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160. ​​A Methodology for Wealth Building with Brett Tanner · Wealth On Main Street

• 0:00
  Speaker A: You are listening to the wealth without Bay street podcast, a canadian guide to building dependable wealth. Join your hosts, Richard Canfield and Jason Lowe, as they unlock the secrets to creating financial peace of mind in an uncertain world. Discover the strategies and mindsets to a financial future you can truly bank on.
• 0:19
  Speaker B: So, Kyle Fuller. Yeah, from factum. So I've known Kyle for years and have watched him grow on his journey in being an entrepreneur. And he had posted, so this was last year he had posted, having been in attendance at one of your mastermind events, and I had reached out to him and said, kyle, like, we do a lot with kw real estate agents up here in Canada. Do you know if this is offered? Is Brett doing this in Canada? And he goes, I'm not really sure. Let me introduce you to one of his team members who sort of coordinates all of his events. And so I was fortunate to meet one of your team members. And she had said, no, he's not doing it presently. It may be something that is introduced at some point in the future, but there's a lot of great feedback that's coming from folks who are attending your event. And I love how you describe helping real estate agents get off that commission roller coaster and make the decision to be wealthy, and you're helping them do that. And in our industry, where we're dealing with primarily life licensed agents who are primarily 100% commissioned income to be able to provide them with a platform to do the same, because we're full of top producers, and they all have that aspiration of wanting to create wealth. And so I really love what you're doing, and that's what gave rise to wanting to connect with you and have you be a part of our podcast, because we have a great reach in Canada and a lot of realtors listen to our show. And so we're just excited to showcase you and everything that you're doing at be wealthy and so much more. Honestly, it's a real pleasure to be with you today.
• 2:12
  Speaker C: Well, thank you for that. What's so cool is a couple of things. One, Kyle's office factum. I'm not a great golfer, but I could hit my pitching wedge to his office. He joined my group. He's like, I'm in the same office building you, and I didn't know that. Right. So he's literally right there on calls. Yeah. And so I was just with him in Nashville at our be wealthy event. So we meet three times a year with primarily agents and entrepreneurs, and then we have lenders, and now we've got other professionals like Kyle in there, and it's been really cool. And the mission is still the same. Right? Like, the goal of business owners is to hopefully create a lot of cash, but what you do with the cash will make you wealthy. And so we just teach strategies around wealth building. That's where I spend all my time.
• 2:54
  Speaker B: Amen to that. And you'll find very quickly that our podcast is very conversational. But again, we want to shine a bright light on the great work that you're undoubtedly doing in serving other people and helping them. And again, I love how you position that on your website, for example, where you say you've just got to make that decision as a family, as a person, as a business owner, you've got to make the decision to be wealthy, and that's where it begins. So we're going to work around that theme with you, and we look forward to a great show.
• 3:29
  Speaker C: I love it. I'm honored to be here. I'm excited. So I'm ready.
• 3:32
  Speaker B: To all of our subscribers, to all of our viewers, we want to invite you to make a decision today. And that decision is to be wealthy. And we are blessed and honored to be joined by Brett Tanner. And I just want to give you a little bit of insight into Brett before we officially welcome him to the Brett, you know, as a leader, an innovator, and investor, top selling real estate agent. He not only helps real estate agents get off that commission roller coaster and create and build wealth and build a peaceful, stress free way of life financially, but he also blends what he refers to as a unique marketing methodology as well, and a results driven approach to real estate. And what a great matchup, right? You're helping real estate agents build wealth in real estate and running a team of 40 plus agents, ranked number nine in the country by the Wall Street Journal, selling over $2 billion in real estate. I just want to go on to say that his success with real estate sales and investments really propelled him to broader opportunities. We're going to be talking about be wealthy. The mastermind that Brett is leading and just serving so many people, that's how we came to be introduced was through a mutual acquaintance who said, you've got to check Brett out and what he's doing, it's amazing. And so he's a man of vision and being able to systematize the home, buying the selling experience, and also operating as a principal at Tanner Capital holdings, he's really modernized the modern family office approach to operations and business growth. And so under that particular umbrella, Brett's amassed his three greatest strengths, which he believes to be operational excellence, linear execution, and wealth management. So let's get into that mindset of making that decision to be wealthy and join me in officially welcoming Brett to the wealth without Bray street podcast. Brett, a warm welcome to you. Thanks for joining us.
