How You Can Build Wealth in the Midst of Economic Shaking

Lance: Welcome, welcome back to the Lance Wallnau Show. We’re so glad all of you are back with us again today. Mercedes Sparks is with me in the studio, because back by popular demand, we are covering the real estate opportunities that are abounding in the midst of the disaster of what we’re seeing happen with the economy globally and in the nation. We’re realizing that with the right kind of information, you do not have to fear. You actually can be looking at this volatile situation and doing what rich people do. They actually increase wealth during unstable times. I hate to say it. We all talk about like the George Soros’s and these guys who create market disruptions that they anticipate and then they’re already have an investment strategy and how they’re going to capitalize in the very disruption they create. So, Soros made all his money. Basically, doing that with the sterling pound and it like it’s in evil hands knowledge actually is a weapon that is used against the righteous but God designed wisdom to be the instrument of righteousness. 

Mercedes: Yeah.

Lance: And so, we’re going to move. We’re supposed to be the head and not the tail above and not beneath. In the midst of confusion, there is opportunity to those who know what to do. Those that know their God shall be strong and do exploits it and what does God do? He gives you knowledge. He gives you the righteous see trouble coming and prepares himself, Proverbs says. So, here we are Mercedes. We’re going to come back with Karen Conrad now who’s Vice President of Wealth Builders. Karen, thanks for coming back.

Karen: Thank you so much Lance, Mercedes for having me.

Lance: Well, there’s a lot of excitement over this upcoming workshop that you’re doing and you are a practitioner of the skills This is what we love about you. It was what in less than two years, your friends of mine, like Dave and I, your husband and I like best friends. And like he’s going down with Karen and they’re looking at this property and that I’m getting really curious because you’re working with Cousin Billy and I’m always, I know Cousin Billy, he knows what he’s doing. And next thing I find out, you got six properties in less than two years and you’re learning how to do it while you’re doing it. I mean, it’s not like you had to wait two years then got a property. Boom. You started off right away and that got me excited. The fact that you’re now sharing the secret sauce with everybody and our audience is like huge.

Let’s go back and pick up the conversation. For those of you that don’t know what we’re talking about, we’re talking about wealth creation. 90%. I think you told me of the world’s millionaires are created by real estate and I remember Miles Monroe saying this, years and years ago. He said, real estate is a God business because the meek shall inherit the earth. You ought to look at the earth as though it’s ultimately yours. Start working now with the attitude that it belongs to you. So, with that thought in mind, Karen, you’ve got several things. How can we catch them up?Run them through real quick. Some of the stuff that you gave us in the last broadcast because I want to go do a deeper dive on all-new material in the secret sauce.

Karen: Yeah. So, we talked a lot about establishing the foundation for real estate being the way to go build wealth God‘s way. Also, that in these economic times that the enemy, the same is trying to just put fear. The left is trying to lead with fear. And as we stay in faith and we look and see things clearly, we realize that this that we’re coming into this season is an opportunity. I would say that real estate is the biggest opportunity for us right now just with what’s going on in the market. So, keeping that clear head with wisdom and knowledge and how to go forward. So, we talked about Law of Leverage which we’re going to take a deeper dive into for understanding today the tax benefits of a 1031 exchange, real estate designation. But I think it would be good to kind of explain what is happening here with the Law of Leverage and give you a picture of it.

Then, we’re going to go into the different types of real estate investing and some of the benefits to help people get started. Plus, we want to try to cover you can get into a house if you think you don’t have money, I think you have money. We want to share some avenues for you to accessmoney.

Lance: While you’re going into that, Karen you mentioned to me. I guess was in just right before the show that people are out there thinking I know my audience I know my folks they’re thinking oh man hey, I don’t have anything to work with. But there’s a story about a pastor who was literally like living with a pastor Sally paycheck to paycheck and what happened with him?

Karen: Yeah, so he was meeting with Billy and Billy was trying to tell him about real estate, just like Lance what you’re trying to share with people in this program. He just didn’t think he could do it and finally when they sat down Billy started drawing out in a napkin. He looked at him and he said, ‘Do you have equity in your home.’ Because Mike had come from a place where he could hardly make ends meet. And he said, ‘I do. I’m about three years away from having my home paid off.’ Then Billy started talking to him about the Law of Leverage. He got a home equity line of credit and that same pastor today does not need his income. He has got more passive income coming in from real estate than he could ever dream of and he’s one of our real estate coaches now at Wealth Builders.

