The Five Pillars Of Wealth Without Wall Street With Russ Morgan And Joey Mure

Episode 334: The Five Pillars Of Wealth Without Wall Street With Russ Morgan And Joey Mure

 

The world is your oyster when you figure out how to make your own money and take control of your financial future. In today’s episode, Financial coach Joey Mure and co-founder of Wealth Without Wall Street Russ Morgan provide wonderful tips, tricks, and pieces of advice about taking control of your financial future. Joey and Russ give detailed information on each of the five pillars of wealth to help you build your wealth and reach success. Grab a piece of paper and a pen for taking down notes as you get inspired by their engaging conversation about the pathways for building wealth.

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I’m here with Russ Morgan and Joey Mure. They are with Wealth Without Wall Street. We’re going to talk about taking control of your financial future. Possibly, being able to walk to your boss and say you no longer need his services. The world is your oyster when you figure out how to make your own money and take control of your financial future. How far do you want to go? We’re going to pay a little homage to my sponsor, TaxFreeFuture.com. If you don’t have a tax-deferred or a tax-free vehicle in which to grow your retirement, your wealth or your finances, then you’re missing one of the biggest tools in your toolbox. Check out the 37 videos at TaxFreeFuture.com because you will not believe what your financial advisors are not telling you. We’re going to tell you what they’re not telling you. We’re going to tell you why they’re not telling you. It’s all going to become crystal clear. What’s going on, Russ and Joey?

Mitch, thanks for having us on the show. I’m glad to be here.

This is awesome. Thank you.

Wealth Without Wall Street, what an interesting name. It screams, “Take control, brothers and sisters. Get a hold of your own stuff and quit letting these yahoos throw your money around and not give a crap.” I’m not saying that these companies don’t try their earnest, but they got hundreds of thousands, if not millions of clients. How can you possibly rank with them? Unless you’re one of the guys that’s invested them in the top ten or top twenty of all their investors, which most of us wouldn’t be.

We’re not going to be in that grouping. It is like your sponsor as you said, what your financial advisor isn’t telling you and they should. It is probably to do something with your money that you actually know something about.

You walk into any town. You drive in any town. There are these tall buildings there in any major city. What’s the name at the top of that building? It’s usually a bank or an insurance company. Then you go into one of those banks or the insurance company, they want to offer you 1% in the CD rate. They got billboards bragging about you can earn 1% on a CD. You ought to be ashamed of yourself. It’s not even keeping up with inflation. I’d be embarrassed to put up a billboard saying how enthusiastic I am about making you 1%. That’s stupid. How they make their money is loaning money. Do you think they’re going to tell you how to loan money? You can loan money. It’s not that complicated especially not for the ROI that you’re going to get compared to what they want to give you. You can do a better job than them because you’re not even regulated like them.

By the way, Mitch, you ought to be thanking them for putting those billboards up because that gives you all the opportunity in the world to take the same people’s money that would’ve been putting it on deposit the bank and say, “Let me give you 8% instead.” Isn’t that a much better deal for you?

You gave me an idea. I’m going to drive around town. I’m going to take pictures of these billboards. I’m going to hold up a sign like a homeless guy, “I pay 8%.” I’ll put it on the billboard.

The sad part about it is people put money in those banks and they feel all warm and fuzzy because of that thing called the FDIC. They have no idea that it means they’re insuring your dollars with pennies. If the thing goes bad, now with the new Dodd-Frank laws, that literally there is no more bailout of the FDIC. Most people don’t realize that FDIC has been bailed out many times. They changed the rules on that to where if the FDIC goes under again, the new rule says those who are depositors, those who have put all that money on deposit are getting the fancy 1% returns are going to be the people supporting the functionality of the bank. They are now called a bail-in.

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I never believed in it even before that because there was no way that the FDIC will do it. We don’t have a gold-backed dollar anymore. There’s no way for them to guarantee it. It’s all a bunch of smoke and mirrors. I figured I’m going to loan my money on real estate. If someone doesn’t pay me, I’m going to get a nice piece of real estate. How risky is that loan? It depends on how much that real estate is compared to how much I loaned on it. I need to make sure that I have a first lien. I need to make sure that there’s some title insurance or some mortgagee’s insurance because I’m making the loan. I want to be in a first position. You’ve got to be able to do some math. I’m loaning $50,000 on a house that’s worth $100,000. If I don’t get paid my $50,000, I get a $100,000 house. Do I feel like I can make myself whole or maybe even make a little profit from that situation? For me, the answer is yes.