• 5:31
  Speaker C: I'm excited to be here and thanks for what you and Richard, it's so important what you guys do to help people think differently about their money. So it's my absolute pleasure to be here and I'm very excited and it's cool that we got connected in that way.
• 5:44
  Speaker B: That's amazing. So tell us, what inspired you to so through your experience in real estate and being on that, as you refer to it, that commission income roller coaster, what inspired you to create the be wealthy mastermind? And how's that been going? And what are some things that people learn by being a part of that group?
• 6:07
  Speaker C: So I'm going to take a step back. I got my license. I was an investor first, right? I'd read the books, I read Rich dad, poor dad. And I realized that real estate was going to be a vehicle. So I was a new investor, having some success buying, flipping, having rentals. And I got my license only to facilitate my own transactions. I had no intention of being a realtor or building a big real estate business, but I ended up helping one of my friends buy and one sell, and I ended up going on to build one of the top ten teams in the country. And that wasn't the plan. And as I did that, I realized there were two businesses there. There was a real estate transactional business, but I still had my investor hat on first. So any opportunity I went on, I was trying to say, look, you want to list your home? Why don't I just buy it? I'll just buy your house. So I was always trying to buy homes, and then listing was the last thing I thought about. It wasn't my forethought. And as I was growing my career, I got the opportunity to mastermind with really big realtors where you see that dominant agent that has been there for 20 and 30 years. And I got the good opportunity around them. And I started going around the room, and these were just, they dominated for two decades. I'm in my looked and I thought, which one of these people is really, really wealthy? And I looked around, they had a nice house, they have a late model BMW, but they didn't have any real wealth. They were going to be listing homes and selling homes until they died. And so I looked at? Well, obviously, being a great realtor doesn't indicate that you're going to be really successful. There's other things that you need to be thinking about. So I started studying the wealthy. What do they do differently? How are they thinking about it? And that's where it all changed for me. There's a real path to money, right? You guys talk about it, you teach it, and agents as a group just don't get it, right? They're great realtors. They're great, but they got their realtor hat on, not their investor hat on. And so we built a really great. I use my real estate business as deal flow for my investment arm. And so that methodology, I helped a few folks do it. It wasn't something that was really organized as a coaching program of sorts. And ultimately, I decided I really didn't want to help agents be better agents. It's not that I don't love that, it's just not my passion. I wanted to help agents become wealthy.
• 8:24
  Speaker B: Love that.
• 8:26
  Speaker C: The overall theme became, I want people to look at real estate agents when they meet them on the street, like, oh, you're a real estate agent, you must be ridiculously wealthy because you're in real estate, right? That's our end game, is that our industry becomes the thing. And so we started this group, very small mastermind. It was like ten or 20 of us, and now it's 150 people, from agents to investors to lenders, and some people in the financial services world who come to our mastermind to be around a tribe of like minded people, to ultimately create the wealth which creates the freedom and so kind of the short version of that journey.
• 8:58
  Speaker B: No, that's awesome. And I love the fact that with you creating this mastermind, people don't have to feel like they need to be a lone ranger. They can surround themselves, like you said, with like minded people who are ambitious, who are perseverant, who really, truly have made that decision honestly to be wealthy, because this transfers into really any established, successful business owner as well. Most of their wealth is tied up in the four walls of their business. And so I love the analogy that you used where you said, you take off your real estate agent hat, you put on your investor hat, you can apply that analogy to any established entrepreneur. Take off the hat of whatever business you're in, and put on your investor hat and go out there and create real wealth that you're growing and nurturing outside of what's creating the income that's enabling you to go and do all that.
• 9:56
  Speaker A: Well, there's a big mindset thing that you said right out of the beginning in two components.
• 10:00
  Speaker B: It started to me with the fact.
• 10:03
  Speaker A: That you intentionally moved yourself into a position where you could be around the top producing people in your industry right out of the gate. So step one was you're the young agent, you're the new guy on the scene, and you want to say, okay, I want to get to where these other guys are. The only way I can do that is I got to go and hang around with them. So then the secondary piece is that, observationally, you got in tune with what you were looking for and you realized that they didn't have it. So you said, okay, there's a mismatch here, which means we need to go and find some new people, new mentors, and find another way to determine where do these guys miss out. So that two pronged kind of approach says a lot about how you, as a curious person, seek out the answers that are going to be a fit for your own life. And I think there's a ton of value and lessons just in that alone that our listeners could take away from.
