In these uncertain times, how can you make sure that you are heading in the right direction with your financial future? In today’s episode, CEO and Founder of Boron Capital, Blake Templeton sits down and talks with special guest, Ryan Smith. Ryan is a co-manager of multiple investment funds and more importantly, he is a Kingdom businessman. Together, Blake and Ryan will reveal what they believe are the best investments for 2021 and beyond.
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The Best Investments for 2021 and Beyond with Ryan Smith I Solomon Investor
In this episode, we will be discussing The Best Investments For 2021 and Beyond so you could learn how to take full control of your financial future like a boss.
Let me drop a truth bomb right away – when you will be investing in the asset class we are about to expose to you, with the right structure, you will be massively transitioning from having wealth of a peasant to wealth of a king.
So, in this video today, with my special guest and good friend, Ryan Smith, we are going to unpack together 2 of the undeniably best investments for 2021.
Ryan Smith is the co-manager of multiple investment funds totalling over $700M in asset and the management which he specializes in mobile home parks and self-storage, representing more than 20K units located in 25 different States.
Ryan Smith grew up with the concept of real estate being a tool that could be used to generate income and wealth and from his early years created his investment strategy and understood that the best assets to invest in are self-storage and mobile home parks.
But strangely enough for me, most people do not see these assets as assets that make you wealthy and with Ryan, we both agree that they actually are two of the best investments for 2021. I highly encourage you to keep watching this video to understand why.
From what Ryan has shared with us in this video so far, let me drop the second truth bomb here – in the mobile home park space, simply put, the demand to this day continues to grow for affordable housing but the supply is actually constrained by a stigma. So, it looks like an inefficient market because there is a lot of demand of the product that you cannot supply.
It gets really interesting here, keep listening to the video to uncover how the negative stigma will actually protect your capital by keeping competitors out and get to learn more details on why this asset class could be your best investment ideas 2021.
Moreover, keep a note that Ryan and I will be doing a further in depth presentation on these investment ideas 2021 and actually explain how to invest in 2021. So, if that interests you, I invite you to join the Solomon Investor revolution by texting SOLOMON to 31996.
Now, let us talk about wealth, why it is so important and how to invest smart to build a wealth strategy?
Wealth creation is incredibly important and first and foremost you should understand that you cannot earn your self-wealth through income due to the way the tax regime is structured. So, one of the main benefits of wealth is that it is tax efficient because really the only two ways wealth could be taxed is if you die or if you sell.
Your goal then should be to buy more assets, make them worth more by adding value to them over time and after access the wealth and return it to investors.
And so, guys, especially in today’s times, more than ever you got to think about how you could make money in 2021 and work on developing an investing strategy 2021.
We hope that today’s video on the best investments for 2021 and beyond gave you a clear idea on how to invest in 2021 and where to invest to maximize wealth creation, legacy, and financial freedom.
And if you want to become a Solomon Investor today, go to: https://SolomonInvestor.com
To watch again this video, click here: https://youtu.be/TN1HhfMngXo
⏰ Key Takeaways in This Video
⏰ 0:00 Intro
2:25 Who is Ryan Smith and How did he get started?
8:42 Why self storage and mobile home parks?
17:42 Why are these assets so beneficial right now and in the near future?
21:39 What is the importance of building a wealth strategy for your future?
27:31 Flipping assets vs. holding assets
- DISCLAIMER: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. No communication by Boron Capital, LLC Inc. or any of its affiliates (collectively, “Boron Capital, LLC™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this episode is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Now the truth is, when you invest in this asset class with the right structure, over the coming decades, you'll transition from having wealth of a peasant to wealth of a king, from being a trader, on the trade route to truly owning the trade routes, and from hoping you have enough to have an abundance where you can truly help others.
So the four things we wanted is we wanted cash flow, you know, reoccurring income, we wanted capital appreciation, I wanted to put in a, you know, $1 of mine. And you know, over time, folks, it was two and three and four, you know, I wanted as much as possible to be off that roller coaster ride as I possibly could. So, we basically took every asset class in real estate, we could think of, and ran an analysis of the two best for mobile home parks and storage by our determination at that time,
the economy, the salaries, the employment is all in a very sick situation where a country's going, which changing the system is getting rid of the middle class. So you get, you'll end up with a poor class in a rich class. And that's your choice.