Here’s the thing too, Mitch. A lot of times, people don’t realize that these deals are sitting right underneath their nose. They don’t even have to go out and find strangers to do these deals with. Sometimes, people think it’s taboo to do business with family. I’ll tell you about a deal that literally has been the best thing I’ve ever seen in my life. My wife borrowed money to start a dental practice in 2008. It was a great time to start a business. She borrowed $650,000 in that neighborhood from Bank of America. In 2009, I’m sitting in a conference with this older guy who had written this book called Becoming Your Own Banker. He was teaching people how to literally be the bank in their own finances. Unfortunately, my wife and I were not in a position to finance this whole $650,000 business purchase and creation on our own.

Nonetheless, her father has been sitting there. I was a traditional financial planner. I was the guy out there pushing the mutual funds and everything else. At the time, obviously the market had crashed and my eyes were open looking for new opportunities. There I am, I’m listening to this guy talk about how you can do this. I helped my father-in-law sell his Bank of America stock when it was dropping. We’d put a stop-loss on it so he’s sitting in cash. He is sitting in cash with tons of money, my wife’s sitting over here with a big old debt. I was like, “We’re paying 7.95% interest to Bank of America.”

Bank of America is paying him 1%.

They’ve got his money over here, maybe at 1% at the time. We put those two deals together. We’ve sold her practice. He was getting paid roughly about $6,500 a month, every single month from his daughter. It was the best deal for both of them because if he doesn’t spend any of those dollars or all of those dollars, where is it going to come back to?

You are protecting your inheritance is basically what you’re saying.

We were going to give it to somebody anyway. Some people think, “That’s really bad. You don’t want to get involved in that.” Why would you do business with somebody you don’t know instead of doing business with somebody you do? There are plenty of instances where Joey and I have seen that happen within families. Ours is a perfect example when you’re talking about lending, which is one of the five years that we focus on. That’s a beautiful thing.

I’ll throw my hat in the ring. I’ll pay you 8%. I’ll put up a property and I won’t let you loan any more than 65% on it. My average is 58%. If I want to borrow money on a $100,000 house, I average borrowing $58,000 in the first lien position from somebody. I have $20 million worth of private money right now. They’d been with me, most of them for over a decade. A lot of them for over a decade and a half. Some of them for over two decades. These people don’t keep loaning me money because I jerk him around. I pay every month on the first. As a matter of fact, I asked, how much do I send out every month on the first to my private lenders? I send out $120,000 every month in payments. Maybe that’s what you needed to hear because there are reputable people out there, but the reputation is not everything.

Try to get and put an icing on the cake and get some collateral at least. If I don’t get paid, I get X. X is not bad. X might make you a lot more money than you get the interest. I tell my private lenders all the time, they go, “What’s the worst thing that can happen?” I said, “The worst thing that’s going to happen is if I pay you on time. The best thing that’s going to happen is you get my property.” My property is worth way more than you’re lending me. They say, “I don’t know anything about properties.” I say, “You don’t have to. Pick up the phone, call a realtor. Call two or three of them and get a consensus of what it’s worth, who you think can sell it the fastest or the best and give it to one of them. In 90 days, everything’s fine and you’ll probably be taking a vacation using my house money.”

At the end of the day, Mitch, private lending may not be your way or it may be your way, but it’s all in light of where are we headed. We’re looking for ways to stop trading time for money. If we didn’t have that need, Wealth Without Wall Street wouldn’t exist. Lending is one of the avenues in which we try to build up that side of the equation that you’ve talked about in your book that we talk about every day. We probably all learned it from Robert Kiyosaki, but passive income must be higher than our monthly wants and needs. Lending is one way we can do that on the passive income side.