• 10:53
  Speaker C: Yeah, I think no matter what business it is, right. People get really good at their business, and what got them really successful there unfortunately doesn't translate to money and wealth. Right. There's just no direct correlation. So if the goal of your business, which should be to create profit and cash, that'll get you a great income, but how you monetize and transfer that cash into wealth, that determines how far you get to go and how high that flag goes. But, yeah, we spend our time teaching those concepts and making sure that people grasp it. Like, look, your business is here to make cash. What you do with it ultimately makes you wealthy.
• 11:28
  Speaker B: That is so good. And knowing what you know about the current real estate cycle, where we are in that cycle, what's happening? There was a really interesting video clip that I saw just the other day where you were talking about. If you were looking ahead into the future as to what your own real estate portfolio is going to look like and be comprised of and eliminating a lot of the noise, could you educate our listeners just a little bit on what you meant by that? Because I found it to be such a profound clip where it was just you really just being genuine and just sharing, like, hey, here's what I see my portfolio looking like down the road. And here are the reasons why.
• 12:08
  Speaker C: So we teach our folks, well, there's three keys, three real keys to generating massive wealth. The first is we've got to get compound returns, right? That's a simple idea. We all get it. Next we got to find out how do we get those uninterrupted over time, right? So we've got return, but how do we not get a return for a year and then not get a return? And the third part of that is how passively can we get the uninterrupted compound return? And as we look at investing, there's things that are much more passive and much less passive. I'll use a single family house as an example. That's a relatively passive investment. Now, if we move up to Airbnb, little more operational kind of passive, right? Can be, could not be less passive. Then if we went all the way to the other end of the spectrum, right. We said, what about owning the first mortgage on that same single family house? But once I do that deal, if it's serviced by a third party, I own the debt, not the home. Now, if a servicer is doing, that's a really passive investment, completely passive. Like it's just going to do its thing if they don't pay, if it's booked, right, you've got very little risk there. And so I look at my portfolio and then there's two ways to invest in real estate. You can own the hard asset or you can own the debt underneath it. There's really a marriage of both if you want to maximize it fully, right. Your hard assets will appreciate, hopefully debts driving down yet, as do we have equity there. What if we were to leverage some of that equity and put it into a debt instrument? Could be a mortgage deed of trust, could be peer to peer lending, could be whatever you want to look at. But that cycle there, that's really the opportunity. So when I looked at scale and I was asking, one of my staff members who runs our family office here said, hey, we have property management every year. How many rentals could you manage through property management? Meaning we've got on the site managers and just, you're overseeing them, answering their questions and dealing with problems. Probably oversee 250 and then we'd have to add some staff. I said, great. Now if I did the same assets, but we own the notes underneath them and not the houses, how many of those could you ever see through servicing? She said, oh, I could do 2000. So the point was it was like a ten to one ish scale between debt and real estate. In that room. I was trying to say, sometimes you think real estate, that the owning the house is the really passive thing, but there's other ways to think about it. That are more passive. So that's what I was chatting about with the crowd, asking, like, where do you think my portfolio will end? I said, my guess is, at the very, very tail end, we'll move to the most passive types of investments. Triple net leases, ground leases, mineral rights, all those vehicles that are just super passive.
• 14:38
  Speaker B: Yeah, I love that. And when you think about the simplicity of it, because for people, you could get 20 real estate investors in the same room, and they're all going to have some level of similarity to their experience in their journey, whether it's dealing with bad tenants, or having to deal with unplanned vacancy or maintenance, or just a whole myriad of different things, versus if you, from our vantage point, private lending is something that we just really thoroughly enjoy and love to do because we get to put up capital and then someone else comes in with their unique capability in finding the right opportunity to deploy and multiply that capital. And then you get the capital and a return on it, and you had no direct involvement in anything regarding the transaction, the management of the property, and so on and so on. And so we can relate with you there big time.
• 15:38
  Speaker C: What you guys are teaching, it's so important on what you guys do right now. You take your cash value, right, your policy with the line of credit, and you're using that is in the middle as your capital structure, and it changes everything. The whole thing explodes. It does.
