The Broke Millionaires

E49 | We Don't Sell Properties. So Why Are We Selling This One?

• Lauryn & Joshua Massari • Episode 49

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What happens when a fully permitted, ground-up rebuild in one of California's most in-demand neighborhoods stops making financial sense to hold — and selling it could generate up to $800K tax-free? In Episode 49, we pull back the curtain on the exact strategy we're exploring to make that happen, plus the creative finance scandal making national news, the hidden IRS tax trap destroying sellers in 0% seller-finance deals, and a $2,000 education savings strategy that could fund years of private school tuition completely tax-free.

What You'll Learn:

  • Why irresponsible sub-2 investors are causing innocent sellers to face foreclosure — and what ethical creative finance looks like
  • The IRS imputed interest rule creating hidden tax bills in 0% seller-finance deals
  • How bonus depreciation (back for 2026) can legally eliminate a six-figure capital gains tax bill
  • Why we didn't sell last year — and why this summer may be the right window
  • What a cost segregation study is and how to use it to turn tax liability into new investment properties
  • The honest math behind a property that barely cash-flows despite renting for $13,500–$15,000/month
  • The Coverdell ESA strategy: how $2,000 could fund 12+ years of private school and college tuition tax-free
  • How HostShare and Home Exchange funded a family snow trip for nearly free
  • Why we shifted from equity-building to cash-flow-focused investing — and what that means for our next moves
  • The free School community we're launching: weekly office hours, Q&A, and deeper dives on every episode topic

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Legal Disclaimer:

This podcast is for informational and entertainment purposes only. Nothing discussed constitutes financial, legal, tax, or investment advice. Consult a licensed CPA, financial advisor, or attorney before making any investment or tax decisions. Real estate investing involves risk, including potential loss of capital.

SPEAKER_00

We may end up having a seven-figure year because this is considered income. You know, he had a a big year where he made over a million dollars and paid zero in taxes, and we're gonna be doing something very similar with using bonus depreciation. And bonus depreciation, if this is something that you're looking at doing, you need to look into this. You need to talk to a tax professional, you need to make sure you you can do this for your strategy. Because there's different ways. There's ways to do this with a like a short-term rental where I think it's a little more available to people, where anybody can use this if you set up your business properly. If you're buying a long-term rental property, it's a little different. You have to qualify as a real estate professional, an REP. And what that means by tax code is that you have to be a licensed realtor, but you have to have a certain amount of time in real estate operations. One of the metrics is I think it's 750 hours a year spent on your real estate business.

SPEAKER_01

Welcome back to The Broke Billionaires, where we document our daily struggles and building wealth while raising a young family. Join us as we talk creative wealth building for everyday people and couples that are struggling in a down economy. I'm Lauren.

SPEAKER_00

And I'm Joshua Masari, and we'll be your host.

SPEAKER_02

Welcome back to The Broke Millionaires.

SPEAKER_00

Here we are back late at night again. It's been a little while since we've done a late night recording, but little throwback.

SPEAKER_02

We are not at our house, though.

SPEAKER_00

No.

SPEAKER_02

We are on a little mini vacation for our son's sixth birthday. He wanted to, in lieu of a party, he wanted to do a family vacation in the snow. We didn't get to do our annual Christmas time snow vacation, and so he really wanted to go to the snow.

SPEAKER_00

And we got a lot of snow. Too much snow. We're snowed in right now.

SPEAKER_02

We got a lot of snow.

SPEAKER_00

We don't know if we're gonna be able to get home.

SPEAKER_02

We'll have to do another episode about this, but we uh have this house through post share.

SPEAKER_00

Yeah, we've talked a little bit about home exchange in the past. You know, we use our furnished rental properties that we have, and when we have gaps that we can't rent, um, because we only do 30 days. So when we have less than 30 days available, we trade those for home exchange points, and we start doing a new program in addition to that called Host Share. And it's a little different how it works. Uh, it's a little easier to get bookings, but it's more like last minute. So it's basically if somebody has an Airbnb that is not booked and you're within five days of your trip, you can just book instantly book those nights. And all you do is pay the cleaning fee. So we actually did a combination on this one because they only had two nights available on host share because they'd already used up all their or you used all their committed nights for the the year. So they had two nights on that, and then we were able to get another two nights with home exchange points. So we actually kind of used both for this trip, but we've been up here all week.

SPEAKER_02

So it is kind of you have to be able to be flexible, obviously, to do this. So we actually didn't know if we were gonna get a snow trip or if we were gonna end up in like Palm Springs or somewhere. Thank goodness we didn't, because it was rainy all week. That would have not been an ideal.

SPEAKER_00

Yeah, and we got up here like perfect timing. We came up here earlier on left early on a Monday, got up here, literally pulled up as it was starting to snow, and we haven't really left because there's been just a ton of snow. Not a lot of snow, but we've had it well over a foot, which is quite a bit.

SPEAKER_02

Quite a bit, yeah. So it's been a fun week. What other updates do we have?

SPEAKER_00

Um, I'd actually like to talk a little bit about something that's big news this week. Uh the there is, and this is actually on like national uh news, news. Um there is a I think actually a couple companies or or large investors. I know one of them is in Florida, that had several property, like a big portfolio of properties that we're all subject to, and uh didn't really responsibly acquire these and didn't have you know enough cash reserves and didn't just didn't didn't go about this right, didn't have equity in the homes, and were renting these, probably not cash flowing very much. And you see a lot of this in the sub-2 world these days. Um, but they ran into cash flow issues and then they just walked away and let all these homes default. And so all these owners that had sold these properties subject to, meaning they still had the loan in their name, are now getting foreclosed on on something that wasn't their fault. They sold the house already, but because it was an irresponsible investor that bought these, they are now defaulting and going into foreclosure on something that's out of their control. So very unfortunate.

SPEAKER_02

That must have been a really large portfolio for that to be national news.

SPEAKER_00

Yeah, I don't know how many homes it was. Um I I've seen it on the news, but I didn't really dig into it too much. But it's, you know, it's starting to happen a lot. It's not the only case where this is happening. And I think that there's been a lot of irresponsible, like just people being irresponsible.

SPEAKER_02

Um with the Do you think people just don't understand how to I think people just don't think through it.

SPEAKER_00

They just think, oh, I can I can buy a house with no money down and just take it over loan, don't you have to apply for it? It's an easy acquisition. But there's a lot, you know, we've talked about we do, we do creative finance, we do subject to we bought properties that way, and it's a great tool, but it's definitely getting abused. And I think a lot of that is just because of, you know, it's become very popular in the last three, four years. Um, there's a lot of um big educators pushing it and a lot of information out there, and you get all these people seeing this online jumping into the game, and they're not really true investors. They don't know what they're doing, they don't have experience, they don't have cash. That's the problem, is they don't have cash. They're just like, oh, I can get into a property zero down. So they buy a property no down, it's got no equity. You know, they have no skin in the game. And when they run into problems whether the, you know, a lot of places in the country rents have declined. And we've seen that with some of our properties in in other markets. Um, and all of a sudden they're not covering the mortgage or a big expense comes up, you need a new roof, and they don't have the cash to cover it. And so they end up just walking, and it's just it's detrimental to the sellers who sold this house on subject two with the loan still in their name, uh, you know, thinking that the payment was going to get made and it was gonna help them with their credit, and all of a sudden these are coming back and getting foreclosed on something that they no longer have control over. So it's a very unfortunate situation. Um I want to talk a little bit about this too. I I I kind of got into a little bit of an online dispute this morning.

