sets here. We’ve got to learn stuff. But I do want to ally the fears of, but never didn’t have enough money.

New Speaker 01:10:39
But am I, am I actually buying a holding company or am I partnering with one?

Brad 01:10:43
No. So what you’re actually doing is you’re hiring somebody to do that on your behalf. Right. Okay. And, and it’s not like you’re hiring an employee and you’re paying them salaries and all that kind of stuff. In the, in a business world, I have to take that risk. I have to bring on employees, I have to take the capital down, I have to do all that kind of stuff on the investing side because there’s an investment involved. Right. There’s an asset involved. Even if you don’t partner the way you think about partnering. Like Jimmy doesn’t own any of my properties, I own 100 of them. But in a partnership, we’ve created any ability for him to get paid to do his work out of the investment. And then I get what’s left over so I don’t have to write Jimmy a check out of my pocket. The asset does it right. And then I get the access because I own the asset.

Josh 01:11:28
So he takes it. He takes a percentage of profit.

Brad 01:11:31
Yeah. Yup. So we, we, we, we split it based off of how the property is operating. I’m still on the hook with some of the expenses. Like if it gets broken into and I have to fix things up or whatever. But it’s, that’s the fundamental differences.

Josh 01:11:43
But I know you’re not also doing it though. You’re not doing it though. You might have to pay for it, but it’s coming out of property money anyway. So what you’re saying is that’s the difference. So let’s, let’s build this system out here and then I want you to explain how this happens. But just the verb for a broad overview picture, I want to become financially free and I just want to recap where we’re at so far. I go, Oh I my strike numbers, five grand, I make 6,500 a month. I’m putting, I buy my whole life insurance policy, I start putting money into my whole life insurance policy. And then the next step from there is to go out and to invest in real estate. Your recommendation or, or your opinion I should say, or what you have found to be most beneficial for you and most of your students and clients is three bedroom, two bathroom house. So you’re going to go out, you’re going to find a great three bedroom, two bathroom house that you’re going to want to invest in or go through a partner that’s going to find it for you.

Josh 01:12:33
And then once you have that house and you own that house, you partner with a Jimmy or any more broad sense because Jimmy’s your business partner on a more broad. So the key provider, a turnkey property manager, which these companies exist all over America, right? So it’s not, this is not a unique unicorn thing that you have created. These are typical companies where you say, listen, you go, you manage everything and they, some of them even offer the ability to find the property for you. But it’s, they’re going to do that. Any renovations that they need, they are going to fix the toilets. They’re going to take care of the termites, they’re going to take care of the tenants then because your contribution to this is cash and they need cash to be able to go and build their portfolio, right? Like they, their ideal market is a you, their clientele is you.

Josh 01:13:23
Yup. And then your taking your money or leveraged bank money and you’re putting this into a house, they’re managing everything. And then let’s say the rent on that is two, 2000 of us. Be more realistic. Let’s say it’s $1,500 a month and let’s say your mortgage expenses and everything all included is um, $1,000 a month and Jimmy’s going to take his, or leveraged income is going to take, or I’m turnkey providers, is going to take 100 bucks, 200 bucks, whatever it is, they’re going to take their 200 you’re going to walk away with $300 a month every single month in profit leveraged income and that asset every single month is going to be paying itself off so that in 15, 2030 years, whatever the length of the loan is now, you also have an asset, not only you have cash every month, you’re also building an asset that you could either sell or continue to produce.

Brad 01:14:16
Yup. And you just walk through the four pillars that we haven’t covered yet, right. I want, I will only put my money in an investment that will put money in my pocket that I can use leverage to acquire, that will go up in value over time and that I can minimize or eliminate my taxes on. And real estate does all four of those. Right. So, but I really, really want to stress here that if you said, what is step two after securing money in a vault, it’s buying an investment system, right? That delivers the results. And then, and then if you asked me, well what’s the easiest system? Well it’s turnkey real estate.

Josh 01:14:49
What would an example of, cause you say like 97% of them are, you know, cut and, and don’t fit this. Are there any examples? Non unicorn. Um, are there any other examples that you can think of that would fit that bill? I mean, could we teach, go ahead. Go ahead. I didn’t cut you off. I mean you say three bedroom, two bath, but like hypothetically speaking, could I just be like, Hey, there’s a 32 unit apartment complex that also happens to, I mean, like, couldn’t that,

Brad 01:15:19
so let, let’s bring this up cause I’m sure your audience and my audience especially as well, why they’re all thinking, well, why don’t I just invest with Grant Cardone? Right? And, and here’s the rant. Yep. And do Grant’s amazing. Right, right. He’s a, he’s a very smart dude. He’ll make, he makes a lot of money. He’ll make you a lot of money. There’s nothing wrong with Grant, but look at it back at the system. If you invest with Grant, who owns the system exactly. And randoms the system.

Josh 01:15:45
Grant owns the system and you still have very little to no control over the money, which doesn’t pass the core four.

Brad 01:15:52
Exactly right. So, so to me, step one is not finding your Grant Cardone because you’re investing in someone else’s system. It’s, it’s to secure your own system. And now look at Grant Cardone. He does, you know, two to $20 million DLCs. I think he just is approaching $1 billion. No, no, he’s 100 million is fun. No, he’s at one 1.5 and they’ll be at two by. Okay. End of the year I think is what he said. Like 2 billion, $2 billion billion. So if you want to own a system that does 38 unit apartment buildings, cool. You just have to go out and build a one point $5 billion system. Awesome. Right? That’s unattainable for most people. Right. But for me to build a system around a three bedroom, two bath house, all I need is 25 grand.

Josh 01:16:35
And by the way, I want to clarify, and I think this is important because someone can be like, well dude, I have a friend that owns sixth 35 unit apartment complexes. He makes great money and everything. You know, he’s financially free and all that. And I just want to clarify, and correct me if I’m wrong here. Yes, that’s fine, but that is his business. Exactly. That is not passive leveraged income. Yup. There’s a difference. So it’s not to say that you can’t go make a crap ton of money with apartment complexes. You are simply saying that the easiest to go create a leveraged income system where you are not actively involved every day. It’s not a business. This is an investment, not a business yet is a three bedroom, two bathroom thing that first starts in a whole life insurance policy. Yeah. And then turns into that.

