Turning 31 Years of Monetary Catastrophe into Final Freedom

Mindy:
Welcome to the BiggerPockets Cash Podcast present quantity 247, the place we interview Alex Felice and discuss previous cash errors and the way you don’t must let that outline or restrict you.

Alex:
So I used to be like, I lose my job, I’ve no cash within the financial institution to even get me by this primary hurdle, by no means thoughts how I’m going to get earnings and all these things. And I checked out my life and I used to be like, “That is 100% my fault,” as a result of I wasn’t taking accountability actually through the day of, however I wasn’t taking accountability for the final 30 years. I wasn’t taking accountability for my future.

Mindy:
Howdy, howdy, howdy. My title in Mindy Jensen and becoming a member of me immediately as visitor host is David Pere from the Army Millionaire Group and podcast. David, thanks for clearing off your schedule to hitch me in making enjoyable of my greatest good friend Alex Felice. I met Alex within the BiggerPockets boards 100 years in the past the place he was giving actually nice recommendation about actual property investing. So I reached out to [inaudible 00:00:55] and we’ve been besties ever since.

David:
And I met Alex at FinCon in 2018. We’ve been nice associates, discuss actual property and he even co-hosts the podcast with me, so that is going to be a whole lot of enjoyable.

Mindy:
I met you at FinCon in 2018.

David:
You probably did.

Mindy:
That was in Orlando proper?

David:
Appropriate.

Mindy:
We took an image. So David and Scott and I took an image with massive Brandon beards to ship to Brandon Turner.

David:
As a result of he no-showed the distinction.

Mindy:
I do not forget that. Oh, what? We might put a hyperlink to that image within the present notes.

David:
Ooh, all proper. All of the blackmail photographs on me.

Mindy:
Sure. I’m going to have to start out getting extra blackmail photographs for you.

David:
I’m not going to-

Mindy:
Okay. David and I are right here to make monetary independence much less scary, much less only for any person else. To introduce you to each cash story, as a result of we really imagine monetary freedom is obtainable for everybody irrespective of when or the place you’re beginning. And immediately’s visitor is the epitome of creating a bunch of economic errors and nonetheless popping out on high.

David:
… Whether or not you need to retire early and journey the world, go on to make massive time investments in property like actual property, graduate school debt free, or begin your individual enterprise, we’ll allow you to attain your monetary targets and get cash out of the best way to be able to launch your self in direction of your desires.

Mindy:
Okay. Like I mentioned earlier than, Alex Felice is becoming a member of us immediately on this present, and Alex is certainly one of my favourite individuals on the planet, regardless of all of the ribbing that I give him through the present immediately, he’s extremely sensible. He has an incredible outlook on the world basically and American Life specifically. And he has made some fairly massive cash errors in his previous, however they didn’t outline him. He was in a position to first take possession of the truth that he was making errors after which modified the best way that his thoughts felt about cash and the best way that he centered on cash, and has modified his monetary outlook from what are we calling this? From monetary catastrophe to monetary grasp. And he’s actually really dwelling life the best way that he chooses. He spends time doing issues he needs. If he doesn’t need to do them, he doesn’t do them. He not has to commerce his time for cash.

David:
Yep, completely. Alex is totally cracked the nut on monetary independence. And it’s simply actually cool to see as a result of he did it in such a easy and replicable manner. And he makes it look simple and now he’s in a position to simply get pleasure from life.

Mindy:
Precisely. We don’t have lottery winners on this present as a result of that’s not repeatable. However Alex’s message and technique is completely repeatable, which is why he’s going to hitch us. Alex Felice, my greatest good friend in the entire world, welcome to the Larger Pockets Cash Podcast. I’m so excited that you simply’re on immediately.

Alex:
I’m so excited to be right here. You’ve been asking me to come back on right here for some time, so I’m glad we lastly made it occur.

Mindy:
I actually am too. I believe you could have a wonderful cash story, and I believe all of our listeners are going to get lots out of it since you had been sort of a monetary mess, proper?

Alex:
An entire monetary catastrophe for 31 years. Yep.

Mindy:
31 years of economic catastrophe. That is going to be an superior present. So the place does your monetary catastrophe story start?

Alex:
Oh, effectively I began the catastrophe. It was a catastrophe of ignorance truly. My dad and mom taught me the proper issues, lower your expenses, spend lower than you earn, but it surely didn’t stick. And so I simply spent all my cash. I simply, we lived week to week, had no plan, obtained a great chunk of debt. Is that how we’re actually beginning, identical to that? You actually need to go proper to the-

Mindy:
Sure. I’m actually beginning identical to that. Inform me what occurred. The place had been you rising up, in highschool, did you could have a ton of debt whenever you graduated highschool? While you graduated school. Did you even go to varsity. I do know you had been within the navy. Inform me all of the issues.

Alex:
… Okay. Okay. I had no money-

Mindy:
Faux that people who find themselves listening have by no means heard your cash story earlier than they usually need to.

Alex:
… Ah, okay. No, it’s arduous often I assume everyone is listening to every little thing I do.

Mindy:
However they aren’t.

Alex:
So joined the Military mainly broke with no abilities and no actual objective. I joined out of apathy, which is how lots of people, particularly enlisted be a part of. I had nothing higher occurring. So this isn’t a great way to start out a profession, simply to be clear. So that you be a part of the Military, they usually sort of turned me round a little bit bit and taught me some competence and gave me some abilities, however they don’t educate you cash abilities. Actually, they need you to remain in. In order that they don’t have to show you that stuff. You get out and I used to be in debt. I had a automotive cost, which is what all troopers do, and I had a little bit little bit of bank card debt. It wasn’t horrible, but it surely wasn’t good. However most significantly I had no plan and I had this quite common, I don’t understand how … This quite common theme in American tradition the place I simply assumed that as a result of I’m superior it was going to all work out. This isn’t a great technique for achievement in something. However this is quite common.
I do know it’s humorous to listen to, and it’s humorous to say, however that is how lots of people, they only assume, “Oh effectively, the following paycheck I’m going to get promoted. The following job, they’ll worth me extra. My factor will work out. I’ll get the inheritance, I’ll get this verify.” Regardless of the case, it’s simply going to work out for some cause, as a result of apparently the universe is simply going to work out for you. And in order that’s what I believed and I ended up promoting automobiles, which is a tricky enterprise, but it surely’s good to be taught gross sales. So I used to be making good cash, most likely 80 grand a 12 months or so. However I used to be spending extra of that then I earned. And I used to be at all times like, “Effectively, I’ll save subsequent paycheck. I’ll save subsequent month. I’ll save after I get a promotion.” Regardless of the case.
After which, round 2010 I made most likely the largest mistake of my life so far. I obtained a DUI. Alleged, an alleged DUI, a non-convicted alleged DUI, and I bear in mind getting out and I had simply made a great chunk of cash that 12 months and I bear in mind I didn’t come up with the money for within the financial institution to pay a lawyer and the lawyer was three grand. Not massive, massive cash. And I used to be broke, and I misplaced my job as a result of I used to be promoting automobiles. You wanted a license. So your license will get revoked. So I used to be like, I lose my job. I’ve no cash within the financial institution to even get me by this primary hurdle by no means thoughts, how I’m going to get earnings and all these things. And I checked out my life and I used to be like, “It is a 100% my fault.” As a result of I wasn’t taking accountability, actually through the day of, however I wasn’t taking accountability for the final 30 years. I wasn’t set. I wasn’t taking accountability for my future.
And so I had an actual phoenix second and every little thing’s modified since then. And I used to be like, “Okay, I don’t know what’s going to occur in my future, and that is going to be a tricky hurdle to undergo, however there’s one other 60 years to dwell, so this isn’t an interim factor. That is going to vary every little thing. And perpetually and ever and ever, that is by no means going to occur to me once more.” I’ll by no means let my poor choices make such an deadlock, due to actually three grand. I needed to name my dad and mom and ask for cash. And me and my dad and mom are usually not on that good of phrases. That was a extremely humbling second.
So after that occurred, I simply mentioned, “No matter.” Every part else in life turns into second and freedom, monetary … Extra than simply monetary freedom, as a result of I didn’t actually like my job. However I needed self sustainability. I needed to know that my life and the best way I dwell it’s on my phrases and it’s as a result of I created it, not simply because, oh, I simply need to cling on the seaside, or I simply need to inform my boss to screw off. It’s like, “No, dude. I need to shield myself in opposition to the inevitable flood of life that’s going to come back and wreak havoc on unexpectedly. And I need to be ready.” Lethal, lethal, lethal, critically ready.

Mindy:
Good. Good. That’s the entire thing. That’s the entire cause we do that present is so individuals could be ready for the curve balls that life throws at them. And among the best best methods to be ready is to have your monetary home so as so that you don’t must at all times be worrying about cash or interested by cash, or buying and selling the time that you’ve. The very valuable time you could have on this earth for cash, as an alternative of doing what you need. So Alex, do you could have a job now?

Alex:
I don’t actually have a job. I don’t have an employer.

Mindy:
You don’t have an employer. Okay. So you might be unemployed?

Alex:
Yeah. When individuals ask me at events what I do, I inform them I’m unemployed. However that’s principally simply because it makes individuals uncomfortable, and I find it irresistible. However I do actual property sort of full time and I’m kind of a photographer now, however that occurred.

