166. How to Multiply Your Money 3x with Every Property - Interview with Kassidy Warren

25:26When in reality, if you spend less money, you're actually not going to make as much. And it's a, you're not going to be able to recover your investment with within three weeks of joining. She's like, oh yeah, by the way, I have all this money in my IRA. I was like, okay, great. Like you have way more than enough to go buy an Airbnb. Good. We solved that one. She got a DSCR loan. Okay, cool. We solved the loan problem. And then one day she was like, I don't know if I'm going to be able to buy something in time for the end of the year to get a cost segregation. And I was like, look, just new real estate pops up every single day.

26:00Literally the next day, a property popped up. Perfect. First time, but a little stretchy Airbnb. And she put an offer because that's what we did for her. And And then the seller was like, hey, you have an out-of-state loan. I don't like that. And so I told her, I said, okay, well, still don't let them push you around, but go see if you can go get approved for an in-state just to make it easier. And she got approved for a conventional investment loan. And so now, and this property is about twice as much as she thought she was going to be able to afford or be able to buy. So all the objections that she held in the beginning, literally within three weeks were were like blown away and she's under contract she's gonna buy this property and she's gonna she's on her way to making 150 at least gross revenue 150 gross revenue so like anywhere between 50 to 75k a year on this one property within three weeks wait did she bring in a partner how

26:57Natalie Palmer:did she manage it being twice as much as she thought she could spend she had a lot more in her in her ira yeah she was like oh i don't know how to do that or i'm not going to do that she thought she was just going to spend her own like cash that she had saved in like a bank account and and that she couldn't afford the payment because of the jobs that she had her and her husband but it was like no take it out of the ira and we have a bonus depreciation so don't worry about being taxed on it yeah you're gonna have to pay 10 right you have to pay 10 but that's fine and so getting back to your question is like if you are objecting to joining a community I think you need to look at why you're objecting and ask yourself when you've been successful in the past and what it did for you in the past if you've ever had that experience because usually our objections are the things that will actually be solved once we join.

27:51Think about the gym. So many people are like, well, I actually want to get in shape before I go to the gym. I'm going to go get strong and fit and look good before I go to the gym. That's not how it works. That's not how it works. You get in shape by going to the gym and hiring a trainer and hiring a coach and getting better on your meal plans. You can't get better at something by just doing it somewhere else on your own. That's just not how it works anymore. There's just too much information, too many deals, and everyone in the communities, they're the ones that are getting access to everything anyways.

28:27So like you're falling behind because you're not a part of the community. So that's, that's how I feel.

28:35Natalie Palmer:Dan, that's deep. I mean, she almost enjoyed and she was three weeks away from having all this. That's just so crazy to think. And that's what I tell people, your dreams, they're so much closer than you think. And that's what someone like me or you or anyone in these communities can do for you is like help pull you forward when you're, when you're fear-based. because if you're in your head, you're not going to do it. But if you're in community and you have people like us helping pull you forward, help take the steps, I've been there, I've seen it all. And I want you to be successful. And I know that you can do this.

29:11And that's what it does is it gives you the confidence and the ability to take those steps forward.

29:16Natalie Palmer:I know you didn't come here to do this, but can we plug your new community that you launched? I feel like that just segues perfectly i will link it in the show are you taking in new people right now yeah we are for sure yeah because my goal is to help as many people like quit their job like or create financial freedom live their true purpose is really what i want and this is the way that i know how and i'll and and then we can get into the velocity of money so you guys i swear this was not supposed to be a sales pitch okay but i think you just gave us leads to people are going to be like okay where do i sign up yeah so they they can dm me on instagram they can dm me escape uh on instagram My Instagram is at Cassidy.Warren.

29:55It is me talking to you. It is me chatting with you. I'm not just trying to sell you. I really do want to help. But we are, just this last week, we had three people go under contract on properties. That was Chris, Evan with an Airbnb in Austin, and then Doug and Michelle with a hotel out in West Virginia that they're going to create in this crazy like, like Silver Springs Resort wellness facility. So that's all within like three weeks, literally within the community and they were not there before and we're getting everybody there so dme escape is called escape velocity the goal is to get you under contract in under 30 days and

30:31Natalie Palmer:create financial freedom for yourself very cool okay velocity of money let's talk about this and i know last time i had you on again i will link that episode you guys because that's where cassidy goes through like how he took that 35 a night airbnb and like bought the next property Like he literally step-by-step went through building his portfolio, but give us like, I want you to give us something different than last time. So give us like an overview of like, what is velocity of money? How are you multiplying your money each time you do a deal? Like give us that whole breakdown. Yeah, great. The foundation of real estate is creating value.