Brad 01:17:27
Yup. 100% that’s exactly, that’s the easiest way to go about it. And I’ll give you my experience on it. So I started to learn about real estate in like 2004, five, six that timeframe. Um, and I had to build and create this system myself. So I spent, I spent tons of time reading. Fortunately I had an accounting degree with a little bit of legal background and so I could at least like understand what was going on. And I had to, I had to go out and find real estate agents that would find property for me. I had to go find and manage contractors and bring them in and trust them and try them out and have them screw me over and then get rid of them and find a better one.

Brad 01:17:57
Um, and then I had to find somebody to review all my contracts and be able to sign that. And then, and by the way, I had to do each of these jobs first, so then I could find somebody and tell them what they needed to do. So I had to spend like three or four years building out the system. Right. Because back in 2004 2005 2006 turnkey real estate didn’t really even exist. It wasn’t even a thing like go back in time to the stock market like before brokerage accounts really existed and the ability for the average person to invest in the market. It wasn’t until like the late seventies early eighties that that became a possibility when mutual funds existed. Right before that you had to know somebody, you had to have enough money and capital and all this stuff like the stock market was very, very restricted to the average person and then the mutual fund came out and it exploded and everybody could now get involved.

Brad 01:18:43
We’re on the same cusp of that inside of real estate before it required me to go out and assemble all of the team, vet all of the team, have them all operate for me, and it took me four or five years of doing that almost full time. Like it was very stressful to be able to do that before I then owned a system that I could then accelerate. Awesome. Now they’re there because of the internet and because of technology, I don’t have to go see the property. I don’t have to physically be there. And, and what has opened up in the world of real estate is now this turnkey opportunity where I only have to talk to one person, one group that then has the entire team bedded and supported and put in place for me.

Josh 01:19:23
And that’s their business. And so they are actively in that and they are going to continue to make that better. You don’t have to worry about it at all.

Brad 01:19:32
Yup, and I have yet to find somebody outside of the one off opportunities that again are the unicorn thing where, Oh, an old guy that could get me into a different type of property. I have yet to meet a way that I can systematically repeat that across many, many markets to consistently deliver me results, which is why bath,

Josh 01:19:49
Which is why you’re focused on and pushing this because this is the most duplicatable for the average American across the board. No matter where you are, no matter who you are, you can essentially do this and produce a result.

Brad 01:20:02
Yup. And then I want to come back to, to finishing off your answer of, well, perhaps this is hard and yes. So yes, first off you’re going to have to learn a different skill set, but congratulations. I just eliminated 97% of what you were prior listening to. So now you act, you’re welcome. I gave you a bunch of time back for you to actually start studying what matters. So yes, you’re going to have to learn a little bit about real estate. You’re gonna have to learn a little bit about taxes. You’re gonna have to learn a little about money. And I wish there was a course, it was comprehensive tip to tail teaching all of this stuff. Oh wait, we have one. Um, but we need to spend time learning that. Right? Then second to that, we need to understand, and this was when I understood this, this is what really, cause this is what really shifted it for me. Um, I, I was the same thing. I did not come from wealth. Um, I did not have a lot of money. I told you I was financially free before I made ever made six figures.

Brad 01:20:50
And what shifted it to me was the second piece of understanding. Now that I’m, I’m focused, right? I’m, I’m putting my capital, positioning it correctly in a vault and I’m dedicated to the core four, four pillars. There’s one piece missing, right? If you have cash, great. No, you need about 25 grand down on a property, three, two, one off to the races. But Josh, what if I don’t have cash that,

Josh 01:21:10
And that’s, that’s the final question, right?

Brad 01:21:12
Final question. What if I don’t have cash? What do you need to understand this? A successful deal has four components to it, okay? And cash is actually the least important of the four components. If you have the other three components, people will literally throw cash. You, I’ve had people grow credit cards at me, physically throw credit cards at me because I had the other three elements. Would you like to know what those other three elements are Josh?,

Josh 01:21:37
I would absolutely love to know what those are. And by the way, real quick before we dive into that, guys, for those of you listening on the audio, um, if it’s a bummer because I was wanting to be like comment below with your questions, this is amazing, but you’re listening on audio right now. There’s no way to do that. You can leave a rating or a review on the podcast would be awesome. Ask your questions there or go over to Facebook thing, different theory, Facebook page. Uh, you can see, you know the comments there. Leave your comments there. And if you’re tuning in live right now, just you, if you’re finding value in this comment value down below, ask your questions down below. Share this out. Uh, if you are listening on audio, share it with a friend, um, that you could do this. Cause this is like, this is fundamentally amazing, amazing things that can absolutely fundamentally changed the trajectory of your life. So the more engagement that we get, the better. So let’s, let’s dive into what these three things are.

Brad 01:22:26
Okay. So, so one element of a real estate deal is cash, right? The second is credit, right? Because I don’t have to, I don’t have to come up with all the cash I can. I can have a bank, give me money, I can have another partner in the deal. Give me money, but I can access money through credit. Right? The third element is expertise. Knowing that this is even possible. Knowing how to manage toward a successful outcome, right? Having the education, having the expertise. Yeah. And then the third one is the opportunity itself, right? And the fourth one, or third one, sorry. Yeah. The fourth, fourth, fourth is opportunity, right? So to have an opportunity that has the fundamentals of a successful deal,

Brad 01:23:05
right? The right property in the right place, at the right price, with the right rent, with the right fundamentals, those four things are required for a successful deal. Right? But we are taught because we’re not taught investing, we’re taught to speculate. We’re not taught to be empowered. We’re taught to get advice. We’re just taught you have to have money and someone else will have the other three.

Josh 01:23:25
Or you should guess and hope that you pick the right one with the other three. And the fundamental difference between speculation and investing. And I love this, it’s like, Hey, you got, you’ve got a hundred grand sitting in the bank. Sweet. You should probably go try to multiply that, go pick one of these stocks over here, go pick whatever and hope it works out. But I’ll work out your only leverage point. Your only piece of power is the fact that you have capital. Yup. Whereas when you learn the other three here, now you’re like, well shoot there’s, and don’t take this the wrong way. There’s a bunch of soccer with cash. So like [inaudible].