Mindy:
Form of a photographer. Okay, I’m going to leap in right here as your greatest good friend, I’m going to, does he want any assist David to toot his personal horn? No. Alex has essentially the most confidence of anyone I’ve ever met in my entire life. Nevertheless, Alex is an unbelievable photographer. He’s a fully beautiful photographer. If you happen to went to the BiggerPockets convention, you noticed him along with his digital camera round his neck. He’s obtained 20,000 footage that you simply took of the convention they usually’re all completely excellent. He is a superb photographer. He’s additionally an actual property investor, however there may be fairly a little bit of time that we now have jumped forward to, so we have to return in time to 2010, the location of your alleged DUI, and see what occurred between 2010 and the tip of 2021, which we’re at proper now.

David:
Can I soar in for 2 seconds and simply throw out … I believe we skimmed over this actually vital what I view because the mindset shift right here. So Viktor Frankl talks about in his ebook Man’s Seek for Which means, that the individuals who handed away within the focus camp had been the optimists. The individuals who simply assumed good issues had been going to occur. What you talked about at first was you bought out of the navy and also you had been like, “I’m superior, issues might be nice.” And I believe lots of people assume and assume like, “Oh, nice issues are going to come back to me as a result of I’m an honest particular person or as a result of I no matter.”
Nevertheless it’s the catalyst, that painful alleged DUI, that change, what I observed in your tonality there was what shifted was the truth that you went from, “Hey, superior issues are going to occur as a result of I’m a great dude,” to, “Holy crap, I must take possession or accountability of this, and I must put some effort in to repair this.” And I believe that shift of realizing, oh man, that is on me. I don’t know, I see it in a whole lot of trajectories, in a whole lot of tales. And that appears to be a pivotal second. So often, sadly after a painful expertise, myself included, however I simply need to level that out so possibly somebody listening realizes, hey, I ought to most likely take a look at this extra objectively than simply assuming good issues are going to come back your manner.

Mindy:
I’m glad you introduced that up. I did spotlight that half after I’m taking notes for the quotes we’re going to make use of. That’s a extremely nice quote. You mentioned, “I believed as a result of I used to be superior, every little thing would work out.” And like David simply mentioned, you’re not the one one that thinks that. I imply, you’re the one one that thinks you’re superior, however you’re not the one one that thinks that as a result of I’m superior every little thing’s simply going to occur. And I like that you simply took possession of that.

Alex:
Cash is a psychological recreation 99.9%. It truly is. So as soon as my mentality shift from entitlement, which is oh, it’s going to work out as a result of I confirmed up, to extra hey, life is unbearably arduous and unfair. And one of the best you are able to do is take radical accountability in your … Cease making it worse for your self and possibly it’ll get higher. However yeah, I positively don’t anticipate the long run to be higher. I’m now extra radically paranoid concerning the future, after which if it really works out. Good. Then that’s nice. However I don’t assume that the long run goes to be higher after which I simply have to sit down round and look ahead to it. I assume the long run’s going to be dangerous and that’s why I work so arduous to stop and put together for chaos.

David:
So when you had this catalyst, what had been a number of the first steps that you simply took to correcting that trajectory?

Alex:
Okay. So I sat down and I mentioned, “Right here’s what I’ve to do. I’ve obtained to repair this cash drawback.” And I signed up and I went to varsity. I had the GI Invoice so I mentioned, “I’m going to get a level in finance.” As a result of I figured if I find out about cash then I’ll be capable to handle my cash. And that didn’t work out precisely proper, however in a spherical about manner, that labored. If you happen to perceive and find out about cash, you get management of cash, and that’s a giant portion of your cash scenario is management. Greater than quantity. You may dwell on a whole lot of freedom with not that a lot cash, however you possibly can have some huge cash, you possibly can have a excessive earnings and never management, and also you’re screwed.
So I sat down and I mentioned, “I don’t need” … I wanted money stream earnings. I wanted one thing that kicked off money. Not fairness. So the inventory market wasn’t proper for me. I didn’t have something to promote. I didn’t have any abilities, skills. I didn’t really need workers. I didn’t need to go to work each day. I’m sort of lazy. And I didn’t have any cash. And so I’m like, “What works, if you happen to put all these collectively?” I’m broke, lazy, needed money, and so actual property. Went to actual property. Seems in 2014, we’re on the backside of this foreclosures increase, you possibly can go into MLS and choose up properties left and proper. I didn’t have any cash, however that concept sat in my head. However I had no cash to my title nonetheless.
So then I’m going on the web and I search. I need to get wealthy, however I don’t need a get wealthy scheme. And what’s the very first thing that pops up? Get Wealthy Slowly, a man who’s now a good friend of mine, J.D. Roth. And simply that concept that if you happen to comply with key ideas, once more, it’s a cash factor. It’s a price system. It’s a price hierarchy. It’s a manner you reside your life. If you happen to comply with these guidelines, you’re going to create wealth. It’s nearly predetermined. It’s inevitable. And so I simply began saying, “Okay, I’m going to play the lengthy recreation on this and I’m going to get forward.” And it’s actual easy stuff that you simply guys discuss on a regular basis. Pay your self first.
I pay myself first it doesn’t matter what. I don’t care who’s not getting paid, so long as I receives a commission first. That’s first and most vital. Save 20% of your earnings. Some individuals I do know save 30, 40, 50, 60%. I used to be like, “Dude, I’m simply attempting to get this factor to work in a manner that I do know that it’ll at all times work.” And so I simply began using these … By no means spend cash on issues that don’t make you cash. After which concepts like sacrifice. I offered my automotive. I purchased a beater. I ended shopping for garments. I used to be a drinker, I ended doing all that stuff. And so actually, there’s nothing particular. It was worth the long run forward of the current. Take radical accountability and make no matter sacrifice to realize the upper good.
So I saved a little bit bit of cash after which in 2000 … it was three years. I went and obtained my diploma, and it wouldn’t be for 3 years, 2014, that I ended up shopping for a foreclosures that I moved in. I believe I put three grand down, and I paid $55,000 for that home. You actually can’t try this anymore. We moved in. It was an FHA mortgage. And 18 months later, I went and obtained a refinance, then it was value 120.

Mindy:
Did you money that refi?

Alex:
And that’s after I was like, “Yo, actual property is straightforward. I’m going to do that perpetually.” Nevertheless it was very attention-grabbing as a result of I had been broke for 31 years after which I attempted for 3 years, and I had made more cash than I ever made in my life. Now it was simply fairness, however nonetheless, I used to be like, “This trajectory is a complete completely different than the complete first portion of my life had been.” In order that’s after I knew. I used to be like, “Plenty of accountability, listed below are the outcomes. It really works, now let’s go run with it.”

Mindy:
Okay. So you purchased the primary home. You lived in there for 18 months. You refinanced it for a ridiculous sum of money. Did you pull the cash out of the home to go purchase one other home?

Alex:
I’m a really threat averse investor. I’m going sluggish. I inform individuals on a regular basis. I’m not attempting to get wealthy in two years. I’m attempting to get wealthy in 40. So I don’t must … Yeah, you want that one?

Mindy:
I do like that one.

Alex:
I don’t must take dangers that different persons are prepared to take as a result of they get starry eyed about some theoretical revenue, as a result of we’d simply gone by 08, and I had had my destructive incident. It doesn’t matter what you assume the world goes to turn into with rosy-eyed glasses, it could possibly and can fall and you may be hurting. So I used to be like, “Dude, I don’t must put myself able to lose once more, particularly so quickly.” So all that mentioned, I believe I ended up after I refinanced, I lowered the speed and I dropped the PMI, so I truly saved my cost the identical. And I took out regardless of the distinction was within the mortgage, which is about 19,000. So I nonetheless left the overwhelming majority of the fairness within the deal.

Mindy:
Okay. After which what did you do after you purchased that first home?

Alex:
Simply lived in it. I had a condominium, a little bit condominium that I had purchased in 2010 simply as a major. And it was mainly breaking at the same time as a rental. And it wouldn’t be till 2016 that I might purchase one other place. I had saved up sufficient money. I had $71,000 in money over the past 5 years. If you happen to save $500 a month, for 5 years now, and plus tax returns and that 20 grand, you get 70,000. So I had $71,000 in my checking account. It was all the cash in my title. And I went off and I purchased a foreclosures and I believe I put 68 into it. I used to be all in.
And so then that made me 900, 950 a month. I ended up six months later I did a BRRRR. I ended up refinancing it, pulled 100% of my a refund out as a result of it had been the place I created that 25% fairness. And so then I used to be like, “Dude, not solely now I do know this works” … I knew, however now I can do it with out even dwelling within the homes. So I ended up over the following, till 2019, I might purchase six extra.

Mindy:
So what kind of earnings had been these six homes kicking off? Or eight.

Alex:
They’re a pair hundred bucks a month. Two, 300, it relies upon.

Mindy:
Every?

Alex:
Everyone within the web lies. So once they say it’s 400 bucks a month, I do know that that’s on their good month. However I additionally know that each couple of years you’ve obtained to do paint and flooring at 5 – 6 grand. That’s a 12 months’s value of earnings knocked out. So I believe on tax returns I’ll most likely clear 250, $300 a door, however I do know that in the true world, it’s not sufficient to go get spendy, so I save all of it.

