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Conquer Your Cash: Wallets to Mortgages with Stuart Berryhill · The Academy Presents podcast

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Did you know that 90 % of the world's millionaires
0:05
invest in real estate? Well, I'm Angel with the
0:08
Academy Presents Real Estate Investing Rocks,
0:11
and I'm here to help you if you want to go for
0:15
your piece of that pie. Are you new? Are you
0:18
new to this and you just don't know where to
0:20
start? It's okay. Are you someone that has invested,
0:25
but you feel stuck? You feel like you've lost
0:27
momentum. You don't know where to really head
0:29
from here. Are you a seasoned real estate investor
0:33
who is doing great, but maybe you just want to
0:35
hone a few skills here and there? This is the
0:38
place for you. The Academy Presents Real Estate
0:41
Investing Rocks podcast will connect you with
0:44
industry experts so that you can save time, avoid
0:48
costly mistakes, and begin living the life you've
0:52
dreamed of all through real estate investing.
0:56
You're already taking the first step. just by
0:59
joining us here today. Hey guys, you know, thank
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you so much for being here today. And for those
1:05
of you that have spent the last two days with
1:07
us as well, you know, this is just amazing and
1:09
so much fun. And it really is the highlight of
1:12
my year. We do it twice a year. So I get six
1:15
days of this amazingness because that's really
1:17
what it is. And today we've got Stuart Berryhill
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and I'm going to let him talk a little bit about
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his background. And then he's going to give us
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some really financial literacy 101 advice. Because
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I think a lot of us, I know I didn't get it in
1:32
school. Even in college, we didn't really talk
1:35
about the personal financial piece of it. And
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so he's going to give us some info on that and
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give us some tips and tricks. And I think it's
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going to be amazing. So Stuart, I'm going to
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turn it over to you. And if you just tell us
1:45
a little bit about yourself and then we can get
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started. Yeah, thanks, Angel. Definitely excited
1:50
for this. I love the conferences going on. Definitely
1:54
passionate about teachers, I think. teachers
1:57
are so important to just the future of the next
2:03
generation and leading them, and so I almost
2:06
want to give you guys a round of applause, because
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I know I've been there, done that, and it is
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definitely some times where it is difficult,
2:13
but there are often rewarding times where you're
2:16
like, oh, okay, they said something sweet to
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me at the end of the year. It made up for all
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the rebellious things they did, and so anyways,
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a little bit about me. I am in Little Rock, Arkansas.
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That's where I'm at currently. But the past,
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actually this past year was my first year not
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teaching. So my first five years out of college,
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I went to University of Arkansas, Wu -Pig -Suey.
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But first five years out of college, I was a
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high school teacher and basketball coach at a
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small private school in Hot Springs, Arkansas.
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And so loved coaching, loved being with kids.
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I was a summer camp counselor and on the summer
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admin team. in uh the summer so it was around
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kids and youth 24 7 basically and um i enjoyed
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teaching but the pay was tough and so you know
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i started investing in rental properties and
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and things like that while i was teaching even
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kind of with lower pay i'm super frugal naturally
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and so every dime was just extra that i had was
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going to investing but long story short my Towards
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the end of my teaching journey, I was able to
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kind of rise to the top and be able to kind of
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control some of my curriculum, being a small
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private school and whatnot. I know public schools
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probably don't have that luxury as much, but
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my last year I was able to lead a class and develop
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kind of my own financial literacy curriculum
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because I was passionate about it. Youth was
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passionate about it. And everyone always says,
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hey, high schoolers should be learning financial
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literacy and things like that. You know, all
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sorts of different topics that go with that.
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And so I started to develop that curriculum.
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And now after being a teacher for those five
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years. Now I have a podcast that's kind of an
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extension of that called Money Vision U. And
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so the tagline is the financial class you should
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have had in high school and teach you how to
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make, manage, and multiply your money so you
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can learn to fast track your financial freedom
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and see opportunities the way the wealthy do.