31:07It's not cashflow. Cashflow is fine. Cashflow can allow you to quit your job, but actually cashflow is the least valuable return on your investment for most investments. The value that you create is where the most amount of money is made, right? Don't you want to own a legacy property in the best neighborhood in your town? I bet you can tell me the zip code. I bet you can tell me the street that you would love to own someday where maybe they're like 5 million,$10 million properties. and they only go up for sale every couple of years. It's hard to get in, right? These are the neighborhoods and the areas that you want to be in because they're always going to be valuable and they're always going to grow in value.

31:53And the great thing about Airbnbs and hotels and ADUs, these are what I teach in the community, is you don't have to buy in a BCD class neighborhood or in the middle of the Midwest to create value because so many people are like, oh, I can only afford this much. And so I bought this long-term rental in Cleveland, which is where we bought our first property, but they go to the Midwest because they can create cashflow, but that's not where the most amount of money is made. The most amount of money is made in forcing appreciation. So the velocity of money has four accelerators and I'll go through them all, but I'll just, I'll list them out here.

32:35So the velocity of money has four accelerators. The first one is leverage, which is debt. And I'll go into these, but the first one is leverage, which is debt. The second one is forced appreciation, not just appreciation, forced appreciation. Then there's equity or free equity. And then the last one is tax benefits. So those are the four. So the first one, and actually the first two are what really make the whole velocity money concept valuable and what makes real estate so valuable. So the first one is leverage. Leverage is debt. Leverage is your ability to buy an entire asset, an entire property for a fraction of the price.

33:15yes you're taking on debt you're taking on a payment but you're getting to control the entire asset and like if you were to do this on stocks if you bought one unit of stock you get one unit right well with leverage when you buy one unit you actually get five units right if you're if you're leveraged at 20 so yes that's where cash flow comes into play right it covers the debt but that's why it's not that valuable cash flow should just cover your debt and then obviously any additional is a better return. But leverage with forced depreciation is where the magic happens. Because if you put, let's say you put$100 ,000 down on a million dollar property, that's 10%.

34:00But you put$100 ,000 down on a million dollar property. And let's say you add some renovations and you add an extra$600 ,000 of equity. That$600 ,000 is on top of only the$100K that you invested.

34:16Natalie Palmer:Well, and what you put in to... Yeah. Let's just say you created a$600K total. Yeah. So you put some money in to fix it up, but you created$600K. So basically though, with leverage and forcing appreciation, if you were to do that on a$300 ,000 house, you can only create so much forced appreciation, right? If you do that on a million dollar house to 2 million, as you get bigger, the numbers get bigger, right? But any value increase is on the total value of the property, not just what you put in. That's why like a VA loan, if you do like a VA loan with 0 % down and you can create a ton of value, meaning you come in and you make improvements to the kitchens, the bathrooms, the backyard, you add a pool if you're in the right market, you've just created a ton of value, but you didn't put a ton of money down.

35:07That's why leverage plus forced appreciation. And so So the last property, the last house that we did in Tucson, we bought for$835 ,000. We put about$225 ,000 into the property, and it's worth about$1.5 million. And so we created about, I don't know, what is that? $500 ,000 in equity? We created$500 ,000 in equity. The cash flow that we get every year is about$75 ,000 to$100 ,000. but now instead of appreciating on uh the 835k we're now appreciating on the 1.5 million which means after five years 1.5 million is now going to be what 1.65 maybe 1.7 i don't know i can't do the math right now but you're appreciating on a higher value asset and the cash flow is actually the least amount of money that we're getting from there.

36:03Natalie Palmer:So with your philosophy on this, like, how come you guys even held, what's the thought process between holding that property for five more years? Why not just sell and have so much more money to like, you know, do another flip like that? Like what's, you know, with your, with your point of view here, it's like the cash as like pennies in comparison. So why hold it at all? A couple of reasons because we just did a ton of work and, uh, we can, we were making active income. So if you have active income coming in, like if you're a consultant or you're working at W2 or you have a property management business, you want to keep focused on that and keep the machine running too.