David:
I like the truth that you identified, I like your trajectory right here, as a result of what individuals see once they take a look at you or me or actual property traders basically is that they see what number of doorways you could have they usually see how way back any person began they usually’re like, “Oh my goodness. It’s really easy.” They usually usually appear to overlook the truth that each you and I’ve very comparable trajectories the place we purchased a home after which it was two years earlier than we purchased the following property. And we each have respectable sized portfolios now, but it surely’s as a result of there’s this exponential curve the place what lots of people don’t do it looks like individuals will purchase a home after which they’re like, “Ooh, I’m making $200 a month in money stream, now I can spend no matter.” No, you reinvested that cash and saved saving to purchase the following one. After which that timeline between homes simply will get shorter as your capital grows and also you’re money stream grows.
And so it actually is sort of a purchase one, purchase one other one, after which ultimately purchase two. It’s a scalable factor. It’s not an instantaneous, “Hey, I purchased a home, now I can maintain simply dumping into properties.” So I believe it’s simply vital to annotate that as a result of generally individuals see, “Oh, he’s obtained eight doorways in 5 years.” They usually’re like, “He should have simply however purchased all of them actually fast.” Effectively, it sounds just like the final six had been purchased in half the time as your first one.

Alex:
Yeah. And I used to be doing BRRRR with delayed finance, and I had talked about that on episode 301 of the true property BiggerPockets Podcast. I did delay finance and BRRRR. So I used to be doing three in a 12 months and really I didn’t use any of my unique capital. I used to be in a position to pull 100% of my funds again. So whereas I’m including these properties, I’m not truly spending any liquidity. I’m simply, the money remains to be rising.
So the factor that I believe individuals have an issue with leases is that they see the money stream they usually’re like, “Oh, now I can spend more cash.” However the actuality is, this can be a fairness play, this can be a wealth play, and this can be a retirement account. I deal with it extra like a retirement account, so I imply, give it some thought dude, at $200 a door, eight doorways is $1,600 a month. That’s not any actual cash. You may’t dwell on that. Not likely. And if you happen to’re incorrect and that 200 goes to 100 a door, now you’re dwelling on eight grand a 12 months.
So this can be a retirement play and having that retirement does can help you assume in a extra … It does allow you to take extra threat and act out your life in manner that aligns itself extra with the freedoms that you simply need to have. Nevertheless it’s not {that a} money … I’m not making it rain each month. It’s a pair hundred bucks. It nearly all goes again into the enterprise. You’re positively going to have stuff the place it’s like, hey, that tenant tore that place up. It’s worthwhile to paint, flooring. This occurred. Stuff occurs. It’s a capital intensive enterprise in some ways.

Mindy:
I’m actually glad you introduced this up and David, I’m actually glad you mentioned that what you mentioned too, as a result of I’m within the BiggerPockets boards and Fb teams and I see this on a regular basis. “Hey, I purchased my first home. When can I purchase my second one?” Effectively first, maintain on. Let’s determine if you happen to like this. You don’t need to soar in and have 57 doorways and be like, “Wow, I actually hate being a landlord.” Determine the primary one. And Alex, you mentioned everyone lies on the web, I believed you couldn’t say it on the web if it wasn’t true. In order that’s surprising to me that you’d burst my bubble like that. However, you’re proper. There may be a whole lot of inflating and, “Oh, I’m solely making $200 a door, however after I ran the numbers it was going to be $500 a door. Why is that?” Effectively, most frankly since you didn’t run the numbers correctly. You didn’t account for emptiness, you didn’t account for CapEx, and also you didn’t account for the issues that it’s essential account for. Not each property make a great rental property.
If you happen to haven’t but listened to episode 301 of the BiggerPockets actual property podcast, Alex does do a extremely nice deep dive into a number of of these items that he’s simply been discussing. Delayed financing. He truly has a extremely nice tackle delayed financing that was in a position to clear it up for lots of people once they listened to Alex clarify it. He additionally goes into the deep dive with the BRRRR. And let me see if I can do not forget that. Purchase, rehab, hire, refinance, repeat, the place you purchase a property, you rehab it so individuals need to dwell there. You hire it out to a tenant. Many banks need to see a seasoning interval of six to 12 months of rental earlier than they are going to refinance the property from the time that you simply bought it. And let’s see, purchase, rehab, hire, refinance, after which repeat means simply do it once more. Take the cash out, take that entire cash or most of that cash and put it within the subsequent property and do it once more. Is that good?

Alex:
Nailed it.

Mindy:
Okay. Additionally we’ve obtained to determine a approach to say suck it up buttercup, in some unspecified time in the future throughout this episode, David.

David:
Performed.

Mindy:
As a result of that was his catch phrase on that episode. Nevertheless it was actually good. It was actually useful. I obtained a whole lot of nice suggestions from that episode. So, if that’s one thing that you simply haven’t listened to but, you actually ought to. Particularly if you happen to’re concerned with investing in actual property itself. However yeah, like Alex mentioned not everyone goes to be tremendous sincere with their numbers, and right here’s the factor that I believe lots of people see as they begin evaluating themselves to different traders. “Oh, Alex has eight properties. I solely have two.” It doesn’t make you a nasty particular person since you solely have two. There’s lots of people who solely have zero.

David:
Sure, it does.

Mindy:
It’s what you might be snug with and what I might say to anyone who’s contemplating investing in actual property is make investments for you, not for Alex, not for David Pere, as a result of these guys aren’t going to pay your mortgage in case your tenant doesn’t. So, what are you guys saying sure, you’ll pay the mortgage?

David:
Oh, no. I used to be simply going to speak smack. However I’ll level out that the rationale Alex was in a position to make use of delayed financing which is a superb technique, and I’ve by no means been in a position to make use of delayed financing is as a result of Alex did the save a ton of cash when you’re studying technique a lot better then I did. I bootstrapped and over leveraged and did issues the sophisticated manner at first with vendor financing and low down cost loans, whereas Alex was in a position to … He was a little bit bit, not even a little bit bit, much more diligent about saving that capital in order that he was in a position to pay money for properties the place I didn’t have that sort of capital. And so, I imply, that was what allowed him to do the delayed financing which is phenomenal. And yeah, it’s best to positively hearken to that episode, it’s good. I discovered lots from it after which needed to choose his mind later and was like, “Yep, I don’t have sufficient money to do that, so sounds cool.”

Mindy:
Okay, so Alex-

Alex:
Liquidity creates a whole lot of freedom. Plenty of alternative. Plenty of choices.

Mindy:
… I like that. Okay. So that you began shopping for properties, did you could have a job at the moment?

Alex:
Yeah. So shopping for strains actual property can be a lot simpler you probably have a W-2, and I used to be a constant W-2. So I used to be working promoting automobiles, hated it. I discovered lots from promoting automotive, but it surely’s a horrible profession alternative. So I went into banking and my concept was I had gotten my diploma, I went into banking and my thought was, “Hey look, I need to repair this cash drawback, I’ll go find out about cash.” Keep in mind? And so I’m like, “Who is aware of extra about cash than the bankers?” That really shouldn’t be right. That’s not right in any respect. There’s a bunch of individuals most likely listening to this podcast which might be in retail banking they usually’re broke they usually’re attempting to repair it. It’s a job like some other. Individuals who go underneath retail banking, typically they do customer support. It’s a little bit little bit of gross sales. It’s a pleasant cozy place. It’s a refined, it’s a mature business. It’s an incredible place to work, but it surely’s not like everyone that works there may be wealthy. Plenty of them live week to week like everyone else.
However once more, working on the financial institution actually afforded me a whole lot of perception as a result of I obtained to see what individuals’s financial institution accounts appear to be. And what hit me actual arduous was everyone else is broke identical to me. That’s why it feels so okay. And I’m severe. That’s why the American tradition, that’s why persons are broke they usually’re everyone else they usually’re like, “Effectively, I solely make 30 grand a 12 months, and my co-worker solely makes 30 grand a 12 months, however he drives a BMW so I might most likely afford a BMW.” It makes all of it appear okay. And it seems it’s the blind main the blind. So that basically helped me.
It actually opened my eyes to be like, “Oh okay, I’ve to” … Attaining monetary freedom, I don’t contemplate myself an entrepreneur. Despite the fact that I’ve achieved okay in actual property, I don’t contemplate myself an entrepreneur in any respect. I simply actually get pleasure from my freedom. I’ll let you know what, it’s a lonely-ish street, since you actually must go in opposition to the social grain to do it. You actually do. And so it most likely means a whole lot of the individuals in my social circle that weren’t prepared to make the sacrifices that I used to be prepared to make, I now couldn’t go hang around with them as a lot. I couldn’t do issues with them as a result of I used to be like, “Dude, I’ve to unravel this. I’ve to unravel this massive drawback quite than simply indulging into the weekly pleasures.”

David:
It’s that piece that occurs once they haven’t had the mindset shift of issues occur to me as an alternative of I take motion.

Alex:
Proper.

David:
And also you go to hang around and also you’re such as you need to play Mr. Fixit. It’s like what occurs with me and my spouse. When I attempt to play Mr. Fixit, and that’s not what they need.

Alex:
Yeah, so some individuals you possibly can tackle the journey, and a few individuals … and this can be a robust half … some individuals you need to abandon as a result of they’re not going to come back with you they usually’re going to sluggish you down.
So I had a job. I work on the financial institution. I’m studying lots about how individuals deal with cash. I’m studying lots about actual property and that helped me get these loans. However I used to be solely making 45 grand a 12 months or one thing. It wasn’t some huge cash. However that’s the factor. You don’t want some huge cash. I do know loads of individuals. I do know people who make $350,000 a 12 months and are flat broke, and they’re pressured they usually lose sleep, they usually appear to be hell, as a result of their lives have been distress for a decade whereas making half one million or $350,000 a 12 months. And it’s like, you possibly can play that recreation if you wish to, however if you happen to make $45,000 a 12 months … Effectively, I used to be single, however that’s a disclaimer. I’m single no children. So if you happen to’re single or you probably have no children and also you’re making $45,000 a 12 months, you possibly can construct immense wealth. You don’t must make greater than that. In order that’s it. It’s only a time recreation after that.