Brad 01:24:02
And dude. So I bought my first six properties as a broke college student trying to get an accounting degree because I got the expertise and I was good at finding opportunities and then I could find other people with credit and other people with capital. And I did my first six deals with zero of my own dollars. Now my example is unique and, and, and, and you know, whatever. But if you realize that and understand that the proportion, I can bring other elements to it outside of capital, and this is why we say regardless of your age, income or experience, anybody can go figure out one of those four things and participate in a deal. I’ve been a participant in a deal where I brought all four of them. I’ve been participant with three and two and one but never have I participated in a deal without any of them.

Josh 01:24:48
That’s super and you’re never going to, it’s impossible. You can’t participate. There’s only four things to it. So, um, if you are, okay, so for the person that’s out there though, that is it, they are getting kind of getting started into this. Well when you say, okay, the difference between credit and cash. Okay. Sorry, I’m just trying to figure out how to word this question here. Credit meaning credit score, leverage power, things like that is credit your ability to get cash?

Brad 01:25:16
I mean, yeah. I mean it’s, and the reason why I say it credit there rather than a loan is then people say why can’t qualify for a loan? They’ll say, okay, you don’t have credit, you can’t bring that pillar. Or people will say, I want to buy real estate but I don’t have a good credit score. Okay. Then you have three of the four pieces. You just need to figure out how to plug in the other piece. Right? So, so I, I do, when I would get that specific, I do want to look at it as your ability to borrow money, right. Is that is one pillar because that means I don’t have to come up with all the cash, right?

Brad 01:25:45
So I can either eliminate that pillar by coming up with all the clash or I can go find someone else that has the ability or willingness to, to bring cash into the deal.

Josh 01:25:53
That makes sense. How many, how many, uh, investment properties do you have now?

Brad 01:25:57
Between myself, Ryan and Jimmy, cause we’re, we’re partners on some of them. We have around 150 of these single-family, boring, plain vanilla. You don’t even know they’re there. Investment properties. That’s awesome. And you’ve been doing it for awhile. So you know, slowly and they just keep. and, and let, let’s talk about that. I’ll do, Oh, this is where it gets exciting. Like let’s go back to your example. 5,000 bucks is what you’re saving, right?

Josh 01:26:21
Yeah. And maybe you’re gonna get to this. At what point do I, cause obviously a whole life insurance, if I put $1,500 in, I’m not going to be able to pull all 5,000 bucks out. Right? Like it’s a percentage. But like how much, how much do I need to have in spending power before I can get started on this? So if you’re going to be the one bringing cash to the table, at least a down payment.

Brad 01:26:41
Yeah. You need generally, you know, roughly 20 to $25,000 is what you would need to get started. Are there, you know, sometimes less than that, sometimes more than that. But the cash component of those,

Josh 01:26:51
let’s call 25 grand. Your recommendation is have you ain’t got 25 grand in the bank. What you need to be doing is either a studying all about the other three and how you can come up with those, learn about those or whatever and or be focusing 100% of your time on how to produce cash right now.

Brad 01:27:08
And that’s, that’s the benefit of eliminating the 97% of things because now every dollar I have is going toward that goal. I’m going to get there faster. All of my time and energy is focused on getting more cash and I’m going to get there faster rather than trying to say, Oh, this isn’t for me, I can’t do it. So I’m going to try all this other like you’ll never get there.

Josh 01:27:25
It’s just, it’s just like, okay, now I have the vehicle, now I have the pad. Now it’s just like, how do I, how do I go down this specific path? The fastest. Right. Okay. Yup. Um, I want you, I want to kind of get into economy and election and how that’s gonna play into things here in a minute. Cause I want to wrap, bring that and kind of wrap everything up with that. But before we go and do this. So it’s what I have written down here is produce that’s got to make cash then protect, which is putting the whole life insurance policy.

Josh 01:27:57
And for those of you that are listening, it’s, that’s the vehicle we’ve chosen. It’s actually, we call it put, put it in the vault, which put it in some vehicle that passes the core or the four pillars, right? Or the core four or as many of them as possible. All right. Put it in there. Which the best that you’ve found consistently across the board as a whole life insurance policy. So there’s your protect profit now is to go through and find good real estate deals, find a vehicle that will once again allow you to produce income and meet the four pillars. Then prosper, which is continue to duplicate this over and over again until you’re financially free. Right? Yup. So what is the like where is my risk here? Like, and I understand that we’re, we’re literally going through the thing in here, but like where are the loopholes or where do I need to be focused on to make sure, cause obviously something could go wrong here. I could make a mistake and there’s gotta be, there’s places where the typical average person that goes into this either skips over or the typical holes that you see people go in and do. Where do I need to be making sure that I’m educated and safeguarding myself? And so I don’t make mistakes.

Brad 01:29:09
Okay. Awesome. Let’s, let’s quickly talk about risk then. Um, and I’m not going to answer your question. I’m gonna give you the framework and everybody hates me for that, but eventually you’ll love me for it, I promise. Yeah. You take away the thing that you have to understand, um, is we try to project risk on two things, right? We tried to say that thing is risky or is that thing risky? Thing about it is risk is completely independent of the thing because some people invested in real estate and made a lot of money and some people invest in single family homes and lost a bunch of money. Some people made a bunch of money in the stock market, some people lost some money on the stock market. Right back to the Warren buffet thing of the thing doesn’t matter.

Brad 01:29:44
It’s the how that matters. Risk follows the same formula, so this is not inherently more or less risky than what you’re doing now. It’s not any more or less inherently risky than 401ks mutual funds. Stocks, bond, indium risk is in the investor. It’s in you. It’s in how much you know, how much responsibility you’re willing to take, how much time. Oh, and that’s what, that’s, that’s the bad news, but it’s also the amazingly wonderful, great news because risk is something you can now control, which,

Josh 01:30:15
which comes back to guys. I, I have to point this out here because it’s so fundamental and I’ve gotten so much crap and hay over this episode, but it was like the third or fourth episode on the podcast, which is everything is your fault. Yeah. And as soon as you accept the fact that everything is your fault, guess what? That’s a double edged sword. Everything is your fault, but yet that means you control everything means you control the fundamental outcome and destiny of your life. And when you understand that that exact same thing applies to your relationships, that applies to your business. And that also applies to your investments. And in this case, financial freedom.