36:46So the reason why Airbnbs are so great and they fit into this velocity of money strategy is because of the tax benefits. And so we just created a ton of value. Then we can also depreciate that property and offset our active income, which then allows us to go buy another property and do the same thing over and over and over again. I still like buy and hold, but usually your tax benefits run out after about five years. You use your depreciation up after about five years. And so that's the fourth accelerator of velocity of money is tax benefits. Otherwise, if you're -

37:21Natalie Palmer:So did you do a cash out like refi on that one? We haven't done it yet because that's when rates like skyrocketed. And so we're going to do it. We're going to do it either this year or like in the first quarter of next year. So you did a cost seg right after. Oh, yeah. A hundred percent. Yeah. Cost seg, depreciated, took all the bonus depreciation. So, okay. Okay. And then that's what you're saying by around year five, any benefits of that would have kind of tapped out. The tax benefits. Yeah. And so then you have to make a decision to sell. And so there's, there's another piece of the velocity of money that, that helps with like when to make a decision to sell.

37:52But the reason we don't just sell is because we want to hold on to them to get the tax benefits. And we still want the cash flow. It's not like we don't want it, but it's really the equity that is the most valuable and using the tax benefits to offset our active income. And so anywhere between three to five years, maybe more, depending if you really love the house and the location is when you want to think about selling. But it's better because of leverage and forced appreciation, if you have active income coming in, meaning your job or your consulting income or property management, whatever you're doing to do non-real estate income, buy the assets, improve them, rent them out on Airbnb, hold them, and keep doing that.

38:38Because leverage plus forced appreciation is where the most amount of value is created. If you just sold the asset or did a cash out refi, cash out refis are good, you just don't get as much access to the equity. But if you sell it, you're not really, if you don't have any other active income, then yes, sell it and use it. But there's going to be additional tax implications. You might have to do a 1031, which doesn't lead you down into like the best decision-making path. So if you look, most real estate investors, most people invest in real estate, they're not full-time or they're full-time, but they have a cash business, right?

39:14So Grant Cardone, he's got a cash business he's got his speaking gigs he's got like however he makes money uh doing keynotes he's got his communities all that stuff and he takes all that cash and he goes and buys property that he can appreciate and then he'll sell it at a certain point right depending on how much equity he has and depending on how much tax benefits he's used up on the asset so the reason i call velocity money is because you want to look at how quickly you can increase the value. Yes, how much cash flow, like you don't want to be underwater, or underwater too much. And you should still be making money.

39:49So if you improve the asset, you should make more cash flow. That's, that's sort of the correlation that I'm making, right? If you improve the asset, yes, you're increasing the equity, but you're also, you should be increasing the cash flow too. And then so you're looking at how quickly you can force the value. And then how much tax benefits do you have left after the fact? And usually that's anywhere from three to five years. And then in that three to five years, you're just letting it sit, you're letting it operate. And then you take your active income and you keep buying more and more of these.

40:17And what I will say is usually the best thing to do is to buy bigger and bigger or higher price per square foot each time. Because every dollar that you put in on renovations, you want to get like$3 back. Which is why I say high price per square foot neighborhoods, because that's how you do it. Because it's going to take the same amount of time and the same amount of effort on the bad neighborhood versus the good neighborhood, right? And so if you're going to spend money, go spend it where it's going to give you the highest return. And again, leverage, forced appreciation is where the magic happens.

40:53And the way that you make the most amount of money is by forcing the most amount of value. You're going to do that in a higher price per square foot neighborhoods because you can do a similar level of construction. But if you do it in a higher price per square foot neighborhood, you're going to get a higher return.

41:10Natalie Palmer:On this property in Arizona, I don't know if you know the numbers off the top of your head, but like what was the price per square foot when you bought it for the$850 ,000? And like what were the comps priced per square foot? So I don't know the exact price per square foot numbers, but here's what we do know, especially in Tucson. Like that's like we know that market really well. There's like four neighborhoods that are like the best. And we knew in that neighborhood that with a pool and with the updates that we were going to make that it was worth about 1.4 to 1.5. So at that price, it was still undervalued a little bit, but we knew that if we added a pool and we did everything that we know that we know how to do based on the comps, it was going to be 1.4 to 1.5.