Mercedes: I so love that. I want to jump in really quick before Karen goes into material. Because Lance to your point, I want you to understand if you’re watching this right now, you’re watching it for a reason. And when you sow to the Lord, it tells you that Lord’s going to repay you back.But that’s not always in a financial means. Sometimes that’s in the form of provision. And in this case, what Karen carries is knowledge and she’s done this and she’s talking about passive income. The idea for so many people of like passive income, what is that even mean? That means instead of trading your time for money and earning a paycheck you place that by making your money start to work for you. And what I love that she just talked about, because I know there’s people out there thinking I don’t have any money, Mercedes. I don’t have anything.

She just gave you one example of how you could take something that you already have that you maybe don’t even know that you have. Which is equity in your home and to turn around and how to purchase properties and they have more strategies that they can show you of how to purchase properties without any money down. So, I just want to, I almost feel the lord and I feel the anointing on it. I want to go far as say that, that when you’re asking for God, I need a strategy and I need a plan and I’ve been sowing into it, provision looks like what Karen’s about to share with you. So, Karen, with that, I just want to throw it over to you because I really felt it so strong. I was over here waving at Lance. I’m like, please, I have something to say because I feel like there’s somebody watching this has been asking for provision and this is it like this is the answer to what you’ve been talking about.

Lance: And Ezra, handing it off to you, Karen. My background coming especially within a realization that I have this Ashkenazi Jewish rabbitical side of my father’s bloodline. Malachi was written by the Levites, for the Levites. And what it said is that, when you bring what Godrequires of you. Those of you that are tithing. Those of you that are givers. When you bring that into the storehouse, God will open up for you windows of heaven. And for a Jewish person the window of heaven isn’t a miracle check in the mail. Because once the miracle check is dried up,you need another miracle. For the Jewish people, it was a multiple windows and avenues of wealth creation. Abraham had 7 different streams of wealth creation. He wasn’t living from paycheck to paycheck and miracle to miracle. He was living in a steady current of divine wisdom on how to manage and increase wealth. That is God‘s ideal for his people. It’s not being dependent on a survival bailout as being able to have enough to help someone else in need on a consistent basis. So, with that thought in mind, you’re practicing it, Karen. Take it from here and tell us what have you learned.

Karen: Awesome. Well, yeah. So, we learned first of all that the government is trying to tell us that we’re a victim and that we should depend on them. This is to me like spiritual warfare like oh no, we’re going to build wealth and so here’s some practical things to help you with it. First of all, let’s start with talking about the down payment again. Home equity line of credit is something that a lot of our coaching clients and people are accessing. This is a really good time for a home equity line of credit to take a look at it. Let me tell you why. When a bank looks at the value of a home, they look at the history of what’s called comparables or what people have purchased for. The comparables right now are still very high. Now, in some areas, I think we are seeing a decline. Other areas, we’re seeing no decline. It’s really amazing and it just happens to be a lot of those areas’ conservative areas, alright? No surprise there.

So, the timing of this is very important right now and the interest rates on a home equity credit line are much lower than a typical cash out refinance. Some other things that we have discovered or uncovered for people is while they might not have a lot of money in their checking or savings account, they have got an IRA that is just sitting there maybe even taking a pounding from the market. While you can do something called a self-directed IRA for purposes of real estate. So, that’s one area that you can look at. You can borrow against your 401K that a lot of times is taking a pounding right now too. And to get started like Mercedes was saying, you can go with no money down. Sometimes, all you need is just 1% or even a half percent to put down, you can sell things on eBay or something like that to get the money. So, everybody can qualify to get into real estate.

Next, I want to cover the Law of Leverage and this is something we’ve got some slides to help make this very clear to you. Lance knows my husband Dave and so it probably really did get your attention Lance that he’s buying real estate because he’s a very conservative guy and you’re probably wondering what is he up to? Well, I want to give you an example with the stock market. We do believe in diversification. We do believe in the stock market when you invest properly,but if what you have a $20,000. Let’s say you’re able to find that. If I put that in the stock market, I have a $20,000 asset. I buy $20,000 worth of stock. If I get a 10% return, I think we’d all say there’s a pretty good return, I would earn $2,000. Then, let’s look at the tax consequences of something like that. It’s earned income which is probably going to be charged at 35% and/or if you hold it for a longer time, it’s going to be capital gains. Which right now is 15% and looks to be higher.