SPEAKER_02

Oh, you didn't tell me this.

SPEAKER_00

Did I tell you about this?

SPEAKER_02

No, you didn't tell me about this.

SPEAKER_00

It was a Facebook group, uh, it was a large creative finance group. I won't say which one, but it's I think the largest creative finance um Facebook group out there. And and I don't think this is the the owner of the the group. Um I I've talked to him before, and I don't think he does teach this, and he's a mentor, and uh he seems to be pretty, you know, on like he seems to be fairly together in in terms of how he runs his business and how ethical. So I don't think that this comes from him, but it's a very large group of like 200,000 people. So, you know, he doesn't have control over what people do. But um, there was somebody that that posted about um imputed interest. And I think we've touched on this in a past episode, but you know, a lot of people with creative finance um doing seller finance, they will get a seller finance. So say a seller's in trouble and they need to get out of a home for whatever reason, and they'll sell it to an investor, uh, seller finance. And sometimes these investors will negotiate 0% interest loans, which, you know, the seller, if they want to do that, that's fine because they're in a bad situation and it helps them get out of it. And then the investor is getting a zero percent loan. You can't get that. That's great, it's a great investment for them. But there's a major problem that I see with this. And this person posted about what's called imputed interest. And then there was a couple of investors that attacked him, and he was basically saying, you know, I just found out that you can't uh do a seller finance with at zero percent. You have to do it at 4.7% right now or whatever it was. And everyone's saying, Oh, that's false, that's false. They just start attacking him. And I commented, I said, he's he's right and wrong. So he's wrong in the fact that you can still do seller finance at 0%, but he's right in the fact that the seller, if they're collecting payments at 0% interest, the IRS doesn't allow that in terms, they allow it, but they they are so they're basically not making any income. So normally, if you're writing a loan at 6%, you're the seller doing seller finance, you're getting 6% interest payments, like what some of the ones that we've done are currently doing. The the seller is getting taxed on that income because it's interest income. So that becomes income that they're collecting on those payments, and that that's taxable income. Well, when you're doing 0%, the IRS says 0% loans don't exist. And I think the reason is because they want to tax it. They don't want loan, you know, they they want to they want income. That's their job. The IRS says, you can't do 0%. We're gonna, we're gonna um apply a minimum, basically a minimum interest rate that we're gonna calculate and you're gonna get taxed on. So even though the seller is doing 0%, they're not collecting any interest payments at all, they are not collecting any income. They are now going to have tax liability on income that they never actually received. And the problem with this whole creative finance and buying 0% is that investors, I don't think a lot of investors know this because a lot of them are uneducated and they aren't really, they really shouldn't be buying properties, especially this way, but they don't tell the sellers this. And whether they know it or not, even if they do know it, they don't tell them this, which I think is really unethical. And I've always said this, and I've said this a lot of times in in forums before like, this is not the first time that this has been brought up. Like, I would never buy a seller finance deal without, if it was 0% or below the imputed interest rate, I would never do that deal without telling the seller they're gonna get charged interest, even though they're not earning it. All the deals we've done have been above that imputed interest and it changes. Uh, there's a link I have, and I can actually post it in the show notes here, but it will tell you what the current IRS imputed rate is. And that so at the time of the loan is written, whatever amount that is, that's what they calculate. Right now it's 4.7 or 4.69 or something like that. So if a seller has a million dollar house and they sell it for 0% interest, IRS is gonna say, you know, it's 4.7%. You're gonna get taxed. It ends up being like a, you know, I think it's like a $11 or $12,000 tax bill at a 25%, let's say they're in a 25% tax bracket, they're gonna have a $12,000 bill at the end of the year on interest that they never even received. It's this whole like, and and my my whole point in this post was like, and I said, like, this is really unethical that investors are doing this and not telling the sellers. And I got so much pushback and so many people, I clearly like triggered a lot of people and and kind of like, you know, people that are doing this, obviously, and were were rubbed wrong by what I said. I'm like, clearly you're the problem. But I had all these people like attacking me and be like, why would I ever do that? Why would I ever tell the seller that? That's the seller's problem, not my problem. Sounds like a seller problem, not mine. If they didn't go talk to their CPA, not my problem. Like, people were just like, so not my problem, not my problem. Like, and I even said, like, this is gonna, this is becoming a very big problem because people are are unknowingly going into this and all of a sudden having these tax bills, like there's gonna be lawsuits that start coming out of this. Investors that are talking people into 0% and not not, you know, not properly telling them how this is working. You know, if if a seller or if a buyer is telling a seller that they're not gonna have any, because one, I don't think all investors understand how this works, but if they're telling somebody that that they're not gonna get income, like tax on it, and they get then they get this big tax bill, like that's misrepresent misrepresentation. And I think 100%. I think that's gonna become a big problem. You're gonna start seeing a lot of lawsuits coming out of this. Now, if they didn't say that, then you know, that then they may not be at fault. But they still, if they know, and a lot of them know, they just don't tell them. It's still super unethical. Like, I would never do this, and I would never encourage anybody to do that. And I would never, if anybody in our group and our mentorship or our mastermind, if anybody in our group ever did that, I would like remove them from our group because it's it's very unethical. Like you have a job to educate sellers when you're doing creative finance in this sort of sort of deals. I just just I don't know. I have a problem with it. So anyway, there's my two cents on that. Like don't be on, don't be dishonest.

SPEAKER_02

You definitely did not tell me that, but that's extremely unethical.

SPEAKER_00

It is what it is, but it's just how I feel about it.

SPEAKER_02

I like that you're passionate about it.

SPEAKER_00

Yeah.

SPEAKER_02

Passionate about being ethical.

SPEAKER_00

And I don't have any problem with with creative finance. And then 0%, I mean, 0% is great, but I think you just need to make sure it's a win-win situation. Like it, you know, if you're helping somebody out of a bad situation and they're happy to get out of that situation, but they need to know, hey, you're gonna end up with a tax bill. And if they're okay with that, then they're okay with that. But if you don't tell them and you know that that's gonna happen and they unknowingly go into this, like because they're desperate, a desperate seller, it's gonna put them in a bad position later. And like it's just so I don't know. Uh it's super messed up. Yeah. All right. Anyway.

SPEAKER_02

All right. Well, tonight, any other updates actually first before we jump into the case. No, that's good.

SPEAKER_00

I'm all I'm all you're all fired up now. So move on.

SPEAKER_02

Right. We'll we'll take a breather and move on. Um we have talked so much about our most recent projects that we finished up and you know, house that we obviously we we weren't there as long as we thought we were going to be. And when we when we put designed that house and did it, got everything together. We had intended to be there for a little bit longer. Um not a whole lot.