Brad 01:30:44
Yup. But if we’re, if we’re following the [inaudible] device blindly, hoping is not a strategy, hoping is not something that you can control, hoping is never makes it your fault. Right? And if we just blindly accept and we look for advice rather than frameworks, then we’re never going to be able to step up and take that control. So though, the reason why this, I’m going to say this, this is less risky than what you’re doing now because what you’re doing now, you can’t influence the outcome. You’ve absolved yourself of responsibility. Therefore you are taking insanely high amounts of risk in that where this, because risk is independent of it, at risk on you, you can actually work hard enough and do the things required to make the risk significantly lower than what you’re doing. Now. Does that answer the question?

Josh 01:31:29
Yes, yes, yes. So in a summarized version of it is get educated on what it is that you’re actually doing. And if you don’t have education on it, that is where your potential risk risk comes from.

Brad 01:31:49
I’ll give you a little knowledge of it. Like, Mmm, uh, biology did not come well to me at all. Spreadsheets and math did. But like I never, I could never go into that world. Um, but think about like, so for me, if somebody said, Hey, this person has a brain tumor and you need to operate on them, I would like, I would be freaking out. This would be a very risky thing for me to pick up a scalpel and cut his head open and try to perform brain surgery. Right? But do you think a brain surgeon wakes up in the morning and thinks, Oh my gosh, I’m about to cut something about, Holy crap, it’s so risky. Nobody should do this. No, this is business as usual for a brain surgeon, right? Because they went through and they got educated and they’ve done all the things they need to to take something that, that by itself cutting somebody’s head open, we can see and understand the risk, right?

Brad 01:32:35
If I were to perform brain surgery on a hundred people, a hundred of them would die, right? But if a brain surgeon performs surgery on a hundred people, maybe only one of them has a bad outcome and dies. So by, by reducing the risk, by going through becoming a brain surgeon, we can get the life saving outcome of it. Where if I did it, I would kill everyone and we get no benefit. Right? So it comes down to this is, this is back to the same. And I said, you get paid in proportion to the amount of risks you can eliminate, right? Because that it’s the difference between how much risk we’ve eliminated and the potential reward that is our return. Right. And the reward of brain surgery continuing to live. It’s super, super high. Yeah. If I can take the risk down, I can get a massive reward for it.

Josh 01:33:20
I love it guys. I hope this makes sense. If you’re listening on audio or video even, I mean, regardless of where you’re listening, if you have questions on this, feel free to Instagram DM me. Um, and I’m good friends with Brad. We can even potentially film some short clips and put out Instagram clips on it. Um, or DM, uh, actually join, join Brad’s basically we were talking about the economy here, uh, and Trump. Uh, so stick around for that. But real quick, Brad, for those people that are like, this is amazing. I need this in my life. Where is the best place to go? And guys, I have to give a little context on this. I’m Brad’s marketing guy right now. Like I’ve come in and set things up. So I’ve prepped him on this question and I’m going to see if he answers correctly. So Brad, where can people go to find out more?

Brad 01:34:04
So go to the Facebooks or the insta tweet That’s, that used to be my answer. That used to be my answer. We have a free Facebook group. Go to cashflowtactics.com/group and it will take you straight there. Uh, you can request access to it. Inside of there you’ll be given an amazing set of bonuses that are going to get you jump-started into like a good, nice foundation. But what the conversation happening in the group is so you can get right up to speed with what’s going on in the group. And then inside the group is where all the conversation is happening. We regularly go live in there. We share um, knowledge, insight, tips, tricks, other members are in sharing their wins and what they’re learning. It’s an amazing community where, where we’re accelerating the rate of learning cause we’re all participating together. And then you’ll also be invited inside of that to a five day challenge where you can go through the process we just outlined of, of uh, setting your strike number and understanding what your gap is and rating and ranking your current strategy and then outlining the next steps for you as well. That’s all in the Facebook group. So cashflowtactics.com/group You straight there.

Josh 01:35:10
I’m so proud of you. I am seriously, so proud of you. You have come such a long way. Um,

Brad 01:35:19
seriously, one time you asked me what to do and I was like, ah, I really don’t know where you can find me right now.

Josh 01:35:24
Uh, the, I was on the first episode because we didn’t have a Facebook group. We didn’t have the hub guys. By the way. Everything that Brad teaches about money with these frameworks and these systems or whatever, that’s what I understand and do on social media. That’s what I do when it comes to marketing. When it comes to where we put podcasts and Facebook groups and email lists and challenges and Instagram accounts, like there’s frameworks behind it all and the hub of it all.

Josh 01:35:45
Always, always, always is the Facebook group. So Brad, I’m very, very proud of you. cashflowtactics.com/group. We will link that down in the description or you guys can just go there and request to join. Okay. Let’s talk about the thing that just gets me into trouble all the time. Donald Trump like getting into trouble. I like getting into trouble too with Donald Trump people, people. Um, man, I got to tell you a quick story, a funny story context around this. I don’t know if you saw this or not. Um, we had an election, New Hampshire, uh, election the other day, uh, with, uh, the Democrats. And so it was Bernie and Biden and Warren and all them. They were all going at it, right? And Bernie won, right? And so I saw Fox news post a Bernie one and whatever. So I liked the post because, you know, I’m like, cool, great.

Josh 01:36:30
Good job. Bernie. I’m not a Bernie fan by any means for anybody that has ever watched any piece of content of mine ever. Probably knows how pro capitalism, uh, an anti-socialist I am and how vocal I have been about Trump. Um, anyway, so I, I do this and in the comment sections, did you hear the story? Did you see this?

Brad 01:36:46
I saw pieces about it, but yeah. Okay. I think I caught like 80% of it.

Josh 01:36:50
Yeah. So, so I have a friend who is very like, very Democrat, super pro Bernie. She loves Bernie. And so I tagged her in a comment and I said, you know, tagged her and I was like, is your boy gonna win it all this year? Right. Um, and she, so she immediately replies back and keep in mind, this is one minute after Fox news does a massive, massive page has just done this.

Josh 01:37:09
And she’s like, I think that if the democratic party got behind Bernie, he, and he’s on fire right now. I think that would be, it could be Trump. I said, if anybody can beat Trump, which I know are gonna happen, but if anybody were to beat Trump, it would be Bernie Sanders. If the entire democratic party got behind him. I was like, I think that there’s potential that he could pull it off and in this like a very educated well thought out, like a super basic thing, right? And I will tell you for whatever reason, and this is why like the Democrats or the Republicans are just as bad as the Democrats when it comes to like blind sheep followers of things. Write hundreds of comments, calling me a socialist, a communist, someone that needs to get a job, stop taking free handouts. A sucker just is crazy.