• 15:56
  Speaker B: It amplifies it and accelerates it.
• 15:59
  Speaker A: Well, and this is the interesting thing I love about the conversation you had around, okay, we got real estate doors, and then we've got the debt on these doors. And your conversation around these two different types, and the passivity that's around them wasn't focused on, here's the rate of return of these two different things. It was focused on how do I scale them, which is about volume. So your return mindset is about how do I take the cash flow and turn that cash flow into more and more and more greater cash flow. So you're creating an exponential increase on that because of the volume aspect, which is a scale question, not a rate of return question. And a lot of people get tripped up and they spend all their brain effort, energy breaking pencils and calculators building spreadsheets to look at how they can get the greatest possible rate of return on planet earth. Meanwhile, 17 amazing cash flowing opportunities pass by them. And the next guy got it because they're focused on volume.
• 16:57
  Speaker C: And nowhere in their rate of return calculation do they insert their time as an overlay, because you could go return. Like, oh, the return. You could make more money on many of my rentals by doing those in Airbnb. You could make more money. But see, I measure noise and my time is a huge factor in that equation. But yeah, the debt side of things, I think it's misunderstood. I think it's misused or just not used enough. I mean, the book that really changed my mindset, I actually had him speak at our last event. The banker's code by George Anton. Really?
• 17:28
  Speaker B: I was just going to ask you about him. I kid you not.
• 17:32
  Speaker C: I read that book ten years ago and it's always cliche, right? But that was the book that changed my life. I read it, I understood it, I thought, this makes sense. And so it was cool to bring him to my event and have him teach the bankers code. But you go to leveraging your policy. For a long time, my policy was paying a 4% floor and I was borrowing at three and a half percent and then lending that in debt instruments at twelve to 15. It's a crazy amount of money with very little risk.
• 18:05
  Speaker B: Absolutely.
• 18:07
  Speaker A: And your death benefit went up the entire time frame, and your family was more protected the entire time frame because you did it. And it probably let you sleep better at night because your time is worth something.
• 18:17
  Speaker C: Right. And I think people, if they understand this conversation that we're having, right, that I've got a cash money policy, I've got a hard asset now I'm going to use it as a debt instrument. If we were to draw a circle between those three things to optimize for that, and the last kind of leg of that is that income comes back in, in real time, the payment or the rent or whatever, you're dropping that against the line of credit. So now you're earning today seven to seven and a half percent in real time on the money that comes in, it just creates that snowball, that over time you just have massive amounts of cash flow. And I think if people understand that, that's the unlock, if they get that concept, then you pick what you're playing.
• 18:59
  Speaker B: Completely and what people are sharing with us. Because we've been specializing in coaching and educating the general public here in Canada the past 15 years on this process. And what people tell us is they get to a stage where they say, look, we're not carrying any debt presently. We've got a large pool of financial value, we're seeking high caliber opportunities, and they're starting to think about what do I do next? What do I do to really multiply money in my life. And so what you're doing in your mastermind community is just brilliant. And I think that there's no boundary there in terms of, like you said, now you've got people from the financial sector who are there. You've got people in the private lending community, you've got people from the real estate agent community primarily and so much more. This is going to blossom into something massive for you and it's the right thing at the right time. And for those who are maybe just be tuning in or you've been following along in our conversation with Brett Tanner, if you like what you see and you like what you hear and you want to get in touch, we're going to include contact details where you can plug into Brett's content and what he's doing. Bewealthy.com is a very easy domain name to remember. Again, that's bewealthy.com. And when you get there, you're going to see a lot of great content and you're definitely going to want to follow Brett. I was going to mention to Brett, so when you posted about having been impacted so greatly by the book and having the author of the book there, that resonates so much with us because we were blessed beyond the definition of good fortune to be mentored by Nelson, who authored the book titled becoming your own banker and being mentored by him for so many, it's not, it's not a cliche. It's the domino that tipped over for you, that created your journey and helped you create the abundance that you have today. And so for you to honor him and your mentor and the book that he authored, I ordered the book right away.
• 21:06
  Speaker C: It was a little tough to find.
• 21:07
  Speaker B: Though, on the Amazon it was a little tough to find. Like you had to get like a newer used copy that it just wasn't readily available. But you inspired me to read it. And so thank you for doing that.