41:53Natalie Palmer:I've never done a flip before. And I've been like looking into doing one and this is just from like watching YouTube videos. But what I've heard is like you should never go for a flip where how do they say it at least the finished amount the the final price should be at least 25 percent more than what you're purchasing it for that's like the margin i've kind of heard and i cannot find that anywhere i'm like looking for stuff in like the range between i don't know 600 to like 850 000 to purchase and everything i find is like maybe going to be 850 to a million after like i can't find that 25 margin but you found like double the reason they say 25 for traditional flippers is because of selling costs and taxes that they have to pay because if you're flipping a true flipping means you're going to sell it right and that means that you've owned it for less than a year which means you're going to be on the short-term capital gains and so you got to pay what is it like i don't know 40 on the gain and California will pay like 50%.

43:01Natalie Palmer:Yeah, exactly. And so then, then on top of that, if you, uh, if you sell it, it's considered active income. So you're going to pay income taxes on the profit as well. So that 25 % really, I don't like flipping. Let me be clear. I don't like flipping my model. This is good to know. Oh yeah. I don't like, unless you're going to do a full flipping business. I don't like it because the number, the margins are too thin. You're too higher price per square foot, higher or better neighborhood, right? If you do a luxury flip and you turn into a short-term rental, you get all of the benefits of everything.

43:37This is what I like to do. I'm like, how can I get the most amount of value? So buying the best neighborhoods, you get the highest return on your dollar for doing the luxury flip. Your clientele wants more than what a flipper could do, right? They don't want the white cabinets with the gray floors. they want if you create an airbnb a really great luxury short-term rental that's what your buyer is going to want so you're creating additional value and you're holding it and you're creating a bunch of cash flow so it's like all the best of both worlds so everyone says airbnb is dead no screw that they just haven't found the right model this is the right model of buying the right neighborhood make the right improvements hold it for five years as it being a short-term rental and then decide what to do with it after.

44:23And let's say, for example, you're a high-income earner. It's a couple, high-income earner, a dentist and a software engineer. You're making 500 grand a year, probably a million dollars a year. Your tax bill right now, let's say you make 500 grand a year combined. Your tax bill right now is about 200 to$250 ,000. All you need to do to get a refund back first year, You can get a$250 ,000 check from the IRS. All you need to do is buy a million dollar Airbnb. That's it. Do what I just described. You don't even need to renovate it. Just buy a million dollar Airbnb. And with the cost seg and depreciation, that couple will get a$250 ,000 check back from the government.

45:07And so most people don't want to be full-time real estate investors, right? That's not what I'm teaching. I'm not teaching to go like be a full-time real estate investor and like that's your life now that's not what i know nobody really wants to do that like let's be honest but if you buy that couple that makes 500 grand if you buy a million dollar property and you make a little bit of improvements to it you put on airbnb you've just saved about 250 000 a year for the next three to five years on that one property and you've improved it and it's appreciating so total on that one investment i'm just going to do rough numbers.

45:45Let's say it made about conservatively 50K in cashflow. So the tax savings are, let's call it$750 ,000 over five years because the land. So 750 ,000. And then with 50K over five years, it's 200. So we're at a million dollars between cashflow and tax savings. And then if they, if they added a little bit of equity, let's just say it appreciated like normal over five years, you're at what? 1.2 million in an average market. So now one property generated a total value of$1.2 million in five years. That's 750K in tax savings. So legitimate, you're paying a shit ton of taxes, that couple. They save that, they got cashflow and they got appreciation.