Josh 01:37:53
Whackjob like all these things. And I’m like, this is a day after, I think, or two days after, I think it was a day after, um, Julie Stoian and I got on and did an entire podcast episode together where I basically was like, here’s all the reasons why I like Trump. And Julie’s all like, no, not, and I’m like, you guys. And it just shows you how blind people are. I always get in trouble with Trump, but anyway, that, that’ll, that’ll set the tone. Apparently I’m not a communist, communist, loving socialist Democrat who, so let’s talk. Let’s talk politics. Let’s talk Trump. Let’s talk capitalism because I don’t know, I guess I’ve never really asked you this. Shockingly. You’re not like, you’re not like a blatant Trump fan. No. Right? Like you’re not, you’re not like handing out flyers and saying everybody should go vote for him.

Josh 01:38:36
So let’s talk about the economy right now because the, the, the fact of the matter is the economy is doing undeniably, absolutely incredible. I mean, it is like at all time greats in many areas. Um, unemployment is very low. Interest rates are at an all time low. I mean, like we’re talking like Donald Trump has fundamentally changed the game of money moving forward forever. I would say. I mean, the world will never be the same, particularly in the economic state. So for the last, what has it been 12 years now, 11 year now, bull run that we’ve had in this market, right? Yeah. Um, it’s pretty easy to make money. It’s pretty easy to invest money. Things are very, very good right now. Do your principals work? And this is kind of how I want to go transition in, and then we can talk about projections and how this will affect things, but do your principles and what we’re talking about here with whole life insurance and single family real estate and whatnot, did this work when the economy economy inevitably correct. Yeah. And, and, and collapses and we’ll talk about election specifics here coming up. Yeah, yeah, yeah,

Brad 01:39:43
Yeah. No, that’s a really, really good question. So, and when you say like, am I Trump’s reporter, or, or like what party do I affiliate with? All that stuff is like, I’m echo more your answers. I’m a capitalist, so I want to support capitalist ideas and things that will support capitalism. I think it’s the greatest force for human prosperity on the earth and it should be supported. So that, that, that’s, that’s, that’s really about all, all really go into there, um, for now until we get later. But as far as do, do our principals work? So, Mmm. I mean, the short, simple answer is yes, of course. That’s why they’re principals, right? If principals only work in a very specific set of timeframe, they’re not a, they’re not a, they’re not principles right they’re a tactic or a one off or you know, something to, to, to arbitrage. They’re more an arbitrage. It’s the way I would probably define that, right? If they’re only working, like if you read that, you know, a hundred real estate books that were written in 2006, only two of them still work because the other 98 where arbitrage is of what was currently happening, right? Um, if you look at most of the quote unquote investment strategies, and I’m going to reframe for you and say that are speculation strategies.

Brad 01:40:51
10 years from now they’re not going to be working because they’re arbitrage based on what, what is currently working in the economy. But it’s not based on a fundamental principle that will work all the time. So part of us in pulling your framework out and before I would ever be willing to teach somebody anything is either made sure that it was able to be replicated. Um, regardless of what economic time you found your end your self in and there’s only two assets that have enough history for me to say that we can do that. Right. There’s only two assets that have still stood the test of time, which is whole life insurance and real estate. That’s why we started looking there is they’re the ones they’ve been around since well for real estate, it’s been around since, well forever it’s been, I mean it’s why we fought Wars. It’s why there’s little sign up. I mean it is the producer of wealth across the board and then insurance is the only thing that’s again lasted since really the early 18 hundreds through till now.

Brad 01:41:38
That has consistently, no matter what I mean if you think about it, you should go back to the mid 18 hundreds we’ve had bank runs and two world Wars and a great depression and stagflation and, and the.com bubble and the real estate bubble. And there’s only one asset class outside of real estate that’s performed through all of that. So when we talk about is this working, it’s because it’s based on principles that are independent of the economy and why they function.

Josh 01:42:03
That makes sense. So, and that’s, I mean that’s a really, really good point actually. So let’s, let’s talk about the economy though now. Yeah. Economy is good. Yeah. Yeah. How good is the economy, Brad?

Brad 01:42:19
Uh, what, what do we want to use to measure that? Right. I mean that’s really what it comes down to me is, is as I peer into it, Mmm. I see it as the, the confidence and the economy is very, very high. But I’m having a hard time pointing to a what’s driving that and why it should be sustained that way. Cause I can see a bunch of things are screwed up in the economy and then I have a hard time saying what Trump or our politicians or anything did to create that. I don’t disagree that it is amazing right now. Mmm. Yeah. I’m going to say the economy is, I’m going to say the economy is good right now.

Josh 01:42:56
Why do you think that is? Like, why do you think the consumer confidence or investment confidence or whatever you want to call it, confidence as a general role in the economy is high right now? Do you think it has more to do a Trump less to do a Trump? What other factors do you think are involved?

Brad 01:43:12
I think it has to do, man, that is, dang Josh, you’re good at asking questions that I haven’t spent enough time thinking about the confidence. My answer, I, I think it comes, I look at it from a source of a couple of things. Um, first off where like as we moved out of, when the economy was bad in Oh eight to 12, right? We got, we discharged a bunch of bad debt and bad decision making, right? We cleaned up our balance sheet if you want. We got the skeletons out of the closet. So people came out of that actually in a position because they’re licking their wounds, they’re more disciplined, they’re more responsible. And we got rid of a bunch of the decisions because that’s all that an economic sell off is acknowledging we made bad decisions and moving on from it.

Brad 01:43:58
But we were then positioned to do something good with it. But I think it’s partially a result of we had a reset that was well needed and it repriced assets and it put us in a state of mind where we got back to the thing that actually makes our economy productive, which is people being productive. Right, right. Um, I would say that, and then we, man, we look at what’s happened over the last 10 years, like Facebook and Instagram and Elon Musk and Tesla and Amazon growing and Google, cause you regrow like how much is happening inside the United States from an innovation standpoint and an opportunity standpoint, opportunity is, I don’t think it’s ever been higher than it is now. Um, and, and for that, I think that the big driver of our confidence and our results and, and all of that is where we’re as an economy, we’re producing a lot of value right now.