• 21:19
  Speaker C: Oh, that's so cool. Yeah, he's a really cool guy, incredible instructor. But what a cool moment that something changed you. And that was his comment is I had no idea. You write a book, you have no idea who it's impacting in what way. And then of course, I went to dinner and we're now modeling out different debt structures and I can go faster. And we had this crazy, just cool. You're there with your mentor and you're now breaking up an idea and then teaching it to others, which is, I think that's where at the highest level of business, I think once you get to that place, you become a teacher, right? And you just want to give back and help other people to inspire their journey that hopefully they can get what they want and you can be a small part of that.
• 21:58
  Speaker B: Well, here's an interesting question for you. I don't know, maybe you've been asked this before or not, but we're going to put you on the spot just a little bit, just to tap into a little bit more of your visionary. So if we were having a follow up episode of this podcast and it was three years from today, and you were to look back over those three years, what specifically would have had to have happened, both personally and professionally, for you to feel very happy with the progress that you've made?
• 22:24
  Speaker C: First of all, I know where the question come from, so I'll save that because I know there's a whole thing there. Instantly familiar with that. A couple of things right. On the business side, I'd love our be wealthy mastermind to grow to 500. For me, on the other side of things, we're at about 127 single family houses or commercial buildings. My guess is that number goes to 300. I think we'll double that in that time frame. And some of the other groups I'm a part of, probably doubling those numbers would be where I'm at personally. I'm blessed that I live my life by design. So I take 16 weeks of vacation every single year, win, lose, or draw, it doesn't matter what happens in the companies. That's a non negotiable that I baked in at the start of the year.
• 23:02
  Speaker B: Love it.
• 23:03
  Speaker C: I've been living kind of my ideal life. I've got some business goals that I've got to hit and some things along my financial plan that are in motion. But those would be my answers that I anchor in there.
• 23:13
  Speaker B: I love that. And credit to Dan Sullivan, who I've been blessed to be coached by since October of 2018. Dan, you're listening to this. Cannot express enough gratitude to you for the impact that you've had on so many people. And that particular question just really sparks such great insight into someone's thinking and building a future that's bigger than your past. And you've had a tremendous amount of success already, and you're just getting started by the sound of it.
• 23:43
  Speaker C: That question, by the way, changed when I read that book. It changed the way I started. If I wanted to recruit someone to my business, that became the conversation, and I would just make it one year. Imagine you joined our company in one year. Looking back, I did that. I even use, like, a lot of my coaching stuff I use with my wife. Right. I test out the material at home. First dinner with my wife and dropped that. We were having a glass of wine over dinner, and I said, hey, honey, let me ask you a really weird question. Imagine we're in the same restaurant a year from now, three years from now. We're looking back, back. We had the greatest three hour conversation. She didn't know that was one of the things she didn't pick up on. That was a Brett coaching moment because I just wanted to get into her insight. But amazing question to create really cool dialogue between people.
• 24:24
  Speaker B: That's so cool. And, gosh, for as long as I can remember, and this may sound a little cliche, but it's the honest to goodness truth. For as long as I can remember. My wife, Rebecca and I, we sit down during in between the Christmas break and New Year's, and we focus in on three particular areas, and we map out health, wealth, and giving. And then we come together to talk about what we've captured as what we aspire to do in each one of those areas of our lives. And then we build a vision board around it. And as cliche as that sounds, I've got them all since inception. I can go back, looking back on that journey and literally check the box on all the things that became real as a result of having that connection. Right. With our spouses to say, let's talk about again, if we were sitting down here a year from today, looking back on the previous year, what specifically would have had to have happened in order for us to feel happy about the progress? Because primarily the human brain does not understand vaguely. I want to be healthier. I want to be wealthier. I've made the decision to be wealthy. Well, the brain goes, I don't know what to do now. What do you want me to do? The brain doesn't know how to handle that. So the more specific you get, your brain can immediately get to work on making that real. And so this is amazing, the be wealthy format that you have. It's going to impact so many more lives. And we would encourage any of our listeners, because 24% of our listening audience is in the United States, so we would encourage you to most definitely, whether it doesn't matter whether you're from Canada or the United States, just go and get connected to Brett and follow what he's doing, and he's making an impact.