46:35That one property generated$1.2 million in value, cash plus tax savings. And every American, every couple can do this, but they're too afraid and they don't understand it. And Airbnb is not dead. You can create a ton of great properties, but most people are just too fearful and they don't understand how it works. And they don't understand what their life could look like if they bought if that five hundred thousand dollar couple if they bought one one million dollar property every year which they absolutely could do with those salaries if they bought one one million dollar property every year and in five to ten years they would have let's just say five to ten properties with a portfolio worth over what would be seven million just this wine 10 million by yeah 10 million and they're generating 50 times 500k in cash flow and they could do it in their backyard if you live in seattle and in the bay area in neighborhoods

47:38Natalie Palmer:in arizona utah all those places are banning airbnb so maybe you can't do it there not not everywhere but in those in in those areas around there though so like in the seattle area you can go up to the san juans you go to leavenworth you can go to cleelum you can go to the coast you just need to know the right places to buy and you need to know the right updates to make. But, and the other thing about cashflow, if you're that$500 ,000 couple, right, the software engineer and the dentist, that's why cashflow is not as valuable for you. Like people get so stuck on cashflow, but if they're making 500K a year, what do they care about?

48:12They don't care about cashflow. They can cover the payment if they lose a couple months out of the year. If they're still making 20K a year on cash flow, but they create$400 ,000 in value or$700 ,000 in value in taxes and appreciation, what's worth more? The cash flow or the tax savings and the appreciation over five years. Okay.

48:33Natalie Palmer:So talk to me now about the couple that's maybe making 80 to 100 ,000 a year. What are their options here? Yeah. Great question. So the 80 to 100 ,000, you still want to take the same approach. You're going to have to do things a little bit differently. You might have to bring on a partner. You might have to raise money. You might have to like start a property management business, right? You have to figure out where the down payment and the renovation cash is going to come from. But if you have a 401k, if you have an IRA, pull that money out. And, and, and the reason I say that is because what everything that I've just described is worth way more to you than it's sitting in your IRA or 401k account.

49:15Yes, you will have to pay the 10 % tax, but you don't have to pay that until the next year. If you buy the right property, you will pay zero taxes on withdrawing from your 401k, not the fee. You still have to pay the fee. But when you're in the lower income bracket, you might want to go buy a cash flowing property. But I don't believe that. I think the better path is to go find a partner and go create a ton of value like I just described. The sooner that you can get into the bigger deals, the sooner that you're going to make more money because the real magic happens when you trade up. And so if you can go do some, maybe like a luxury flip, maybe you sell it or maybe you hold it for a year and then you sell it so you don't pay as much in taxes.

49:58You just have to think about a couple of different strategies to really take you to the next level, but focus on creating as much value as possible. and maybe you get some sweat equity, right? So like, if you don't have any cash, you need to go prove yourself out or find people that trust you to go do what you say you can do. Find someone with money and you don't know who has money and you just haven't talked about it. So nobody knows that you're raising money or that you want to partner. And so you're sitting there like, oh, how am I supposed to find somebody? Look, the most amount of money that's ever existed was printed in the last five years through COVID.

50:3480 % of the world's money supply was printed in the last five years. 80 % of the money that's ever existed in the world was printed in the last five years. There's more money that's ever existed ever in the history of the world. There is money out there. You just have not told people what you're doing and why they should trust you. And you haven't proven that you can be trusted, but you just haven't even said, this is what I want to do. So nobody knows that you exist, right? So partnering with somebody is going to be probably your best bet or starting a property management business, like a low barrier to entry.

51:07And you're just going to have to like, get good at doing something outside of yourself. And so if the other, the other way is get promoted at work, make more money at work. People forget this hack. Hey, go build your skills. And instead of making a hundred grand, how quickly can you get to 150, 200, right? Cause if you can, if you can make more money over the next five years and be investing in real estate at the same time, that's a win-win. So you became a better person. You grew your skills. You made more money. You invested in real estate along the way. You did bigger and bigger projects. Maybe you figured out how to raise money.

51:44Like this is what it's about is like, you got to go do something different than you've ever done before, right? Yes. It's easier for that$500 ,000 couple unless they're, you know, like just drowning in debt. Cause that's what can happen to people with money as they just drown in debt, but it's, it's about becoming a different person, right? Becoming a different version of yourself, doing something different. And that means you're going to have to do different things like raise money or partner, but we all want to do it on our own, but that's not how you, that's not how you do it. So.

52:13Natalie Palmer:So in your opinion, what would be, if you are that couple in the like 80 to a hundred thousand dollar range and you're ready to invest and do the velocity of money strategy, what would be like the minimum purchase price you would go for? Or is that even a metric you would look at? Would you just be looking at price per square foot or just how much appreciation you can force? Like what would you look at before they go start finding partners and finding the property? Yeah. So the velocity of money is all about how much value can, can you create with the money that you have as quickly as possible?