Josh 01:44:44
Do you think that any of that came from the fact that Trump did such a good job of convincing people that he was a smart businessman because he was a billionaire? Like, do you think that some of the consumer confidence, investment confidence initially, maybe not so much now, but maybe in projection moving forward? It is playing a factor of Trump basically being like, yo, I’m rich, yo, I’m a businessman. Yo, look at what I’ve done. And it has less to do with actual principles and more to do with the fact that Trump is just brilliant.

Brad 01:45:17
Do Josh. That’s, that’s why I like you as you support things based on like reality and not what you want to believe. Right. Cause there’s a lot of people, they’ll be like, Trump, fix the economy. Like Dude, I never remember Trump coming out here with a hammer and doing anything like Trump didn’t do anything, but you’re right. He inspired confidence, right? He, he portrayed and opportunity, right? Make America great again. He rallied behind a perception of what we all wanted and then it came about and he, I actually think he knows the role of the president better than a lot of people do. Um, a lot of people running and a lot of people even supporting it is, it is that standard bearer to an extent it is working through portray and say, I got you, I got this all back. You go and actually do the thing that you can do. So I would actually very much agree with that statement that the reason why Trump won and the reason why things began to shift is we were looking for somebody to tell us things were going to be better. And, and we, we were at a point where we could make things better and that definitely pushed us, I think in that direction for sure.

Josh 01:46:17
And I think there’s two types of getting stuff done. There is the, the initial part of getting stuff done, which is actually getting stuff done, getting laws passed, um, you know, stimulating the economy, doing whatever, the things or whatever. And then there’s a second part of getting stuff done, which by the way, this goes both ways. It’s just not only apply to Trump, I’m just saying it here in the case of this Trump, which is getting people to believe that yeah. That this is actually going to do. And I don’t think there is anybody, you can, you can disagree with the tactics and the way that he’s gone about doing this, but there are very few people that have ever had as much success in getting people to believe in something then Donald Trump did. And he has done a phenomenal, phenomenal job with that. Yup. One of the questions that I do want to address before we go into the, the election and how that will change things.

Josh 01:47:05
And I do want to be respectful of your time here, um, is did Obama, when Obama was president for eight years, I was young, especially as the first four years of his election, right? Yup. Did Obama, Hmm, I guess I two two part of question and you answer how you want to answer it. Did Obama actually do good things for the economy that he did didn’t get credit for because of the Republicans and Trump shaming him in the way that he did or did he do less bad things? W was Obama really is bad for the economy as the Republicans and Trump make him out to be, or did he actually do some things that were good?

Brad 01:47:43
Um, I’m going to that, that is a really great way to phrase the question and actually allows me to answer it in a way that I want to, I like to answer it because I, I believe the president does very, very little for the economy either direction. So that would, that would give him the answer that I don’t think Obama did huge things wrong or was responsible for the outcome of the economy anymore than Trump did things good to make the economy any better. And so to say that Obama was a terrible president and did horrible things, well there isn’t a lot that he did or didn’t do that affected it either way. So I think, I’m sure I, again, I don’t, I don’t spend a ton of time in politics, but I’m sure a lot of what Obama did was great and necessary and productive. Um, and, and super helpful. There’s, there’s a few things he did that I fundamentally disagreed with that I’ve, I fear as to the longterm outcome and consequences of it. Um, but no, overall I think, yeah, like on a day to day decision making basis for the or the [inaudible] the things that a president has to get done day to day. B plus. I don’t know. I don’t it.

Josh 01:48:46
Okay. So where do you, what are some of the concerns that you have right now with can, one of the big things that I hear from people with the Trump that the China deal with Trump, right? I mean $200 billion deal, right? Trump is toting this as phenomenal, which I think is great, right? I’m like, Holy cow, this is awesome. Right? Um, a lot of consumer confidence on investment competence. A lot of the thing is, is Hey, we have yet to see the longterm ramifications of this deal. Where are, where are some of the concerns that you have longterm from what Trump has done? Or are there any?

Brad 01:49:19
Recap the deal for me? Just so I know we’re talking about the same thing.

Josh 01:49:22
Uh, the Trump or the, the U S China trade deal where it’s a China and I don’t know all the specifics of it, but China pledged to spend at least $200 billion in the U S economy or, or in, in, um, trade over the next however many years it was. I don’t, I’m not familiar with the exact details of the deal. I’d have to bring it up. But it’s the, the big, the big deal that just pass it, not just, but like a month ago that Trump was toting as like this thing. And I’m not saying that specifically. It could be that or it could be anything or anything that, anything that Trump has done where you’re like, it’s great now, but it could have potential risks down the road.

Brad 01:49:56
Um, I’m, uh, the one that I liked that he did that I think will produce benefits down the road was a lot of his tax reform actually helped a lot. It’s squared away, it aligned what are the way taxation has driven the economy and rewarded those that actually built the country. Um, was, I, I don’t think we’ve even seen the positive ramifications of that yet from 2018 through till now. I think there’s more and more and more positive Remicade ramifications claiming if we can stay at least in that direction. Not every piece of it was great, but the idea that we protect capitalism the way that he wanted to and some of the shifts, uh, I think were, were well long overdue and very important that we’ll, we’ll will result in longterm benefit for the economy. For sure.

Brad 01:50:43
Um, well I get nervous about trade and again, I don’t know the specific behind this deal. Um, I’m, I’m a proponent of the freest trade possible. So if, if the deal made trade more free and less regulated and less constrained, then I like it. But what I fear the, the negative ramifications of any trade deal is, is when, if China says, I’m going to spend $200 billion, now the successful outcome is whether or not China spends $200 million, not whether we as individuals to news goods that other people want. And we’re free to then go create an economy around that. I gotcha. So I don’t like most trade meals because it sets this frame that I can only trade if, if Donald Trump thinks it’s a good idea, right? I’m only going to do business with it. If Donald Trump is an idea as opposed to saying, I’m going to work hard to get all of the things out of the way and let the businesses and the people actually decide where things are [inaudible] okay.

Josh 01:51:39
Okay. Makes sense. Okay. Um, I think last major question I have for you here is, and kind of piggybacking off of what you just said there about, you know, tax reform and where things are going, can those things be reversed and what is the outcome? How, how much does the outcome of the election play into the economy and the stability of the nation moving forward? And I will let you kind of, I know you had thoughts on this that you said at the beginning, so let’s just run with that.