SPEAKER_00

We we planned on doing two years there. So we did plan on doing two years and we didn't quite make it because the carrying costs were very expensive and very expensive. With our loss of income, it just did not make sense to stay there. So we definitely moved earlier, but I I would also say that we planned on being in there earlier. So that's true. It wasn't as soon as like time on the timeline, it was probably pretty maybe like six months earlier than we were originally planning on moving.

SPEAKER_02

I mean, we closed on that when I was nine months pregnant with one baby, and we moved out when our uh another baby was a month old. So it's kind of crazy. But um, you know, we always talk about how we obviously don't flip and how we hold on to these. We we fix and hold, right? So fix and holds um to the term. And we have kind of started to look into a different option with this property specifically. And we don't ever sell, but we are inner I just we never sell.

SPEAKER_00

We we do we do dispo cycles on like the out-of-state properties. Those we usually do like a five to seven year cycle, and we've been dispoinging a lot of a lot of those properties in the last couple years. Uh, we just sold another one um two weeks ago. It wasn't a huge property, it was it was kind of a problem property for us. We're happy to get rid of it. Like we've never had a good tenant in this property. We bought it seller finance. It was a it was a great deal. We bought it, I think five thousand dollars down, twenty-five thousand dollar purchase price, and we didn't have to do hardly anything to it. And we've rented it for the last six years, I guess, and just never had great tenants. Um, we'd get some tenants in there and they'd be good for eight months, and then they'd stop paying, and then we had to evict them. And it was just never, it was just one of those houses that we just couldn't get to work the way we wanted it to. Um, so we went ahead and sold it. We we got, I think we got like I want to say $70,000, $65,000 or $70,000. So I mean, still like made money over the the year. We didn't lose money on it. And then when we sold, um, you know, we cashed out and almost tripled our money. So it was a good investment. And it was $5,000. So we turned basically $5,000 into $65,000 plus some cash flow. The cash flow probably was a break-even because we didn't have consistent tenants in there and there was some expenses that we had to put into it to fix it up to sell it. So I would say on the cash flow, we probably broke even. So it wasn't a great hold. Um, but we still almost tripled our money with well, tripled our money on the investment purchase price. But because it was only $5,000 down, we literally turned $5,000 into $65,000. So if you look at that, that's a pretty it's what, 12, 12x, a little more than 12x our our money in five years. Yeah. So that was a pretty, I guess overall is a very good investment.

SPEAKER_02

That was a good one. But overall, the the properties that we have here locally have never been on our radar to sell.

SPEAKER_00

Yeah, we the first one we've had for fifty 15 years now and never had plans to sell it. The second one we've had since 2020, so six years. And then this last big project we bought, we've had for almost, I guess, going on three years, we're about two and a half years.

SPEAKER_02

Yeah.

SPEAKER_00

Two and a half years so far. And and sometimes, you know, a lot of times it doesn't make sense to sell because for us with these California properties, there's so much equity. We push equity, and then plus we get market appreciation. There's so much equity in these that you know, we can't, even if we've lived in it for two years, it's still more equity than than we can take the exclusion on. So we still have taxable income. Um, this particular property, we don't have as much equity as the other ones, but it's probably in the best neighborhood of the three, like the most sought-after neighborhood. So it has, you know, the most demand, I would say, right now.

SPEAKER_02

Yeah, and there's not a lot of it's hard to find a house in there.

SPEAKER_00

That neighborhood has demand has just continued to increase since we bought it. We had somebody about six months ago knocking on our door, a realtor, not technically, not technically knocking on our door, but we had a realtor reach out. Um, it was after we had moved out and we had started renting it. But um the sell or the buyers were looking at the house across the street that was for sale, and they really liked ours because it's way nicer. And so they reached out wanting to make an offer, and we weren't interested in selling, so we turned them down. But um, you know, it's it's a very sought-of-the-borhood. It's a phenomenal renovation we did on that property. It's it's definitely stands out on that street. Uh and we didn't spare any expense in terms of like we didn't cheap out, it wasn't a flip. We weren't doing it with a with a flip in mind. So, you know, the HVAC system, we didn't just put a $10,000 cheap HVAC to make it look new. We put a $30,000 super high efficient Lennox top-of-the-line multi-zone because we planned on keeping this for the long term and we do midterm, you know, we do furnished rentals, and so we cover the utilities. So that property is very efficient. It costs us like when the AC is gone, it's like a couple hundred dollars in the summer. It's crazy. And like our the house that we live in now, it's 1,300 square feet, is like two to three times that for the electric bill. Um, with a you know, half a size house. So a lot of little things like that that we just we we never really planned on selling it, things you wouldn't see in a normal flip. You know, for example, little things too, like drywall. We did five eighths drywall instead of half inch, which may not be a big deal, but it's a much sturdier drywall. It's thicker, it's more soundproof, it's just a lot better over time. And it wasn't that much more cost-wise, it was maybe a couple thousand dollars more to do that. But it just, it's it's a very well-built rebuild that we did. Um, so you know, we are considering selling it because of the demand in that neighborhood, because there's no inventory in that neighborhood. And with interest rates recently lowering, this last meeting they didn't lower it all, but the one before they did. But going into the the summer market, you know, with the lower rates, um, I think that this is gonna be a very hot market, especially in this neighborhood. So we're gonna start interviewing brokers next week and kind of start seeing what we can do with this. We're not just looking to sell like, oh, let's just sell this and and you know, cash out and you know, it's great. We're like, if we're gonna sell this, because we don't normally sell, if we're gonna sell this, this is gonna be like we're gonna go for it. Like this needs to be the highest sold property in this neighborhood. Like it needs to be a record breaker.

SPEAKER_02

That's what I was gonna say. It's not this is not an emotional sale, this is a strategic sale because we don't have to sell it.

SPEAKER_00

Yeah, we don't have to sell it. This so this property, um, the carrying costs are really high because we have a great first lien on it. It's still high, it's still six percent, it's still a high interest rate compared to three, four years ago. Uh, but for right now, it's you know, rates are actually just dipping below six percent. So they've finally come down to where it's like, oh, now rates are a little better than what we have now. But the the construction loan that we have on it, it's uh it's a private loan. It's it's at 14%. It's $300,000. And the the the interest payment on that is almost as much as it is on the the $1.2 million, 6%. It's it's it's a lot. And we had to renew this for a third year because we're having trouble refinancing it. It's a very difficult loan to refinance because no, not a lot of people will do a second position. Um, they won't do a second position when you have a balloon in first position. So we really need like a bridge loan for a couple years just to buy to buy some more time and keep the loan we have in the first position. But there's just not a lot of banks that'll do that. And all the private lenders that'll do it uh are gonna be in that 12 to 14%. Uh so it doesn't make sense. Or if we do a DSCR or a private loan, some sort of private loan to refinance both of them, which is more likely that they would want to do that, but then we're gonna be at like eight or nine percent. You know, even at like seven percent, our monthly payment goes up from what it's at now. So it just doesn't make a lot of sense. And I and I'm just running into a lot of roadblocks. And I think it's gonna be, even once we have a full year of rental income, uh, I I still think it's gonna be a Difficult property refinance. On top of that, we don't have the greatest credit right now because we've been going through some personal financial struggles lately, partly because of this project. And I would say partly because of that, because that was a lot of where a lot of our cash went. But then with our business, you know, losing, you know, we're not having paid ourselves in over a year now. So not having the income to keep everything afloat has made everything a little more difficult. So it makes it even harder to get a loan because you, you know, even though it's a business loan and it's the asset they look at, they still look at your personal credit score to evaluate the deal or to approve it. So all that considered, I think it's just starting to make more and more sense to to maybe offload this property. And and it's it's renting like it cash flows a little bit. It's it basically breaks even because we're renting it, we're getting $13,500 a month for it during the off-season and $15 in the summer plus $15 plus. Um, but it's, you know, it's not really making any extra money. It's not because our interest were we put $9,000 a month just in interest alone, another $1,500 a month in taxes and then insurance. It's just, it's not really uh a cash cow like our other properties.