Conversely, if I take that $20,000 and I put it into real estate and I put $20,000 down in real estate to purchase a $200,000 asset and I get 10% return on that asset, I earn for that 20,000, not $2,000. I earned $20,000 because my return is not based on the cash, I put into it. My return is based on the value of the asset. Plus, you are able to depreciate which is a phantom loss on your tax returns, you’re able to deduct your interest and other cost of goods and expenses. You have no capital gains when you utilize the 1031 that we touched on last time. And if you do a cash out refinance or you do the home equity line of credit, there are no taxes. So, when you compare real estate to other investments, your return back is significant and if you put 20,000 in and you get twenty thousand and out, what are you going to do? You’re going to take that money and you’re going to go into the next property. So, that is a really important factor to know about with real estate.

I’ll share a quick story with you that I want to go into the various ways that you can invest. Dave and I have just done this in one of our properties down in Florida. We did the improvements and that’s Deuteronomy eight eighteen. God gives you power to create wealth. We got an appraisal. The value of the home with over $00,000 more than what we put into it. I was able to get all of my cash back that I had put into that property still at 20% of equity and guess what? We’re sitting with that money ready to go in and purchase another one. So, one of the other things we talked about that we wanted to cover is three exit strategies. What we go over for you is that when you invest in real estate, you want to think about different ways that you can get out of that property or earn money.

So, real quickly, three exit strategies are the buy and hold, flip, and short-term rental. Buy and hold is a long-term rental, that’s where you run the numbers that meet the criteria with that secret stocks, the steps that we’re going to be sharing with you during the conference. And then, you watch for your real estate taxes especially with the new build and make sure that you get the numbers in to properly analyze it. Lance and Mercedes, the people that are in the coaching program we have a whole calculator for them. We actually have one in Billy’s website as well that you can go in put the information in on a property, run the numbers and you can know where you’re going to be in all these areas. That’s just one of the benefits.

Flipping houses is something that a lot of people like to do. But I want to tell you if you don’t do it right, you’re going to run into trouble. A lot of people go in thinking that they can flip a house because we love HGTV which I do too. I actually have a program where I show you how to do this. But if you don’t know what you’re doing, you can lose your shirt. I guess that might sound a little harsh but I have seen it over and over. So, we give you things to look at like solidify your ARV. If the market showing strong with the flip, quickly mitigate the risk of the market. Make sure you’re moving on it. Stay away from volatile markets. Buy low. Make money when you buy. Count the cost. We tell you how to analyze that. Get your caring cost in there for analysis. Don’t over under improve. We teach you how to study the home and the market to know what to do and what not to do and pay attention to the market trends in that area.

Vacation and short-term rentals. We have a whole list of things that we go over there for you but things to think about there that It’s exciting. It’s a lot of work but the margins on vacation rentals if you get in the right market are substantial. So, I’m going to be showing you in one of the sessions. It’s actually on Sunday. I’m going to be taking you through how to analyze a property including vacation rentals and what to look for. Few quick points here that I’ll share with you. Analyze it for the demand. Be realistic with the nightly amount that of occupancy and percentage. If you’re in a seasonal area, we tell you the amount of time that need to be aware of so you can get all your cost covered. You got to look at your HOA. You got to pay attention to the politics in the city and the culture for vacation rentals. You have to have some cash reserve to handle the getting started time. We teach you about executive rentals and traveling nurses as an option. Look at the tourism and then know the key things with vacation rentals that get you the big good reviews. Because when it comes down to it, people stay at vacation rentals that get good reviews.

Lance: Now, is Airbnb in that category there? Is that what that is?

Karen: It is. You got Airbnb, vacation, or VRBO. There’s a place called Furnish Finders which is for traveling executives. There’s also a way to do it working with your local real estate like “Zillow” “Realtor.com”. We talk to you about getting into places like we are that there’s SpaceX, there’s Lockheed Martin. There are executives that coming in and they need a place to live and we teach you all those things.

Lance: You guys are listening to this. Now you might be a little overwhelmed. Some of you that are on the podcast that can’t see. We’re putting up PowerPoints right now. And how many PowerPoints are you actually slides you got to cover in three days of your coaching program. How many?