Mindy:
I like that. So yeah, give it some thought. While you make $45,000 a 12 months, you’re pondering to your self, “Wow, I’m not that wealthy.” When Carl and I first began relationship I occurred to see a paycheck stub on his kitchen desk and I used to be like, “He makes $40,000 a 12 months. Wow. I didn’t know he was so wealthy.”

Alex:
[crosstalk 00:30:37].

Mindy:
As a result of I used to be not making that a lot and that’s not why I dated him, Alex. I do know you’re going to say one thing snarky. However whenever you’re making $350,000 a 12 months you’re pondering to your self, “I’m wealthy. I’m making a ton of cash.” Wealthy individuals have their stuff all found out. You realize what you’re doing whenever you make $350,000 a 12 months. So so that you can be broke, I might assume it will be much more worrying since you’re like, “Effectively, I’ve obtained cash, so why isn’t it working for me? Why can’t I determine this out?”
On the similar time, whenever you make $350,000 a 12 months you’re like, “I don’t want a funds. I make some huge cash. I don’t must look the place my cash’s going. I make some huge cash.” I’ve truly been in that place. Not the $350,000 half, however the I’m making some huge cash, I don’t must funds. And guess what, abruptly you’re spending creeps up. I discuss cash all day each day, and my spending was creeping up, as a result of it’s really easy to be like, Uh, it’s okay to spend this further little bit. It’s not massive deal.” And it may be a giant deal. And it’s essential, if you’d like your cash to go in a sure place, however you’re not consciously pondering of the place your cash’s going to go, it’s going to be actually tough to get it to go there.

Alex:
Cash is about mindset and management. Not about quantity. It actually isn’t. And so you possibly can have $350,000 a 12 months, however if you happen to don’t observe your web value diligently and know the place all of your funds are going, pay your self first, after which spend money on some style. I’m a really threat averse investor. I principally do ETFs within the inventory market. I principally do ETFs. And I most likely personal extra gold than lots of people who’re listening do. I’m very threat averse, but it surely doesn’t matter as a result of it really works over time. And the byproduct of that is extra freedom, not extra stress. So it truly is about management, which is knowing and having a plan and having a extremely good perception into the place you’re at after which mindset, which these are the 2 actually. I imply cash doesn’t matter what you make. It issues what you do with it.

David:
Throw out actual rapidly although that there’s most likely somebody who’s listening to this and began to tune out the second you mentioned 45,000 was sufficient, and their thought is, I dwell in Seattle, or I dwell in San Diego, or I dwell in New York, or I dwell in Hawaii, or I dwell in … So I get these feedback or hear that excuse on a regular basis and I’m simply going to problem it and say, you possibly can transfer. So Alex didn’t dwell in the costliest market within the nation, however he positively didn’t dwell in essentially the most reasonably priced market within the nation both. He was within the center floor.
And so I simply need to throw that out as a result of any person’s most likely going to say, “Oh, 45,000.” Effectively hey look, no one mentioned that it was you would dwell like precisely what you needed to dwell in life when you had been going by this journey. In case your price of dwelling is costlier, then yeah, you’re both going must make a little bit bit more cash otherwise you’re going to have to maneuver or take a look at another choices. So simply you possibly can completely try this on $45,000 a 12 months. It simply depends upon the way you selected to dwell your life.

Alex:
Yeah. So I do get {that a} ton. Yeah. I dwell in a little bit city in North Carolina. It’s not costly to dwell right here. Guess what, I hate it right here. I’m truly again right here once more. I moved twice since. I hate it right here, however that’s the sacrifice that I make to create stability and a foundational future. And so people who dwell in San Diego which might be like, “Oh, I can’t try this as a result of I don’t make that a lot cash.” I’m like, “Yeah, however the climate’s nice.” That’s what you’re spending all of your cash on. You’re spending all of your cash on dwelling in a spot with … That’s the commerce you make.
And so individuals on this, they at all times need to let you know what they will’t do, however they ever need to let you know what they’re prepared to sacrifice to get what they really need. So I inform individuals, don’t inform me what you’re prepared to do to get forward. Inform me what you’re not prepared to do. After which we will transfer round that record, as a result of if that record is lengthy, if all of the stuff you’re unwilling to do to get forward, if that record is lengthy, then possibly I can’t allow you to. Possibly you possibly can’t assist your self. So possibly generally you’re in a excessive price of dwelling space and you may’t transfer otherwise you’re unwilling to maneuver.
However once more, it’s the identical factor with there’s no cap on earnings. You may go off and earn more money too. I’m speaking about tips on how to make it by a technique of sacrifice. We haven’t talked about ambition. What if you happen to truly attempt to make more cash and attempt to make investments aggressively and attempt to be an entrepreneur? These issues all haven’t any cap. So the naysayers, I doubt you, but in addition I perceive that there are costly locations to dwell and that not everyone … Folks have all kinds of life experiences they usually come into this … You come into the world the place you’ve found out wherever you’re at, on the time, you don’t actually get to selected. You identical to, “Oh, that is the place I began,” And it’s completely different for everyone and it’s brutally unfair. Additionally, as I mentioned from the start, the 2 issues that can get you no mater what your scenario, are the one two issues you possibly can management are accountability and sacrifice.

Mindy:
I like that.

Alex:
So complaining-

David:
Yeah, completely.

Alex:
… I hear you, but-

David:
I used to be about to say it. I used to be going to sneak it in proper there.

Mindy:
Okay. So let’s get again to your story. You lived during which Carolina? North Carolina. I’m not from the Carolinas, so that they’re at all times complicated and I by no means get them proper.

David:
North Cackalacky.

Alex:
North.

Mindy:
Okay. So that you lived in North Carolina and you then determined I don’t need to dwell right here anymore.

Alex:
I moved round a bunch. So I lived in Arizona for some time. I moved again to North Carolina, hated it. However I used to be stationed right here, so I’ve a great social … A have a base of social construction right here. That helps. Then in 2017 I moved to Las Vegas. I like Las Vegas a lot. I moved to Las Vegas and I purchased all my properties lengthy distance. After which in 2019 I had private stuff occurring. I used to be like, “This isn’t going to work out. I want to maneuver again to North Carolina briefly,” was the plan. And so in 2000 and late, late, late 2019, I moved again to right here and now I’m hoping that in February I’ll dwell in Charlotte, which is a a lot nicer metropolis. A lot larger metropolis.

Mindy:
And nonetheless near the place your actual property is, proper?

Alex:
Yeah. I gave myself golden handcuffs. I imply, everyone that issues that they’re going to purchase properties throughout the nation after which simply rent one property supervisor after which they’re going to run it for 30 years with out hiccup and will probably be tremendous and you may simply set it and neglect, you might be out of your thoughts. They’re considerably passive. If you happen to get any person actually good, they are going to take the overwhelming majority of your burden away from you. However it is extremely beneficial to be close by or inside a day’s driving distance or one thing like that. Or you possibly can afford to fly lots. I imply, I don’t must go to my properties lots, however to be honest there are some that I’ve by no means seen, however I’ve a really and exceedingly good property supervisor. However I don’t need to go someplace that then I can’t get right here as a result of factor adjustments. The world will change. The individuals that you simply depend on will change. The world’s going to vary. It’s important to be ready for a special paradigm. It’s not at all times going to go the best way it’s now.

David:
I’ve an exceedingly proficient property supervisor as effectively, and I’ve needed to come to phrases currently with the truth that she may be retiring within the subsequent few years. And so she’s wonderful and she or he has a staff, whether or not or not they’re wonderful when she leaves who is aware of.

Mindy:
I believe that’s one of many hardest issues concerning the lengthy distance investing. Yeah, you possibly can dwell in Seattle and you may dwell in San Francisco and New York and spend money on North Carolina or Indianapolis, or Kansas Metropolis. But when your property supervisor isn’t good, you’re going to have simply a whole lot of psychological house being consumed by the hassles of the true property, the hassles. They’re actually hassles when you’re simply attempting to get your tenants to pay their hire and there’s an issue, and your property administration firm isn’t taking good care of it. Otherwise you property administration firm is being proactive and spending far more cash than they need to. Or simply not even answering tenant calls. Or in the event that they don’t know tips on how to display tenants they’re not value something. “Oh, I put this particular person in place, they mentioned that they’ll have the safety deposit subsequent week.” No they received’t. There’s a whole lot of issues that you simply shouldn’t do. And for extra details about that go to BiggerPockets.com as a result of we’ll educate you every little thing about actual property investing. However-

Alex:
I’m not promoting single household lengthy distance actual property proper now by any means. I obtained into actual property single household as a result of we had been going by a foreclosures increase from 2012 to 2017 and that’s about when it dried up, to be sincere. After which since 2017, mainly so far as I can inform, the overwhelming majority of persons are paying retail costs with the hopes that the market goes to proceed to go up. And I don’t take part in that conduct. I solely purchase issues which might be undervalued. And presently to me that appears like bigger asset lessons. However I’m not sitting right here attempting to let you know actual property’s the best way to go. What I’m telling you is, be dynamic as a result of the market adjustments. So it’s essential go the place the chance is. The world’s going to fluctuate and alter.