Hey, this is The Solomon Investor show. I'm your host, Blake Templeton. And this is where we focus on the wealth strategy of the world's wisest man, King Solomon. And then I translate it for the 21st century investor covering everything you need to know from wealth, to faith to excellence. Now in this episode, we'll be discussing the best investments for 2021. And you'll learn how to take full control of your financial future like a boss. Now, the truth is, when you invest in this asset class with the right structure. Over the coming decades, you'll transition from having wealth of a peasant to wealth of a king, from being a trader on the trade route to truly owning the trade route, and from hoping you have enough to have an abundance where you can truly help others. If you like what you're hearing take action right now. And like this video, hit the like button. Like right now hit the like button, turn that thumb blue, and then hit the red icon to subscribe to this channel. last hit the bell icon on the top right hand corner and that will help notify you every single time a new video comes out. Now, I have a special guest with me a good friend. And we're gonna unpack together two of the undeniably best investments for 2021 Ryan Smith is a co manager of multiple investment funds totaling over $700 million in assets under management, which he specializes in mobile home parks and self storage representing more than 20 housing units located in 25 different states. Now a fun fact about Ryan. He was drafted as a senior in high school, have a Baltimore Orioles. And again in college, but Anaheim Angels. Pretty cool. So we're talking about excellence, I can assure you and testify that he performs everything at his greatest God given abilities. However, what I love most about Ryan's story, and why him and I are so aligned have a strong alliance is that he's a kingdom businessman. And he truly loves Jesus. And this is the foundation that leads his investment allocations. As you guys know, that's Spain, Bella suborn capital. And that's what The Solomon Investor is. It's about being God directed, taking control of your investments, and then creating absolute exponential wealth. Ryan, welcome to the show.
Hey, thanks for having me. Good to be with you.
Yeah, absolutely. As I shared a little bit about your history, briefly, share a little bit more, maybe some nuances and color of, you know, what got you into the platform of real estate you're in?
Yeah, no, it's a good question. Um, you know, I would say, you know, we both my wife and I come from blue collar backgrounds, and, you know, didn't come from much of anything and you know, my I credit a lot to my dad is just a hard working guy and, you know, started riffing houses in high school to make a buck or two and came to the realization for himself and he viewed this and to me, but his realization was the person who made the most money was the one who owned the roof, not the person standing on the roof. And he was that right point. Yeah. And so he jumped probably literally, and went birds and so my dad growing up, we, you know, we grew up in a in a real estate household every weekend, we were scraping in big and intervention and, you know, basically touching all the things he didn't want to you know, it's our role as kids and I have a there's a photo of me floating around somewhere. I think it was six months. Old inner critic on a roof.
Oh, wow. heard that story.
Yeah, that my dad was roofing and for our family. So you know, I grew up with the concept of a real estate being a tool that can be used to generate income and wealth. And that could be done with you know fairly little amounts of capital and was a huge opportunity to, to kind of take one's financial future in their own hands, I saw my dad do it, live it out, do a good job. And then as a basically as a teenager, I found ways to add value to my dad's business. And my dad was eight, my dad is a DD ADHD, great guy love him very talented. But analytics is not his forte. I started coding as a as a young person. And so I challenged at a software company I had started and I would write software for anybody and everybody. So if I ever as a teenager went to your business, if I thought you should have software in some way that can improve your workflow, I would go home, write the software, put it on a disk, come into your business and hand it to you free of charge. I just loved writing software. So one summer, I challenged myself to code an application that helped my dad sit down at a computer and financially model his own investments. And then this was I love my dad, I love to code, it was also somewhat self serving, and that I feared that if I didn't give him that tool, I wouldn't always be his tool. I had dreams and visions beyond the basement. So I built this application for him, it worked, he was thrilled I ended up that application ended up turning into a company with about 140,000 people like my dad globally using my software as a teenager, which was surreal. And, and so anyway, I really did skip for time and you know, whatnot, went to college had a chance to play professional baseball, love the love sports, but coming out of college had capital, had this tool had knowledge of real estate has been a great path for creating wealth, and my wife and I met. So that was kind of the baseline. And that kind of propelled us into looking into it and taking our first steps, which we did