• 26:14
  Speaker C: I want to through at one point really quick. If I can't, first of all, I couldn't love the vision board I was almost going to go grab. I had some old vision boards in mind that we had on the wall, and we're going to do another one, but same idea. I did that, and I'd looked at it and I stared at it every day. And then one day I woke up, like, three or four years later and I realized, oh, my. You said, everything on here I've done, and you've got to get granular. So I teach a one day workshop, and I give them homework, and I won't allow attendee to walk in the room without out a plan. We give them the format, but you have to have a $50 million net worth or greater 30 year plan. Not today, but in 30 years, you have to build a plan. You have to show it before you can walk in the door. Like, if you want to do 30 million, cool, we'll give your money back. We're not interested. And it's not that you have to do it, but it's that you had to do the work. Come with 100 million. Some people come with 250,000,000. And so they have to do it right. We give them. You picked your asset class. It could be a number of different things, is we just give you the format. And then when I go and teach, I say, what do you learn? And then you got your balance sheet today. But I'm tracking my net worth this month. And so next time I do, it'll be March 1. And in March 1, 2023, I'm asking the question, where do I need to be January 1, 2024, to be on track for my $50 million plan 30 years from now? Right? So, I'm asking that connectivity, and overwhelmingly, this is crazy. Every single person, the same thing. I can't believe how easy it is. I can't believe how my wildest dream, I've got to buy three homes a year, or this commercial building, or invest this amount of money in the stock market, whatever their widget is, in terms of investment class. But that's the overwhelming thing. And if people go out that far and you get really granular and you connect in, you could hit any goal you wanted over time.
• 27:53
  Speaker B: That's amazing. And for someone who is aspiring to create wealth through real estate, if they're just embarking on that journey, what advice would you give to that person?
• 28:07
  Speaker C: I'll see the beauty of today right as we sit here filming this is you've got every best books, podcasts, what you guys do, right? Plug in, go devour content. You could go and find the greatest podcast. Find the top 50 real estate related podcasts, if that's your thing, and you listen to their top 30 episodes, and you can do it at two x speed to get there faster, and then grab every great book on real estate and go read the publications. So once you're there, then go plug into a tribe locally, right. Whether it's aria or whatever, get around people that are doing it. And my joke is, you know what it costs to underwrite a real estate transaction? Nothing. It's free to underwrite it, to go through the motions. So go underwrite 400 deals. And now you're going to know, wait, this isn't like the 400. I got the one. Because if you find an amazing deal, the money is the easy part. I think people believe, oh, if I had the money, I'd do a deal. It's not true. If you found an amazing deal and showed it to five people, the money would just flock to you. And so most people don't have the education to know the difference between greatest deal ever and an average deal.
• 29:14
  Speaker A: Capital is attracted. It's got to be mobile and it's attracted to deals. And the more capital you have, the more deal flow usually starts to show up. And so if you're the person that's sitting there, you don't have any capital. Well, then you can get really good at finding deals. Capital will find you 100%.
• 29:33
  Speaker B: Our late mentor often said that when you have ready access, capital opportunities of high caliber will track you down. And he couldn't have been any more accurate on it. And I also see, too, and I would love your insights on with where things are headed, there's going to be an even bigger opportunity in the private lending space to really help real estate investors who maybe, whether it's for lack of better description, if they maybe got in a little bit too much over their heads or they're a little bit overexposed, that the private lending community is really in for a big boost in business, so to speak, in the very near future, if not already.
• 30:20
  Speaker C: Yeah, we're already seeing it in terms of us deploying capital for what we do day to day underneath my umbrella, the debt side of things. Right. Whether that's private lending is really. I'd say I've seen more opportunity in the last five months than in the previous three years before. It was always lowering the returns. Everybody's charging less for their money and lending at higher ltvs and taking more risk, and we didn't really play that game. But today, I'll just give you an interesting transaction that I think you'll start to see more of. So we'll see people with a two and a half, 3% interest rate on their 30 year fixed first. This is owner occupied now. Okay, let's assume they've got a business, and let's just say it's a $350,000 loan. House is worth 850. Right. They've owned it and highly appreciated here in Phoenix. And they got a business, and they need $80,000. This is the transaction I did the other day. The 80,000 they need now, it's business purpose. Okay. It's for their business. So it's not a consumer loan. We're in the business purpose side of things now. What would they have done a year ago? Well, they would have gone and done a cash out refi. And gone to three and a half or three or whatever. Right. But today, they don't want to touch the two and a half percent. I've got the two and a half percent first. So what are their options? Right. I mean, banks aren't going to get excited about this, and if they need the money quickly. So I put that loan together. I charged 18% and $2,500 to do the loan, and I have a relatively low risk, less risk than I actually do on my other private loans. Now, I've got to have the wherewithal to make that first current or buy it out if I had to. But if I'm under 50% overall LTV, and I can get that kind of yield, I just haven't seen that opportunity. I don't know that you've seen that opportunity. I can't tell you. What period of time did we have? Rates were so low for so long, then they skyrocketed in that same time frame rate, real estate prices went up stratospherically. Right. It's like this combination of four factors. So private lending space today has got. I mean, I can give you many more examples, but there's so much opportunity we're starting to see, which is just so fun to play in that space today.