SPEAKER_02

That's what I was gonna say when we sat down and kind of looked at it. It just doesn't fit our strategy. It's not as beneficial to our strategy.

SPEAKER_00

It's not doing anything for us right now and not moving the needle for us. If we were able to refinance, and we were also hoping that rates would be lower by now. So they haven't come down as soon as we had hoped. So not being able to refinance, you know, and maybe if we're able to save another two or three thousand dollars on the carrying costs, it would make more sense, but we're just not able to do that right now. So it's very difficult to make everything make sense. So anyway, I mean, right now, if we can sell this, and if it's, you know, because it's a brand new rebuild, I think there'll be a lot of demand for it. And if we can can get a real you know, get it bid up or or come come to market and just have some really strong offers, we would be able to to cash out and be in a really good position. We can walk away from this. And even though it's not something we really want to do, the amount of cash that we could walk with would make things a lot easier in a lot of areas.

SPEAKER_02

I feel really at peace about it when we first started talking about it. It I initially was like so sad, and I think there was a little bit of that emotion behind it because it was we put a lot more into this remodel than we did the previous house and really tailored it to our family and what we wanted. And so I think that aspect of it, it was like, oh gosh, but that's where it comes back to the difference between emotional selling. And, you know, we're so big on not getting emotionally tied to homes and knowing that we can make a home anywhere, right? It's a house. It's this is a part of our business. And so I think once we can remove that lens, I feel really at peace about selling this.

SPEAKER_00

Um again, this was this wasn't our forever home. We planned on living there for two years and renting it anyway. So that was the plan, but still like there was so much that went into it. Literally blood, sweat, and tears that went into this and all of our money. Yes. Um, so it is a little bit of like a you know, it's kind of a pride and joy thing because we we did a really good job on this house and we're really proud of how it came out. So letting it go is a little difficult. But I think we can take our experience from this project and move that into the next one. So here's the other thing, too.

SPEAKER_02

If we sell this, I was gonna ask, what's our what's our plan? Tell So here's the here's the deal.

SPEAKER_00

So if we have if we do this, we have to be strategic about it. We're not just gonna sell cat cash out and walk away and have all this cash. Um, I mean, I don't know. It depends on what we sell it for, obviously. You know, but we can potentially walk with, you know, five to eight hundred thousand dollars in cash, which is a lot of cash. It's that would make a big difference in our situation, and then I'll also just being able to move forward with all of the other projects that we we have on the horizon. But with that, is going to trigger some tax liability because we did not live in it for two years, so we can't take the primary residence exclusion. So we gotta get a little more strategic, and you know, I don't like paying taxes.

SPEAKER_02

So we we definitely know that you do not like paying taxes.

SPEAKER_00

Like, I'm not gonna sell this and and trigger a six-figure uh tax bill and pay it. Like it just doesn't make sense. So, what we would be looking to do now, we've got a couple options because it is a rental property, we could move that into another rental property or multiple properties on a 1031 exchange, and those gains can get rolled over and and defer those taxes. I don't think that makes as much sense in our situation because we do need cash for other projects. We do need cash personally, like just to get everything caught up. And so I think it makes sense for us to pull more cash out and not roll it into another project. The other option that we can do is we can use what just came back this year. This wasn't an option last year. So here's the other thing like holding on to this property as long as we did, this would not have made sense last year. You know, a lot of people are telling us last year to just sell, just sell, just sell. We would not have gotten nearly as much last year as we could this coming year or this coming summer. Um, we also would not have been able to use the bonus depreciation. And if we would have done it towards the end of the year, we wouldn't have had time to do this. But now with the big beautiful bill, for 2026, they brought bonus depreciation back again. What that means is we can buy another property or a couple properties. We may have to do this with a couple properties, and you know, or maybe it's one larger property in the same market, or we do a couple other lower, lower priced properties elsewhere. But we can do a cost segregation study and take bonus depreciation. What that means, a cost segregation study, is you pay a company that specializes in this and they come in and they evaluate the property and they'll go through and basically they'll say, okay, you got this amount of you know, electrical wiring and this plumbing and these materials, and they'll go through the property and figure out what portion of your property is eligible for bonus depreciation based on those materials. And so you can basically, uh, instead of doing the normal 27 and a half year depreciation schedule, so you have the land is never depreciable. So if you buy a million-dollar property, say that the land's worth like $300,000, you only have $700,000 of the asset that you can actually depreciate of the buildings. Um, with bonus depreciation, they'll say, okay, you know, $200,000 or $300,000 of this is in materials, and you can actually accelerate this to a five-year or a seven-year or 10-year depreciation schedule. With a bonus depreciation, that allows you to take that $300,000 that say $300,000 and push it all to year one and take that entire $300,000 depreciation, bonus depreciation in year one. And then you still have the rest of the $400,000 in depreciation you take over seven and a half or 27 and a half years. Um, now you can't sell that property right away. So that bonus depreciation was taken on the front end. And let's say it's, let's just say for ease, it's all it was like all categorized as a five-year depreciation schedule on these materials that they that they found in the study. You have to hold that property for that period of time. So you would have to hold it for at least five years to not get what's called recapture. So if you sell that after two years, the government's gonna say, oh, wait a minute, you took a five-year depreciation and crammed it all into year one, but then you sold it after two years. We want our money because you were supposed to do this over five years. So they're only gonna give you two years of that depreciation and the other three years, they're gonna take back and you're gonna end up paying on it.

SPEAKER_03

Okay.

SPEAKER_00

Um, now you can roll that forward if it's an investment property and 1031 it and then 1031 into the next property and and kind of push the can down further that way. Um, but it is something that you kind of got to go into holding that that property for that period of time, whatever that depreciation schedule is, so you don't have that recapture. So if we do this, we're gonna be strategic about it and we're not gonna pay taxes on it. You know, with this and other rental income and stuff, we we may end up having a seven-figure year because this is considered income. Um, but we will be, and we'll talk through this if this is something we go through. But you know, we had Luke on almost a year ago.