It’s probably one of the least, depending on how you set up your loans. If you set up a fifteen-year loan, you can loan it out one time on a great deal and you’re good for fifteen years or until they pay you off. A lot of the loans I’ve done were 8% interest only for five years. I was dealing with a lot of people that were over 70 years old. They didn’t want a loan long-term. When I start talking to the Millennials or the Gen Z or to the younger people that have a long time to go before they’re 59 and a half, they want to go, “I’ll do a 15-year loan or a 20-year loan. I want to set it and forget it. I don’t want to go in and out and worry about it. I put it in there and I don’t have to have a conversation about a new proposition for a long time. It’s going to keep going into my retirement account or my account.” You guys teach the five pillars: cashflow, life insurance, business mindset, real estate and lending. Is that right?

That’s right.

Let us start with cashflow. That’s an easy one. When you’re trying to get free in my book, My Life and 1,000 Houses: Failing Forward to Financial Freedom, I talked about the Moat theory, which was basically figuring out what it takes to live a normal, quiet little life. That means your house payment or your rent, your air conditioning bill, your gas for your car, your car payment, your insurance, a couple of nights out to the movies with your girlfriend or wife, a basic quiet, calm lifestyle that you could get in a holding pattern if you had to and it wouldn’t be horrible. Get that number. I call that your freedom number. Once you can get that number, that amount of money coming into your mailbox every month, you no longer need a job. You know something you’re passionate about what you want to go try to make your dreams come true with.

Once you get to that freedom number, you can walk in and tell your boss, “I no longer need your services.” You can walk out and take that 2,600 hours that you used to give your boss. You can give it all to you and your business. As long as you don’t risk paying that mailbox money every month, you can go out and fail all you want to and figure it out eventually. I don’t think that you’re going to fail that many times going out there. What you have is peace of mind at that point that you can fail without going under. What are some of the ways to create some cashflow? There’s a million of them, but what do you guys see?

The first thing is starting with that formula at the frontend. What is it going to take for me to cover those expenses? Sometimes, people want to peel those back and get started knocking things off. I’ll be honest, I don’t have that conversation with many people because I don’t want them to have that conversation with me as far as how to reduce my expenses. There are things that we spend money on that we all would rather not. That’s interest and taxes. Those things for a lot of people are the biggest numbers on the page. They don’t even think about it. You ask the average guy on the street, “What’s your biggest expense?” What does he say? He says, “It’s my mortgage payment.” That’s not true. Typically, his tax bill is much bigger than the interest on his mortgage payment. That’s not the thing, but it’s the one thing that we’re trained.

We hand that over blindly.

We got into this whole numbness feeling to it. We don’t think about it. You’re sending these boxcar checks out the window. For us, it is finding more efficient ways to do that. For some people, their situation is simple. It doesn’t require a whole lot of strategy. We work with a lot of entrepreneurs. We got lots of different LLCs and different things going on. They don’t realize that there are some simple approaches. I’ll give you one. This is one that is age-old, but the reality is that most people within a business are not using this. We started doing this and implementing it. Every single year, my business writes a check for 84 multiple checks. By the way, 28 of those write $84,000 to myself personally, income tax-free to me but 100% deductible to my business. That’s called dwelling unit rental. It’s something that you can rent your house out. Everybody knows you can rent a house out for up to fourteen days a year and not have to pay income tax.

That goes back to the Augusta Rule or way back to Dwight Eisenhower, who had friends who own houses around Augusta National. In the Master’s suite, he would want to rent them out. It eventually got expanded from one week to two weeks. People know this. They have rental properties or properties down at the beach or lakes and they’ll rent it. They know that they don’t have to report it as long as they don’t rent it more than fourteen days. They never thought about the fact that they hold business meetings on a regular basis at their house. They could literally have their team from their office come to our house and meet for three to four hours a day. They can rent their houses to their business. I’m not talking Airbnb style here. I’m not looking to see what the nightly rental in my house is. I’m looking at if I were to rent a similar-sized space, a wedding venue for instance may charge me more like $3,000 to $4,000 a day for four hours. I have that same capability as long as I have the proper documentation.

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What is it called? The Augusta Rule?