love that. I love that rundown. so important to realize that the view that you had of investments, maybe came from what we might call even like virgin experience, because most people, as you know, as you know, are investors in your investment, what ends up happening is they get started in their 20s throwing money into a 401k or IRA. And they're just told as a peasant, where to put that money. And unfortunately, that money just goes into a big, a big bathtub of indexes or something in the market, which now we're very clear in the last couple years that those stocks aren't tied to the actual companies. I mean, when COVID can take something out, and the companies were still doing really well, or vice versa. And so but most people, they're they're stuck in that peasant world, and they almost get that addiction to the ups and downs. And you know, they have that language built in, like staying for the long haul, if it's on the down. And then if it's on the top, it's like, you know, it's gonna get higher stay up. Or if it goes down against like, Hey, don't pull out because you don't lose until you pull out and all that weird language that they have. It's It's truly a cult, if you if you really want to, it's a Ponzi scheme, if you if you really look at how it is, and all of our Solomon Investors know that we talk about it a lot, but to to on that point. Most people don't see Self Storage, or mobile home parks, which we would both agree are two of the asset classes that are the absolute best asset classes in 2021. And for you, for those of you who have even a hint of curiosity, you gotta stay to the end to understand why and why everything's transforming. Because they're really hard asset classes to get into, but they're not sexy for most people. So share with us what are the benefits, and you know, why Self Storage? Why mobile home parks
are so and I'll make it personal, you know, to to kind of, you know, my wife, my wife and I story kind of where we just ended because it kind of your your question, kind of Taylor's right, you know, dovetails right from there. So we at this point coming out of college, we had capital, you know, fortunately, because of the software company we had, you know, you never have enough capital you feel but we had plenty at that time to get started. And so we started, you know, we initially started in single family residential, we bought about 25 single family houses long term rental was the model, you know, how the tenants pay off the mortgage, and we ultimately found it wasn't that scalable. And there's a whole discussion on that. But long story short, we thought there could be a better path and so you know how At that point in time, what we wanted for ourselves, we didn't, you know, we weren't managing capital, it was just we were building our our capital at that point and investing for ourselves. So the four things we wanted is we wanted cash flow, you know, reoccurring income, we wanted capital appreciation, I wanted to put in a, you know, $1 of mine, and, you know, over time hope it was two and three and four, you know, it grew in our tax benefits. And then we wanted this concept of non correlation or low correlation, also known as low beta, low volatility, a lot of ways to say the same thing and kind of what you're referencing, as the market does whatever it may do over time. And it'll likely continue to do this over time. All right. You know, I wanted as much as possible to be off that roller coaster ride, as I possibly could. So, you know, the, the two asset classes, so our process was, it seemed pragmatic to me is, we basically took every asset class in real estate, we could think of, and ran an analysis, based on really those four factors. And our thought was, we would throw the analyses on a on a table, and let the let the analytics do get out, you know, and we'll pursue on a merit based process, the ones that were the best, the most compelling. And the Tim give the two best word mobile home parks and storage by our determination at that time. And it's funny that now, almost 17 years later, the two things I'm still doing are mobile, home parks and self storage, and I feel the most conviction around and interestingly, over that 17 year period, the two best performing asset classes for 17 years, you know, not not nevertheless present. And then also what is expected to continue to be for the purpose of growing net operating income for income growth, is mobile home parks and self storage. So anyway, that's, that's kind of, you know, that's, that's, that was our process. And one of the things that I'll say real quick on the mobile home park side, that may be I don't know, maybe worth mentioning, one of the things that was hiding in plain sight to me was the perception of a moat. So a moat is, you know, in this may be a familiar topic or not, but a moat is something that protects our capital while we sleep, you know, that's, you know, I work hard for them, you know, the money that I've made