SPEAKER_02

Wow, that was.

SPEAKER_00

Yeah, maybe April. Um, you know, he had a big year where he made over a million dollars and paid zero in taxes, and we're gonna be doing something very similar with using bonus depreciation. And bonus depreciation, if this is something that you're looking at doing, you need to look into this. You need to talk to a tax professional, you need to make sure that you can do this for your strategy because there's different ways. There's there's ways to do this with a like a short-term rental where I think it's a little more available to people, um, where anybody can can use this if you set up your business properly. If you're buying a long-term rental property, it's a little different. You have to qualify as a a uh a real estate professional, an REP. And what that means by tax code is that you have to, you don't have to be a realtor, you don't have to be a licensed realtor, but you have to have a certain amount of time in real estate operations. Uh, one of the metrics is I think it's 750 hours a year spent on your real estate business, uh, which we I spend probably more than that. So I'm sure we'd be able to qualify either that way, so we could probably get this and something we'd run by our CPA and make sure that this is going to work before we do anything, but we could probably go that route and get a long-term rental. Um, or maybe we look into doing more of a vacation home, you know, something up in the mountains uh or somewhere out of state that's a vacation rental, and we go that route. So I don't know. I've heard I need to look more into this, but I've heard that with short-term rentals, you can get more bonus depreciation. And I don't know how that is. I don't know if it's because maybe the furniture they take into consideration or if it's just a different way that the IRS code looks at it. I don't know, but I've heard that you can get a little more on the bonus depreciation if it's a short-term rental for whatever reason. So we need to look into this. Um but this will definitely be the strategy to not pay any taxes on this. So we'll be selling one property, but we'll probably end up with a couple more out of the deal. And we're not rolling all this, these proceeds into it either, because when you buy a property, you leverage it, and so you're just putting a down payment. So I figure if there's a $150,000 tax bill generated from the sale, if we can take that $150,000 and put that in towards down payments on these other properties that then come back and negate that tax bill, I'd rather take that $150,000 and put it on down payments and buy more properties than give it to the IRS.

SPEAKER_02

100%. That's a no-brainer.

SPEAKER_00

Yeah. So that that would be the goal is to take whatever the tax liability would be, use that money as down payments to deploy and leverage into new properties that then give us that tax break so that we're not having to pay that bill.

SPEAKER_02

So I'm happy you said that too, that timing is everything on this because like you said, we, you know, we had friends and family that knew kind of what we were going through personally. And that's everyone's first thing is just sell a house. And it's not as black and white as that. It it last year it didn't make sense to sell this house with I mean, it would it wouldn't have sold for as much.

SPEAKER_00

Right. And there was no bonus depreciation, so we wouldn't have been able to offset those taxes, and we would have hardly walked away with anything.

SPEAKER_02

Like really. I mean, it would have been a very small band-aid for us.

SPEAKER_00

So it didn't make sense. And and we were renting this property, and there's a lot, we have a lot of demand. We have a waiting list for people to rent this property uh as a midterm rental. Like there, we have like three or four um requests to rent this, but we've got somebody in there now as a uh that's on an insurance claim, so they keep renewing because their house isn't ready. And so we haven't been able to take these other claims we or these other um uh booking requests. We had one last week that came in and that one was hard. It was a six-month request from March 1st to October 1st, and it was $120,000 booking.

SPEAKER_02

That one hurt. I'm not gonna lie. Really?

SPEAKER_00

We almost want to just pay the family there, but hey, can you you guys we'll just put you somewhere else? Can we just pay you to leave? Uh but we don't do that. We don't do that. We talk about being ethical. Um, but that was a tough one to turn down. And there was a couple other ones too that were, you know, three or four months, but that one was like a tough one to swallow. It's like, oh um, but that's how it goes. So, but but you know, their demand is there. So we've got demand on this this property. So it's not renting it and and paying for itself is not a problem. It's just, you know, we're renting it and not getting it's not doing anything. It's not there's no cash flow, it's just paying all the expenses, it's paying all the interest, and and that's it. So it's just it's not a great and it may be a while before it starts to cash flow. You know, it may be a while before we're able to get the the loans refinanced to where it actually makes sense.

SPEAKER_02

So I was gonna say, is there anything that would well, so the other thing too is we do have a family in there. So that's kind of we have to be having around.

SPEAKER_00

Yeah, so we're not selling now. We're we the current family, we don't know how long they're gonna be there because it's an insurance claim and and they don't know when they're gonna be back in their home. But, you know, it's probably gonna be April or May before they're they're done using the house. And, you know, we we may end up taking another booking or two. I don't, I don't know. We're gonna talk with brokers and we're gonna find out when's the best time for this particular house to come on market because we want to hit the market at the hottest time. We want, we want to go big. You know, we want this to be a record-breaking sale. Like if we're gonna sell this, we're gonna like cash in, we're gonna make sure that we maximize because this again, this is not something we really want to do, but if we're gonna do it, we're gonna maximize our return on this.

SPEAKER_03

Yeah, absolutely.

SPEAKER_00

So we so we may we may end up you know renting it for a couple more months after they leave and coming to market, you know. I I don't know, whatever the the brokers think that's gonna be the best time to to come to market.

SPEAKER_02

So I will say you are all hearing this first.

SPEAKER_00

So if anyone is interested, reach out to us because if you're interested in uh a record-breaking purchase.

SPEAKER_02

Yeah. How bad do you want to be in a specific neighborhood in Costa Mesa?

SPEAKER_00

I mean, this neighborhood's crazy though. There's uh we did we we know somebody that's just uh renovated a home. Um it was a they've had it for about a year, but they they're they do flips and they but they do a good job. It was all permitted. But this property is only 1,700 square feet and they came to market just last week at right at 2 million. And so if that sells anywhere close to that, that's a great comp. It's gonna be good. Yeah.

SPEAKER_02

You know, that's you said that too, is the comps have been higher versus what they were last year.

SPEAKER_00

So last year it just didn't last year they wouldn't have higher comps. They were all like sales that were not renovated properties, and and those properties have now turned over and sold. So now there's all these higher comps, and and just going into the summer, there's just a lot. It seems like there's a lot more of these higher comps hitting the market. So it's definitely a better time uh to sell. And I think that, you know, again, we're still exploring this. We're interviewing brokers and we don't know for sure if we're gonna do this, but it may be a time that makes sense to do it.

SPEAKER_02

Is there anything that would change your mind specifically about not selling?

SPEAKER_00

Uh I think it's gonna depend on our meetings with the brokers and what they think. You know, if they don't think that it's gonna be a record-breaking sale, then I don't think that we're gonna sell. I mean, I think that's really what we're looking for is we have something that's most of the houses in this neighborhood that get redone to at least to this level, I would say all of them that get redone to this level and then put on the market. Uh, or actually they don't even get put on the market. The ones that get redone are smaller homes. Like they're not these bigger homes. This is a two-story, a large 2,400 square foot home, uh, five-bedroom, three and a half bath. These ones are not getting redone. And the ones that are getting redone like that are are like not, they're not getting permitted. They're not getting like a full like gut job like we did it and rebuilding up from the ground up. I mean, we we took that thing down to the studs and redid everything. New sewer, new plumbing, new electrical. Uh, they're not redoing the backyard and the entertaining space like we did. So it's definitely for that size property, not there's nothing available.

