Welcome to Cleveland Real Estate Investor. On this podcast, you'll hear about every aspect of the real estate investment business. You will talk to your rockstar investors about their businesses, how they built them, where they came from, and where they're going. Who am I? I'm Joe Lieber and I've made millions of dollars from the real estate investment business over the last 20 years. If you're ready to hear the good and bad from a guy who's learned this business from the school of hard knocks and get educated by some bad ass entrepreneurs, then put your helmet on, strap on your chin strap. Let's ride.
Guys. What's going on? How are we doing today? So look, I'm going to talk to you today about a show that really just situation going on with me, you know, and I thought I'd share it with you. Cause there were some great things that my wife and I had talked about and I was talking to her about stuff and I just thought I'd kind of relate, you know, all this isn't really real estate related, but it just something that's near and dear to me. And I've lived by this theory for pretty much all my adult life. And it's just like kind of wisdom stuff I want to share with you really so hope you enjoy it today. So I want to talk to you guys about how to buy anything you want and we all have stuff we want to do, right? Whether it's buy or give, maybe it's a certain charity or something you want to give, give, give to.
(01:45): You know, I have a lot of things that are near and dear to me that I love to give money to. And there's also things that my wife likes to buy. I like to buy fun stuff, cars, clothes, toys, watches, vacations, you know, wherever they might be. And it started from a conversation that we were having. And I just want to like bring you guys in to the inner life of Joe we're here and say, how does he do that? When do you decide how'd you decide to buy that or this and how do I afford that? Right. Cause there'll be things like that when you're on vacations and you see a dude driving a Lamborghini, maybe that's your trigger. She'd be like, how in the hell did he, when did he decide? You know what? I think I want to buy a Lamborghini today.
(02:29): I mean, crazy, right? Or, you know, a 20,000 square foot mansion. And you're like, dude, is that really necessary? Like what was going through your process when you decide to buy that? You know, I'll never forget just a story about shit's it'd be 10 years ago now. And my buddy bought a Maserati and I went with him to the dealership to do a winter service on the car. And I was going with him because he needed a car to follow him back home and all that. So we went there and the dealership hands in the bill for it was oil change to rear tires, something silly like that. It was five grand. I was like, dude, are you kidding me? Like at what point do you think that's a good idea? Like, Hey, five grand to rear tires and oil change. Yeah, sounds fair. Let's do it.
(03:18): And I was like joking about it. Right? Cause it just seemed like so much money to me at the time. And I was like, Oh my gosh, man. But you know, there's a process, right? He went through a process and decided this is something you really wanted. And you know, his income got to a certain level or whatever the situation was. But this is like what I'm coming down to, to like talk to you about today, how to buy anything you want. And so another story, true story. So 2010, my wife comes to me and says, I want to buy Cadillac escalade. So Whoa. These things are not cheap vehicles. I'm like, well, I really don't want you taking your after tax dollars out of your active income, out of your paycheck and pain, an escalated lease, especially a high ticket lease like that. Like that's kind of crazy to me.
(04:11): I was like, I don't know. I just don't think it's a good idea. I'll tell you what though, honey, when you, or we figure out a way that a passive investment pays the escalate payment, we'll get an escalate. How's that song. And she said, okay, I was right. So actually she works with my buddies, a mortgage company. She's got a really good position there. You know, they take care of her really well. She's an executive at the company and she was able to, she's always done well, she's had money put away. So at that time we went in 2010, we bought her two rental properties. Now we're at the bottom of the market, which was even cooler. And these two rental properties she bought brought in like 1700 a month minus the taxes and the insurance, the net was good. It was like $1,200 a month net.
(04:59): And the escalade lease was thousand bucks a month. I said, okay, let's go do it. And we're able to do this really quick, but we're just, it was a different way of thinking really. Instead of taking her paycheck and using that money and then three years, she has nothing. All she's doing is taking money from her checking account, placing it in two assets and then using the cash flow from those assets that misses like one-on-one stuff. Right? If you listen to any of this Robert Kiyosaki stuff or anything like that, I'm not telling you anything. It's earth shattering right now, right? I mean, this is basic things, but these basic principles, you can forget sometimes and you get away from it. And you say things to yourself like, well, I can't afford a new escalade. That's insane. But instead of saying that and turning your brain off, ask a different question, how can I afford it? And what happens is that leads down different roads. When you ask different questions, you arrive at different answers that connect different dots. And I think that's the whole process here.