Karen: We have over 20 sessions over the weekend and each of those has got a separate PowerPoint. We have some templates that we take you through. It is the Most comprehensive real estate conference that I have ever been to and we keep hearing that from people. I get inspired at some conferences but you actually show me the how to and that’s what we’re committed to.

Lance: Where is it going to be taking place? October 14th through 16th. But where is it?

Karen: It’s in Denver, Colorado.

Lance: Denver.

Karen: And we are sold out in person lands. However, based on our discussion, we have added a live stream. So, no matter where you are, you can be part of this conference through the livestream.

Lance: Alright, so listen man. This this is like I got my wife’s going to be there. My daughter’s there. Mercedes is going there. Truth be known. If I wasn’t speaking at an executive retreat. That’s where I would be myself. So, this live stream and listen, if you use the I guess we got a promo code. Are we going to use a promo code for the live stream?

Mercedes: Yeah, Karen was nice enough to extend the 50% off too. Also, the live stream which is nuts.

Lance: Wow.

Mercedes: But so normally, it’s $399 for the live stream and you get that for three weeks but if you use the promo code Lance50, it’s $199.

Lance: Man, listen to me. Three days of this for $199. Do you have any idea you pay $50,000 a year for Pepperdine, I was doing from one of my kids? And this is like $199 for three days. This is this is going to give you the inside secret sauce that is Being used by people that are brand new to this 6-properties in less than two years. Pastors that are now not even needing a paycheck from the church because they’re talking to Billy. There’s wealth that you’ve got you’re sitting on that you’re not even aware of you could put to use. There’re tax strategies, diversification strategies. I mean it’s just a no brainer. I’m saying it, yet there’s no excuse for not investing in knowledge,because knowledge is power and my people perish for lack of knowledge. The Jewish people were told to be the head and not the tail above and not beneath and God‘s plan for you is that you should be whipped around by the culture, by the left, and by circumstances. You should be the person that’s in a position to be able to lend and to sow. And ultimately, what’s the purpose of all this?

Well, the purpose of all this is get you out of debt so that you have sufficiency to get you out into from sufficiency to prosperity so that you begin to be the meek that inherit the earth, manage the earth, and begin to multiply wealth so that you can go to the next level which to be a pipeline of finance for the kingdom of God. So that money can flow through, no matter what happens economically. Trillions of dollars are going to go somewhere around the world. Right now, China is the one who seems to be working out but God‘s plan is that the righteous should be the people that receive it. But in order to do that, you have to make the investment in yourself.

Mercedes: And the nice thing about live stream too is like get a couple of your friends together. Go through this material with other people in your room. Like I got three or four other husband wife couples that would like to know this. If I wasn’t there in person, I’d probably pick up the discounted live stream. Invite them over and you get it for three weeks. So, you could almost do like a nightly Bible study type of a vibe, right. Bring some snacks and you sit down and you watch Karen and Billy and all the other great presenters that they’re going to bring in there and learn this as a community. Do this with your family. I just think that this is, I love like to your point, learning, gaining knowledge, and then putting that to action. That’s what I love about Karen and Dave and it just ministers to me.

I’m like and I mean, I told Larry, I’m like, Larry if Karen and Dave can do this, we can also do this. I like to think of them as like another like power couple and Larry and Dave have a really similar disposition and I think so do Karen and I. So, I was like if they’re do this like we could do this babe. So anyways, it’s really inspiring and Lance you’re like you’re saying like this is really not just about acquiring wealth to have wealth but it’s I mean in my opinion is to take care of others and then you have to fund the kingdom. So, like when we’re talking about like Karen has properties, she has six properties each one of those properties and I don’t know if you said this yet Karen. But are making a certain dollar amount that now that’s your cash flow and you’re now replacing the that you would make at a nine to five job or the hustle.

So not only are you funding the kingdom but you’re also freeing up your time. It’s like what if you’re working that 9-to-5. You want more time with your wife and your kids. You’re a stay-at-home mom and you’re like you know what? I want to contribute to the household income too. I mean these are strategies that are going to help you do that. I mean there’s so many ways to make money online. This is just one of them and we’re bringing you best in the industry.