SPEAKER_02

There's also very few homes of that size in the neighborhood, too. So I think that that's also gonna work in our favor um as well.

SPEAKER_00

Yes. So we'll see. We'll we'll keep you guys updated, but I think it definitely could be. And, you know, as far as like selling properties, like it doesn't always make sense, but sometimes, sometimes it does. You know, sometimes um, you know, and things change, legislation changed. Like that's kind of our the the tax has changed all of a sudden, and all now all of a sudden there's this bonus depreciation, and we have uh the opportunity to be able to sell and offset those taxes where we didn't have that before. So, you know, there's an another another bill that's kind of making its rounds right now. Um it's uh I can't remember what it's called, but and I know we've mentioned this before, but right now on your primary residence, if you've lived in a property for two of the last five years, you can sell that and all your gains that you have, so all the profit from what you paid for the property, you up to $500,000, a $500,000 exclusion if you're married, you don't have to pay taxes on. Uh now if it goes over $500,000, which a lot of our properties have more than $500,000 in in equity that we would on our tax basis. Um, so we still can't sell those without triggering tax liability. But this bill that's making the rounds would eliminate that and it would eliminate the cap on that for your primary residence. So you could sell a home for any value at any equity gain and not have to pay taxes. So that could change our strategy too on some of these other properties if that comes around.

SPEAKER_02

I think that's where you have to be okay with being able to pivot and not we've talked a lot about this about yes, we have a plan, but it's okay to know that things can change. And it's kind of a year by year thing. Like you said, we were not expecting this, this was not on our radar at all to sell, but it kind of a good opportunity or yeah, in time. Multiple things kind of were falling into place to make it a good potential opportunity for us. That's it.

SPEAKER_00

Yeah, and it would help us too because we're, you know, we're rebuilding uh, you know, our business and so rebuilding that income stream back up, and so it's not going to be paying us for a while. And that was our main source of income. And you know, we have the real estate. Luckily, we do have the real estate, so a lot of people think that you know, the broke millionaires that we're broke right now because of all these projects that we have, all these real estate properties that we own, like that actually has nothing to do with why we're broke. I don't think we've ever actually talked about that on the show. But the whole like financial situation that we're in cash flow-wise, has nothing to do with all these properties. These properties have actually carried us through the last two years because they are generating cash flow. And you know, we are that is our that is our only income right now. If we didn't have those, we wouldn't have any income. You know, our our business is not producing the income that it was two years ago.

SPEAKER_02

So then I say, explain the broke millionaires again, because we came up with this before personally, we were in this situation.

SPEAKER_00

The funny thing is like the broke millionaires like whole concept is that we're always putting all of our money into a property, and not you're not just sitting on that cash. Like all that cash goes into the next property and or the next project, and then we just keep keep rolling it over, rolling it over, rolling it over. And so we've got all these investments going and in our businesses and everything, and it's almost like we're living paycheck to paycheck because our expenses are what's coming in, but it's because we've rolled everything over into the these projects, and so we don't have that cash, you know, we don't have cash sitting in the bank. It's all invested, it's all deployed. It was never meant to be like actually like broke cash flow broke, like struggling to pay bills, which it has kind of become, but yeah, we've kind of like living out the name of the broke millionaires, but it's really, you know, if we get all this cash, we're still gonna be the broke millionaires, we're still gonna deploy the cash, we're still gonna put it in investments, and still we're not gonna just be sitting on $800,000 in cash in the bank. You know, we'll save a little bit, we'll have a little bit of a cushion um so that we're, you know, safe or rainy days. And I think we're also going to, we didn't have when we first started this, we didn't have kids. The first house we had we had just had we had one kid.

SPEAKER_02

And the plan was only ever to have two kids.

SPEAKER_00

And we yeah, and we started like trying to buy the first house before we even had the first kid. So originally, we know we didn't have a family and we were only gonna have two kids, and then now we got four kids, and so there's a lot more expenses that have come into play. And so I think it's kind of changed our outlook on how we need to strategize with our income because everything that we've done has always been equity building and not so much cash flow and income. It's always been we're doing this to build equity, we're doing this to build wealth, we're doing this not as an income stream. It was just the asset will pay for itself and it'll build equity, and that'll build wealth and take care of us in the future. So now I think as we kind of rebuild and restructure, now we need to be like, okay, now we've got this wealth built up. So now we can kind of slow down a little bit on it and kind of start focusing a little more of our resources on cash flow because we were relying. On the businesses, our income. And when that dried up, as that's getting rebuilt and not paying us, like that's what's been a struggle for us. So I think as we rebuild and start to redeploy this cash, instead of being so equity building or equity builder heavy, we're gonna diversify a little more and and have to create more cash flow with these investments. So that way it's you know, because the rental properties do, because we do midterm rentals, we do actually generate cash flow on these properties, but it's not enough to support us, a growing family.

SPEAKER_02

Right. And that's something that can change too. I mean, those are what do you mean? You're gonna have another kid? No. Oh no, we are done. No. Um the co you know, the the other co-hosting houses that we have, like we want to grow that. Obviously, that's a an arm of our business that we want to grow, but uh obviously not relying on that either.

SPEAKER_00

Yeah, and that wasn't something that we originally were looking at. It just kind of came out of these investments we have. We just this whole co-hosting thing just kind of naturally evolved, and that's actually been an income source for us as well, because there's that's all profit. So I think just as we rebuild and restructure, we're definitely going to look to build more income streams that build income for now and take care of us now, and so that we don't rely on the business. So when the business is good, it's great. I mean, we were making $400,000 a couple years ago, and that's not there anymore. So I think just having more income streams to be able to compensate for that when things do get tough, when the economy does turn and and things are rough.

SPEAKER_02

You talk a lot about the the income streams, and that was something that I think we had always talked about that in addition to the business, but we never really looked at it from the angle of like, what if the business fails? Not fails, but what if it has some really hard years where it's not bringing it? Or even fails.

SPEAKER_00

Like if it does, if it does fail and just it completely ceases to exist, like that was not something we planned on.

SPEAKER_02

So yeah, we didn't look at it from that angle, but I think that everything we've gone through in the past couple of years has really just changed our outlook on Yeah.

SPEAKER_00

Now we have kids. Now we have more mouths to feed. Like these kids cost more to feed than it costs us to feed, which is crazy. They're little stomachs, they eat so much. Snacks and all the crap that they I don't understand it. Um, but they're expensive. You know, we got that, we got swim lessons, and we got school, we got, you know, when we're doing the pod the podcast, we gotta have a nanny. Like it's just there's a lot of expenses that come with kids. And so I think we just need to restructure and create income streams to pay for our lifestyle so that when business is great, then we got all this extra cash, great, we can invest more, do more things, whatever. But when it's not, we just need to make sure we have enough income to to take care of our personal expenses and not get into situations that aren't fun.