Mindy:
… I believe that’s an incredible level. Okay, so let’s get again to your story. You had been in North Carolina and you then moved to Las Vegas and you then moved again to North Carolina, and now you’re shifting to Charlotte. What are you doing for cash?

Alex:
I don’t know, I’m winging it. Okay, so-

Mindy:
Nice. Tremendous useful.

Alex:
… So I’ve a little bit bit of cash. In January 2020 I mentioned, “Okay, I’ve a extremely good infrastructure of individuals right here in North Carolina. And I need to take the time to see if possibly I might get good a videography.” That’s been a constructing ardour of mine for some time. So I mentioned, possibly I can observe doing a little video content material. I can mainly, I had the chance to say, I’m going to dwell in on my phrases, I’m not going to get a job. I’ll take a 12 months and dabble and simply dwell. What the heck is the purpose of reaching all this monetary freedom if I can’t spend a little bit of it? And so I mentioned, I’m going to do this videography factor.”
I’m not a hyper entrepreneur man whose obtained to earn a living in any respect prices. I need to get pleasure from my life. And that does imply at all times chasing tough challenges, however not at all times enterprise challenges. Okay, so I mentioned, I’m going to do some videography and what am I going to movie? Effectively, I’ve this actual property infrastructure right here so I’ll flip some homes. Seems, I don’t a lot look after it and I’m not that good at it, and it’s arduous. However, it pays effectively. So one of many blessings that I’ve had is that I’ve at all times had jobs that pay me like … the financial institution job paid 50, 60 grand a 12 months.
So I solely must flip two homes a 12 months to make my similar earnings, which is definitely sort of simple given my historical past. So final 12 months, I flipped two homes and I don’t know, I made 80 or 90 grand. I additionally purchased a multi-family. I purchased a giant 30 … No, I purchased a 52 unit multi-family. That was my second one. So these include paychecks. After which this 12 months I flipped two homes and I believe I made one other 20 grand with my digital camera, which is fairly enjoyable.

Mindy:
Okay. So that you’re producing earnings in numerous methods. So, what do you do along with your days? What are doing all day lengthy?

Alex:
Ah, effectively, I went on six journeys the final six weeks. Journey. I’m going to Belize subsequent week.

Mindy:
Oh, good.

Alex:
I don’t perceive, what’s the purpose of this present? Isn’t the purpose of this present to get individuals to get their cash proper, to allow them to dwell on their phrases?

Mindy:
Sure. However you haven’t shared with us what your daily appears to be like like.

Alex:
Effectively, it appears to be like completely different each day. I do no matter I really feel like doing. Okay, this morning I sat and I edited photographs as a result of my good good friend Jeremy, I flew right down to Pensacola and I did some promo movies for his fabulous actual property funding syndicating firm, Kline Capital, and did some promo movies for him. After which I’m going to go and do some modifying for I shot Flip Hacking Reside, an occasion that Invoice Allen places on for flippers. I did {photograph} that occasion, so I’m going to complete modifying and ship these photographs immediately. After which I’m going to start out packing as a result of I’m going to Belize in every week. I obtained some conferences. I imply, I’m going to go verify on certainly one of my flips, as a result of I nonetheless, I don’t need to do any work. Keep in mind we talked about rule one, I don’t need to do any precise work. So I obtained to go verify on a flip to get the remainder of the contractors on the market to show that child and get it in the marketplace.

Mindy:
I find it irresistible.

Alex:
What else?

Mindy:
I like that your days are … And also you get pleasure from all of this, proper? The entire not working factor. The entire taking footage on a regular basis. Touring on a regular basis.

Alex:
It’s so humorous, I spend an immense period of time … If you happen to noticed me at BPCON, you most likely noticed me as working my tail off. I used to be lugging two cameras round, two massive cameras. I used to be capturing each room, I used to be capturing the entire thing. I delivered, I believe, 5 or 600 photographs edited. I took 9,000.

Mindy:
Oh my.

Alex:
It wasn’t-

Mindy:
Over three days.

Alex:
… Sure. Scott saved seeing me, he was like, “Dude, I see you in every single place. You’re working your booty off.” And I’m like, “Really, I haven’t labored a day. I haven’t labored a lick. I haven’t labored for a second.” And so I actually assume that one of many traps that, one of many quagmires that I obtained myself into after I began getting good an actual property, I used to be like, “I’m going to lean into this factor. I’m going to make a little bit actual property enterprise.” As a result of that’s what my peer group was doing. If you wish to achieve success at one thing, simply make your social circle all of that factor and you’ll turn into it.
So all my social circle is actual property individuals, so then I began doing this actual property factor and I obtained consumed by it. After which I used to be like, “I don’t truly discover this to be pleasurable, it simply makes cash.” And I can discover my alternatives. However I actually get pleasure from cameras. So it’s not work for me to spend a whole day capturing, lugging round cameras, the stress of attempting to get attention-grabbing photographs. After which my favourite half is delivering photographs to people who they love. They usually’re like, “Wow, now” … I posted an image of BPCON of my good good friend Shelby assembly Hal Elrod. And for Hal, he’s simply Hal. However for Shelby, he modified her life.
So now I’ve that magic second. I’ve it. She remembers it, however I’ve it perpetually. And I’ve it and I may give it to her and I can put up it on the web and I can share it together with her. And that proper there, that’s a sense that no quantity of … How do I say it? I couldn’t have delved so arduous into images if I hadn’t created sufficient freedom by actual property or by monetary training, so it’s now bringing me a special portion of my life the place I get … How do I say? I’m reward for a really completely different sort of motion. It’s not monetary. It’s not of worth, it’s significant.

David:
So Alex talked about earlier within the present that he’s not an entrepreneur. He’s not massive into the entrepreneurship factor. And I believe the rationale for that’s that what Alex did was he created this ability for himself and I’ll toot his horn too that he’s wonderful at images and videography. Simply phenomenal. If you happen to take a look at my head photographs on-line, they’re principally Alex’s. And so more and more changing into the next proportion of Alex. So he’s phenomenal. And it’s a skillset that’s a ardour for him, that he loves, which is why he’s so good at it, as a result of he spent on a regular basis and energy into it.
However he wouldn’t contemplate himself an entrepreneur with that as a result of he doesn’t must, in my … What I see, what I believe, is as a result of he’s not compelled into creating some loopy enterprise that takes effort and time. He’s has the liberty to say sure at any time when he needs to make use of this ability, and it does make … I imply, it’s a excessive paying skillset. He makes good cash doing it. I might be prepared to guess that he’d have the option to make more cash this 12 months filming than he did his final 12 months as a banker. However he solely has to do it nonetheless a lot he needs. And so he’s constructed himself this spot the place it’s like, “Yep, I’ll try this. And you’ll pay me as a result of I’m actually good at it and I’ll make it value your time. However I don’t have to try this.” So it should by no means turn into a job for him. It is going to at all times simply be a ardour undertaking, which implies he’ll be that a lot better at it. So yeah, it’s fairly cool to see, however I believe you’re proper, you’d have by no means achieved it had you not had the time to commit to it.

Alex:
One of many issues that I discovered early on about … The most effective items of recommendation, and I believe I mentioned this in one other podcast, I say it to individuals on a regular basis. The most effective items of recommendation I obtained in life and I don’t even bear in mind the place it got here from was, to be at peace in life, you want these three hobbies. One passion that makes you cash. One passion that retains you wholesome. And one passion that retains you inventive. And I actually simply designed my total life round these three points, and I’m at peace.
And I don’t take jobs. It’s so humorous about images. I don’t take jobs except I might do them at no cost. Actually, after I sat down with Mindy and Alexandra in Denver in 2020 and she or he’s like, “I need you to be the photographer for the occasion.” I’m like, “No, you possibly can’t afford me.” Seems the can afford me. However, I might have achieved it anyhow. And if it was a job that I didn’t need to do, then there’s no value you could afford that’s going to purchase my freedom.
And so I say all that to say, the people who find themselves both shopping for actual property or they’re shopping for equities, and if you happen to’re attempting to take a look at passive methods to speculate otherwise you take a look at investing as a passive retirement account builder or wealth builder, you then want one thing to take action that you simply don’t fiddle with the cash. Or spend the cash. What occurs is, I see lots of people that they really in actual life, what they actually need to do is that they don’t need to earn a living, they need to spend it. And that’s an issue, as a result of whenever you begin investing and making a little bit cash, particularly proper now whereas there’s purge by the market cycle, and everyone successful simply, it’s simple to get life-style inflation. Such as you alluded to earlier, Mindy. Or get spendy.
And also you want one thing, in my view, you want a passion, that’s not a cash maker. Particularly a cash maker and isn’t costly, you could actually make investments your self into. One thing inventive, to be able to get a significant reward out of it with out having to have an effect on your retirement constructing or the stress that comes together with constructing a enterprise. And in order that, images allowed me to for 5 years, I simply did it for funsies. By no means took any cash. I simply find it irresistible. After which now, as a result of like David mentioned, as a result of I believe I’ve that paradigm with it, now persons are like, “Hey, I need you to come back shoot this.” And I solely say sure if I truly really feel prefer it. From an financial standpoint, I tremendous undervalue my expertise. However, I don’t care.

