My Investing Strategy and Philosophy

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Transcription: My Investing YT arrow_backDashboard Quality: High All changes saved on Temi seconds ago. more_horiz Download Share 00:00 Offset 13:05 13:05 Play replay_5 Back 5s 1x Speed volume_up Volume NOTES Write your notes here Welcome to the instant leverage podcast, where we show you how to get maximum output from your life and business. With minimum input, please subscribe and leave a review. What is going on guys Jr. Here and welcome to another episode of the instant leverage podcast. So, uh, in this episode, uh, I was kinda thinking about how, when I started this podcast, the goal was to document my life and my journey and what I've been working on and what I'm doing so that I could eventually look back. And, uh, frankly, because I enjoy doing this a lot more than like creating YouTube videos and stuff like that. Um, although I do some of that stuff too. Um, but the goal is to eventually look back and see my, my progression and my progress. So one of the things in this episode, I want to talk about investing in my investing strategy as a, someone who is 26 years old and a fairly early on in life and, uh, kinda what I'm, what I'm doing, what I'm investing for. So that three or five years from now, I can look back and see if, uh, my investing strategy has changed and also see, uh, what the returns have been like. So, uh, first and foremost, um, I am a big advocate of real estate investing. So I've, uh, haven't been getting into it, uh, for too long, but I'll kind of break down what my strategy is and kind of what we're looking to do here and just kind of where I'm looking to get in the next few years. Right. So, uh, first and foremost, uh, I've done, uh, I'm like a research nut. Like I researched the crap out of everything, uh, probably a lot more than I should. Like I remember when I, uh, when I started like doing jujitsu, I dove in head first and like I instantly found out about the history of jujitsu, the history of certain moves and why things are done certain ways and how the belt system works and where it started and how it started and who started it and how it came to America and all these different things. So investing for me and like anything else starting an agency or, uh, building an online business is essentially, uh, I've, I've treated it the same way. So I've, uh, one of the things that my brand focuses around is leverage, right? So one of the reasons I love real estate is because essentially you can control something that is maybe worth a hundred thousand dollars for a $20,000 out of pocket. So it allows you to use leverage, which is a great, it's a, it's a great tool, right? So I get asked about, um, stocks and real estate and stuff like that all the time. And I really, my, my thought process is until you have a net worth of over, let's say $500,000, you're probably better off investing in real estate because you can the returns a little bit better and there's appreciation and stuff like that. So here's kind of my, my strategy, right? No, I think that everyone should have a, uh, and I haven't always thought this way. I think everyone should have, should work really, really hard to build an active income. And once they have a solid, active income invest all of their gains and profits into a passive income source, right? So like stocks or real estate. So my strategy right now is because I find, uh, I, I do a little bit of stocks. I do a little bit of, um, getting into real estate a lot more, but B because of my personality and because of the returns I'm looking to get, I think real estate is a better vehicle for me. So I think that, um, a lot of these time we get sold like this like passive income dream, and I think that's great, but I think that a real estate is still going to be a little bit more involved at least for a while, regardless of if you're using a management company or anything like that. So here's kind of what I've been doing. I've been going out and running Facebook ads because that's what I knew how to do. And finding people who are tired landlords or distressed sellers or whatever, and then making them an offer on their, their property. Right. And I'm looking for properties that are, that are cashflowing heavily. And my goal right now is to replace my, uh, living expenses with income from these, these, uh, properties that is somewhat passive and it's not going to be completely passive. And I think largely a big, a big thing around the, uh, passive income is that for the most part, passive income is a big myth. Uh, I have known people who have had, who've owned a hundred, 150 houses, and they have a management company. They have a handyman that goes around, but it still involves some, at least some of their time. Right. So in order to grow, sustain anything, long-term, it's going to evolve, solve, uh, some amount of time, right. From somebody, whether it's just reviewing just time that you take quarterly to review the portfolio and make sure everything's good. Um, it's still going to take some of your time. So although the, uh, the stock game and stuff like that is a little bit more passive, if you're doing it, long-term, it still also requires you to pay attention. So right now, um, I've been using my skills that I've learned from digital marketing and applying that to what I know in, uh, in real estate and kind of marrying those two things together, going out, buying these properties that, uh, either need a little bit of work or that their owners don't want anymore. Um, turning, turning them around and then placing those with a property management company to then find the tenants and place the tenants and manage the rent and all that kind of stuff every single month. So, um, that's, that's pretty much the gist of my, my strategy, right? So one of the things I've noticed is that in the digital marketing world, we're very bad at essentially, um, investing because we look at the digital world where, you know, it's still the land of seemingly overnight millionaires. And then you look at, uh, you know, the, the person that built a seven