52:43Natalie Palmer:And so like a, like a number, like I always, I mean, you did say for every$1, get three back. That's really what I like to say, but it, But at that level, you're probably going to do a one to two, but it's fine. Like I've got a guy in the community. His name is Carl. He does stuff out in Connecticut. He finds houses that are like 184 grand, but he makes them worth like 350 to 400. Okay. That's great. That's you just made 220. You just doubled the value of the property. Right. So, but it's your ability to go find those deals and do it. And so like I could talk about percentages. I don't even know.

53:15I like to, if I can double my money, especially on a short term rental in a very short amount of time. but you need to add up the equity that you create the cash flow and then the tax benefits i usually don't count tax benefits towards towards the return um but the amount of equity that you create and then the cash flow over the first few years you should be able to double your money that's that that's the way that i feel about it and so buying as big of a deal as you can i know this is scary for people this is scary for people but like if you think you can only afford a 300

53:46Natalie Palmer:out your entire retirement find partners by the biggest deal you can it's like contrary to everything we're told like start small buy the little multi-family apartment and no it's all the same oh it's all the same it's all the same natalie like the the little airbnb that that you bought is the same as the bigger ibb it's just like what what does the market need and can i provide that and how creative can i get the bigger that you think the more money you'll make faster and we all limit ourselves and and i have to say this especially in the short-term rental space there's so many creative and amazing women but so many of them think so small oh yeah and they like belittle themselves and they they like think that they're not worthy and it's it's so sad and so i have a huge heart especially for the women in this community that know that they can do it they believe like they have that desire but something society or their family or the relationship their own limiting beliefs they don't believe in themselves and they're quiet and they're meek and it's like no come to me i want i'm going to build you up i'm going to lift you up i want you to be as successful as possible there is so much room out in this world for people to be big and expansive and creative and in the end like buying one house i hope it's the smallest thing that you ever do in your life.

55:14I hope buying an Airbnb in 2025 and 2026 is the absolute smallest thing that you ever do in your life because it feels big right now, but honestly, it's nothing compared to what's possible out there. And this is just the first step to you being able to live the life that you want.

55:31Natalie Palmer:Man, that's so deep. You're telling this to somebody who has an entire podcast about Airbnbs, but yeah, this should be the smallest thing. like you're so right um but i believe i believe in it though yeah i believe in it but what i believe in is accelerating it and going bigger sooner because don't you want to be in the best neighborhood don't you want to say look i own that and it makes me a bunch of money and i did it and i figured it out and then have that be again the smallest thing that you ever do because you found the confidence and the belief in yourself to go actually live your purpose.

56:10That's why the real estate is a Trojan horse. Because if all you do is ever is buy$300 ,000 houses in the middle of nowhere, you're selling yourself short. I get it. You can make money and you can do some stuff that you believe is something that's huge. But what you're going to learn along the way in who you are is really the point of this. And having the money to then go be like, oh, I'm going to go be a podcast host, or I'm going to go be an actress, or I'm going to go travel the world. I'm going to go spend time with my kids. I'm going to go teach them to be expansive. I'm going to go teach them to be successful.

56:49And I'm going to go teach them that anything's possible. If you're too scared to buy a house, a short-term rental, I'm sorry. I'm telling you right now, like you're not going to get what you want out of life because as much as I believe in this, this is also like very easy. And I didn't like, I'm not meaning to like belittle or demean anybody, but it's very easy. It's just our own fears and limiting beliefs about what's possible is getting in our way.