as to our clients, and you know, in protecting it is important, you know, and so having a moat is, is, is a valuable feature. So, there's 1000, different kinds of modes, there's switching modes, there's first mover, advantage modes, there's technology modes, patent modes, there's all kinds of modes, but what I saw in the mobile home park space was simply put, I thought demand would continue to grow for affordable housing, and it has, but supply is constrained by a stigma. So it's an inefficient market, there's a lot of demand for the product, but you can't supply it. And the reason you can't supply it is nobody, nobody in their mother wants a mobile home park built near them, we're all fine with the concept of it. It's nice, you're providing nice houses for families at an affordable rate. Terrific. So then you go to that person say, okay, we've identified a lot next to where you live. And now you've gone too far, you know, because it's right on set is great, as long as it's not near them. And so the short, the short story is, there's about 55,000, mobile home parks, in any given year, there's about 10, built nationally, and there's about 150, torn down. So you have demand that's growing, you have supply that is constrained and shrinking, which is a moat and the moat is the stigma, the fact that mobile home parks are needed everywhere, they're not allowed anywhere, because generally they're hated everywhere. So I thought the negative stigma would actually protect my capital by keeping competitors out. And
that's what's happened. It's really important, important pieces I want to just kind of chew on for a minute. So guys, what he's saying is is a Solomon Investor, you know, one as I've talked about, he's got directed so just like we're talking about being you've got to be the God directed who's one managing your portfolio, that would be God direct, because we're directing your investments into your into the allocations of where would you would actually have a mode where you actually have control. So as a Solomon Investor, we talked about being God directed, having control, we'll talk about it being literally like King Solomon had control of a city called mosquito, where everyone who came through he made a fee. As they pass through, he control the entire world because he controlled that trade route. So in these two asset classes, he has some great points about cash flow. It creates massive cash flow because you're a little leverage being a part of a much bigger fund that we have. And then the appreciation, the value of these, these are not your junky rundown trailer that you know, you see The drawing activity like that's, that's a whole different class of, you know, slum stuff that we're not talking about. This is your upskill highly efficient, great strong properties that truly become this legacy property that it continues to put up that cash flow than they raised in appreciation, think about taxes. So most people don't ever, ever think about actually making, you know, making money on the backside of the taxes, it's just about, I don't want to lose money here. I want to try to make money here. So the advantage he's talking about is the taxes, when you actually are making more money, you're going to be making more money here than you would anywhere else I eat the stock market. This is sustainable. It's producing cash flow produces appreciation, versus the tax advantage. And this is what we call it net legacy investment, we could get rid of many other points. But this is why it's the best investment. That's why The Solomon Investor, this is where we think and how we process. So now Ryan, many of our Solomon Investors, you know, they get it, they've, we've talked about, you know, having control and the tangible side of you know, your investments and not being a peasant on the trader out letting someone else be your broker actually coming into alignment, where you can actually have control in investments and allow the actual tenants to come through and pay you. And so many of us have discovered the treasure of investing in mobile home parks and self storage and, and get what they're finding, obviously, you and I know is that it's so competitive. Why because it is absolutely a treasure, and you just mentioned it, you hit the nail on the head, there's supply and demand, they're tearing down more than they're building, city code doesn't even allow it in most cities. And so you create this demand for this housing for a strong population of individuals. And as we see where our country is going, we're losing that middle class. So you've got a rich class and poor class. And unfortunately, this is what everyone is going to be needing so that the demand is going to continue to increase. But so competitive, you know, they're begging Blake, open a new fund, get it getting it open an opportunity, because I don't even see a way to get in, like it's like getting into a jump rope. It's like, I don't even see a way to get into an opportunity. And so, share a little bit more on you know, tease out a little bit, you know, why is it so attractive? Now, you know, why? Why moving now, and then in the coming years, so they can can invest or reap the fruit of the labor?