Augusta Rule is basically the rule from the IRS code that allows someone to rent their house for up to fourteen days without having to pay income tax. If you rent it for fifteen days, you have to pay the tax on all fifteen days. As long as you rent it for fourteen days or less, you don’t. You need to have some things in place. Obviously, we worked with tax attorneys. Joey and I will be meeting with IRS to do our documentation and everything for our fiscal year ends at the end of October every year. Those are little things that people don’t realize. If you take 37% of $84,000, you have some real money there. That’s something that I could go buy a couple of rental houses with if I wanted to. That’s something that I could increase my lifestyle because I’m able to take dollars that I would’ve sent out to somebody that didn’t want to send it out too and put them in my pocket.

That’s one of the many things you find. Let’s point this out. People think that the wealthy are not paying their fair share tax because somehow they’re getting through some loophole that’s not privy to them. It’s not true. The tax code is written for everyone in this country. You can take advantage of the tax code as well as the blue bloods. The blue bloods are good at it because that’s how they got to be a blue blood. They made it their business to understand how to operate and pay as little as possible legally. They made it their business. When you say, “I hate those people that pay zero taxes because I had to pay taxes this year.” I want you to ask yourself a question right after that. How much study did you do to curtail your taxes? Name the number of hours you spent a year studying that. I bet the people that complain about the most have done zero studies on how to mitigate their taxes.

They’ve done very little.

Do you notice how I even started to get a little pissed off there? People complain about crap. They got the same opportunity as everybody else on this planet. If you don’t have an education, it’s your fault. This is the greatest infrastructure in the world. We got the internet. You don’t even have to leave your house and put on any clothes to learn anything you want to learn about.

These tools exist. It’s for those who are not looking for them. I will put this stat up there. You mentioned that there’s a misconception out there that the top 1% don’t pay their fair share. I heard this stat.

Actually, they pay 90%.

The top 1% make 20% of all the income made. They pay 37% of all the total taxes paid in every year. They’re putting more than their fair share. Here’s the stat that most people don’t know. We spend a lot of time with tax attorneys and strategists because that’s become a part of our business and an outlet that we have these people in our community. We connect people who are the right fit for them. It goes through and shows stats of what the congressional budget office puts a number or a percentage by income bracket. What do they expect to bring in? Do you know that the congressional budget office expects someone making $1 million to pay 19% in taxes? If they believe that you should only be paying 19% in taxes but yet, most people are going, “I’m paying 37%. I’m paying 45%.” What is it that you’re doing? You’re not even doing what they’re anticipating you to do.

They know that there’s the tax rate and then there are write-offs. I once had a debate with an attorney, which wasn’t my attorney shortly after this debate.

 

I’m shocked by that by the way. Imagine you have a discrepancy with an attorney.

He asked to see my finances due to some circumstances and he says, “That’s what I don’t like about you conservatives is you don’t ever pay any tax for the way you live.” I said, “I don’t understand what it is you don’t understand. It’s not complicated. You’re obviously a smart man. You passed the state attorney bar license test in Texas. Let me try to explain it to you the best I can. I’m a commission salesman. I go out without any guarantee, without anyone prodding me or even cheering me on in the morning when I wake up. I go start a business. This business causes more taxation than I could ever pay in my life. The government looks at me and says, “You’ve done a good job of making all these taxes get caused to be paid. We’re going to give you a little break.”

The reason why I pay less taxes or Warren Buffett pays less taxes than his secretary is because his secretary didn’t move a freaking economy worth billions of dollars of taxations. Warren Buffett moved that economy. He gets a reward for that. They give you a break. I’m sure someone would poke holes in that, but in theory that’s how it works. I’m in the house building business, I buy and remodel 100 to 120 houses a year or not remodel, but cause them to get remodeled. That means I move carpet, glass, nails, roof shingles, concrete, asphalt, grass, sod, dirt, rocks, wood. I move all these parts every time the orders put in. Some truck a million miles away here starts his engines and starts burning gas. Gas is taxed at 50%. They started going down the road and they have a flat. They need a tire. Then they finally get all this stuff to the store and we buy it. We pay a tax. We’ve got to pay employees to do all this stuff. That is called trickle-down economics.

Your fair share is being paid.

You can’t hide from your property taxes. You only paid $138,000 in property taxes in 2018. You can’t do anything about that.