• 32:23
  Speaker B: And then within what you do, Brett, as part of that element of your overall business, do you take in funds from folks like myself, who have a lot of capital and say, look, just want you to multiply it, you go earn a return on that capital, give me a share of the return, and then do it again?
• 32:47
  Speaker C: No, we haven't done it. We will have a fund that will roll out q two inside of some things I'm doing at the firm, I'm with. So that'll be a big opportunity. But no, it's all been instead of rate. Right. There's ways to go about growing your business. I've always went. And so we've got a warehouse line or credit facility behind what we do. So I always go with my capital and I can take those notes and I can go pledge them, and then I've got a warehouse line I can operate off of.
• 33:12
  Speaker B: Oh, got it.
• 33:13
  Speaker C: Okay. I've just always done it. There's no one that can make the decision but me, and I can decide how much risk and intolerance I want in the given moment. So I haven't done that. Maybe I should have, but I've always kept it in house and we just book really solid returns and it creates lots of cash flow. So I get to go spend time talking to really cool people like you and teach others how to do it. Well, thank you.
• 33:36
  Speaker B: But if you ever do decide to do that, make sure you have a tsunami warning alarm on your building, because the moment you open the fund, push that button because you're going to have to tell everybody in your office to take cover with all the money flooding in. But what I'm trying to say is that I'm so excited about the opportunity that is in front of us. And for people who, it all begins with making that decision that you want to build a future that's bigger than your past and you want to be wealthy, whatever that wealth definition is for you, certainly there's going to be a financial element of that, understandably so. But wealth also relates to relationships and purpose. And like you said, living a lifestyle that you've designed versus other people reacting to the lifestyles that they have. And I took a sabbatical for the first time two years ago, took another one last year, the longest period of time that I've ever been away from work since I was a fetus. And it scared the crap out of me. And now it's part of just every year, much like you, you've got to prioritize it because, gosh, this journey of life, it goes by so bloody fast that you wake up one morning and you're in your mid forty s and then your late forty s and you go, wait a second, do I just want to keep being a workaholic or do I want to actually enjoy quality time and have more purpose in the relationships that I have?
• 35:03
  Speaker C: And I think the biggest thing I would say to that is I think there's this myth that you have to trade your time to make more money. So after Covid, we had the year of COVID in 2021, I pulled my kids out of school. I hired our own teacher called the Tanner Academy, and I traveled the world for a year and at least two weeks a month, I was out of the country. Sometimes the entire month I was going to do that, and I called it out. And before I go, all the companies that I'm the CEO of, I'll double the profits while I'm away. So I'm going to prove to you that you can lead, you can put in great people, you can empower them, you can live this really cool life, and you can double. You don't have to trade something. And I think this myth as entrepreneurs is just, like, more hours and grind and spend more time. But maybe, right, maybe there's a better way to get a higher profit in less time. I'm obsessed with doubling the results in half the time. That's my obsession. One thing, to double the result in twice the time. Anybody can do that.
• 36:02
  Speaker B: Totally.
• 36:02
  Speaker C: That's not a thing. How do you double the profit half the time? And then I'm obsessed with that question. Oh, man.
• 36:07
  Speaker B: I love that we're cut from the same cloth, dude.