SPEAKER_02

So let me ask you this. And this question may be a little premature. So if it is, you can say that. Um someone had said to me when we were in the process of buying this home, because that was kind of a lengthy process too. It it that took a longer than a regular sale. We had some things we went through with that.

SPEAKER_00

Well, yeah, it was a creative finance deal. So we actually don't have no realtor involved. We bought from the seller directly. So uh, yeah, no, it was it was I think we had like a 60-day close or 90 day case. I think it was 90. It might have been three months. Yeah.

SPEAKER_02

Yeah. And someone said to me, just because it's a good deal doesn't mean it's the right deal. And that has kind of always like been in the back of my head with this house because I feel like there's been a lot of things that have happened. So looking back, knowing, and again, this could be premature because we don't know what's gonna happen with a potential sale. Would you still have done this project?

SPEAKER_00

I think so, because I think at that time we were still in wealth build mode and the business was still generating income. And so I don't think I wasn't thinking, oh, the income's gonna disappear. And so I think at that time, I think now going through it, now I think for the rest of our lives, we're gonna have a different outlook and we're gonna be like, okay, well, we need to think what if this income disappears, then what? So if we don't have that taken care of, I think that changes our decision making. But I think that we still would have probably done the deal because we were trying to move forward, get the next deal, and just keep keep building. And and and we have what it's worked, it's it's done what it was supposed to do. And even though we weren't planning on selling it, like we sell this and we are going. And and I will say this we knew that this was gonna be a harder hold because interest rates were so much higher when we bought this one versus the other ones. So we knew it was a higher holding cost, and we knew it was gonna be riskier in terms of could we rent it out? Was it gonna be a good midterm rental? Was it gonna have the demand? We went into this thinking, hey, if it doesn't work out, we're gonna sell this property. So there was always that backup option. We didn't plan on making money, like even if we didn't make money, we're like, we can sell it, and we were gonna that's that's one of the reasons why we like we wanted to make sure everything was permitted and everything was done right. And we wouldn't, we wanted to make sure that this would be something we could easily sell down the road and not have problems if we needed to. That's true. So this was this We had set that.

SPEAKER_02

I forgot that we had talked about that.

SPEAKER_00

This particular property wasn't like, oh, we're never selling. It was kind of like, hey, our backup plan is to sell this. So let's do this right, let's get the permits, let's do everything, you know, to to where it's going to be a product that we could sell quickly if we need to.

SPEAKER_02

And I think that also comes back to what we've talked about so much in the past is location matters because we knew that this is a highly desirable neighborhood. And we knew that we could sell it if we needed to.

SPEAKER_00

And I because of the location. Yeah, I think that's part of why we would have done this deal. Yeah. Even knowing things got hard because of the location and knowing that, like, hey, when we redo this, this is gonna be something that we can easily sell and get our money back and not lose on.

SPEAKER_02

Right.

SPEAKER_00

I don't, you know, at that time it was kind of like that was a backup plan. It just did not make not lose money. Now, now we've held it for three years, and now it's like, okay, now we can actually make some money on this and actually come out really ahead.

SPEAKER_02

I agree. I'm excited to see how the conversations go with the brokers. Um I just feel really good about it. I feel really at peace about it and haven't felt at peace in a long time. So that's good.

SPEAKER_00

I need I need you to be peaceful. Because when you're not peaceful, nobody's peaceful or else. When mom's not happy, no one's happy. Happy wife, happy life. That's very true. Um another thing, too, that I I think we're if we do sell this, one of the things, and and I talked about this, I don't remember what episode this was, but I've talked about uh we talked touched a little bit on it on um uh Coverdale. Coverdale yet uh uh savings plan, education savings plan. What that is is I think a lot of people are probably more familiar with the the college savings plan that's the 501 savings plan. Oh my gosh, I'm blanking. I know, I don't know the number. Anyway, there's a saving college savings plan that you can get, and you can get as soon as your kid is born, you can open this account, you can put money into it, grandparents can put money into it. I think you can put like $15,000 a year into it, something like that. I might be a little off, somewhere around there. But you can only invest this into like mutual funds, index funds. And so it doesn't really gain a lot of money. So if you put it in when your kid is first born and they get to college, yeah, okay, maybe that makes sense. But what I really want to do is I want to figure out how to pay for their school now. How do we pay for our kids? We've got two kids that one kid that's in school, another one starting next year, and then two more coming right behind them. I want to figure out how do we exponentially grow money inside one of these accounts and then because these are tax-deferred accounts or they're set up as a Roth. So you put money into it, all the gangs are tax-free when you pull it out as long as you use it for education. There is what's called a Coverdale education savings plan uh or savings account, ESA. What the Coverdale is it's very similar to what we have with our solo 401k or our self-directed IRA. You manage the money, you can put that into anything. So you can put it into real estate, you can put it into Bitcoin, you can put it into anything, any type of alternative investment. The problem with the Coverdale is that they only allow you to put $2,000 a year in max per child, but $2,000 a year, you know, tuition is $1,200 a month for, you know, elementary school. Yeah. And so unless you're just doing it for college, it's, you know, it doesn't really do any good. I want to figure out a way how do we put money into it, get it to grow enough to pay for elementary school, middle school, high school, then college. All tax-free money. So I think one of our recent guests that we had on, uh, Cam Dasani, I want to deploy some of the money that we have coming in from the sale and take start one of these accounts for each of our children, get into his program and see if I can get the $2,000 to grow fast enough from the time. So basically, when do the kids start school? Four. Uh well, I guess with the I guess with like preschool, we could say with three.

SPEAKER_02

Yeah, preschool is usually three.

SPEAKER_00

So I want to see if I can get like a $2,000 initial investment to grow in the next, you know, in two or three years, grow enough to start paying for the tuition without depleting the account. And if I can figure out how to do that, like we could pay for literally all their all the kids' school with a $2,000 investment. Initial, so start with $2,000 and that's it. You don't put any more money in. Yeah. You take that $2,000 and then you pay for 12 years of of education. Education plus college. That would be incredible. Insane. And I think we can like teach other people how to do this, and this would be like an incredible like investment strategy to be able to pay for private tuition with literally $2,000.

SPEAKER_02

Could you imagine?

SPEAKER_00

We're gonna see. We're gonna try it. Can we do it? We will share this and show everybody how to do it. But this, if we can figure out, I've been trying so hard to figure out how do what kind of investment can take $2,000 and get it to grow fast enough to be able to start paying tuition without depleting it. And I and real estate doesn't do it.

SPEAKER_02

Have you asked him about this yet?

SPEAKER_00

No. I mean, we just interviewed him. Yeah, I've been thinking a lot about this, and I think this may be a strategy that will work with this account. And if we can figure this out, like this would be huge. Game changer. Yeah. Literally, if we can pay for all four kids, like all the rest of their private school and then college and everything with a $2,000 investment. I'm very excited about the like possibility of this working out. Maybe it may not work out, but if it does, I'm gonna test it first. And if it if we can get it to work, then we will let you guys know. And like this could be an incredible opportunity for a lot of families to be able to pay for education. So we'll see how that shakes out.