Mitch, to continue the conversation on cashflow, the other big challenges that come around are taxes, debt, health insurance and quite honestly, qualified plans. Qualified plans ended up taking a lot of cashflow away from us and deferring it for a long period of time unless we’re using it. You talked about through a self-directed IRA to do what our business is, whether it be investing in real estate or whatever. We have people that are paying exorbitant amounts on health insurance. Find ways around how to pay that or in our taxes.

How about deducting it off? You can get a health savings account at TaxFreeFuture.com. You get to write off your premium for your insurance. If you’re paying $1,500 a month, you get to write that off instead of taking it out of your check. You get to write off all your deductibles. You have to talk to your CPA, but I’ve heard of people that get a prescription from their doctor saying they need to swim two hours a day. They build a pool. It’s written off. I’m not saying to do this. I’m saying that’s an extreme idea. Think of all the things in between that and what you could do to mitigate your taxes. You just have to set up a health savings account.

If you know what’s happening, you’ll know what to do. Most people, we’d go around the world without thinking. We just accept what the world is telling us. We become one of the herd. I know in Texas, you have Longhorns. You become a part of the moo herd and follow around. Obviously, if you’re reading this, you don’t want to be one of those. You want to find different strategies. Joey and I talk about health insurance. We don’t even have health insurance.

Is it because you self-insure?

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We are in a joint sharing. We use health sharing. We are part of a group of 60,000 people.

Is that church-related?

Yes, the one that we are in is a group called Samaritan. There are plenty of them that are not affiliated to Christian organizations or anything. My monthly share cost is $535 a month. That’s for my family of six.

When you put money into a reasonable entrepreneurial self-thinking hands instead of government hands, it seems to cost a lot less to do everything. It’s more effective. That’s all I can say about it.

I think that’s the point of our first pillar. Cashflow is thinking more efficiently with money. People let money sit. This leads to our second one. Most people ask us all the time, “I thought you guys were money people. Why are you guys using cashflow when life insurance is one of your five pillars?” It’s literally because most people have much money sitting in checking accounts, whether it’s for days, weeks, months or a year sometimes. What we found out, going back to what you said when we first started this show, when you go to any big town, you look to see what the biggest buildings are. It’s insurance companies and banks. They’re two and the same because the insurance companies typically own the banks.

If you look at the banks, they own billions of dollars of insurance. When we started a bunch of research back in the day and we had our clients, we’re looking to do real estate deals and do lending deals and invest in their businesses. We found out that the most elite and wealthy were using specifically-designed whole life insurance contracts to put millions of dollars through in order to do it. The number one reason why they were doing it is that instead of getting 0% to 1% on their cash, when it sat in the bank, whether it was for a day or for a year or for multiple, they were earning 2%, 3%, 4% tax-free on it. It was like, “Here’s another way to get more efficient with the same dollar that I was going to use anyway and add a small margin on top of it.” When you think about the flow of money if we’re getting more efficient with our cashflow, we’re going to create cash before we go invest. If I can add an extra 1%, 2%, 3% on that, what does that do? How is that helping me build that Moat strategy? How has it helped with me not only reduce my monthly expenses in a way that I want to reduce them, but also enhancing my savings dollars that allows me to go take those risks that you were talking about and buying the things that are going to produce monthly income streams for us?

That’s pillar number two, using a whole life insurance.

We use specifically-designed whole life insurance contracts. A lot of things go into that. I don’t want to spend our time to dive in that too deep, but this isn’t the policy you buy from your Northwestern rep or your uncle that sells State Farms shares. Joey, for instance, this is how we met. He worked for a big major bank, Wells Fargo. I was helping people who are trying to be more efficient in the way they are paying off their houses and doing different things. I’ve started connecting. He realized that the bank that he works for had $18 billion in cash value life insurance, “This stuff that you’re telling me about that I should be putting my cash in before I invest it and the bank that I’m working for has $18 billion, it’s probably something that I need to know.” That’s not the policy that Dave Ramsey’s railing on that tells you to put your money in. It’s obviously designed a bit differently. It is like what we were talking about with taxes.

It’s all about the niche. There is the niche, then there’s the niche and then there’s the niche below that. You can get specific about what you’re trying to accomplish. Don’t be surprised if someone’s got an angle that will help your cost. The first thing you’ve got to admit is, “I don’t know.” The second thing you’ve got to believe is that probably is someone out there, if there is a way to do it, knows and that you can find it and find some help. Get someone who’s got their 10,000 hours in that department to educate you about it.