Yeah, so, you know, we're all, you know, there's there's past their future, there's really the only thing, the only question is, what are we going to do in the present? You know, so we can look back, and, you know, mobile, home parks and storage have been really good to us and have performed quite well. But you can look at all the data points, you know, and, and verify that independently. But, you know, in the present the question of what can they be doing? What can I be doing for myself, you know, there's a lot of there's a lot of seeming options in the market and ways you can go, you know, we think mobile home parks and storage continue to have a significant merit. And in the present, we think it'll continue to be, you know, you know, really good spaces to invest in, for many years, we don't see any impediments to the progress of both, I don't see supply on the mobile home park side, coming online, you know, doubling in size, you know, from 50,000 to 100,000, I don't see that. I also don't see the demand going down. And and I say that, you know, that there's a tension in that statement, meaning I that doesn't make me happy. You know, it really doesn't. But, you know, the fact of the matter is, I just think, to your point, disintermediation, technology disintermediate, the middleman I think, you know, there's this 1000 ways to say the same thing, the middle class is getting squeezed. And there's more and more people needing affordable housing and mobile home parks, interestingly enough, are probably the best solution for affordable housing out there. And in that, it's an opportunity for people to own their own home to actually have homeownership without having to own the land, because the land is the most expensive part of the equation. So it actually takes the cost of the land out, all giving them home ownership and, and so anyway, point being is when you really look at it, storage and mobile home parks, we think there's a lot of opportunity, you know, still present today that can be taken on taken advantage of over the coming years. Interest rates are low. You know, this, there's just a lot of opportunity. So yeah, we're pretty pleased with the way the markets shaping up with what we're seeing with what we think we can achieve. Now, there's been no impairment to our to our outlook and enthusiasm. For sure.
It's so good. And complementing what you've said. And we you know, I've talked about this quite a bit in the past is, you know, where our country is going. what's changing, and for those of you who don't know who are new to the channel, and you got to actually really sit as a king over your investments and look at what's happening in the market, I mean, as a country, we're going closer and closer to a socialist and a communist market and you can't ride the system, you can't be in their system because it's continually being manipulated. So the realization is, you've got to actually take ownership of your own investments, you've got to be inside real estate, where you actually can have control over something. And you've got to do that in a vehicle that actually runs turnkey for you, where you're not the one actually doing it. So before we continue, I want to remind you guys that Ryan and I will be actually doing a further in depth presentation over the next couple weeks on self storage, mobile home parks, and how you can actually invest in them. So if that interests you, you need to join the Solomon Investor revolution by texting your cell phone and text, the word Solomon to 31 996. Again, text Solomon 231 996, that'll put you in the group that gets our messages and you'll be able to be on that presentation where we actually talk about how you can invest with us. We have a strong listenership Ryan, of people who want to build an empire. You know, they're like, man, forget the rich quick, you know that the get rich quick scheme, like, I don't want it, I don't need it. I actually see the see the wisdom and building an empire. I see how I need more money tomorrow than I'll lead today. And so let's talk about wealth strategy. Why why build a wealth strategy? Why is that so important? in you know, in our current future?
Yeah, so I, you know, wealth, wealth is important. It can be whether you want to keep it or give it you know, there's there's a lot of different Kingdom minded pathways that that could take, right. But wealth is an important component, it's important number one to know, you can't earn yourself rich through income, it's it's the the way the tax regime is structured, it's nearly impossible to earn yourself rich. And in so you know, real estate can play a role in helping one create wealth. You know, the fundamental, and I can go through that, if you would, like, as an example, in a minute of kind of the fundamental basis for that statement, like, how is wealth actually created? You know, but, you know, one of the benefits of wealth is its tax efficient, because really, the only two ways wealth is taxed, is if you die. Or if you sell, you know, those are really the two currently, it's the two ways your tax. So, you know, our our goal is to buy assets, make them worth more add value to them over time, and then access the wealth and return it to investors, through refi proceeds refinance proceeds, because under the current tax regime, you don't pay tax on borrowings. So you're not taxed. You