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And so I do that, but then I have my real estate
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ventures going on. We've got 18 units now. We
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do the Airbnb game. We have six. We're actually
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about to close on 12 on Friday, and we're going
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to turn all those into Airbnbs. hotel there and
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then we have 30 units under contract so i'm growing
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the real estate portfolio and just pursuing financial
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freedom with the every spare second and every
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spare dime so awesome that's a little bit about
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me and um and that's great people i think that
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people think that getting into real estate you
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have to already have money when you get started
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and that isn't really the case i mean especially
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like with house hacking if you've got an extra
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room you can seriously rent out that room um
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if you've got like a garage apartment or you've
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got uh like a mother -in -law suite or a she
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shed or something i mean so long as it's got
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plumbing and electricity you can absolutely rent
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those things out so don't don't put blinders
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on and shut yourself off to possibilities because
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you think you can't do it for whatever reason
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Yeah. And starting small, anything you can start
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small with is great. So even if it's a one single
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family house, anything like that, you just kind
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of learn the game and get a little more confidence
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and you're able to take steps forward from that.
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That's how I started one, one house. And one
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thing led to the next, just really the main thing
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I was, I'm not the smoothest talker. I'm not.
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I don't have the most money, but I was one thing
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and I'm going to do one thing better than anyone
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else. And that's be consistent. And so that's
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really how I've kind of been able to continue
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kind of my path. And I think that's the main
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thing I pride myself on is I'm just consistent.
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I'm going to wake up and do the same thing and
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I don't mind the same routine. And I know it's
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going to lead where I want it to go eventually.
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But baby steps tell you get there slow, smooth,
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smooth as fast. But anyways, yeah, let me get
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into this presentation here. All right, and you
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should be able to share. Share my screen. So
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today I want to talk about setting yourself up
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for financial success. Because I know, I think
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in this conference, you're going to have a lot
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of people talk about real estate and, you know,
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maybe different asset classes or maybe different
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things than real estate. But I want to talk about
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really, to me, the one, two, threes of getting
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started. Make sure my slide here. There we go.
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Just I want to give some success stories just
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to kind of get started of people I've had on
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my podcast who I know on the left in the left
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picture. I've got Neely and Maddie Darm. Neely
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is a college student who's house hacking. And
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that's how she got started. And house hacking
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just means, like Angel said, you may live in
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a house and rent out your other two rooms. She's
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got a three bedroom, two bathroom house. She
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lives in college. Well, it made sense for her
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to. Not pay a faceless landlord, as she says
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in the podcast, but to buy her own house, have
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her family kind of help with the co -signing
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to be able to qualify, and then rent out the
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two rooms, and she lives rent -free. And she
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laughs because she looks on Zillow. every week
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and sees the prices of the house around her going
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up. And she's like, Oh, well, my house is appreciated
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pretty nicely. And so she's just seeing the power
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of real estate firsthand. Maddie, she's in college.
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And all she's doing right now is just she's doing
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tanning salon. She's there was no real She's
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at a smaller private college and there was no
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tanning business there. And so she got, I don't
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know how the tanning business works. So that's
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above my pay grade, but she has some sort of
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tanning salon thing in her dorm room and makes
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a couple thousand per month. And so it's just
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the little things. baby steps that they're doing
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and who knows if one day she scales that into
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something else and leases out a unit in a commercial
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building and has her own business there and then
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scales that I don't know but it all started with
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one little baby step while they were in college
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and the purpose of kind of this slide is to say
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you're not too old you're not too young you're
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in a perfect place all you got to do is take
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one step forward and and get the momentum going
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and then the guy on the right Alex Camuno He's
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a stud. He actually has a podcast himself, and
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I'll talk about him more later. But out of college,
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he quickly learned he wanted to be financially
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free, and he didn't want to work these hours.
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He was an engineer, and he didn't want to work
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all these hours, and he saw people that were
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60 years old, and they were still working. like
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8 a .m. to 7 p .m. And he's like, man, y 'all
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still got family. I'm here being a single dude,
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but y 'all still got families to take care of
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and things like that. That ain't the life that
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I want. So he started his journey. And in his
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podcast, he talks about all the different types
9:13
of businesses he started and how he's invested
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in himself and probably got the cart before the
9:19
horse and quite a few of those businesses and
9:21
tried to do too much at once. But finally, just
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through trial and error, landed on something
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new. He liked with his cleaning business. He's
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really a marketing company for a cleaning business.
