Journey Towards The Creation Of A Passive Income Source

The goal is always long term passive wealth creation. We don’t know exactly how we would do that, whether that would be through single families or duplexes or quads. The first

commercial deal I always thought would be, something like that. In the residential space because we're finding residential deals in our wholesale and flip business. So I thought it would be a natural progression. It wasn't, we started looking at some other mentors of ours that have, thousands of units under management into the large commercial space, meaning multifamily, self-storage, a student housing.

So we started doing some study about what are the benefits and detriments of both spaces? Why would we want to do one versus the other? So we made the decision in the last 18 months to go full time commercial, commercial real estate, in those three asset classes that were just mentioned above. We really did it because of stability. We're looking for stability, consistency and safety.

Wall street was out for me, residential properties, although profitable and gave us a great earned income wasn't a long-term retirement plan. So as we started recognizing that these larger assets were much more stable, that's where we went into. So our first deal was a $14 million self-storage complex that we built ground up almost 1200 units and a stabilized value of almost $30 million once it's up and running, and we, kind of dove right in. So when people say, what do you do now, really what we do is we try to educate people in, the space and try to get them to understand that there is stability, consistency and safety in these larger assets more so than some of their other investments and can give them the opportunity to partner with us and jump in with those deals.

I love the flipping business. I'm really grateful to it. It got me to where we are today. But it's an earned income business. If you read Kiyosaki's cash flow quadrant, you're in as an entrepreneur or a small business owner, you are in the, you've worked yourself into the highest tax bracket that exists. W two employees pay less taxes than we do as entrepreneurs. We pay the highest taxes. Large businesses like Amazon and Google, they pay less tax. And then the commercial real estate investor pays almost nothing, right? And there's a lot of reasons through the IRS tax code that that is true. But what I found is I can create almost half of the income that I've created in my earned income job through commercial real estate investments and keep the same amount of money in my household.