know, if you, if you put money on, if you put a purchase on your credit card, you don't pay tax on that. If you borrow money to buy a house, you don't pay tax on that, because borrowed money is not taxed. So you can create wealth and access the wealth and realize the benefits of the wealth without paying you in that way, capital gains tax on on the wealth. So we think wealth creation is incredibly important for what it can do for again, whether you know, you have consumptive goals or giving goals or whatever your you know, one's goals might be I have my own. But anyway, wealth is important. And then, you know, with regards to, you know, kind of how we view wealth, we believe owning real estate for the long haul, is the best is the best path for a number of reasons. One, markets, you know, do what markets do over time. And, you know, you know, I think everybody on this podcast, if you've been, you know, if you've been on earth for more than 30 years, you know, that things generally don't go in straight lines. So generally over the longer run real estate, real estate has done quite well for a very long time, and we expect it to continue, but I'll, I'll give you a quick story that that kind of evidence is what I'm trying to say, from the from the mouth of ben stein. So then, a friend of ours, you know, we don't many years and he years ago took Jamie my wife out to for Burke for her birthday and in Los Angeles and I believe this is when he told us the story. But in short, we were talking about owning real estate and Ben Stein's actually big real estate investor is I think, is at the time his largest holdings. I think we're in storage. Ironically. Yeah, very interesting. So he's a prolific investor, big and storage and very smart guy, but he was telling the story of he owned a house, I think it was in Beverly Hills. He bought it for I think, off recollection, he bought it for like $200,000 in one day. If somebody came up and offered him $900,000 for that house, and he's like, heck yes. I'm gonna sell you know, in his You know, I won't say his words, but it was my recollection when it was something like, yeah, I'm going to sell this is the biggest idiot I've ever met, you know, or, or, you know, somebody offered me eight $900,000 for this house that I bought for 200,000, sell, sell, sell, sell, in the words of Jim Cramer, you know, I'm going to sell. And then he, you know, his comment then turned out, but it turned out I was the I was the bigger fool for selling is like that house now would be worth around $8 million. So, you know, at that point in time, you know, something in that ballpark. So he just said, you know, his comment to me was the, the least amount you'll really make in the long run in real estate is if you sell at any point in time, that's the that's the lowest, the lowest time you stand to make over the long run. So the point is, he wish he still had that house, and he regretted selling it.
Okay, so Ryan just shared with you, one of our greatest secrets of building wealth. And some of you got it, but some of you didn't. So let's just break it down really quick. So the picture of what he's saying is, most people have a definition that wealth means how much money you actually have in your account. And so you want to put the money in your account in big chunks. So it's like get as much in your accounts. But then if you give it in your accounts, how you're getting in your account, is you're giving up the actual tangible real estate. And that's how you're making the chunk. So then you're having to pay taxes. And for most of us, that's almost 50% in taxes. So then you cut your wealth in half. But it's even worse than that. Now you don't have the thing anymore, you don't have the thing that produces the wealth. So if you're in the stock market, you don't actually have a tangible, so you're already at a massive deficit. But then when you sell because you think you're gonna make big now you pay massive in in fees, and taxes, and then you have a teeny bit but you don't have anything, you never had anything to work with in the first place. So now you're entering Self Storage, mobile home parks, you're entering literally like a tax haven for a good chunk of the income. And we're never selling, but we're able to refinance. So we, which we'll talk about in just a second are able to actually pay less taxes, hold the wealth, because you still own the asset, the actual value of what what the Empire is in the built on. And that allows you to create what's real, sustainable wealth. So that leads us Ryan, into my last question, which most who actually find the investment opportunity, they come down the funnel like, I am one of the elite who found self storage and mobile home parks. I've actually been in one of these before, we did amazing. We did amazing, which means we found a value add property, we turned it into something amazing. I was a you know, a passive investor. And then we sold it and we made big money. And so the majority have the wrong structure. And they're losing 90% of their actual wealth opportunity. So why Ryan? Like why Why are most doing it wrong? Why are they flipping the property? Whether it's mobile, mobile, home product, self storage, multifamily, why are they flipping it versus holding for a long time, a long term asset and pulling, you know, legacy little treasures out of as they go?