(06:03): When you do that, it makes your brain
(06:05): Think differently. You know, lately things have been going really well for my organization and my company. And I said to myself, why? Right? And it's really why things are going well. So because of the laws of attraction, let me tell you the law of attraction that's right. At least my definition of it. It's the belief that positive or negative thoughts bring positive or negative experiences into your life. And lately I flipped the script on everything, right. And I noticed it's really changing things. I am an audible.com nut, right? Like I burn up an audible subscription, like crazy constantly with the self-help books or business books or all these things. The things I might have heard already before, but she might have heard it in 10 years and you're like, Oh yeah. That's why I do that. Or, Oh yeah. And it just bring things it's
(07:07): Like re resonating with you certain
(07:09): Things. And I've always lived by that philosophy. If I have to go finance something to buy it, somebody else has to pay for it. I have to figure out a way to get that asset paid for or asset. Get that item paid for by something that I'm not working for, not with my active income. So whether that's a buy a piece of real estate or lend money or whatever, it's going to take it can't be off my back. I can't carry that kind of weight. Nobody can carry that kind of weight for the long haul. It's silly to put yourself in a situation with it. If you're gonna buy toys, have somebody else pay for them. So here I'm going to, I'm going to give you another example of what's going on. So I got this house in Catawba Island. We talked about that in the show a little bit. And the more you get around this, the boat yacht life, you know, I never wanted to freaking boat. I don't want them boat pain, the. I hear all the stories the best day. You've owned a boat as a day. You get rid of it and all that stuff, you know, all the stories, but cliches, whatever they call them. But you know, every day I drive my golf cart, go around the Harbor and you see it freaking loaded with yachts, right? So I'm like, well maybe I should buy one of these.
(08:22): Well, I'm not paying for it. I have to figure out a way to offset this. Somehow. Now the first part of it's easy, right? I can just take my rental property income and that's fine. Hell I can go buy four more houses and pay for the income, but I don't want to do that anymore. Maybe it's, I'm getting bored with it. It's been too long, too many houses. I mean too easy, whatever you want to say too much work. Look, it is work. I'm not gonna sit and tell you own a rental property is not work. It's work. It's an active, passive investment. So what it is, I started doing a little private lending about a year ago now. That's pretty cool. I enjoy private lending. I think that's that's cool has its pros and cons. And it's kind of hard to keep money in place, to be honest because you lend somebody money, but the next guy is paying off.
(09:10): But I like it. So I'm looking at the cost of this boat, right? And outside of the boat payment, assuming you finance it, you have all these reoccurring costs. You have docking the boat and then you dock it wet. I mean, in the water, get dry docket in the winter. You've got gas, you've got maintenance, you've got insurance. You got someone to come wash the boat, clean the boat. This is expensive. I mean, this can get 20, 30, $40,000 a year just in maintenance and docking. I'm like, well, how are we going to do this? Cause I'm not paying for it. So I pull out my old calculator. I'm like, I need to done. So here's what I'm going to do. I'm going to take about 200 GS. I'm going to lend it specifically to pay for the boat. So I'm gonna do so I don't have to I'll lend at one time, it might come in or in and out once or twice, meaning, you know, it's going to turn someone on my head, that money out five months, six months, maybe a year.
(10:09): Hopefully it'll be awesome, but I'm going to use that to pay for the boat. So I'm not the principal won't change. Right? I take 200 GS. I stick it in private lending. I get the interest and use the interest to pay the expenses on the boat. And then when I'm done with the boat, I can sell it. Still have my 200 GS that principal didn't move and I want to move the principal. I want it to remain at 200 GS. So that's something to do. I'm going to allocate money to buy something as stupid as a boat. It's more my wife than me. Hope she doesn't listen to this show cause she'll be sitting here saying it's more me than her, but it's not right. I think it's not. That's what I'm going to do. That's how you can get anything you want. Now that you're going to say, well, Joe, I don't have 200 grand to place in a private lending.
(10:58): Well then here's what it is. No BMW for you. It means delay gratification. It's delayed, go out there and figure out another way to do it. I had to do it that way for a lot of years, figure out the other way. And this show, I just recorded just a few shows ago. I talk about the one for one house theory, where if you have a business partner that's 50 50, and he's the money guy and you're the operating partner and you buy two houses. What is that really? It's one house for you, one house for him, right? So if you have 20 houses that he really just bought you 10 houses and himself 10 houses. So what it is, right? It's 50 50. Do it that way. Then do whatever you have to do, where you buy your toys, not on your back. It's gotta be paid for another way.
(11:45): Three types of income, active, passive, and portfolio. You've gotta pay for your toys on the other two, there are two ways, period. And just so you know, when you figure out how to do that and make money truly through real estate, truly through lending truly passively, it feels so much sweeter. It feels so good. If the steak is so much, jucier like, it feels good. You're not like worried about it. You're like, Hey, Hey, watch the leather man. Like we doing like, you know, like you're freaking out, I've been there. I bought things. I probably shouldn't have been buying at that time. Right? You're like over crazy about it, which is good to all the way. Obviously it's good to enjoy yourself and protect yourself and your investments. I get all that. But it's you kinda know what I'm talking about, right? If you're an adult man or woman and you're over 35 or 40 or whatever, you know what I'm talking about, right?
(12:42): It feels so much sweeter when you can buy this stuff and care about us, but be like Hollis. And I got this, I know I've got whatever five GS coming in this month, passively it's paint, making my Beamer payment. It's paying my country club dues, whatever it is, right. It's making stuff up now. But this is how you, when you want something, your spouse wants something, sass different questions. Well, how can I get that? What do I have to do to get that and opens up your mind makes you think and, get an audible subscription, man. I'm burning that thing up. A lot of fun. I really enjoy that. I can't believe it well, nearly flunked out of school. And now I read more books than I ever have. And I hopefully you do too. It's made me a sharper person. It's going to be a sharper real estate investor. It's done a ton of stuff for a whopping 1495 a month. So hopefully doing the same thing. All right, cats. That's it. Thank you for tuning in bye something. Have a great day.
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