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And now he makes $50 ,000 a month at 25 years
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old. He's financially free. He's able to quit
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his job. And so we'll hear about him a little
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bit more in the slideshow. Yeah, and I would
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just kind of like to point out too, like $50
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,000 a month is great, but financially free just
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means that you have more coming in than what
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you spend. Right. That's it. It could be, it
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could be $10 ,000. It could be $8 ,000, 6 ,000.
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It doesn't have to be some huge, crazy number.
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It can be something way more attainable with
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those baby steps. So don't get freaked out thinking,
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Oh my God, I got to make 50 ,000 a month. That's,
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that's not the truth. It's pretty awesome. He's
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making 50 ,000 a month, but that's not what you
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have to do to be financially free. Yeah. It sounds
10:17
great to make that much money, but he, he would
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tell you too, that the purpose isn't. I mean,
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there's just levels to it. We wanted to start
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just with financial freedom of having his assets
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pay for his liabilities. And we'll talk about
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those. But really, I think before talking about
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financial freedom, I want to define what the
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rat race is almost like the opposite of financial
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freedom. And if you've ever heard Robert Kiyosaki,
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I'll talk about him later, but you got to read
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his books. You got to listen to just kind of
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his advice because he's the one that really kind
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of defined all this and brought this financial
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literacy awareness almost. to the world he's
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like the guy that people think of but the rat
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race basically is the cycle of and see if this
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looks familiar you go to work to earn money to
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pay for the bills or the debt until you are left
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with no money and so then you have to go to back
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back to work and you're just on this hamster
11:10
wheel non -stop if that feels like some of you
11:14
might relate to that you're constantly going
11:16
to work you're constantly just paying the next
11:18
bill that's due The next week, utility, mortgage,
11:21
whatever it is, paying for the groceries, paying
11:24
for the kids, but you're back at square one every
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time. And so that's what the rat race is, just
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kind of this endless cycle of feeling like you're
11:32
having to trade your time for money. And so if
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I broke this down, now ignore the percentages.
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This is just something that I got off Google.
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I just wanted to see a pie chart for an example.
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So completely ignore the percentages. I'm not
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saying one thing or another for the percentages.
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But how someone in the rat race, how their budget
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might look like, or what it might look like is,
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let's say you make $30 ,000 per year. Well, at
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the end of the year, maybe you have saved up
12:02
$2 ,000 to be able to invest. And you do that
12:06
accordingly. You invest in whatever it is. Or
12:09
maybe you've got a 401k plan, things like that.
12:12
You invest. Well, what happens for people that
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often get stuck in the rat race, is their salary
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ends up increasing to call it $40 ,000. So now
12:23
you have 10 ,000 extra dollars. So if you're
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pursuing financial freedom, really your margin
12:30
just became $10 ,000 bigger to be able to invest.
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But what the people in the rat race end up doing
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is they take that margin and they end up spending
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it and they keep that same $2 ,000 margin that
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they started with. And so they're never investing
12:47
into their future and investing into their financial
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literacy and into their financial freedom ultimately.
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And so that's what kind of the margins look like
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for people in the rat race. That compared to
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financial freedom where they're using every extra
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dollar they can. And, you know, take this with
13:06
a grain of salt. I'm not saying to live so far,
13:09
you know, like entrenched in penny pinching.
13:13
that life is just completely unenjoyable. You
13:16
know, I'm saying to be aware of kind of the margins
13:21
that you have and make sure that you're not just
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following the rat race cycle and ending up in
13:27
the hamster wheel, so to speak. So let's talk
13:32
about now we've got the rat race kind of defined.
13:35
Let's talk about financial freedom. So this chart
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right here, you'll see in Robert Kiyosaki's book
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called Rich Dad, Poor Dad. And it's a super important
13:45
chart to understand. And really, financial literacy
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comes down to six words. Six words. And four
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of them are on here. But it's income. Actually,
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all six of them are on here. Income, expenses,
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assets, liabilities, and cash flow. Those are
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the six words that completely surround financial
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literacy. And you have to understand how those
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work. And the more you understand how those work.
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The more financially literate you are, as I say
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in my Money Vision You podcast, the sharper your
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money vision gets. You get to that 20 -20 money
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vision, so to speak. And so here's the cash flow
14:22
pattern of a life. Let me define a liability.