• 36:13
  Speaker A: You've also identified just with the $50 million question. I think you're showing people in those group sessions, and you're giving an insight to our listeners how, by asking a different question, you've automatically positioned your brain to come up with new answers. And if you keep asking the same stupid question, you're going to get the same stupid answers. So you need to invite a new question into your head. And a $50,000,000.30 hours question is a new question for most people that have probably never even considered it because they never even thought, why would I even ask that question? But just by the act of asking for it, the brain automatically says, oh, this is a cool problem to solve. How am I going to go to work on it? And you're inspiring new creativity that is really untapped, unmatched in a lot of this squishy mass that we've got between our ears, which is the most powerful computer on the planet today. And the ability to put it into high gear by asking those kind of impactful questions makes a big difference.
• 37:11
  Speaker C: Yeah, I think people just don't like. To your point, they don't ask that. They're not asking a different question, and they're not getting around people that have already solved it. Like, someone's already making twice as much money as you want to make. And they're working half as much as you, and there's making twice as much as them, working half as much as them. So by getting around those folks, how'd you do it? Was it leadership? Was it people? Was it a compensation model in your organization? What was the principles that allowed you to do that for getting around those folks and studying what they do? And you think no matter how big you are thinking and playing, there's someone playing at a whole different gear. And so getting around and being inspired, and it's a big part of unlocking that if there's something missing, go get around someone or a group that's doing three times what you're doing and come back and tell me you're not expired. Right? It's impossible.
• 38:00
  Speaker B: No kidding. No kidding. And on that note, this episode was really inspiring. Brett, we just appreciate having you here, and we would love to have you back, honestly. Would love to have you back. And what you're doing, the value that you're creating for people, and how you're being a servant leader and inspiring others, it really is truly awesome. And it's inspired us to be thinking about, hey, you know what? I wonder if there's an opportunity for us to do this sort of thing in our profession with people who are in that top producer category, where they're just looking for something outside of what they specialize in to help them build the wealth. And, wow, really impressed with what you're doing.
• 38:48
  Speaker C: The answer is yes, there is. People do want it. Right? There's not a place for people to go to learn how to build wealth. Right? Like real estate agents, at least we as an industry have the most training out there, right? There's endless training to be better agents. But if you just go to the property and casualty insurance industry and say, what's the training around there? It drops off dramatically. Right. You go to roofing. What's their training to be better roofers? They don't have it. Right. And then where do you go in all of the industry to be wealthy people don't have it. Right. So I think for you guys to go out and get a group of people that are saying, look, we generate lots of income, we're loving that. But now let's go build wealth, and let's talk about tax strategy and structure and living a cool life, and let's have that conversation. And it's the favorite part of what I get to do is to go out and be in a room of people that want to live just incredible life.
• 39:42
  Speaker B: It's so cool that's incredible. Rich. Take us home, brother. Well, Brett, you've shared a ton of.
• 39:47
  Speaker A: Value with us today. And as you're going about the world, helping people break through the barrier that's in their own mind about what's possible, what their potential is. You may not realize this, but even though you didn't show up today with a cape on, you're kind of flying through life with a bit of a superman outfit because you're teaching people how to do something impactful in the world. And so our question for you is, who do you most want to be a hero?
• 40:11
  Speaker C: Oh, for me, it's my kids, right? I wake up every day and I'm trying to lead three little people to be incredible humans. And they don't need to be the highest achievers. I just want to be great humans. So that's who I'm looking to be a hero to.
• 40:27
  Speaker B: Well, there you have it. So if you've made the decision to be wealthy, first of all, we congratulate you. And if you're watching us on the youtubes hoof, the playlist just showed up. Thanks to our amazing editing team, who are all phenomenal. We appreciate you continue your journey of learning. Watch that next video that we've recommended to you. And thank you so much for tuning in and for being a part of our podcast. We appreciate having you make the rest of your week. Outstanding, Brett, it was a pleasure and we look forward to having you back real soon.
• 40:59
  Speaker C: Anytime. Thank you, guys. Appreciate you.
• 41:00
  Speaker A: Thanks for listening to the wealth without Bay street podcast where your wealth matters. Be sure to check out our social media channels for more great content. Hit subscribe on your favorite podcast player and be sure to rate the show. We definitely appreciate it. And don't forget to share this episode.
• 41:14
  Speaker B: With someone you care mode.
• 41:15
  Speaker A: Join us on the next episode where we continue to uncover the financial tools, strategies, and the mindset that maximize your wealth.