Brad 01:52:07
Yeah, that’s the question I wanted you to ask. So, um, our last Brad, I think that, Oh, this answers your first question. What did Trump do that might have shot him in the foot was the tax reform because now that’s enough of a target that somebody could say that was bad and they’re going to, I mean, Obama won primarily, a lot of his support was we’re going to change healthcare, right? Yeah. The directions they wanted to. Somebody could take the similar thing and point out all the perceived negativities of what Trump did for business inside the tax code and say that’s damaging to the country and I’m going to run on a platform to reverse it. Hey, Bernie Sanders or anybody on that side. Right, right, right. That would be the potential thing that if somebody turned that on them and they got, cause anytime a pendulum goes farther, it won’t ever come back to the middle. It goes farther to the other side. Right. And if we move away from, um, rewarding capital and, and I, a society built on capital and profit, then it’s, it’s going to get much, much worse. Right? That’s not the direction I believe will, will lead to ultimate prosperity.

Brad 01:53:12
So I’m, I’m worried about those outcomes, um, in the economy. And there’s lots, um, I spent, this is where I spend my time researching. I don’t research politics, but I research specifically investment, um, things that are on the table and I’ve got a couple really good friends that sit and spend a lot of time on Capitol Hill and talk about where the abs of that is going. And it legitimately scares me. Um, if, if a person opposing that gets an office. Yes. Yup. Yup. So that scares me more because to me, if we’re economically free, um, all other freedoms really tie into that. Right?

Josh 01:53:50
This is why you and I are like such good friends, right? Like that is the crux of everything that I keep saying. And so many people have such a hard time with that.

Brad 01:53:58
That, well, because what the government give it to, the government can take it away. Right? And so, but if I’m economically independent, if I maintain my rights to economic independence and to, to ownership of capital and, and that, and where I don’t entrust that anybody else, then I, I’m then empowered to make other decisions. Cause remember back to the very first thing we were talking about, money represents what I value. And if I can’t control money, I can’t get what I value. Right? Right. So, so to me the default is the most freedom we can give around capital, the better our society is. And that’s what built our country in the first place. And that’s what we should continue to lean toward to support it. So those are the types of things that I, that that make me very, very nervous is that the ad, the moving two and they disguise it so, so eloquently where it’s like, no, we want equal outcome for everybody. Where I look at it, I just want equal opportunity. Right? And that’s not by definition we’re not all going to get the same outcome and I don’t want to live. But they would have the same amount.

Josh 01:54:57
They would, they would argue though that, uh, that it’s more likely to get equal outcome than it actually is to get equal opportunity.

Brad 01:55:05
Sure. It is definitely easier to just to do that. Right. Then in theory, in theory. Right. But what the formula of the math, to me, if you try to do equal outcome, the, the, the result of that is so far lower than the aggregate result of trying to work to get, that’s, that’s the difference, right? Right. Run the math. Yeah. Two plus two equals what? Right. I believe that that two plus two in a free economic society as much higher than two plus two and if we’re trying to make sure everybody gets the same outcome right, it just restricts everything so much. I think we can all be everybody lowest and highest can be wealthier if we’re in a free capitalistic economic society.

Brad 01:55:49
Then the other side for sure. Who, who scares you most or are you okay to answer that question? Who scares you most on the left? Yeah. Here’s, here’s been the way I’ll, I’ll answer that independent of a person because honestly I don’t spend all that much time in it. Bernie scares the crap out of me. Like the way he walked in. And what if, if you would actually do the things you says, here’s me way more. Right. But, um, the interesting part about it is there are elements of the Republican party that that in some ways scare me even more. Um, if you go back in time to the founding fathers, if you watch the play Hamilton, you got some of this out of it. Um, but I studied this even before then. Um, Hamilton hated Jefferson all the way through. They fundamentally disagreed on, on just about every single principle.

Brad 01:56:38
But when Jefferson ran against, Mmm Mmm Burr Aaron Burr for the presidency, um, Hamilton back Jefferson for like the first time ever. And what he said when he backed Jefferson was, um, I’ve Def, I disagreed with Jefferson on every single point ever since we’ve ever been in there. But Jefferson has principles and bird doesn’t have any. And so I’m going to support somebody cause at least at least I can fight on clear and open principles and we can move toward something. Whereas if I don’t know what you stand for or I don’t know what your principle driving thing is, then you scare me more. And at least Democrats, I like the board say what they’re going to do well. Well. Well, some Bernie Bernie does. Yeah, Bernie does. I know what I’m fighting.

Josh 01:57:26
Elizabeth Warren does not. Elizabeth Warren is, is a actual straight up and I will be on record to say it, an actual straight up complete absolute liar like and other, I’m not saying Trump has no reflection of Trump whatsoever. I am just strictly in love itself. We have no idea what Warren would do but continue.

Brad 01:57:45
And so that’s where I’d say I would just like somebody to clearly lay out the principles that they’re going to follow and then follow them and then went, then we can have a discussion about does the principal win rather than the person. Right. And the best scary thing about the Republicans is they’ve come out saying, Hey, we’re doing this for free trade or this for that. But then they’re, their economic policy has been some of the most dangerous under Republicans, the amount of money printed. Um, the, the, the loosening up of things like that. Like, Oh my gosh, like, okay, they, at least we knew what we were trying to fight on this side. Whereas if, if we don’t know it, that’s really scares me. Hmm. I like that.

Brad 01:58:21
Is is and this isn’t that none of this is true across the board. Right. But the general feeling of the Republicans will do whatever it takes to be successful sometimes scares me more then clearly identifying this is what, these are the things that I’m going to do. Like people that were mad at Obama after the fact of what he did, I was like, no, you read his campaigning. He did. Exactly. He told you he was going to do. Yeah. Little buddy shouldn’t be surprised by that. Yeah. Yeah. But there was lots of done and, and this is on both sides, right? No. Right, right, right, right. And I get scared when people get elected, but then they’re going to do, they’re going to do whatever it takes. Right. I don’t, I actually don’t. I, that’s the most dangerous part of it.

Josh 01:59:02
Cool. Brad Gibb everybody. Brad.

Brad 01:59:04
This is fun, man.