Mindy:
Effectively it’s best to care. You must present worth. You must worth your self at market fee. However I hear what you’re saying. So I’ve seen a whole lot of photographers who aren’t pretty much as good. And the eagerness, whenever you showcase images, you took what? What did you say? 9,000 footage at BPCON. I in fact didn’t see there, as a result of I used to be dwelling sick. However, you took 9,000 footage. Not all 9,000 footage are good. You undergo and also you pull those that you simply love. And I’m not being imply. I’m being-

Alex:
No, in fact.

Mindy:
… severe. I’ve seen photographers the place they take 1,000 footage on the three day occasion and right here you go all 1,000 footage, and also you’re like, “Wow. Seven are nice.” After which the remainder of them are mediocre or horrible. And you’ve got, since you’re so in love with images, since you’re so pleased with the job that you simply’re doing, you’re taking 9,000 photographs and provides us … What did you give us, 500 photographs did you say?

Alex:
One thing like that. Yeah.

Mindy:
Yeah. However they’re 500 actually fabulous photographs. Since you went by all 9,000 and also you’re like, “No. No. No. Sure. No. No. No. Sure.” As a result of it’s the eagerness that comes by and that makes individuals need to rent you as effectively.

Alex:
They will’t afford me.

Mindy:
They will’t afford you, sure. If you happen to want Alex’s contact info contact me. It’s $10,000 an hour. After which Alex, I’ll pay you $1,000 an hour. Works out nice.

Alex:
Lifeandlens.media. That’s [inaudible 00:50:38].

Mindy:
Hey, this isn’t a self promotion present.

Alex:
Effectively, you guys are speaking about my … What are you speaking about man?

Mindy:
We’re not right here simply to advertise you. However no, I actually like your story. I like the factor that you simply mentioned proper at first. “I believed I used to be superior, so every little thing would simply work out.” And it didn’t and that’s such a robust factor to share as a result of I do know lots of people are in that very same place. Why? Why isn’t every little thing understanding? Effectively, you need to put effort into it. And right here Alex put effort into it and he’s lastly a great particular person.

Alex:
Effectively, thank goodness.

David:
So I need to throw this on the market although, actual fast. Alex mentioned for 31 years he was horrible with funds. I’m not going so far Alex, however I’ll say that if you happen to had been to know what and do the maths, it’s in lower than a decade Alex has modified from, “Effectively, I screwed that up.” To actually, “I solely must work if I need to. And I’m not going to work on one thing that I don’t imagine in.” Which is a fairly highly effective spot to be in life. And clearly Alex isn’t rolling round in $2 million Bugattis saying like, “Woo hoo. It is a dynamite course.” However what he’s achieved is he’s created a spot the place he can work on what he needs, when he needs, how he needs, and by no means must work on something that he doesn’t, in lower than a decade.
So if you happen to put that into perspective … And he did it by easy issues. Just a little little bit of sacrifice. He didn’t do the loopy leverage get wealthy fast. He did the boring tried and true, avoid wasting cash, make a great funding, use your capital correctly. Don’t purchase crap you don’t want. The standard hearth technique of investing, solely he selected actual property over index funds and he was sensible and frugal and did all the proper issues. And in a matter of a few years, I imply, if you happen to rely whenever you left your job, I imply, I’d say a half a decade, fully modified. Turned that round. I imply, it’s wonderful. So if you happen to put that in perspective, if you happen to’re 22, 23, 25. I imply, early retirement is completely doable if you happen to simply play your playing cards proper. Sacrifice a little bit up entrance and benefit from the longterm recreation.

Alex:
It’s really easy.

Mindy:
Or not even early retirement. I noticed any person posting immediately within the Fb teams, “Oh, I don’t know that I’m doing all that effectively. Right here’s what I’ve obtained.” And don’t examine your self. I like this quote a lot, don’t examine your starting to Alex’s finish or David’s center, or my finish. Evaluate your starting to the place you had been final week. You’re doing higher simply since you’re interested by it. However one thing that we now have seen time and again in these reveals these cash tales that launch on Mondays, is that about 10 years you possibly can go from nothing to financially free or actual near it simply by being cognizant of the place your cash goes, saving aggressively. Not even saving aggressively, saving in any respect.
We often say there are 4 levers to tug when you’re working in direction of monetary independence. Spend lower than you earn. As quickly as Alex stopped spending greater than he earned, he was in a position to save. Earn extra earnings. That’s probably not one thing that Alex apparently has ever pulled that lever, however that’s okay. Begin a enterprise. Alex, you don’t assume you’re an entrepreneur, however in case you are investing in actual property, actual property is a enterprise. You’re a actual property entrepreneur. You may have a images enterprise, whether or not you prefer it or not, that’s an entrepreneurial endeavor. So you might be an entrepreneur. And in addition make investments intelligently. So that you’re investing in money flowing property or fairness performs. You’re forcing appreciation. You’re investing in low price markets the place you might be getting greater than 1%, proper, in your hire?

Alex:
Oh, yeah.

Mindy:
Okay. And also you’re investing in ETFs. You’re investing within the inventory market. In all probability investing lots in hair merchandise. However you’re investing intelligently, in-

Alex:
Yeah. The hawk is trying good proper now.

Mindy:
… Yeah. Yeah. Effectively, okay. Alex may be very pleased with his hair. However you’re making all of those clever choices and also you went from monetary catastrophe to monetary grasp in ten-ish years. The rationale that we share these tales is so individuals see you possibly can flip it round. Your funds and your monetary errors don’t must outline you. Sure, they occurred, acknowledge it and transfer on. Settle for the truth that it’s essential change your funds after which make steps to vary your funds. And also you’re the epitome of economic catastrophe to monetary hero.

Alex:
Any fool can obtain monetary freedom in a couple of years in the event that they listen. I’m proof.

Mindy:
I’ll say any particular person, not any fool. We prefer to be good and uplifting on this present, Alex. Any particular person.

David:
Okay. The irony is that you simply labeled my BP Cash podcast, The Man Who Did Every part Incorrect and Nonetheless Figured It Out. So between Alex and I-

Alex:
I believe it’s an American-

David:
… with some easy steps, you bought this.

Alex:
… I believe monetary irresponsibility is deeply, deeply ingrained into American tradition. So the truth that you and I’ve the identical story is definitely, it’s most likely that the overwhelming majority of people that flip their monetary scenario round … I imply, it’s everyone. It’s not you and me, it’s everyone. The one distinction is most individuals by no means … It’s a humbling endeavor to say, “I’m messing this up. I’m doing it as a result of I’m too weak willed to cease shopping for stuff or cease spending cash on frivolous pleasantries. And do the arduous however accountable factor for my future.” It’s simply simpler to be entitled and we dwell in a tradition that the very best worth is consumerism. They usually have spent a long time actually understanding tips on how to ping individuals’s dopamine and actually get them to feed into this consumerist dependancy. So it’s quite common and it’s not tremendous simple mentally to interrupt out, however on the spreadsheet, tips on how to make wealth, it’s extremely mundane, simple. It’s really easy. It’s the mindset. It’s mindset and management.

David:
If you happen to’re sitting at dwelling proper now pondering man, I can’t do that or this isn’t me, or no matter that cause is you could’t do that, and also you’re listening to this on a model new iPhone 13, effectively, he’s speaking to you.

Alex:
I’ll add another perception. Plenty of it’s who you spend time with. Like broke individuals can’t educate you tips on how to earn a living. It’s not that they don’t need to. They don’t understand how. My dad and mom truly did a greater job. I tousled good recommendation. They used to inform me like, “Dude” … My dad and mom are conservative. I don’t imply politically, I imply in conduct. They don’t spend frivolously. They purchase previous automobiles, they don’t have debt. They’re like, “Look Alex, simply lower your expenses. Make investments” … They didn’t educate me tips on how to make investments. They’re like, “Simply put it aside.” Simply lower your expenses and spend lower than you earn and don’t purchase stuff you possibly can’t afford. And also you don’t purchase in debt. After which I went into the Military and I obtained the American, the entitlement machine obtained in my mind I used to be like, “What do my dad and mom know? Knuckleheads, they don’t know something. I’m so sensible.” Debt. Purchased a Honda Civic on 18%, like ever freaking entitled, enlisted-

Mindy:
18%.

Alex:
… Like each enlisted troop that has ever come to Fort Bragg. I’m simply saying. I imply, these are the things-

David:
No, that’s a quite common story.

Alex:
… Yeah. These are errors that I’ve made. I’m okay with them. I’m at peace with them. And so whenever you say, “Oh I can’t do what Alex has achieved. I’m going to try this.” I’m certain I’ve achieved issues which might be dumber than lots of people. I guess you I’m above common on dumb in my earlier life.

David:
Is that how that works? Is that above common or would that be decrease than common?

Alex:
I’m all concerning the extremes.