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A liability is anything you invest in that takes
14:30
money out of your pocket. That compared to an
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asset is anything you invest in that puts money
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into your pocket. And a lot of people actually
14:38
get. assets and liabilities mixed up. But that
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is like a fundamental term or terminology, I
14:46
guess, to understand in the financial freedom
14:48
journey. Because a lot of people invest in liabilities
14:51
that they think are assets. And so really, all
14:54
they're doing is paying more expenses, and they're
14:56
never becoming wealthier. So let's say a car,
14:59
for example, you invest in a car, you're taking
15:01
monthly payments with your car. Well, is a car
15:05
ever putting money back into your pocket? Now,
15:09
take that with a grain of salt, because right
15:11
now, the past couple of years, the car market
15:13
has been very weird, very abstract to where you
15:16
could actually have made some money for even
15:20
after you've put some miles on a car and you
15:22
can sell it for the same value. That is very
15:24
abnormal. That's not the standard. Generally,
15:27
you buy a car, call it $20 ,000. You're making
15:30
payments. You put 50 ,000 miles on it. You sell
15:34
it for $5 ,000 less. So you really didn't make
15:37
any money from the car. It was only ever taking
15:43
money out of your pocket. That compared to an
15:46
asset that you invest in, an asset puts money
15:50
into your pocket. So what is an asset? Something
15:54
like real estate, maybe a business you invest
15:57
in, the stock market or call that paper assets.
16:01
You invest in those and it puts money into your
16:05
pocket. So you invest in real estate and real
16:08
estate isn't a get rich quick scheme. It's a
16:11
get rich for sure scheme, as I like to say. And
16:13
so you invest in real estate, boom, $200 of cashflow
16:19
per month that adds to your income. And so now
16:22
you're making more money. Now, obviously you've
16:24
got to buy right at the same time. So you've
16:26
got to learn how to underwrite it a little bit,
16:28
but it's not daunting. You're really just seeing
16:30
how much money the property makes from the income.
16:34
and deducting the expenses from the income. But
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those are the six words that surround or encompass
16:39
financial literacy kind of 101. So this next
16:45
slide I want to look at is kind of an extension
16:47
of that slide. And it really breaks down how
16:51
the poor, middle, and wealthy make their money.
16:55
And so starting with the poor class, the poor,
16:59
what they end up doing is they go to their job.
17:03
And their only source of income is that salary.
17:06
And that income is spent on all their expenses.
17:10
And ultimately, they don't have enough money
17:13
to be able to invest in assets or liabilities
17:17
necessarily, because the income is so low. And
17:21
I know a lot of you teachers probably may feel
17:24
this way. Sometimes I felt the same thing. I
17:26
was telling Angel before, I was making less than
17:28
$30 ,000 a year. So as a Small school, private
17:33
teacher, definitely didn't make much starting
17:36
out or even at the end. Wasn't any big pay raises,
17:40
that's for sure. So I definitely feel that right
17:43
there. So you're having to try and figure out
17:45
how to save money, how to maybe creatively get
17:49
in deals. There's ways to do that too, which
17:52
I'm sure other speakers may talk about, but there's
17:55
ways to kind of creatively get in deals without
17:57
necessarily using your own money, but the poor.
18:00
Getting back to the point here, the poor, they
18:02
go to their job to work for a salary, and all
18:06
that money goes to expenses. This compared to
18:09
the middle class, they go to their job, they
18:11
earn the salary, and what they end up doing is
18:15
they only, no, I don't want to say only, they
18:18
invest in assets, but maybe for the long term,
18:22
maybe for retiring when they're 60 or 65 or something
18:25
like that, the status quo of. I guess the American
18:29
dream in America. But what they often end up
18:34
doing is investing in liabilities that they think
18:37
are assets. So that may be something like a home.