57:15Natalie Palmer:Do you think there's any place for somebody like when you talked about the$500 ,000 couple, you mentioned like, they don't care about cashflow. If there's a couple months that it's not covering they they can pay for that but that couple that is only making like 80 to 100 a year that is like detrimental like missing a couple months of payments could be like critical so do you think that there's any like place for that person to start with the 300 000 midwest property or would you say like get your partners and join a community and like you just go go bigger go home from the beginning yeah yeah i i think i think do you think it's worth like getting your reps in on the smaller low stakes deal or it's just not even worth it go all out here's an example there's me and then there's rich summers who has his podcast and i've been i've been working with him quite a bit we started at the same time rich probably has two to three times my net worth and two to three times or more my cash flow he started in commercial real estate he bought more he went harder he started his podcast sooner i'm not comparing but when i do compare if i would have thought bigger and if i would have gotten out of my little bubble and if i would have gotten into community sooner if i would have spent the money sooner on self-improvement and getting into community and learning and growing i would have been so much further along i would have been so much further along but the longer that you wait and the smaller that you play the longer that you stay small the longer that you'll have to wait so the amount of time and effort and energy that you spend on the three hundred thousand dollar midwest deal compared to the 1.5 million dollar arizona deal is the same it's the same but you just don't know what you're capable of right now you're not in community you don't have people around you that are saying no yeah i'll partner with you yeah i've got you don't realize that there's people out there that have$500 ,000 ready to roll right now.

59:17Natalie Palmer:Yeah. You don't realize how much money is out there and how willing people will be to invest in you when you're in the right community. It might not be your first deal. I'm not saying it's gonna be first deal. But what I will say is that if you there's this concept around goal setting, you know, 10 extra goals, set a bigger, set them higher. Because if I say, oh, I'm just going to buy a$300 ,000 house, that might be all I ever do? If I say I'm going to go find this massive property and I'm going to generate, you know,$200 ,000 in cashflow, I'm going to create a million dollars in equity. What am I going to go look for?

59:54Am I going to go look for the small shitty house or am I going to go look for the property that's going to be closer to that goal? And am I going to go try to figure it out? But the problem is, is that we don't believe in ourselves that it's possible. And part of the reason we don't believe in ourselves is because we're on our own, because we're not around the people that are pushing us further and telling us like, why would you ever buy that house. Why would you ever buy that? I don't care if it makes money every month. You're going to sell it and you're going to lose money because it never grew in value.

1:00:23People are like, why are you in Tucson? It's like, well, because I know I can generate a ton of equity. Should I go into Scottsdale? Should I go into different markets? Maybe. Should I have gone to commercial sooner? Yeah, maybe. But I also love this model because you can get a ton of benefit out of it. And so for the people that are like, they're probably listening to me and just shaking their heads and I get it. But what I'm telling you is the sooner that you go bigger and the sooner that you think bigger, the more fulfilled you'll be, the happier you'll be, the more money you'll have. Money does solve a lot of problems.

1:00:55I'm just putting it out there. Having a stack of cash, having more cashflow, having more equity, it actually does solve a lot of problems. The people that are stuck in this flipping cycle of like, oh, I'm going to buy the$300 ,000 house and they're just flipping, flipping, flipping, and they're buying these and they're wondering why they can't buy more or they're just buying and selling these and they don't have any money in the account because the last flip is paying for the next flip and you're one dip in the market away from losing everything it's because it's because you're thinking too small and you haven't gotten around people that know what they're doing and they and people haven't told you hey stupid that model doesn't make money right and so you need to be around people like me and others that are going to elevate you to a higher level and then they're going to stretch you but that's the point because you want something different for your life.

1:01:41Natalie Palmer:I think we have to end on that note. So it's like so good. This is an episode I think people will be listening to like two or three times just to digest everything. And also Cassidy, I think it's official. We're going to have to have you back a third time because we didn't even touch ADUs or boutique motels. We only went into the Airbnb model. So stay tuned for that. You guys, there will end up being a part three because there's still too much. Well, and I have to thank you because the first podcast that we did together, I had so many of your listeners come over and follow me and reach out and message me.

1:02:13And you have probably like one of the most diehard, uh, groups of, of listeners. And I just appreciate you, Natalie, so much for having me on. And I appreciate everybody that reaches out. Anybody can DM me. Anybody can ask for help. I'm not guaranteeing that I'll, I'll coach you in the DMS, but, um, I'm here to support people for that. that's lovely gonna get to yeah and this is not a sales but this is not a sales pitch call if anybody knows me this is who i am this is how i i just pour into people because i want the best for them but you have to be ready and you have to be willing to to make the make the leap so

1:02:44Natalie Palmer:uh thank you so much natalie thank you and with that it is now checkout time thanks for listening and i'll see you back here next week lastly as airbnb hosts we all can appreciate a good five star review. So you already know a great review on this podcast would mean so much to me. Please subscribe, review, share, and connect with me in the show notes below. Bye.