Mindy:
Okay. I’m actually glad you mentioned that, Alex. It’s all concerning the individuals that you simply encompass your self with. And in case you are in a bunch of associates the place everyone has a model new automotive, you begin to consider, “Effectively, why don’t I’ve a model new automotive? Possibly I ought to exit and get a model new automotive.” And everyone has the newest iPhone. “Oh, I’m caught on this rubbish iPhone IV, or no matter, possibly I ought to go and get the newest iPhone.” You’re associates, if all of them have iPhone … What’s it 13? If all of them have iPhone 13’s and also you’ve obtained your little bitty one, they’re going to be making enjoyable of you. And so what, who cares. Nevertheless it’s really easy to fall into that American consumerist entice the place spending more cash than you make is completely the norm. You simply put it on a bank card and make the minimal cost and ultimately you’ll pay it off. No, ultimately you’ll not pay it off since you’ll simply maintain including to it.
So if you end up sucked into these friendships … Sucked in isn’t the proper phrase. However getting sucked into purchases as a result of your entire associates are making these similar purchases, possibly it’s best to begin spending time with completely different individuals. I dwell in Longmont, Colorado, it’s sort of this fi-bubble and I’ve to maintain reminding myself time and again, not everyone has the identical help system that I’ve. And there are individuals on the market who need to allow you to, need to encourage you, they usually don’t even know you, however they know the facility of getting your funds so as will … What that may get you in your life. In order that they need to encourage you.
A terrific place to start out is the BiggerPockets Fb teams. BiggerPockets Cash. Fb.com/group/BPMoney. We’re all sitting round speaking about cash and questions on funds. And it’s a really welcoming group. It’s my group. If any person provides you a snotty reply, inform me or report it and I’ll kick them out, as a result of I make this group a spot to ask query. A secure place to have a dialog. You guys are each laughing at me, however what, I simply kicked out some individuals the opposite day for being terrible.

David:
No. I’m laughing as a result of I really feel that ache.

Alex:
I’ve recognized Mindy for a very long time and everyone, you guys assume she’s actual good, however I’ll let you know what, beneath, she’s a tyrant. She is aN iron fisted tyrant-

Mindy:
Sure.

Alex:
… deep down in aspect.

David:
So for this reason we hit it. We simply hit the nail on the top for why excessive earnings earners wrestle a lot. It’s as a result of individuals like legal professionals or medical doctors, or in these professions, they get their social circle is the very same factor. And they also really feel like they get sucked into internet hosting events they usually must have a pleasant home. Or driving a pleasant automotive as a result of medical doctors don’t drive a Geo Metro or no matter. If you happen to’ve ever performed the Cashflow board recreation, if you happen to ever fiddle with that recreation, the toughest characters to get out the rat race with are those who take advantage of cash, as a result of they’ve essentially the most legal responsibility, debt, no matter. And the debt and bills is more durable to beat than the earnings.
It’s simpler to make more cash than it’s to slash … I hate to say this, as a result of any person’s going to be upset. However you probably have three children by the point you’re 12, or 17 or 18 or no matter, whether or not you intend the age, so like Alex talked about it earlier, he didn’t have children. He was single. So $45,000, that may have been lots more durable if he had children after I was younger, which made issues simpler for me. And to not say that having children is dangerous by any means, however planning these choices out or having costly automobiles or going into chapter 11, or homes you possibly can’t get out from underneath, any of these recurring bills can set you again lots farther than not having a large earnings will set you ahead.

Alex:
Effectively, David, you might be strolling fairly the tightrope there by the best way. I like that.

David:
Yeah.

Alex:
However the issue with tradition and the issue with social circles is deeply, deeply and subtly ingrained into the American lifestyle. So discovering individuals that basically do align with what you need your life to be like, and having a little bit little bit of revolt to say, “Look, I’m most likely not going to agree with the overwhelming majority of individuals and the way they dwell. And I’ve to go in opposition to the grain.” It’s positively one thing you do and the web makes it … The web might assist tremendously. The web is a double sided sword since you’re going to go on Instagram and also you’re going to see individuals flexing all kind of nonsense on a regular basis. They usually lie. Ooh, let me let you know one thing Instagram, you’re a liar. Folks’s lives, they solely present you the highlights.
After which in actual property, it’s at all times closing offers and the funnel into FOMO may be very sturdy. You need to keep away from all that stuff. And also you need to discover people who share the identical values as you. And usually cash shouldn’t be a price system. Actually, if cash is a price system, it results in consumerism. Cash is a instrument, a useful resource and it ought to fund your freedom. It shouldn’t be a mechanism to purchase your each gratifying pleasure that you can imagine. So most issues on the planet you could actually cheat … Most actually wonderful issues on the planet have been occurring for 12,000 years and also you don’t must go … It’s not in Las Vegas and it’s not a vacationer attraction. It’s like, “Dude you possibly can journey low cost and free in most locations on the planet.” Relationship are going to be value much more, and you may’t purchase them.
I discover a whole lot of pleasure in books. Books are the factor that offers me essentially the most worth on the planet they usually’re dust low cost, which I believe is astounding truly, as a result of they’re the very best return on funding. However level is, cash, my relationship with cash is one the place it really works for me. It’s not one thing like, “Hey, I need all these items on the planet. And I must earn a living to go get them.” It’s extra, all of the issues that I need on the planet are literally fairly low cost. I’m simply looking for a approach to do it responsibly in an period of time. I can’t simply choose up all my life and go journey completely.

David:
Yeah, that’s-

Alex:
I might afford to. However, I’ve issues that … I’ve social duties and people who I need to assist and deal with and do issues, and homes. However who you hang around with and the values that you simply arrange are going to absolve you from a whole lot of the errors that you simply make with cash. If you happen to don’t have values and a great social circle, you then’re going to end result to purchasing and consumerism.

David:
He mentioned social duties, like individuals need him round.

Alex:
They don’t like me round, but it surely’s at all times one thing thrilling occurring after I’m round.

Mindy:
Boy, that’s true. It’s at all times a celebration with Alex round.

Alex:
Oh, man.

Mindy:
Okay, Alex, this has been a whole lot of enjoyable and I actually am glad that you simply had been in a position to share your story with our listeners, as a result of I do know that you simply’re not particular. There are many people who find themselves listening to this present who’re like, “Yep, that’s me. That’s me. That’s me.” And your story isn’t distinctive, which is why it makes it so vital to share. However we’re not achieved with you but. We nonetheless have our well-known 4 questions which we ask of all of our company. Alex, are you prepared?

Alex:
In all probability not.

Mindy:
Okay, nice. That might be superior. That might be identical to the remainder of the present. Okay. Alex, what’s your favourite finance ebook? Didn’t he simply say he reads books on a regular basis, and it’s one of the best funding on the planet?

David:
And also you ask him slim it down to 1.

Alex:
Yeah. I might. I learn Nietzsche.

David:
I learn lifeless Western philosophy. Yeah.

Alex:
I imply, he’s a German, however yeah. Just about, yep. I learn Wealthy Dad, Poor Dad in 2005. It didn’t stick. I didn’t do something with it for one more six years. Nevertheless it implanted one thing in my head that I didn’t understand how vital it will be. It planted a seed and so after I stared desirous to get my cash proper, I had that one little foundation, which was you need passive earnings, not energetic earnings, and that basically set me off foundationally. Ooh, no. Scratch all that. Scratch all that. Scratch all that.

Mindy:
No, we’re going to maintain it in. Proceed.

Alex:
The Richest Man In Babylon.

Mindy:
Oh, I like that ebook.

David:
I like that one.

Alex:
These two books. I like that now, as a result of I’m a lot smarter now after six years of books. However I like that now. I’m like, that’s a rudimentary ebook. However that ebook, usually because it’s so rudimentary is what hit me so arduous. It mentioned issues that they now appear apparent, however generally whenever you perceive one thing it’s simply information. However when you possibly can mix it with expertise, it turns into knowledge. They usually say issues like, “Spend lower than you earn.” It was prefer it hit me like a ton of bricks. I’m like, “Oh. Who would have considered that.” All the time pay your self first. These are easy, easy … Don’t spend money on issues that you simply don’t know or would get you out sized returns. I don’t know what’s going to occur with bitcoin, however I do know persons are actually enthusiastic about it, and I don’t know sufficient about it. And so I simply, what, I’m going to take a giant move on the majority of bitcoin. As a result of I-

Mindy:
Identical.

Alex:
… I simply don’t realize it. And I don’t must realize it with the intention to … And I do know that … So these guidelines in Richest Man In Babylon, dude, I learn a whole lot of books, however I don’t learn a whole lot of finance or enterprise books. The foundations for finance are actually easy. You don’t must spend a lifetime studying them. You simply must spend a lifetime using them.

David:
I like that.

Mindy:
Richest Man In Babylon is my favourite book-

Alex:
Mindy, I do know it’s.

Mindy:
… as a result of it was written 100 years in the past.

David:
Effectively, it-

Mindy:
And it nonetheless holds true. It’s like cash isn’t-

David:
… I used to be going to say, which for Alex, implies that’s nearly a brand new ebook.

Alex:
True that.

Mindy:
… That’s true. Nevertheless it was written 100 years in the past. It nonetheless holds true. Spend lower than you earn. Don’t spend money on stuff you don’t perceive. Don’t make investments with individuals who don’t know what they’re doing. Take the cash, the distinction between what you’re spending and what you’re incomes and make investments it correctly. And it’s so good and it’s so true to today. I like that.

Alex:
And it represents individuals’s steady failure within the cash mindset drawback, which is that they go to our [inaudible 01:09:08] they usually’re like, “Hey, you make what I make. However we’re at all times broke and also you’re constructing wealth. What’s the issue?” And that’s actually the issue of most … I don’t need to say most people, however most Individuals. The place they’re like, “I’m making sufficient cash, in concept, however I don’t have sufficient. What the heck’s the issue?” It’s unhappy to say, however you’re the issue. Almost certainly.

David:
I simply reread that ebook three months in the past. Adore it.