Yeah, no, it's a good question. And it's I can give you kind of a brief story that lesson I learned along the way and but it really comes down to trust basically and it's you know, you know, without saying necessarily right or wrong I mean it you know, some people that's what they want to do and they may learn you know, we all look back 10 years ago and we man I wish I would have known right? I wish I would have known but if I could tell myself then I wouldn't listen it's so true. So it's it's you know to somebody who wants to buy fix and sell buy fix and sell you know, I would I would try to offer them a competing and maybe to me a more compelling way but at the end of the day if you know maybe a 10 year future self of theirs will realize that you know through through actual execution but but for me you know to me said simply have a lot of family from Texas and so you know, kind of a saying in Texas you don't shoot you don't shoot your milk cow. You know, so in terms of you know, real estate, you know, our model what we seek to do, is we want to buy good assets and good markets that we can see ourselves holding for a very long time. And these are markets like Class A properties in Austin and Denver in the Washington DC metro and parts of Florida and you know, I can you know, cities you know, that, you know, you can see yourself owning 10 2030 years from now, and its properties that that's a 20 years in the future people will look at you and say man You're so lucky, if I only I had those properties. And you know, and the problem is maybe they had properties of similar types they sold and they no longer have them, or they didn't take action or whatever it was. But the point being is, we want to buy quality assets, those markets, manage them really efficiently, add value to them incrementally over time. And then the goal is to refinance them and return capital to investors as quickly as we can. So let's say, let's say that that happens, you know, five years after purchasing the asset, you know, it could be sooner could be later, let's just say, just to talk about a date, let's say it's five, you know, five years, well, then, you know, after five years, you have all your cash out, potentially, and that in this example, right, you have your cash out. So then you know, your six, your seven, year eight, you're still owning the property, selling the property, so on the milk cow. So the point is, you now own an asset in a good location, you have no cash invested no risk on that cash, you have an unlimited return on your present capital balance, cuz you have no capital invested anymore. So from year six through 10, the you know, that's really a good position to be in, because you, you have good, good income, all of that. So. So the point, the point is, we then want to continue to refinance the asset, as the asset goes up in value, we want to take little chunks out, put it back into our account, because then that way, we can reinvest that capital, that that original capital, we can then deploy into another asset, you know, and keep it going. So that that gives us the ability to compound our capital, which is a whole nother, you know, concept, but, but we really liked the model. And I mean, when we started years ago, I did the personal story. That's that's sort of when we started, you know, a lot of our friends and family who initially, you know, we built our portfolio, Jamie and I did for a number of years. And in 2008, to 10, our portfolio was doing really well. And we had a lot of people who, when we told them, we were going into the mobile home park business, they, I think, you know, covertly expected us not to do so hot, right, I had, I had an aunt, I think she had commented to me, she goes well, at least if you don't succeed, you'll have a place to live. So that was the support, we didn't have any support. So we just did it. But ironically, in 2008, to 10, a lot of our friends and family weren't doing that great, you know, in terms of their portfolios, and we didn't tell anybody, but they we weren't as miserable as they thought we might be. So they started coming to us and saying, Listen, how do I participate with you? And so, you know, it the challenge we had were 29 and 27. And so we put together a fund, and we were 2927, Great Recession, saying, Hey, we're gonna go buy mobile home parks, you know, that's a pretty hairy ask, you know, to be candid, they expressed incredible trust in us, they, we raised $2 million for our first Fund, which was, you know, at that point in time in our life, and it still is, that's a significant amount of money. But one of the questions they asked is, what are you going to get? When are we going to get our money back? Right? And so we said, okay, well shoot for five to seven years, plus or minus. And in short, as we started approaching those dates, you know, where we were going to start selling those assets. A lot of the investors, you know, through conversation said, You know, I know, I wanted my money back in five to seven years, but I trust you now.
It's so true, right? Well, it's, I
don't want it because the problem is, you know, the, the milk cow goes away, you get your money to your point, you have to pay tax on it. And now you have to go find a new asset, which has an implication of new risk, you take a new risk on whether or not that asset performs like the old one. And so, it was it was funny. So when we, you know, really started after doing this for a number of years, and kind of going through the process, our investors were in a position where they started saying, you know, what, we really don't want our money back in that way, you know, we wish you keep the assets much longer. And so we, we pivoted to that strategy around 2015 or so. And, and they were a lot, you know, we had a couple of them comment, you know, it's about time you figured it out, you know, kind of
it's, it's, we
think it's the better way to go.