As I was learning this myself, my biggest problem was, “I’m making more money. I don’t know what to do with it, but I want to keep liquidity of my cash.” I don’t want to put it into things long-term that I can’t control. I had lost money in 2008 through all the things that I was putting money in that were market-based. There’s got to be a different way. There’s got to be something that I can put money into that I can still gain access to and I don’t have to roll the dice. I’m not a gambler by trade. If you see me in Vegas, I am not going to be putting any money in anything because I know it’s completely hobby money at that point. It’s gone before I even start. I did not want to continue that. Here I was, this is 2009. I’m sitting there. I’ve got two little girls at the time. I’m thinking, “I need to start saving for their college. I’ve got this cashflow. What can I do?”

The other option like 529 plans, for instance, were all those things that I didn’t want. They limited my access to money. I had to use it for specific reasons like for their education, whether they ended up needing it or not. It was all going to be invested in things I didn’t know or understand. Why would I do that? It didn’t make any sense. Here comes Russ. He’s like, “By the way, your bank puts a bunch of money on this. It does all those things you’re talking about. How much do you want to do?” That began a huge course of education for me. Thus, the name Wealth Without Wall Street was born a few years later. We started taking back control of that money.

How can people get more information on how to use life insurance?

We teach on this constantly on our show, Wealth Without Wall Street, but the best resource, this is where I think the two of us got our start in. This is a book called Becoming Your Own Banker. It was written by Nelson Nash. He is now deceased. He passed away earlier in 2019 at 88 years old. He was talking about trickle-down economics. He comes from that school of thought. It is called Austrian economics. It’s like common sense economics. It’s figuring out ways to use our money well. He actually gives stories, an example is one of the largest banks in the United States was there in Texas. He demonstrates all the little basic things, but it is how do we use our money better?

It’s not one of those things that was taught. I was in the financial industry, I was taught by a lot of mutual fund companies. I was never taught by an insurance company. All of these strategies, all of this stuff is learning outside. The idea of how to be efficient with things never comes from the top down. You’ve got to learn it from the bottom up. For us, it started there. We do a lot of teaching on this within our show, in our group, in our community. We have a monthly teaching. For people who are this nationwide, some people might hear this term called infinite banking. That’s something that they would resonate with or cashflow banking. There are a lot of different terms that are used out there, but it definitely requires an approach to finding out how to use these tools and put the money in. It’s not about keeping the money in.

Let’s move into our third pillar. People that know what to do with money, like yourself, you’ve got $20 million out at work and that’s one of our pillars. What you have created is a business. You created a business that allows you to do those things. That’s one of the things that most of the people we talked to are trying to figure out how to create what we always say is passive income, but we know there’s nothing that is truly passive acquires lots of effort in the beginning. It requires some as you continue to go on, otherwise it’ll go away. Business ownership is the biggest one that we focus on because the reality is you’d probably have spent maybe 10,000 hours learning something. Why in the world would you not try to see if you could take that knowledge and invest in it? If you can put $1 in your business and it can produce $5, why would you try to take a $1 and give to somebody else to get $.08 on it?

Start with the thing that you understand first. Some people don’t have that expertise. They’re not gifted at business ownership. They’re born to support people, to be the implementer and not the visionary. That’s beautiful. If that’s not your gift, then find these other areas. We always say, invest in yourself. You’re your best asset. You’re your best investment. Anything that you can do within that realm and find other avenues. We started this community earlier in 2019. It was birthed out of the idea of there are a lot of people that have questions about what you’re talking about, the life insurance stuff.” That’s a big part of our community. Also, they’re looking for passive income strategies. They’re looking for help to grow their business.