figure business in three months from scratch. And then you look at that and compare that to the hundred thousand dollar house that's only going to produce, uh, an extra $6,000 a year in cashflow, right, or six or $8,000 a year in cashflow, right. An 8% cash on cash return in that, in that sense. Um, so it's not that attractive. So the, the digital marketer and this used to be where I was, is, uh, thinking like, well, why would I sink, you know, a hundred thousand dollars over here to make $8,000 a year where, uh, I can sink $10,000 into more Facebook ads and make $50,000. And I can do that this month. Right? So the key is the thing is, um, in what we do, there is a lot of volatility, right? Things change all the time, right? Facebook ad strategy from last month or two months ago, isn't the same as today, right? Today it's Facebook ads next year, it might be YouTube ads, or, um, we do Instagram ads next year. It might be tick-tock ads, right? So there's a lot of volatility in what we do, right? So the, the that's the trade off. What we do is it's digital marketing. It's the digital world that changes so fast. So the trade off is we get to make a lot more typically. Um, then the guy that, like, for example, me, when I started a tax business and it takes a couple of years just to get to break even right. We get to make a lot more, a lot faster. Um, but the trade-off is a, uh, a house is a much more secure investment than a digital marketing company. So the way I look at it is, well, it's great to make this internet money over here, but, uh, long-term, you want to be parking that into safer and secure investments to, uh, preserve and grow your money and your income. So the, the biggest thing I'll tell you guys, when it comes to investing is that you need to invest for a goal. So right now, and that's the biggest mistake I see with people looking to just make flip stocks, or I had a bunch of friends that when COVID hit, they're like, let's buy all the airlines and all the boats, all the cruise lines, and they did great, like they did fine, but I think that number one, it was just, it's stupid to, to jump into something that you haven't been doing full time, because you think that there's an opportunity, same way. I feel about people who just jump into Bitcoin. Um, but number two, it's like, okay, you're, you're gonna make this quick $2,000 flip or whatever on this stock, but then what, like, who cares? What's the point? Like, what's your goal? So right now my life and my, my goals focus around, uh, one thing, and that is peace of mind. So when I originally got started, I was like, I just want to make as much money as possible. I don't care about anything. I'll do whatever it takes to just, you know, building a good income. And, uh, as I started to do that and work on that, I started to see that, um, you know, I valued, I valued stability and peace of mind more than I valued, like making big, risky moves and stuff like that. So, but I still get a thrill out of making big moves, right? So I found this like middle ground, where you have to play this game for your psychology. You have to invest for your psychology. You have to build a business for your psychology and who you are. So I found that on one hand, I, you have, you know, reckless Jr. And I say reckless Jr. But really not that reckless, uh, who likes to take risks and likes to do big things and launch companies. And one day wants to build a SAS company and, and dump a million dollars into the new project or whatever. Um, but on the other hand, you have the, uh, Jr that, you know, grew up poor and is, has a fear, a fear of, of poverty. Um, because I've, I've been through that. And it's like, okay, how do you, how do you balance these two sides of this, these two dichotomies, these two sides of my personality out well, by building peace of mind over here with my investments, to where I know worst case scenario, my all my monthly bills are covered. Then I can play with the big boys over here with the, hopefully the Jeff Bezos's and the Elon Musk's of the world and make these big, uh, take these big chances. And these huge calculated risks over here, because I know worst case scenario I'm okay. Like I'm not going to be homeless on the street in the shelter, right? So, although I, like you could look at this and say, Hey, this, this strategy is dumb because you, you know how to produce, uh, income with online businesses. Why not rather than sinking money into real estate or stocks, why not just double down and grow these online businesses that give you the best returns possible. Right. So that'd be the smartest financial long-term thing to do. That'd be the smartest financial thing to do, right. At least maybe not long-term, but at least right now, because that's giving me the best return. So when you look at it that way, you're like, okay. If my goal was to become the richest person of all time and the, the, the richest digital marketer ever, then I would, then I would follow that path. I would just reinvest back into the business and reinvest in other online businesses and just seek to grow, grow, grow, grow. Um, however, that's not my goal. Like I want to enjoy my life. I want peace of mind. I want all these, all these different things. So my investment strategy has to fit my goal. And if mine, if your, if your strategy hits your goal, then it's a success, right? Cause you look at people that, um, you know, they, uh, they make investments or they start businesses or stuff like that. And, and from my point of view, I might say, you know, that's dumb the way they did that as dumb, but for their specific goals that might've fit perfectly. So, uh, thank you guys so much for listening. If you want me to talk more about investing, I can do episodes where I break down my real estate deals I can, uh, which I probably will, because I, I do want to document some of that stuff and I can talk more about investing and what kind of, uh, stocks I'm I'm in and stuff like that. So if you're interested in that, uh, let me know on Instagram at The JR Rivas, and I'll catch you guys on the next episode of the instant leverage podcast.