18:41
And a home can be, you could probably sway me
18:44
either way. I'm not necessarily gung -ho on saying
18:48
your home is an asset or a liability, but Robert
18:52
Kiyosaki likes to point out in 2008. People learned
18:55
that their home was not an asset because it lost
18:58
a lot of value. Now, generally speaking, your
19:01
homes can go up in value, but you could go one
19:07
way or another. But for the most part, he's trying
19:09
to say that a mortgage, if you're paying a mortgage,
19:12
you're not gaining income from that. And it's
19:14
all about putting money into your pocket, getting
19:17
more cash flow, other liabilities, car loans,
19:20
obviously student loan debts. kind of have to
19:24
pay those off, credit card debt. You just end
19:28
up spending money like on a credit card, on call
19:32
it retail debt, just on stuff you don't necessarily
19:35
need. And so you're not necessarily focused on
19:38
that asset column. And all this compared to the
19:41
wealthy, what they end up doing is they actually
19:44
don't get their money from a job. What they do
19:48
is they get their money from their assets. So
19:50
real estate, stocks, bonds, notes. intellectual
19:54
property i don't even know what that means that's
19:57
just in there that's something new that i could
19:59
not define intellectual property is like the
20:02
stuff in your head the stuff that you've created
20:04
so your podcast um an ebook yeah you've done
20:10
that it's it's come from your head so business
20:13
basically so i guess i would define that as business
20:16
you're you're creating an audience and you're
20:19
creating fans to buy your stuff so yeah so those
20:21
are some different assets And notice how their
20:24
income doesn't come from a job, but it comes
20:26
from those assets via rental income or dividends
20:31
from the stock market, maybe interest on notes
20:33
that you loaned out, whatever it is, royalties.
20:36
I guess that would come, you know, whatever you
20:39
do business -wise. And those assets pay for their
20:44
income or give them their income, and then those
20:47
end up paying for their expenses and liabilities.
20:50
So that's the difference between all of them.
20:52
And I know one thing right now that's big is
20:55
tax the rich, tax the rich, tax the rich. Well,
20:59
one thing that's interesting, and this is not
21:01
a political statement at all, one thing that's
21:03
interesting is when you understand where the
21:06
wealthy's money comes from, and it's from an
21:09
asset and not a job, it becomes a lot harder
21:12
to tax because it's easy to tax a W -2 job. it's
21:17
easy to tax a doctor or a lawyer. They're getting
21:20
their money from a job, but that compared to
21:22
someone like Elon Musk, a lot harder to tax them
21:28
because their money is technically tied up into
21:30
the stock market. Now, because that's how they
21:34
often get their, I guess, net worth and their
21:37
income. And then once they liquidate it, once
21:41
they bring it to the market, then it's taxed
21:44
because as a matter of fact, I think Elon Musk,
21:47
brought uh he liquidated i don't know how much
21:50
it was but he had to pay 11 billion dollars in
21:53
taxes the most that any person had ever paid
21:55
in american history so they're they're taxed
21:58
differently yeah so and people want to you know
22:01
real estate people they're able to use the tax
22:07
code to their advantage you know the tax code
22:08
just um is like an allowance it tells you what
22:12
to do and how it's going to reward you and so
22:14
nothing no one's doing anything illegally when
22:15
they're investing in real estate um to i don't
22:20
want to say avoid paying taxes but using the
22:22
tax code to their benefit but that's how the
22:25
wealthy get their money and so they're able to
22:27
use things like cost segregation and bonus depreciation
22:30
to be able to basically show a tax loss and so
22:33
then they don't have to pay taxes and so that's
22:36
just the way the tax code is right now in the
22:38
financial um I guess for the MoneyVisionU crowd
22:43
that I have out there, the sharper you're able
22:45
to get that MoneyVision, the more you're able
22:47
to see clearly just kind of how to play the game,
22:49
so to speak. It's like Monopoly. You just got
22:52
to learn how to play the game. And so I always
22:55
kind of joke about this because Elon Musk, he
22:58
was talking about how. He wasn't paying taxes,
23:01
things like that, but he ended up paying $11
23:03
billion in taxes, and then he jokes about, don't
23:06
spend it all at once. Oh, wait, you already did.
23:08
I don't know. The government's not always great
23:10
with spending money. We'll just say that. Let's
23:15
just say that teachers are underpaid. Teachers
23:17
should be paid more. It is one of the most necessary
23:21
jobs that we have in this country, the most needed,
23:24
most important jobs that we have in this country.