Lance: And by the way, it’s not limited to this because at Wealth Builders the beauty of it is we’re talking real estate that’s one, man as deep and as powerful. As that was the only thing that Cousin did that would be enough, but that’s not the only thing. So, he’s talking about the tax strategies, about the stock investments, about diversifying your portfolio into other areas as well.So, there’s more than one dimension of, well, Abraham as I said earlier had seven revenue streams that were in his inheritance. Abraham, Isaac and Jacob were three generations, not a priest, not of kings, not even a prophets, but of three generations of Jewish entrepreneurs. They were entrepreneurs. The foundation of Israel is an entrepreneurial spirit and entrepreneurism is creating wealth, not taking wealth.

So, what you’re doing is you’re maximizing the utilization of what’s there to extract out of it increase so that you can keep multiplying. I got to say this is going to be really one of the most powerful things. When you look right now at the country, how do you know what parts of the country are worth looking at because we got people all over the country. Are they limited to their own backyard or how do you know where to go?

Karen: That’s a great question, Lance and you’re not limited to your own backyard and Mercedes, you actually mentioned this. We live in Southlake, Texas and to buy home in Southlake Texas we would have had to buy you know it’s like $800,000 is like the minimum. We’re like, oh my gosh, we’re not in that position. So we went to another area that actually Levi studied based on the criteria that we share at this workshop. So, you go in you look at an area. There’s a lot of factors to take a look at. I step you through that. You look at median income. You stay within a certain range. You don’t want to go higher than that. You want to look at the cash flow. You want to get 10–to–20% cash on cash return so you go in and analyze right in your little bedroom slippers on the phone and then you step out and you go look at it. So, we help you identify those markets. There’re definitely ones to stay away from. We show you what not to go after and then the ones to go after and we have people that they invest all over the country.

Lance: So, you can and like we said earlier this is a great family enterprise.

Karen: It is.

Lance: Because get your children involved. They could be going out and checking out the properties and coming back and saying, is this a good family investment? Is this, do they like the area? Is this some place they want to go? And I know you and Dave have done that, with Levi, your son also is involved, right?

Karen: He is totally involved. He is overseeing our properties actually down there right now, property managing them. He’s our numbers guy. He’s our general and what I love is, we need to connect with this younger and this is a great way to do it. Instead of for us not sending him to a traditional 4-year college to indoctrinate him, right. We’re teaching him real estate and we’re getting him in at a young age and that pathway is so good. Plus, we get to enjoy our inheritance together as we build wealth not wait till you die to get a chunk of money once you’re gone, right.And we teach him and that’s what we’re all about is teaching families how to build and manage wealth for generations and it just keeps them close to the kingdom of God. It keeps them close as families and I think we are coming into a time that we don’t even know how important this is, but it is just a wonderful thing. So, kids, grandkids, this will change your family legacy.

Lance: Well, I’m going to draw two names in the last one minute here because I think are important. It’s Dave Ramsey and Kiyosaki. Kiyosaki with his Rich Dad, Poor Dad has a great definition of prosperity. He said, he’s a Christian by the way. Prosperity is when you don’t have to work another day in your life. You get to put your time into what it is that you really believe you’re called to do. So, when you have this passive income that displaces your hamster wheel job, you then can put all of your time into doing what you really want to do. Now the Dave Ramsey School which focuses a lot for Christians on financial peace which is getting out of debt.The distinction here that Billy makes is you need to manage with respect debt and you need to utilize debt to your advantage. Because all of Kiyosaki’s great wealth comes because the banks want to give him the money, because he does big projects and they like big projects for their money. So, he leverages debt and he makes debt work for him and make him money.

So, Karen, you introduce that concept and you’re going to be sharing that also in your three days of training because getting out of debt and then leveraging debt are the two arts that are the counterintuitive genius of wealth creation. But once again, you’re going to be able to go to, what’s the website?

Mercedes: “Lancewallnau.com/realestate” and then use the promo code Lance50 and only live streams available. So, make sure you grab it. Do this to one of your friends, do it to your husband, your wife, whatever.

Lance: Get half off and watch it, learn That’s how I’m going to do it and you got 3 weeks. If you can’t get it the first week, you’ll get it the next weekend but do it. Thank you, Karen. Thank you, Mercedes and we’ll see you again in the next broadcast.

Closing: Did you enjoy this latest episode? Please remember to share it with your friends.Because the more knowledge you have, the better equipped you are to navigate the world. See you tomorrow.