SPEAKER_02

We'll see. Yes. All right. So the long answer to my question was yes, you would still have bought this property.

SPEAKER_00

I did answer that.

SPEAKER_02

I did. I know. You did.

SPEAKER_00

Yeah. Look, we've done pretty well. We've done very well with our our properties in the last five years. Uh it's been a bit of a struggle, but it's putting it lightly. We've I mean, we've created it depends on what the sell's for, but we we could be close to two well, we could actually be close to almost three million in equity gained by what we've been doing the last couple years with these houses, the last five years. That's like pretty cool to say if that worked. If so, I don't know because I don't know what's gonna sell for, but if it's whatever price it sells for, then we add that to the to what the other property is like that's that's pretty cool to say that you know the struggles we've gone through and all the the pushback we've gotten from other people to like, oh just sell, just just you know, pull your ripcord. Like, no, we just like created three thousand dollars in wealth by going through this. Three thousand? Three million. Sorry, it's late. Three million in wealth by doing this and set ourselves up. I mean, this this a windfall of cash like this will make things a lot easier and kind of set us up, allow us to get into these other investments and like really propel us moving forward. Yeah. Would we have to change the name of the show?

SPEAKER_02

I don't know.

SPEAKER_00

We'll still be the broke millionaire. We're still we're the whole idea is that we're deploying our cash into investments and we don't have cash sitting in the bank. So we're not gonna keep all this money in the bank. We will keep a little bit because we don't want to get in the situation again, but um, it's still gonna be the same. No, it'll still, but it'll still be the same concept. We're still gonna be building wealth.

SPEAKER_02

Absolutely. That won't change.

SPEAKER_00

Yes. All right, anything else? I was gonna say anything else? You're getting tired, I think.

SPEAKER_02

I'm getting tired. I we haven't been doing these late night episodes, and it's uh it's kind of throwing me off. This fire's cozy. We're yeah, I'm a little tired.

SPEAKER_00

But I think that's it. I do want to touch on the community that we are going to be launching very soon. Um actually, I'm just gonna say it now. We're just gonna go for it. Uh, we are going to be launching our school community. Um, so if you're not familiar with what school is, it's S-K-O-O-L. It's uh basically a website for communities like this. We are going to be starting, I think I'm gonna be targeting probably beginning of March, couple week, couple weeks. I'll do the first call. Um, but we'll we'll announce this on social media and we'll have links and stuff for it. So if you're interested, like check this out. It'll be free to join. We're gonna have a community. Um, you know, you can ask questions. And I'm gonna do, I don't know if you'll be able to join all these, but I'm gonna host an office hour. So that'll be probably Thursday uh afternoon, four o'clock um Pacific time. So I'll do like an hour of QA and it'll be around an episode. So we'll take one episode and break it down. So each week we'll announce which episode we're gonna be talking about, and then we'll do QA questions around that topic so people can kind of ask questions, dig a little deeper into these discussions, see how it may apply to their situation, and kind of give more feedback to our listeners. So I just we really wanted to create a community where our listeners can kind of get more information on the topics we're talking about, how does it apply to them, and kind of get a little more in-depth and be able to create a little more value that way. So, you know, there'll be like a forum as well, and people can ask questions and we'll be able to answer. And other people in the community that are are investing in doing these same things can can chime in and and you know, just creating this community of these like-minded people. Um, but we will be launching this and it will be free to join. So uh it'll be a free call and we will get this going very, very soon and and make the announcement. We actually just set it up last night. Yeah. Just set it up, didn't launch it yet, but just started getting everything set up, and we're excited about this, and we'll see, we'll see where it goes.

SPEAKER_02

We hope that it can be beneficial, and that's been our whole kind of idea behind this is just A, to make not people feel not alone if they're going through something similar, because we've said that we'd it's that's been kind of a struggle for not so much you, but more me. Um but also just like you said, how does this apply to my life and and what people are going through specifically, and how can we help them apply it to their specific situation, I think is Yeah.

SPEAKER_00

And the whole theme of our show and just kind of what this is gonna be about is really just, you know, being able to build wealth and do this, you know, create multiple income streams, build long-term wealth while you've got a family you're raising. Because a lot of people, if they don't do it before kids, they just put it off until the kids are older.

SPEAKER_02

And it's too late at that point.

SPEAKER_00

It's just too late, and you you don't get that that compounding uh effect that you do when you start now. So just going through it while we're raising the kids and just struggling through and pushing through and showing people that we you know, you can do this, like it's tough, but you can do it. Um, and but just having this community with other other families that are going through it, it's not just for families, but that is a big focus of of what because it's so much like before I was married, it was even easier because I could stay up all night and not have to worry about anything. You know, I just I would work through the night sometimes, and I can't do that anymore. Put the kids to bed. I'm so tired.

SPEAKER_02

I just I can't barely make it out of their bed after we put them to bed. But I think too, it's like you you've hit the nail on the head. It's not like we really want this to hopefully be centered around the family and so the couples together. Because I think that one thing we've really learned is doing this takes a lot of alignment and a common shared goal and being really, really aligned with that goal and the sacrifices that will come with it. Yeah. Because if you're not, then don't do it. Yeah, it's not worth it. But if you are, and that's why I think we like this idea of the couples and having everyone being really together in this.

SPEAKER_00

Uh yeah, and the show, if you are getting some value out of it, uh share it with somebody else that you think might be able to get value out of it. We are on YouTube now, so uh Spotify, Apple, YouTube, um, there's a lot of other places the podcasts are as well, but those are the big three that we push out on. Uh and you know, leave a subscribe. Subscribe on YouTube, subscribe on Spotify, Apple, whichever, wherever you're getting your podcasts. Um, that really helps the show for us. It helps it in the algorithm and it helps other people find it too. So uh subscribing is a a big help to us. So we would appreciate it.

SPEAKER_02

And ratings. Ratings are always helpful as well. Yes. Um, and we've had, I mean, obviously, quite a few interviews that have been happening. We still have more coming. And if you know anyone that would be good on the show, or or if you have suggestions of topics or things you wanted to cover, we're always open to new things that you're interested in and want us to kind of dive in a little bit deeper on. So yeah.

SPEAKER_00

Oh, and one final announcement. We have the MTR summit that's coming up this year. We were not able to make it last year because we were having a child, but we're done with that now. So we will I will probably be there all three days. And I don't know, you may come the last two or something. I don't know. We'll see, but we will be there. So if you are in midterm rentals and you are gonna be at the MTR summit, come meet us in person and we'd like to connect with people that are listening, have have other, you know, common interests and just connect in in person.

SPEAKER_03

Yes.

SPEAKER_00

All right. Get out there and make it happen.

SPEAKER_01

Thanks for listening.

SPEAKER_02

This has been a production of Rebuilding the Dream Studios.

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Joshua Massari

Co-host
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Lauryn Massari

Co-host