Alex:
If you happen to make $31,000 a 12 months, you might be within the high 1% international richest earners. You ain’t obtained cash issues bro, you bought entitlement issues.

David:
On that notice, Alex, what was your largest cash mistake?

Alex:
I don’t know tips on how to phrase it. I suppose apathy. I didn’t do something with cash. I didn’t imagine in my skills sufficient or … How do I say it? I didn’t imagine that I might do something with cash till I made extra. And so I did nothing with cash after which it truly precipitated me to make much less. As soon as I found out cash, I haven’t made that many errors. Every part I make returns a wholesome revenue.

Mindy:
Okay. I like that. I like that reply lots.

Alex:
Apathy.

Mindy:
Apathy. That’s not one thing that we now have had anyone truly say on this present. However that’s once more, like I mentioned earlier than, you’re not particular, that’s one thing that has occurred with lots of people. You’ve simply obtained to maintain telling him he’s not particular. It’s not ever going to sink in although.

Alex:
I imagine it deeply. You may’t damage my emotions.

David:
I’m imply it’s ever more true with you-

Alex:
I’m the one one with this shirt although.

David:
… It’s even more true whenever you assume it through-

Mindy:
Alex has the one pink BiggerPockets t-shirt on the planet. You’re so nice Alex. What’s your greatest piece of recommendation for people who find themselves simply beginning out?

Alex:
I’ve a lot good recommendation.

David:
… There’s the Alex we all know and love.

Alex:
Take radical accountability and make any sacrifice that it’s essential attain the very best good.

David:
I prefer it.

Mindy:
I like that too.

Alex:
Not a lot else so as to add.

David:
All proper, effectively then, I’m going to maneuver onto the actually arduous query. Alex, what’s your favourite joke to inform at events?

Alex:
Uh, I don’t inform jokes. I’m not a jokester.

David:
You’re the joke.

Alex:
Uh yeah. Yeah. Proper, yeah.

Mindy:
Okay. I’ve obtained one for you.

Alex:
Yeah, I don’t know. I often make enjoyable of individuals. If I had any person there like, “Take a look at David’s mustache.” We don’t want jokes. I can’t cease laughing simply him.

Mindy:
He’s obtained a beard too.

David:
The beard is coming in.

Alex:
Yeah, he’s rising a beard. Me and the boys needed to have a … Yeah see, he’s embarrassed … we needed to have an intervention about that mustache at Flip Hacking Reside. Like, “Dude, you’re out of the navy. Time to shave it. There’s no extra excuses. We obtained to develop the beard out, and shave the stash.”

Mindy:
This isn’t a nasty David. This isn’t a nasty David.

David:
It positively didn’t begin as a result of I mentioned I used to be rising a beard now that I used to be out. That’s positively not how this dialog began.

Mindy:
Positively not. What was the reply to after we requested you concerning the mustache in your episode 179. I’m deliver attractive again.

David:
Proper.

Mindy:
Okay. In order that’s not the main target of this. We’re getting the joke. All of the individuals who hearken to this present actually love the jokes, besides me, but-

Alex:
I don’t have any jokes. I don’t inform jokes.

Mindy:
… I’ve obtained some for you. Alex, I simply mentioned that-

Alex:
Oh, okay. Yeah.

Mindy:
… if you happen to would simply cease speaking, then I might share the joke.

Alex:
Not my sturdy swimsuit.

Mindy:
I noticed two males stroll right into a images store yesterday. You’d have assume not less than certainly one of them would have noticed it.

Alex:
Did Scott write these?

David:
I didn’t. No possession.

Mindy:
Yeah, these are Scott’s.

Alex:
They’re horrible jokes.

Mindy:
They’re horrible. Ruining a photograph is the simplest factor, I can do it with my eyes closed. I do know they’re terrible. Oh, a squid with a digital camera known as a squid GoPro.

Alex:
Oh my God.

Mindy:
Okay, I’m achieved with them.

Alex:
Oh, so survive. That is horrible.

David:
Folks drop off earlier than this.

Mindy:
Okay. Alex, now’s the time so that you can promote the heck out of your self. The place can individuals discover out extra about you, your images, your actual estateing, all of the issues? Hit us.

Alex:
I don’t promote something.

Mindy:
Oh my God.

Alex:
I’m so sorry, I don’t seel something. In 2017, I began a weblog to doc my monetary journey, it’s known as Broke Is a Selection. I don’t have any click on funnels. I don’t promote you something. Every part that I’ve ever achieved in finance and actual property is there if you wish to see it. However I don’t profit from it in any manner, apart from I get to hopefully assist some individuals alongside the best way. There’s no monetary incentive for me. However that’s it. Or you’ll find me on Instagram and you may see footage.

Mindy:
However what’s you Instagram?

Alex:
My title, Alex Scott Felice.

Mindy:
Alex Scott Felice. You say that like individuals simply know tips on how to spell Felice. Okay. We’ll embrace the hyperlinks to all of these items. Each of these issues, in our present notes.

Alex:
I believe everyone simply follows me already. I don’t [crosstalk 01:14:06].

David:
[crosstalk 01:14:06].

Mindy:
Effectively, they don’t. So we’ll embrace these hyperlinks in our present notes, which could be discovered at biggerpockets.com/moneyshow247. And regardless of all of my ribbing of you, Alex, I’m actually very delighted that you simply joined us immediately, as a result of I believe that your story has lots of people … I believe your story has lots to show individuals and I believe that there are lots of people who’re the place you had been only a few years in the past.

Alex:
I believe that’s most likely true. I believe that like I mentioned a couple of instances within the present, the scenario in American tradition is, financially is dire, and other people simply must take that pink capsule, wake you a little bit bit. Take management of it they usually can repair it fairly simple.

Mindy:
Okay. Superior. Effectively, Alex, I actually admire your time immediately and we’ll discuss to you quickly. Okay. That was Alex Felice. David, what did you consider Alex’s story?

David:
I’ve recognized Alex for a very long time, however I don’t know that I’d ever heard his story in a single setting earlier than from the errors by, and he will get actual. He even talks a couple of mistake that he made, that I imply, the DUI, that lots of people don’t even need to deliver that up publicly, and but it was a catalyst for him altering his life. And I believe Alex has an excellent story. A really relatable story. However actually not a novel one in the truth that it’s one thing that a whole lot of us undergo comparable tales and it’s simply taking … He took possession of his scenario and he fastened it. He did so in a short time and I believe that there’s a whole lot of nice recommendation in right here. I like messing with Alex and speaking to Alex, it’s at all times a great time.

Mindy:
Yeah. I fully agree with you. The DUI, yeah, no one’s pleased with having a DUI, but it surely occurred in his previous and taking possession of that, not blaming any person else for his issues. Hey, I used to be a multitude, I did the incorrect factor. I couldn’t even pay that invoice, and I misplaced my job so I tremendous couldn’t pay that invoice. I knew I needed to determine this out. It was humbling to must name my dad and mom, it was embarrassing to me that I didn’t have my stuff collectively. So now I’m going to make it possible for I’m by no means on this scenario once more. And when life throws you a curve ball, you possibly can take the hit and be like, “Huh, I suppose, that simply occurred.” Or you possibly can say, “Oh, I ought to discover ways to duck. Let me determine how I can place myself so I’m by no means on this place once more.” And sorry for utilizing the phrase place twice in a sentence, that doesn’t sound good, however it’s what it’s. Very long time listeners of this present know that generally I simply phrase vomit.

David:
No.

Mindy:
Okay. However what I actually preferred about Alex is in direction of the tip of his story he epitomizes the quote, “If you happen to love what you do, you’ll by no means work a day in your life.” He did the slog, he began investing. He made clever choices. And now he will get to selected how he’s going to spend his day. And if he decides that if he doesn’t need to do one thing, he doesn’t must do it. And I like that. That’s the entire catalyst for this present basically is that when you get your cash out of the best way, you possibly can select to spend your life the way you select. The way you need. You get to dwell the life that you simply need to dwell as a result of now you not are fearful concerning the cash. And he mentioned that cash is a instrument, and I simply love that. “It’s not a price system, it’s a instrument.” That’s a extremely nice quote.

David:
Yep. And when he says, you heard him within the podcast, say you could’t afford me, and other people take that I believe at face worth of like, “I’m so beneficial, I’m so costly.” I believe what he means is within the again finish is genuinely, it’s not a price ticket that’s going to persuade me to do that. It’s whether or not or not I truly get pleasure from doing it. And he’s yeah, he’s in a great place. That’s superior to look at.

Mindy:
Yeah. I actually do get pleasure from Alex, and my conversations with him are at all times enjoyable.

David:
Yep.

Mindy:
So thanks for becoming a member of us immediately. Once more, Alex was speaking about surrounding your self with people who find themselves like minded. If you happen to want a spot to go to speak about cash in a secure place, go to our Fb group, Fb.com/teams/bpmoney and we’ll welcome you with open arms, and have all the cash conversations you need. Encouragement abounds. David, ought to we get out of right here?

David:
Completely.

Mindy:
From episode quantity 247 of the BiggerPockets Cash Podcast, he’s David Pere from the Army Millionaire Group. The place is your group positioned?

David:
Fb.com/teams/militarymillionaire.

Mindy:
Oh, improbable. That’s simple to recollect.

David:
I attempt.

Mindy:
I’m Mindy Jensen saying, so lengthy. Goodbye. Goodbye.