It was very easy for us to create this side business, which is right in line with what we do, but it’s a monthly subscription. It’s something that we’ve created as a passive income model that produces income. We put partners in both tax, legal, business consultants and real estate investors. All of these different people continue to add value to the group. It’s right in line with what we know. That’s what I would say if you are looking for ways to create income streams. Find ways to do it in and around your business. Maybe you need to find ways to make your business more passive. That’s what we are trying every single day. We had the pleasure of interviewing you on our podcast the other day. You mentioned and you were sharing with us on the show the different things that you’d been learning and ways to make your business more passive. You have learned from what other people were teaching you in that. That’s exactly what we’re doing for the last several months. How do we start removing ourselves from the active roles? We want to make the thing that we know most become more passive, produce more income for us that we don’t have to work for.

We were meeting with somebody that has this specific expertise in marketing. In fact, he’s the head of a marketing company. A big firm here in Birmingham. We’re meeting with them and he’s telling us, “I want mailbox money. I have to do something with this cash.” He’s looking to us and saying, “I like what you’re talking about these life insurance policies, but then what?” The life insurance policy is not the end. The cash in there is not the end. It’s what are you going to then do with it? He said, “I’m passionate about helping startups go from that startup phase to multimillions. I know, when someone tells me what’s going on in their business, it’s like I’m in a different world. I can immediately tell them what they need to do from a marketing and sales perspective to increase their brand, to increase their view.” He said, “I’d love to be a part and take some equity stake in these companies.” We said, “That’s exactly what you should do.” He’s immediately now thinking, “How can I then turn my expertise and invest in what I know best, which is 10,000 hours I’ve already invested in myself? I’m going to put it to work and create mailbox money outside.” What most people think is normal in businesses, he can then have a small piece. That’s one example of how we use that business pillar in Wealth Without Wall Street.

Cashflow is thinking more efficiently with money. Share on X

I had an example of what we were talking about. First of all, for those who don’t know, we take a lot of things for granted sometimes. The 10,000 hours, where does it come from? What does it mean?

I was going to ask you that.

We work for about 2,000 hours in a typical year. That’s usually about five years of our life devoted to go in and out of a job.

Malcolm Gladwell wrote a book called The Tipping Point. He talks about and shows and all these examples. He wrote a lot of books. I might be getting confused. Malcolm Gladwell brought 10,000 hours to the forefront. The difference between being good and being the very best in the world at what you do is 10,000 hours. You have 10,000 more hours than the guy that’s good.

You’re absolutely right. I don’t know if it was in that book or another one that I’ve heard, too. If you read three books on any subject, you’ve become an instant expert who relates to everybody you hang out with because those people are not reading on it.

I heard a book like this. If you took all the books about the civil war and you throw them all in your backyard within your fence. Every morning you jumped off the roof into that pile of books and you pulled up one book. Open it to any page and read for a half-hour. If you did that for seven days a week for a year, you would be a world authority on the civil war if you had any kind of retention at all. Open the book to any page and read for 30 minutes, throw the book back down. Tomorrow, jump back in the pile. Pull out a different book and go to any page. Read it for 30 minutes. By the end of the year, if you had any retention at all, you would be classified as a world authority on that subject.

We covered the 10,000 hours. My example was if you own a lumber yard, your job is to take trees and to make them into boards. People will bring you the trees. They leave the trees with you. You hand them back to them in the form of nice 2×4, 2×6, 2×12. You hand them longboards. You’re left with something that comes out of your exhaust called sawdust. You got to pay to hold this sawdust off or you can create a business doing something with this sawdust. You can put it and soak it in poison and sprinkling around houses and calling it a pesticide. You can glue it together and make the board. You’ve got this stuff and it’s here free. What can you do with it? Farmers and dairy farmers have a lot of cow dung and cow crap. People buy cow crap. If they buy cow crap, they’ll probably buy whatever coming out of your exhaust, too.

You’re exactly right. That’s what every paper mill in the country does. They’re sitting there trying to get the pulp out of the pine tree, but they’ve got all of this bark coming out in the form of sawdust. What did they start doing? They started burning it and created all the energy that they needed to run their whole power plant zone. They connected to the lines that were feeding the power and pushed it backward and started getting a monthly check for that.

The byproduct is just as important.

 

How do I take the things that I know that I’m already working with and figure out how to get more useful, more efficient? Going back to the very first pillar. The fourth pillar is real estate.

