InvestmentsPassive InvestingReal Estate

What I Learned from 1000 Millionaires

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” — Robert Kiosaki

I have spoken with over 1,000 millionaires over two years.

Their average net worth is $2 million.

I’m gonna give you the secrets that have changed my life and allowed me to 10x my net worth.

They might even change your life!

Today, I’ll be talking about three wealth secrets.

But before we get into it, you may be wondering how I was able to have these conversations.

How did I get all of this information?

That’s a totally fair question to ask!

I had a partner who was really well known in the multifamily space.

We had a platform together to set up and draw some of these people in.

We asked people who were interested in investing with us to jump on a call.

I asked some questions.

Their answers show the type of person I spoke with and their background.

We asked what their careers were.

A lot of them are doctors, lawyers, CPAs, business owners, and retirees.

So, people that typically are very busy.

These busy people usually make a pretty good income.

They were looking for ways to reduce taxes and not run an investment themselves but rather grow them.

We also asked about their net worth.

Some people had a very high net worth $10-$20 million or higher.

Some people fell beneath the average of $2 million.

But overall, these are people that have some means and are trying to learn more about investing.

We also asked about their investing experience.

There was a lot of single family stuff.

A lot of people did stocks, wall street investments, some angel investing.

Some had multiple businesses or they’d done syndicated deals.

It was really interesting to gain insight into this type of person!

They’re busy people, yet they’re taking the time to do this.

That’s a great segue into our first secret:

1. These Millionaires Were Interested in Learning About Investing

The first secret I wanted to share is that these people were interested in learning about investing.

I know you may not think that’s significant.

But these are people that were already wealthy, right?

They already had a $2 million net worth or more.

Why were they giving us their busy time?

They were probably talking with other groups as well.

Why would they choose to do this?

They wanted a place to put their money.

They wanted to learn and grow.

They realized investing was not only the path to get to financial freedom

It is also the path to stay financially free.

A lot of people think if you’re wealthy, you can literally sit back and not have to do anything.

That’s not really true.

Doing nothing is a good way to lose your wealth.

But if you keep educating yourself, keep learning, keep discovering what’s out there…

That’s how people get to the next level.

That’s true whether you’re wealthy or not.

Education is so, so important!

Brian Tracy has this quote: “If you want to earn more, you have to learn more.”

All of these people I talked to were really interested in learning about our investments.

They wanted to learn about different opportunities.

I encourage you to do the same!

Have calls with people that do different types of investments.

Even if you’re not necessarily interested, you might learn something that’s really important.

2. Valued Passive Investing Over Active Investing

Here’s the second wealth secret I found from this millionaire group:

They really valued their passive investments more than active investing.

These people made a distinction between which investments involved more time and which did not.

A lot of individuals in this group were very well paid professionals.

Many had made a shift from having 1-10 houses to looking at passive investments.

That’s a really good question to ask yourself:

Is your investment really an asset investment?

Does it require more of your time and effort?

If you’re getting the calls and making the decisions, it’s not really passive.

I have a good friend who owns several houses.

He keeps trying to pay them all off.

I say, don’t pay ’em off!

You can do other things with the house, but he doesn’t value his time correctly.

His returns are lower on the deals he has.

It’s unfortunate that he has to be in control of all the different forms of investing.

I think passive investing, especially for this millionaire crew, was really important because they valued their time so much.

There is a myth about passive investing and I believe it’s somewhat true.

The myth is: There is no such thing as passive investing.

Even if it’s a passive investment, you still have to vet the property and vet the deal.

That does take work.

It’s been said you can make more money but you can’t make more time.

Time is the great equalizer, right?

We all have only a very fixed amount of time.

That’s something to consider as you look at different types of investing.

If you value your passive investing above your active investing, you can be like this group of millionaires!

3. Reducing/Eliminating Taxes Was a Primary Concern

The third secret I learned from all of these millionaires was that reducing and eliminating taxes was a primary concern.

This group did not want to pay more than they needed to in taxes.

I think that’s a very normal want.

I don’t pay more in taxes than I want to.

High earners, so people who have a W2 and are an employee, they typically get taxed very high.

Think between 40-60%!

Some have found ways to reduce taxes in their ordinary income as well as their investment income.

Reducing ordinary income is a little tricky, but you can do it a few ways.

One way is if you or your spouse is a real estate professional.

I was able to reduce my taxes by $90,000 over a couple years because of this.

If you are not a real estate professional, you could try the energy space.

That sphere allows one-for-one reduction of income.

$100,000 invested in a certain type of deal is about a $100,000 reduction against ordinary income.

That’s huge!

Not only do you get the 15-20% returns per year, you also get this reduction of how much you actually made on paper.

It takes the returns much higher.

This group of millionaires was very interested in how to do that.

They were also passively investing in deals.

Taxes are much easier to write off when you have investments that have tax advantages.

Now I want to hear from you!

What have you learned from your friends or family that are wealthy?

Are there things you have learned that have really helped you on your journey?

Let’s start a conversation in the comments below.

Before you leave, make sure to check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future.

If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.

Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.

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