New Speaker 01:59:05
This is awesome. I appreciate it. Another two hours in the books. Yup. Is this good?

Brad 01:59:10
I’m going to, I’m just gonna just, just cause I want to say it, I’m going to, I’m going to teach what I think about like, cause people ask me where am I at on the spectrum, right. This is my honest belief of the spectrum. Um, people want it to be a straight line. Have you ever have ever had this conversation with you? I don’t know if we have, I dunno. So, and this is why I shy away and I don’t, I don’t like I have a hard time talking about each individual person. Honestly, if I forget who the people are, cause I look under the mic, I look at just the principles of it. But to me people want to say that there’s the right and the left, right. And it’s a spectrum and you’re on one side of the other. The unseen part of it that I believe that I can see is the spectrum is actually closer to a circle. Wherever you take. We have yes. And we bend them. They’re actually closer to each other because if you really look at the extremes, both of them are actually saying the same thing with different words. They’re effectively saying I want all your money cause I’m going to go do X, Y, Z. And then the other side says no, no, no, no, no, no. I want all your money cause I’m going to go do a, B, C. so they’re really, when it comes to the political theory, they’re actually right next to each other saying I want all your money to make decisions where I feel like I want to be polar opposite to both of those ends.

Brad 02:00:19
So what I’m saying, no, no, no, no. Like I want freedom, which is the, to me the polar opposite of the, the main party lines of each group as it stands right now. That makes a lot of sense. It’s a hard time pinning me down cause I’ll be like, Oh like I love what Bernie said about that. They’ll be like, wow, you like Bernie. No, I like that thing cause that fits on that part of this flex of them. And then, yeah, I like things about Trump. So it’s, it’s bringing those back together and realizing anyone that says I’m going to take all your money to do X, Y, Z with it. That’s what scares me ultimately the end of the day. And I think both are saying that right now.

Josh 02:00:52
Got it. Makes sense. I like that analogy a lot. Cool. Last question I have for you about that then. Trump gonna win?

Brad 02:00:59
I think Trump’s gonna win.

Josh 02:01:00
Yeah. It’s gonna be a landslide win or a narrow win.

Brad 02:01:02
I think it’s going to be, it’s not going to be as big a land as the first one. Cause I think kind of people learned. But now I think it’s going to be, I think it would be tighter, but it’s going to be decisive. It’s, there’s going to be no question which direction we went, but it’s not going to be like, I don’t think it can be embarrassing to the other side.

Josh 02:01:18
Hmm. Interesting. We’ll see. I think, uh, I think it’s either going to be like, I don’t know. The thing that I always look at is I’m like, I have never seen it. I’m only 26 what the heck do I know? Right. Take my stuff with the greatest salt here, but like the crowds, the loyalty that Trump draws. I mean there are people that wait out in the bitter, freezing cold for 12 15 16 hours to get it. Not even just to meet the dude. It should be up front near it. We’re packet stadium. I mean like venue after venue, after venue, after venue, after venue of ten thousand fifteen thousand twelve thousand but like just so many people, it leaves me, I will say this, I don’t think it is going to be as big of a landslide as Donald Trump has made it sound. Yeah. However, if it is, I will not be surprised. Right? Like if it comes like if [inaudible] if California somehow went and voted red, I’d be like, honestly, what if anyone can do at this point you’re like, what can’t the dude do? You know what I mean? Like he does just so many outrageous, crazy things. All right. Yup. I wanna be respectful of your time, Brad. Thank you man. I appreciate your time so much.

Brad 02:02:28
I love it. I it’s, and dude, this is so much more than just [inaudible], you know, promoting what we do or talking about that stuff. Like I genuinely liked the conversations. It’s been fun and honored to become, I would say we’re, we’re close friends. That’s a lot of fun. And um, I don’t, I keep aloof of a lot of relationships because I am so principled and so focused and so portraiture, they just kind of naturally come from that. But it’s been really fun to see how much we align in so many different areas yet we have such different backgrounds and different skills. It’s been a really, it’s been a really rewarding time to spend with you and the people around you and um, yeah, my life’s been better for itself. I,

Josh 02:03:09
I appreciate that. I appreciate that. Brad. Um, name of your podcast is going to be the rise up live free podcast, the rise up livery podcast. I love it guys. Go check it out when it comes out. March 3rd, March 3rd is the date.

Josh 02:03:23
March 3rd is the launch date. It’ll be super, super good. cashflowtactics.com/group we’ll link it down in description. Brad, thank you so much. Any last words, final words of anything?

Brad 02:03:32
Well that’s it. Like your responsibility is up to you. If you will choose to rise up. Anyone regardless, age, income or experience can be free. That’s the message.

Josh 02:03:42
Love it. Guys. As always, hustle, hustle, God bless. Do not be afraid to think different because those of us that think different are going to be the ones that change the world. I firmly and truly believe that. I love you all and I will see you on the next episode real quick just so that you guys are aware. Next week is actually solo episode week, uh, on Monday for me, I’ll be on recapping a bunch of this stuff of where I’m at with things. Um, some changes that we have coming, which is super, super exciting, kind of painting the vision, answering some mindset questions. Wednesday, Friday, we’ve got, uh, I think it’s Andrew Cruisey, Marley Jaxx amazing episodes and interviews. Uh, like really, really cool people coming up with that 12 o’clock Eastern time every week. Monday, Wednesday, Friday. I will see you there. I love you all and I’ll see you then. Take it easy fam. Peace.

Outro 02:04:28
Yo, what’s up guys? You’ve been listening to The Think Different Theory with myself, Josh Forti, which I like to call, “A new paradigm of thinking”, and real quick, I got a question for you. Did you like this episode? If you did, I want to ask a huge favor. See, the biggest thing that helps this podcast grow, and that will spread this message of positivity and making the world a better place, is if you leave a review, a rating and subscribe to the podcast. What that does is, it basically tells the platforms that this is out on, that you like my stuff, and that I’m doing something right. So if you could take like three seconds out of your day and subscribe, leave a rating, and a review, I would be forever grateful for you. Also, I want to hear from you. I want to know your feedback, your ideas, and your questions for future episodes. So be sure to hit me up on Instagram in the DM @JoshForti or via email contact@ThinkDifferentTheory.comdm@joshfortyorviaemailcontactatthinkdifferenttheory.com.