We do not pretend to be the expert in this. That’s why I’m glad to have guys like you in our community, Mitch, to add value here is real estate. The fourth pillar is real estate. There are more millionaires created out of real estate. We cover all sorts of strategies that you can imagine; flips, long-term rentals, short-term rentals like Airbnb and BRBO and those things or strategies all around that, flipping land, storage room facilities and mobile home parks. You name it. We cover all those on our show and within our community. We have those experts that you can lean on and learn from. We are not those people. Do not ask me or Russ about rentals. I can only tell you the number to Servpro or what not to do. That’s why we have all these experts in our community.

Let’s talk about that. You have a Wealth Without Wall Street Community. It’s $40 a month. We quote prices on here sometimes, but I always preface it. It’s $40 a month. This thing’s going to be archived for months, if not years. Be sure and check. They have the right to change the price and value or decrease the price and spend less time with it. It’s $40 a month for a ridiculous value. You have a weekly call. I know at least and much more. Go to 1000houses.com/NoWallStreet. Russ and Joey, this takes them over to the show notes. Your people are going to get with my people. You’re going to decide what you want over there. If you have courses or other opportunities, bootcamps or meeting dates, or speech times, you can put it all over there. It’s evergreen and you can change it whenever you want. You get over there and I’m sure you guys will think of something to give away. It’s a pleasure talking with you guys. I could talk to you guys. We could talk forever. We could talk for a month and probably get warmed up.

The point is there are resources out there on Wealth Without Wall Street. Get there. Get to know them. Invest a little bit of yourself. It is $40 a month. I bet you in a short period of time, I bet you before 30 days is over, you’ll find a hack that saves you $100 a month. This $40 is not an expense if you take it the way it’s supposed to be spent. Make that your goal. I’m going to spend $40 a month for 30 days. If I don’t like what I hear, I’ll get out. If I saved myself $40 a month or more, I’m going to stay in this thing forever and learn how to create thousands of dollars of savings or income. Go to 1000houses.com/NoWallStreet and see what Russ Morgan and Joey Mure have to offer. Is there anything we need to say before we wrap it up?

Thank you for doing what you’re doing, for spreading the message, pushing back the frontiers of ignorance, helping people to stop trading time for money and teaching them strategies to do it. I applaud it. Thank you for having us. It’s been a pleasure.

It doesn’t happen overnight, but if you want to learn how to get free, study freedom. It won’t be that long. It might not make sense at first or seem a little foreign to you in the beginning. It will. Think of where you were when you started high school as a freshman. Where you were when you graduated as a senior. It took four years. There are lots of big differences in who you were when you started and who you were when you got out. They’re not even teaching me anything there. They’re not even teaching you anything there that really matters. Imagine, you’re in a room where they taught something that mattered. I’d like to thank everybody out there for stopping by to get you some Russ Morgan and some Joey Mure with Wealth Without Wall Street.

 

Important Links

• REInvestorSummit.com/NoWallStreet  
• REInvestorSummit.com/TFF  
• REInvestorSummit.com/Livecomm  
• REInvestorSummit.com/100
• REInvestorSummit.com/101

 

About Joey Mure

After over a decade of helping my clients fulfill their dreams of owning a first or second home in the mortgage industry, I found myself wanting to continue to impact the professionals in this field.

At Wealth Without Wall Street, we seek to serve as the standard in financial coaching for real estate professionals all over the nation. Traditional financial planning models limit the contributions, access, and efficiency of your hard-earned money. We understand fluctuating incomes and uncertain annual (or quarterly) tax bills. Whether you are a successful real estate agent, a builder or a mortgage professional we specialize in catering plans to help you to succeed financially.

Wealth Without Wall Street was created for the real estate agent, home builder, & primary mortgage lender. At Wealth Without Wall Street we work with these real estate professionals to provide them with a future of how to save for all of life’s expenses without giving up retirement savings.
 

About Russ Morgan

We save the world from having the feeling that I will trade time for money for the rest of my life. You deserve to enjoy life and the fruit of your labor. We understand and have been there. We will help you achieve this freedom by following the 5 Pillars of Wealth Without Wall Street. Are you ready?

 

 

 

 

• Here’s How »

• 1000houses.com
• Real Estate Investor Summit Facebook
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• Real Estate Investor Summit YouTube
• Mitch Stephen LinkedIn