It's so funny, though, because, you know, that was similar to our story. And so, I mean, you know, disclosure, guys, we were on the same boat, we were the one flipping the the big property, too. But what would happen when I was doing when we come to us, you know, before we're ready to sell, everyone's like, when's the sale wants to sell? Are we gonna hit our deadline, you know, like, you know, and then when you actually sell and you're like, look at the returns, they're so amazing, like, Oh, no, because clearly now it finally clicks to them. Like, I've gotta be taxed on that and now they're scrambling, kind of do a Tim 31 How can I not pay taxes? And so it's the the irony in the psychology is so funny, so, you know, and that's why Guys, it's the writing's on the wall, you got to make more money, you got to get out of the poverty mindset, you can't be on the poor side, you got to actually make more money. So therefore, your your, your it's a good problem. The problem is a good problem. There's a bad problem, the previous problem was not having any money, not having enough money. Now the problem is, how do I steward financially and not pay as many taxes? How do I use the actual rules in the IRS system that are there for the wise? How do I do that and pay less taxes. So the writing's on the wall, you got to make more money as you're moving into the future a few decades. Ray Dalio is the one who owns the largest hedge fund in the world says, hey, it's a dead decade in the market, in the stock market in the bond market. And that's all he's in. He's like, it's a dead market, it's a dead decade, it's dead, we're done. So the writing's on the wall, you got to do something, you got to step up from a peasant to a king, you got to actually take ownership, you've got to be in something that allows you to prosper, you got to build more wealth, you got to have a tax advantage in that actual structure. And just for my intellectuals, let's just go to our logical corner.
As the as everything becomes worse, I mean, our The, the GDP of our country has been flat, for since 2005. I mean, all the stimulus has literally is like a morphine pump, just keeping the stock market going. But it's not keeping the economy going. I mean, we're flat 2%, you know, appreciate your asset, you need way more than that to have anything thriving. What that means is, is as we both said, you're getting rid of the middle class. So the system, the system is getting rid of the middle class. So you gotta you'll end up with a poor class in a rich class. And that's your choice. And when you when you step into thinking like a king walking in King Solomon's wisdom, then you realize, okay, the people who are in big houses will start selling to go to smaller houses because they can't afford it. Smaller houses, the smaller houses, they can't afford it, smaller houses smaller, then people have to move into mobile home parks, it becomes the actual benefit becomes the most valuable asset in the funnel. And then for self storage, when people accidentally when there's a season of abundance, guess what people have extra, so they go store it, when there's a lean season, which is the next couple of decades, lean season coming, my friends, well guess what people store. And we can tell stories on how people will store five or $600 worth of something, spending $50 a month to store it and store it for six or seven years. And it's not even worth what they stored. But they want to go store. So in this season, these two classes are that are, you know, supple. They're they're full, they're they're thriving in the middle of a chaos driven society where the economy, the salaries, the the employment is all in a very sick situation. So listen, as you guys know. And, of course, we're talking about this so much. But we can't cover everything in one single episode, you need more wisdom on what we're talking about. So this information interests you. If self storage and mobile home parks interests you, then join the Solomon Investor revolution. I do in depth trainings from time to time in our private group, who get exclusive access to all those trainings. And again, Ryan and I directly will be doing a further in depth presentation in the next couple of weeks on how you can actually invest in store self storage and mobile home parks with us. So if that interests you again, pull out your cell phone and text Solomon 231 996 again, text Solomon 231 996 and we'd love to see you on that webinar. Man it's been a privilege Ryan have left to do it again soon look forward to doing that webinar together. And any last words you want to share?
No, no, I think I think this is good information and you know, I I hope those who watch it find it useful and are able to you know benefit from it. So thanks for tuning in. And thanks for hosting me.
Very good. Well, again, we appreciate your time my friend always enjoyed building the Brotherhood with you. And again guys look forward to seeing you on that webinar as we go into more depth and nuances on self storage and mobile home parks how you make money, how you get 10 best how you get to be a king, how you get to have control, how you get to gain cash flow appreciation, how you get to have the tax advantages, and all the details in between. So look forward to it guys. Stay tuned again tech Solomon. To 31 996 be blessed without dead skin, sin